Shark Tank: Genius Juice Accepts $500,000 From Mark Cuban and Barbara Corcoran

Founder and CEO of Genius Juice, Alex Bayer, came to the Shark Tank seeking $250,000 for a 7% equity share in his company. Genius Juice is the first coconut-based drink to include a full coconut in each bottle. By blending the coconut water and the meat of the coconut, Genius Juice smoothies can be enjoyed as a meal replacement supplement or as a treat. With only 100 calories per smooth and no sugar added, the Sharks are impressed that each Genius Juice tastes like an indulgent dessert.

Genius Juice is moved from the blender to a bottle within 5 hours of being processed. The coconuts are cut, blended, bottled and pasteurized before being frozen for transport and storage to retail locations. There are 3 different flavors of Genius juice including original, turmeric and coffee-flavored. These whole-coconut smoothies are organic and completely plant-based and dairy-free. While they love the nutritional value of the products, the Sharks are most impressed by the taste of the product, calling it creamy and delicious.

Einstein would make an offer, but will the Sharks? #SharkTank

— Shark Tank (@ABCSharkTank) January 20, 2020

In 2018, Genius Juice had $367,000 in total sales and expected to end 2019 tripling that sales figure as they have expanded to 400 new locations last year. Although they continue to get new orders every week, the company is not yet profitable and will need to see sales exceed $2.5 million to break even. At the time of filming $1.3 million had already been invested into Genius Juice by Alex and his family members which collectively owned 87% of Genius Juice.

The Sharks are concerned about the amount of competition in the beverage space. They also are concerned about the product needing to be refrigerated. Because it is not shelf-stable, they fear that they are going to have to fight very hard to get it the space it deserves for customer exposure. Even though they like the packaging and the product, some of the Sharks are afraid to invest their money into Genius Juice. Mark Cuban, Kevin O’Leary, and Barbara Corcoran are not scared to make Alex an offer, however.

Although Barbara promised herself she would never invest in another beverage company, she offered Genius Juice $250,000 for 14% equity because she loves how delicious the product is. Kevin O’Leary also hates the beverage space but offered Alex a $250,000 loan at 9% interest and he would also still want 7% equity in the company. Mark Cuban asks Barbara if she would be interested in partnering with him and she agrees. They collectively offering Genius Juice $500,000 in exchange for 25% equity in the company. Alex accepts their offer and partners with Barbara Corcoran and Mark Cuban.

Teaming up for Genius Juice! #SharkTank @BarbaraCorcoran @mcuban pic.twitter.com/SenVU5F99w

— Shark Tank (@ABCSharkTank) January 20, 2020

The name @genius_juice isn’t just a coincidence! This guy really knew his stuff. #SharkTank

— Barbara Corcoran (@BarbaraCorcoran) January 20, 2020

You’ve got two great Sharks, @Genius_Juice! Congrats @BarbaraCorcoran and @mcuban! #SharkTank

— Rohan Oza (@RohanAOza) January 20, 2020

Having a great product is necessary, but your distribution strategy is how you get that product to the masses. My strategy is what allowed me to turn FUBU into an international brand, and one that grew to $350 million in annual revenue. #GeniusJuice #SharkTank

— Daymond John (@TheSharkDaymond) January 20, 2020

Do you think that Genius Juice made the right decision to partner with two veteran Sharks instead of Mr. Wonderful, Kevin O’Leary? Would you buy and try this product? Would you invest in it? Start the conversation in the comments below.

For a complete summary of this article, click here.

Read More:

• Shark Tank: Wise Pocket Products
• Shark Tank: Chirps Accepts Offer from Mark Cuban for $100,000