In the plant-based beverage market, coconut water is a thing of the past. Mo Hassoun and Kun Yang developed Pricklee Cactus to replace it. As the name suggests, it’s made from the antioxidant-rich and sustainably grown prickly pear cactus plant. They struck a deal with Barbara Corcoran after the founders pitched it on Shark Tank. Pricklee Cactus is estimated to be worth $3 million by 2024.
Founder
Mohammed Hassoun is considered the company’s central figure. He is originally from Lebanon and moved to the United States to study health sciences. Kun Yang is another healthcare enthusiast.
Originally from Boston, Hassoun earned his bachelor’s degree in anatomy and cell biology from McGill University and his doctorate in pharmacy from the University of Maryland School of Pharmacy.
While Mo and Kun were the only ones pitching on Shark Tank, they have three other co-founders: Sarwang Shah, Aakash Dheri, and Jaanai Babb. All five met at the Massachusetts School of Pharmacy and Health Sciences.
Founding of Pricklee Cactus
Mo, Kun, Sarwang, Aakash and Jaanai all like plant-based drinks. However, they think there are better alternatives than coconut water.
In 2017, Hasoun came up with a cactus drink that his grandmother made in Lebanon. The team tried it and found it to be delicious and had many health benefits over other plant-based drinks.
The aspiring entrepreneurs used their money to start production and officially launched Pricklee Cactus in 2021. A few months after its launch, the company was already generating $50,000 in revenue per month, an impressive number for an early-stage beverage company.
Shark Tank Appearance
The business was off to a good start, but the founders needed to scale up quickly. Mo and Kun appeared on the show’s 13th season, asking for $200,000 for 5% of their startup. The sharks loved the product. It was something they had never tried before, and it caught them off guard.
Some investors were wary of investing in the beverage industry because of how competitive it is. Mark Cuban noted that they didn’t do a good job of promoting the main benefits of prickly pear. Also, their anti-coconut stance was a bit too much.
After the four Sharks exited, Kevin O’Leary offered $200,000 for 20% of the equity. The founders asked if it could be done with a line of credit, but Mr. O’Leary was unwilling to budge. Barbara came back and agreed to a $200,000 line of credit and 5% equity. For the first time, Barbara gave a reasonable reason to exit, and then finally made the deal.
Post-Shark Tank
The Pricklee Cactus episode aired in 2021, and the company is continuing to expand its distribution. The cactus drink is currently available in 875 stores including Stop & Shop, 7-Eleven, and Green Naturals Food. Over 90% of the stores are located on the Northeast Coast, and it is currently available in only 7 stores on the West Coast.
They are also available on Amazon and Pricklee.com. The beverage company has 498 reviews on Amazon and a 3.9-star rating. With this success, the company sees the West Coast as a key driver of growth through 2024.
Pricklee Cactus has not released any recent revenue figures, but annual revenue should be between $500,000 and $750,000. Therefore, the business is estimated to be worth $3 million. If the company can acquire distribution rights and achieve annual revenues of more than $10 million, it is likely that a large beverage company will acquire it.
Categories: Shark Tank
Source: svlsf.edu.vn