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Alfonso Tejada pitched Palmini on Shark Tank season 9 episode 22, seeking $300,000 for 10% equity. The Sharks started sharing specific concerns and stepping away. When the founder was addressing concerns and explaining the market potential, Lori Greiner interrupted, stating:
"Wait a minute, hello. All right, I freaking love this! Yes, I think this is awesome. 15 calories, 1.5 grams of fat, and no sugar - this is genius! And I would like to be your partner in taking this everywhere.”
She further stated:
“And Mark loves it so much too, so much that he said 'You know what, let's do it together.' A lot of work in this as you know. I mean, you've got to fix the packaging well because you're getting two fantastic sharks. Three hundred thousand for 30 percent."
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The final Shark Tank deal settled at 25% equity. While the deal didn't close post-show, Palmini's success soared. Within 24 hours of airing, they sold 10,000 units. By 2024, Palmini reached $5 million in annual revenue, securing placement in major retailers nationwide and becoming Amazon's top-selling pasta alternative.
Shark Tank investors Mark Cuban and Lori Greiner offered to buy 25 percent of Palmini
Tejada brought cardboard figures representing pasta's high-calorie elements to highlight his product's benefits. A team member dressed as a Palmini can supported the visual demonstration. The pitch revealed Palmini's financial performance, showing $400,000 in quinoa sales through 2017.
Palmini's limited sales of $50,000 resulted from inventory shortages rather than market demand. Tejada explained his dedicated manufacturing setup, using specific machinery to create the pasta-like texture from hearts of palm.
The heart of Palmini's appeal lay in its nutritional facts. Each serving contained 15 calories, meeting strict dietary requirements. The product maintained gluten-free certification through careful processing methods. Palmini set retail pricing at $4.49 per can to target the growing market of health-conscious shoppers.
The company developed unique equipment to slice hearts of palm into consistent, noodle-shaped strands. This attention to texture made Palmini a practical substitute for traditional pasta.
Sharks' reactions
During the Shark Tank presentation, each shark expressed distinct viewpoints. Bethenny analyzed market competition, raising concerns about large companies potentially entering the space. Daymond followed with similar reservations about market dynamics. Robert directly stated he did not connect with the vegetable pasta concept.
Mark and Lori presented their initial offer of $300,000 for 30% equity. Tejada responded with an 18% counter offer, then moved to 20%. The final negotiation landed at 25% equity. Lori emphasized their combined value.
"I'm going to tell you something. People always think that there is like an elevator to the top. There's no shortcuts in business. Everybody has to take the stairs, but if you had the two of us, that's an Express Elevator to the top," stated Lori.
Post Tank development
As per Shark Tank Blog, Palmini's entire inventory of 10,000 cans sold out the day after airing. The company expanded distribution rapidly, securing placement in Whole Foods, Kroger, and Publix. In 2018, Palmini upgraded to pouch packaging, extending product shelf life to 1.5 years.
The Shark Tank company made adjustments to the taste profile to align more closely with traditional pasta flavors. By October 2022, annual revenue reached $4 million. The brand secured the top position among pasta alternatives on Amazon. Palmini expanded the product range with hearts of palm rice and potato options.
Distribution grew to include Ralphs, Sprouts, Safeway, Winn-Dixie, Wegmans, Walmart, Meijer, Fresh Thyme Market, Price Chopper, QFC, Smith's, King Soopers, Fry's, Fred Meyer, Kings, and Thrive Market.
The company maintained consistent growth, reaching $5 million in annual revenue by 2024. Their success validated the market potential for healthy pasta alternatives, even without closing the original Shark Tank deal.
Shark Tank season 16 is airing on ABC network.
