Tia Lupita Foods Shark Tank Update – Shark Tank Season 14
Tia Lupita Foods, a health-focused Mexican food brand featuring cactus-based tortillas and chips, appeared on Shark Tank Season 14.
Hector Salvidar gives the Sharks a taste of Tia Lupita Foods, his line of healthy Mexican food items, in Shark Tank Season 14 Episode 20. When Hector moved to the USA from his native Mexico back in 2007, his mother sent him along with her homemade hot sauce that has “a delightful balance of heat and flavor.” She’d ship him some hot sauce when he was running low, and his friends raved about it.
Check out other Shark Tank Season 14 Episodes.
About Tia Lupita Foods
| Category | Details |
|---|---|
| Business Name | Tia Lupita Foods |
| Founder | Hector Saldivar |
| Industry | Food Products |
| Product | Mexican-inspired health food brand |
| Deal Status | Deal secured with Kevin |
| Investment Asked | $500,000 for 5% equity |
| Deal Outcome | $500,000 as a line of credit at a 12.5% interest rate for a non-dilutable 5% equity |
Hector, who worked for a number of years in the food industry, asked his mother for her recipe and her blessing to bottle and sell the sauce. Her image is even the company logo.
In 2018, Hector took the plunge and began bottling and selling his sauce. Along the way, he added cactus tortilla chips, cactus tortillas, “salsa macha” and other sauces. The tortillas and chips are low calorie and low carb because they’re made from nopales, the prickly pear cactus. They mix the cactus with okra flour to produce a healthy alternative to regular tortillas.
Like most other businesses, Tia Lupita Foods had to pivot during the 2020 COVID-19 pandemic. Most stores weren’t receptive to new products because they were just trying to keep stocked.
Hector pivoted to eCommerce and found success. 2021 sales were $1.5 million, and 2022 sales were $3 million. When the pandemic settled down, he got on the shelves and is currently in over 5000 stores in North America, mostly on the East and West Coasts.
You can buy Tia Lupita Foods products in Safeway, Whole Foods, Walmart, Amazon, and more. Hector likely wants a Shark to help manage growth for his next phase of success.
Tia Lupita Foods Shark Tank Recap
Hector enters the Shark Tank seeking $500,000 for 5% of his company. He asks the Sharks to raise their hands if they like to eat tacos; they all do except Daymond, who says he hates tacos.
Next, he asks the Sharks if they like to eat clean, simple ingredients; they all raise their hands this time. Current Mexican brands use artificial ingredients, binders, and fillers. Tia Lupita Foods starts with the world’s most sustainable foods: the cactus, which they use in their tortillas and chips. They have two types of tortillas: corn and cactus, and cassava and cactus. Hector believes food is love, and eating clean should be easy.
The Sharks taste their samples, and they all like them, but the salsa is too hot for Mark. Mr. Wonderful says it’s the best “clean” tortilla he’s tasted.
Hector’s mom used to send him care packages from Mexico that included their family recipe hot sauce. He started sharing the sauce with friends, and he realized the current Mexican brands in the USA weren’t innovating, so he started selling hot sauce in 2019. He knew he wanted to dispel the myth that Mexican food is unhealthy.
In 2020, he had $900,000 in sales; in 2021, he had $1.5 million in sales, and in 2022, he is projecting $4 million by the end of the year. His first profitable month was last month. He’s selling in Sprouts nationally, 5 regions of Whole Foods, regional accounts in Wegmans, and Walmart. He’s in negotiations with Target and Publix, too.
In 2020, he lost $700,000, and in 2021, he lost $1.2 million, largely due to slotting fees. So far, he’s raised $1.9 million, and he’s in the middle of negotiating another round. Hector owns 65% of the company, and he invested $700,000 of his own money.
Did Tia Lupita Foods Get a Deal on Shark Tank?
Daymond doesn’t think he’d have the passion for this business; he’s out. Barbara thinks it’s a long, cash-rich journey, and she doesn’t think the $500,000 will get him there; she’s out. Mark loves the tortillas but thinks the business is a grind; he’s out.
A bag of cactus chips costs $1.50 and sells for between $3.99 and $4.99, which is competitive with other grain-free chips out there. Kevin says he’s been looking for a grain-free product for Chef Wonderful, and this is one of the best he’s tasted. While Kevin thinks, Lori says she’s concerned about the debt; she’s out.
Kevin thinks Hector asked for too much. Hector says he’s worked hard, and his dad passed away a month ago. Kevin says he’ll do $500,000 in debt at 12% for 36 months for 10% of the business.
Kevin says he’ll get his whole team behind it. Hector is concerned with the 10% equity, and Kevin thinks he’ll get diluted. Hector believes the deal is too rich and asks if Kevin will go lower on the equity. Kevin stands firm. Hector says he’ll do the loan deal at 5% and he’ll guarantee Kevin won’t get diluted. Kevin says, “Hector, you have a deal.”
Tia Lupita Foods Shark Tank Update
The Shark Tank Blog constantly provides updates and follow-ups about entrepreneurs who have appeared on the Shark Tank TV show. The first rerun of this episode in July 2023 is just 3 months after the original air date. At that time, there was no evidence that the deal with Kevin had been closed.
Since airing, in addition to the store he was in, Hector has also had products in Kroger’s and Meijer’s stores. The company was also chosen to participate in Pepsi’s Greenhouse Accelerator Program, which picks 10 Hispanic-owned food and beverage startups to receive $20,000 in grant funding and participate in a six-month business program designed to accelerate their growth through personalized mentorship.
This also makes the company eligible for the final prize of a $100,000 grant to continue its expansion and an opportunity to continue working with PepsiCo to further their growth.
The deal with Kevin ultimately did close. This led to a lot of interest from Venture Capital firms, though no deals have been made as of November 2023. His grain-free cactus tortilla chips have become the second best seller in the product line after his red jalapeño hot sauce and salsa verde.
Reliable revenue figures are unavailable at this time. By April 2024, the products were in over 5,000 stores like Walmart, Whole Foods, Safeway, Costco, and Amazon. The estimated net worth of Tia Lupita Foods is $12.1 million.
The Shark Tank Blog will follow up on Tia Lupita Foods & Hector Salvidar as more details become available.
Where Can You Buy It?
Tia Lupita Foods are available for purchase on their official website, Amazon, and other retail stores. Check out their social media pages for more updates: Facebook and Instagram.
Posts about Tia Lupita Foods on Shark Tank Blog
Tia Lupita – Healthy Mexican Foods
Quick Summary
- Healthy Mexican food brand, Tia Lupita Foods, founded by Hector Saldivar, features cactus-based chips and tortillas.
- They secured a deal with Kevin O’Leary on Shark Tank Season 14.
- The products are sold in 5,000+ stores, including Walmart, Whole Foods & Amazon.
Curious to know about other businesses that appeared on Shark Tank Season 14 Episode 20? Check out their business updates!
