Alexandra Ulmer seeks an investment for Au Baby (pronounced OH Baby), her ethically and sustainably manufactured baby blankets, in Shark Tank episode 1513. “Au” is French for “for the.” Ulmer spent the better part of 20 years as a knitwear designer at Nike. It was there she learned that most baby blankets are made with synthetic fleece or cotton ladened with chemicals. Part of the company mission is “to clean up the toxic textile industry” and she’s doing it one baby blanket at a time.
Founded in 2019, Au Baby uses all natural Merino or Cashmere wool. It’s soft, sustainable and stain resistant. Stains wipe off with a damp cloth. The wool is dyed in Italy using sustainable ingredients like plants, barks, flowers, leaves, and even insects. Blankets are produced in a small, woman owned facility in Los Angeles.
Sustainability doesn’t come cheap. The blankets cost $160 each, but they’re literally heirloom quality. They come in a variety of styles and colors. For $10 per letter, you can add a monogram. Ulmer is likely in the Tank to gets a Shark’s help upgrading her machinery to produce apparel and adult-sized blankets.
Company Information
Video
Posts about Au Baby on Shark Tank Blog
Au Baby Blankets: Revolutionizing Baby Blankets
Au Baby Shark Tank Recap
Alexandra enters the Shark Tank seeking $80,000 for 25% of her company. Au Baby is the first clean, suustainable baby blanket made with a performance fiber made just for babies. Here’s the problem: babies are leaky, messy and can’t communicate what they need. When they’re too hot or too cold, they cry. What if there was a blanket that solved those issues and adapted to keep them comfortable? Enter Au Baby.
It took a knitwear design expert – Alexandra – to create this blanket. It can stay clean up to a year. They’re naturally stain and smell proof – just dab away spills and get on with your day. Her blankets regulate temperature by wicking away sweat and keep babies cozy and comfortable all night long. She wanted to create a blanket she could trust against her baby’s sensitive skin. It’s a true security blanket for you and your baby. She asks the Sharks, “are you ready to cozy up to Au Baby?”
Samples and Questions
The Sharks have her best selling Popcorn Blanket. It’s made from extra fine Merino wool. The Sharks also have a sample of the Italian plant dye material. It’s the world’s first naturally plant dyed Merino wool blanket and it’s guaranteed not to fade with washing. Emma wants to know Alexandra’s background.
Alexandra is a knitwear design expert. She started in luxury fashion. For the past 7 year she was a hybrid engineer/designer at Nike where she designed performance fabrics for top athletes like LeBron James. She left that job to re-invent the baby blanket. Babies are the most vulnerable to environmetal toxins, The majority of baby textiles are synthetic: polyester and acrylic; it’s plastic. They’re made that way to reduce cost. Au Baby blankets are 3 times more durable than cotton.
Numbers
Each blanket costs $74 landed and it sells for $160. They’re made in Los Angeles. The Sharks recoil at the price. Messaging about the quality of the blanket is important. It’s a story she tells again and again on social media. Lifetime sales are $62,000. Last year (2022) sales were $38,000. She has a target of $100,000 for 2023 and sells 100% direct to consumer. The company doesn’t do traditional digital marketing so she doesn’t have any analytics on customer acquisition costs. Instead, they use a PR firm that specializes in the infant space.
Kevin says if he had a baby he would buy the blanket after talking to Alexandra for 5 minutes. She needs to reach the mother at the right moment which is why customer acquisition is so important. Kevi is also taken aback by the price – it’s so expensive. He wants to know the plan to sell it. Alexandra is partnering with the top pediatric specialists in the country. She’s been featured on top 20 podcasts talking about fabric quality. Mark says it hasn’t translated to sales.
Who’s In?
Robert says the higher the price, the harder it is getting the consumer to see the value proposition. He doesn’t see it right now; he’s out. Mark talks about where the purchasing decision is made. If she doesn’t get to the person at the right time, she’s lost it. She needs to crack the code on how to market it; Mark is out. Lori likes the product, but the high price is a problem for her. Alexandra says she’s looking at production overseas to bring down the cost as she scales. Lori says it’s too early to be investable; she’s out. Emma loves the product but it’s too expensive. As an investor, it’s too early; she’s out. Kevin is the only Shark left that hasn’t gone out.
Alexandra says Kevin has a great track record with female entrepreneurs and he needs to ad birth to his portfolio. Kevin loves Alexandra and her pitch, but he’s concerned about her not knowing customer acquisition cost. Alexandra talks about other companies that come into the Tank that have raised money but burned through it with digital marketing which is more expensive than ever. When Alexandra asked people how she could build a direct to consumer luxury brand everyone told her to forget digital marketing; instead they advised her to build community. Kevin says his team is watching and thinking “what the (bleep) is he doing?!” He offers $80,000 for 50%. Alexandra counters with 30%. Lori implores Kevin to take 30% but he says he’ll have to do a ton of work. Kevin counters with 40% and Alexandra immediately counters back with 35%. Kevin takes that deal.
Au Baby Shark Tank Update
The Shark Tank Blog constantly provides updates and follow-ups about entrepreneurs who have appeared on the Shark Tank TV show. As of July, 2024 – about 5 months since the initial air date – there is no evidence the deal with Kevin closed yet. Kevin was live Tweeting during this episode and did not mention Au Baby once that night. Alexandra told a local ABC affiliate the Wednesday following the show that she “made a wonderful partnership with Mr. Wonderful and [she’s] really excited.” She also said Kevin was the first Shark to “get it.”
The Shark Tank Blog will follow-up on Au Baby & Alexandra Ulmer as more details become available.
