NUMILK Shark Tank Update – Shark Tank Season 12
Joe Savino and Ari Tolwin seek an investor for NUMILK, their “make it yourself” almond milk machines, in Shark Tank Season 12 Episode 18. Both men are beverage industry veterans. Ari cofounded Happy Tree Maple Water in 2013 and served as CEO for 4 and a half years.
Check out other Shark Tank Season 12 Episodes.
About NUMILK
| Category | Details |
|---|---|
| Business Name | NUMILK |
| Founders | Joe Savino and Ari Tolwin |
| Industry | Beverages |
| Product | Plant-based milk machine |
| Deal Status | Deal secured with Mark Cuban |
| Investment Asked | $1,000,000 for 5% equity |
| Deal Outcome | $1,000,000 for 7% equity and $1,000,000 as a loan (optional) at 3% interest for 3% advisory shares |
Joe cofounded Harvest Beverage Group, a beverage copacker, in 2013 and worked there for 5 years. Joe is the inventor of the NUMILK machine.
Their machine basically makes almond milk on demand. Unlike many packaged almond milks, the stuff that comes out of their machine has only two or three ingredients: almonds, purified water, and maple syrup (if you want it sweetened). Almond milk is becoming increasingly popular. Almonds are good for you, too: they contain vitamin E, calcium, phosphorus, iron, magnesium, zinc, selenium, copper, and B vitamins.
The machines are about the size of two refrigerators. A customer grabs a bottle, puts it under the spigot, and selects sweetened or unsweetened. In about thirty seconds, they have a bottle of fresh almond milk for $3.99. The process eliminates a lot of supply chain food waste and delivers a fresher, healthier product to consumers.
As of the original air date, NUMILK has machines in Whole Foods Markets in greater New England and New York and a few other mom-and-pop grocers. Whole Foods wants to expand the machines’ footprint, and NUMILK plans to roll out oat, macadamia, and other alt-milk options for its machines. They likely need a Shark to build more machines to service more locations.
Posts about NUMILK on Shark Tank Blog
Nu Milk – Almond Milk Machines
NUMILK Shark Tank Recap
Joe and Ari enter the Shark Tank seeking $1,000,000 for 5% equity in their business. That number got the Shark’s attention. They tell their story and explain their product. The Sharks try the samples placed before them and Mark comes onstage to make some milk with the machine. The Sharks like the taste. Right now, they have almond and oat milk now, but can add other flavors. The milk has a 7-10 day shelf life and must be refrigerated.
Kevin raises concerns about the capital investment. Each machine generates $50,000 per year and costs $30,000 to make, but they can get it down to $15,000. The bottle (reusable) costs $2, and it costs $3.99 to refill it. The grocery store takes on a third of that. They’ve raised $12 million at a $40 million valuation.
When they unveil their home countertop machine prototype, the Sharks ooh and ah. It cost $85, has landed, and will sell for $199. In 2018, they had $40,000 in revenue from one machine for a partial year and spent $2 million in R&D. In 2019, they had $320,000 in sales with ten machines, and they spent $3 million.
For 2020, they were on track to do $6 million, but launches with major grocery chains were delayed due to the COVID-19 pandemic, and they’ll spend another $2 million. Actual sales will be $400,000. They do have $3 million in the bank, though.
Did NUMILK Get a Deal On Shark Tank?
Barbara says she doesn’t get it; she’s out. Daymond is confused too; he’s out. Lori says there is a lot to explain, and she says it’s not investable for her; she’s out. Mark asks what their commercial-grade countertop device costs: $699 and $300. Kevin says he thought they were nuts when they first walked out, but he offers a $1 million loan at 1.5% interest for 3 years for 5% equity.
Mark thinks they’ll sell a million of the countertop units; he says they’ll need cash. He says 5% is not enough. Mark offers $1 million for 7% equity and an optional loan for $1 million at 3% interest for another 3%, but he doesn’t get the extra 3% if they don’t take the loan. They do the deal.
NUMILK Shark Tank Update
The Shark Tank Blog constantly provides updates and follow-ups about entrepreneurs who have appeared on the Shark Tank TV show. Since airing, they are still in negotiations with Whole Foods. They have machines in 28 independent grocers across the USA. The deal with Mark has not closed as of July 2021, but my sources tell me they are close to finalizing. The guys started a Kickstarter for the home version of the machine the day they aired on Shark Tank and raised $222,353. The home machine is also listed for sale on a pre-order basis on their website.
The home machine promises to be the Keurig of plant-based milk. Unlike the large machines, the home and coffee shop versions use a pouch of finely ground almonds (or whatever flavor you want) and water. The pouches reduce packaging and shipping waste by not including liquids. Add the pouch and water to the machine, push the button, and it makes your milk.
Pivoting and The Home Machine
By July 2022, the deal with Mark ultimately went through, but the deal with Whole Foods did not. The company pivoted and now markets to coffee shops. Their commercial machines were in 69 shops nationwide and a few small, independent grocers.
Their website says the home version will be ready for shipping in the fourth quarter of 2023. In March 2023, the company entered into an agreement with Hamilton Beach Brands to manufacture and sell commercial and consumer appliances for use with Numilk ingredient pouches. Hamilton Beach plans to launch the new appliances in “early 2024.”
By August 2023, they had machines in 133 shops. In October 2023, the smaller machines were available, but only to coffee shops and retailers. Consumers are on a waitlist until early 2024. By April 2024, the at-home machine were available for $249 on the company website and Amazon. As of July 2024, they have commercial machines in over 170 locations in the USA.
Annual sales revenue is approaching $13 million, and lifetime sales are over $55 million. Though it’s not disclosed publicly, the estimated net worth of NUMILK is $70 million.
Where Can You Buy It?
NUMILK is available for purchase on their official website and on Amazon. Check out their social media on Facebook and Twitter for more updates.
Quick Summary
- Joe Savino and Ari Tolwin pitched NUMILK, a plant-based milk machine, in Shark Tank Season 12 Episode 18.
- They landed a deal with Mark Cuban with $1M for 7% equity, plus a $1M loan option for 3% advisory shares.
- NUMILK has machines in 170+ shops, home units for sale, and over $55M in lifetime sales.
Interested to know about the businesses that appeared on Shark Tank Season 12 Episode 18? Check out the business updates!
