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Childhood friends, Nick Hamburger and Zack Schreier, have developed a healthy egg white-based snack that is packed with protein and fiber. After being diagnosed with type 1 diabetes, Zack developed this low-carb refreshment to satisfy his snack cravings while being mindful of the number of net carbs that he consumes. Their healthy and delicious snack, Quevos, has seen great success through online sales and was on pace to sell over $3 million in 2020. Although they have been successful in raising funds to help grow the business, including accepting funds from big-name investors such as Kraft-Heinz, Nick and Zack are looking for a Shark that is willing to invest $200,000 in exchange for 5% equity in Quevos.

Currently, their sales strategy is heavily skewed towards online sales with 80% of sales being from direct-to-consumer online sales while 20% is through traditional retail channels. Quevos can be found in over 400 retail locations and Nick and Zack are hoping to grow this number and make their product a national brand. Another improvement that the pair are hoping to make is to their manufacturing process. Currently, they are manufacturing their own product through a proprietary method. They have looked into copacking, however, all of the companies they have looked to partner with are so expensive it would double their manufacturing costs. Nick and Zack are hoping to partner with a Shark that is able to help them streamline their manufacturing while reducing costs and expanding into additional brick and mortar retail locations.

The Sharks are very impressed with how knowledgeable Nick and Zack are about their business. At 22, neither have graduated from college, and yet they have successfully launched a multi-million dollar company and partnered with one of the largest and most prestigious food manufacturers in the United States. Two Sharks decided to extend offers to Quevos in hopes of nurturing a positive return on their investment. Kevin O’Leary offered to invest $200,000 in exchange for a $0.10 per bag royalty until he makes $400,000 and then the royalty will cease, however, his 2.5% equity share would remain. After negotiating with Daniel, they came to an agreement to accept an investment of a $200,000 cash investment with a line of credit for an additional $200,000 for purchase order funding in exchange for 10% equity in Quevos.

If you were a Shark, would you have invested in Quevos? Zack and Nick have a 3-5 year plan to sell the company. Do you think that this is a wise decision? If you were these entrepreneurs would you be hoping to sell the company rather than to expand the brand and develop additional products? Start the conversation in the comments below!