Highlights
- The Loughs request $125,000 for 10% equity in their company, Llama Brew, which produces organic fertilizer from llama manure.
- With only $4,000 in sales and a provisional patent, the Loughs struggle to convince the Sharks of the product’s potential.
- Despite not securing a deal, Llama Brew eventually overcomes legal challenges and finds success in Oregon, generating $1 million in annual revenue by 2021.
Overview
| Category | Details |
|---|---|
| Name | Llama Brew |
| Founders | Phil and Aida Lough |
| Industry | Organic Fertilizer |
| Product | Organic fertilizer made from llama manure |
| Funding Sought | $125,000 |
| Investment Ask | $125,000 |
| Equity Offered | 10% |
| Valuation | $1,250,000 |
Phil and Aida Lough bring Llama Brew to the Shark Tank in episode 110, in hopes of turning their hobby-farm product into a success story. The Loughs didn’t set out to get into the fertilizer business. Their animal collection started with a small herd of “therapy goats” for their adopted special-needs twins. Soon the herd grew into a petting zoo. The Loughs make a living putting on presentations for fairs, schools, and other venues.
After a mountain lion attacked the herd, Aida brought in llamas to protect the pets. The Lough’s interest in organic gardening and environmentally friendly solutions soon turned into a business idea: A natural, organic, ready-to-use fertilizer. Will the Sharks come up smelling of roses?
Llama Brew Shark Tank Recap
The Loughs enter the Shark Tank seeking a $125,000 investment in return for a 10% stake in the company. They introduce their product by presenting a small potted tree, and showing before pictures of the nearly dead plant. They claim their Llama brew revived the sapling, which is now lush and green. They explain that the business is “green from the ground up”. They collect the “llama do” themselves, and process it before putting it into recycled containers. The main draw of the business is its environmental friendliness. Daymond John asks the critical question: What have the sales been thus far? The answer is disheartening. Sales to this point have been only $4,000.
The Loughs throw out one more lure in hopes of snagging a Shark: They have a provisional patent on the process of turning llama poo into liquid gold. Robert Herjavec points out that the next step will be to educate customers on the value of using the environmentally friendly Llama Brew. On the basis of the cost of marketing, John is out.
Kevin O’Leary says that the amount they’re asking for, with only $4,000 in sales to back up their request, is far too high. He doesn’t believe they have a strong sense of risk vs. reward, and he’s out. Kevin Harrington and Barbara Corcoran agree with O’Leary, and they’re out. Robert Herjavec asks about the cost of a single llama. He also believes the asking prices is too high considering the paltry sales. The final Shark has turned away from the odoriferous business, and the Loughs leave the Shark Tank without a deal.
Llama Brew Shark Tank Update
Despite the setbacks, the Loughs continued with their business until 2014, when the community and city became concerned with the numbers of livestock on their suburban property. When complaints about the odor begin to add up, the couple found themselves embroiled in legal battles with local officials. Despite their best efforts, the business eventually shut down.
The website is still active, but orders were closed for nearly two years. The Loughs relocated to Oregon, a state with legal marijuana. Apparently, Llama Brew helps weed grow like a weed. The organic nature of the product appeals to marijuana growers and the company is back in the Llama poop business.
As of July, 2021, the company is still in business with annual revenue of $1 million.
Llama Brew Company Information
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