S14.E19: Parting Stone; Cincha; Burlap and Barrel; Milkify - Shark Tank

Sharks-Guest Gwyneth Paltrow, Barbara, Lori, Mark, Kevin

Parting Stone- Alternative to cremation services for humans and pets.   They turn ashes into stones.  He thought of this idea after being given a plastic bag of his grandfather’s ashes.   After the cremation, the ashes are turned into stones.    He wants $400k for 5% of his business.  His primary business model is working directly with the funeral home.   Humans usually turn into 40 or so stones, cats are 3 or 4 stones. 95% are human remains, with 5% pet remains in their business.

He loans stones that were made from his grandfather’s ashes to the Sharks.

Seller expects to lose $800k this year, with revenue of over $1 million. Seller says he’ll be profitable in two or three years.   I hate those numbers. (What do you do with the stones after you get them?  I find the stone idea useless, and I never heard of a funeral home handing you a plastic bag. The ashes are in a bag, but in some kind of cardboard box, or if you buy a wooden box or urn, they're in that). 

Mark is out, Barbara is out, Gwyneth is out after a long winded ramble about the product.   Kevin and Lori are still in.   They offer 20% for $400k, counter offer is 7% split between Lori and Kevin.   Barbara wants a royalty, and 10%.  Lori and Kevin go with a royalty deal at $400k, and 10%.  Seller counters with a higher royalty on direct to consumer, and

Deal with Lori and Kevin, and I’m shocked they made the deal.  (Mark is going to take the idea to his memorial diamond company, and see if they can do that too).

Cincha- a travel belt that secures a small bag to a larger one, a stylish travel accessory.   $200k for 15%.  Connects your small bag to the handle of your big luggage securely.   Very heavy duty, and durable.  What a wonderful history for James Baker.   Margins are good, but customer acquisition costs need to be much lower. The two owners are the only staff for the company.  Gwyneth is out, Mark is out, Lori is out.    Barbara offers $100k in equity, $100k in credit for 33%.   Kevin 20% and a royalty deal, for $200k.

Barbara makes the deal for 25%.  Jokingly, Barbara asks for woman to throw in her fiance in the deal, and they agree.

Burlap and Barrel Single Origin Spices-Organic cooking spices.  They buy directly from the farmers, cutting out the middlemen.    They want $500k for 5%.  Cinnamon, Black limes, Wild Cumin, and Peppercorns (very hot).  85% direct to consumer, the rest through stores.  Ethan brought some spice back home, sold to friends in the restaurant industry.  75% margins, lifetime sales $12 million over 6 years.    2021 $5.1 million.    Mark is out, Lori is out, Barbara is out, Gwyneth is out. Sellers pitch a royalty deal to Kevin.   $500k with $2.39 royalty on each sale , 10% until he gets $1 million back, plus a special Mr. Wonderful set of spices.

No deal.  I’m surprised no one made the deal with the margins, and profits.

Milkify- freeze dries milk for nursing mothers.   $400k for 10% equity. Freeze dried milk lasts longer, takes very little space, instead of filling your freezer.   Freeze dried breast milk stays viable on the shelf for three years.   The label on the back of the pouch says how much water to mix with it.  Milk stays comparable to fresh milk in nutrients.   They ship a kit to the mom, with instructions, and a cooler.  About $1.60 an ounce.   Some women have employers who pay for this.   This year they hope to break even at $500k this year, they have had to invest a lot in processing facilities.   Customers are finding the sellers.  60% of their sales come from lower, and middle income households. Mark is out, Kevin is out, Barbara is out.  At $475 or so a month, I don't see how this appeals to anyone who doesn't have a lot of money.     Seller wants Lori and Gwyneth to join with them.    Lori and Gwyneth offer $400k as a  loan, at 20%.  They want a convertible loan in three years.

Lori and Barbara make the deal.

Update:  Yellow Leaf Hammocks.   They made a deal with Daniel.   Very successful, and created a more portable version.  Their weavers get great profits too, and they employ many women making the hammocks.  They sell hammocks to a cruise line too. 

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