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Sweetkiwi's appearance on Shark Tank season 14 led to a heated confrontation with Kevin O'Leary. The frozen yogurt company's founders, Michael Akindele and Ehime Eigbe, pitched their business, seeking $250,000 for 5% equity. With 1,700 store presences, including Walmart and Kroger, they reported $650,000 in sales by mid-2022. O'Leary initially offered $250,000 for 20% equity.
As Daymond John and Mark Cuban opted out due to valuation concerns, and Lori Greiner withdrew, citing a conflict with her existing investment in The Frozen Farmer, the founders continued explaining their marketing strategy without addressing O'Leary's offer. This prompted O'Leary's exit. He stated,
"I'm out. Gone. I don't know what you're doing. You say you're an entrepreneur. You focus on the money. They're all out. There's only one guy left. I made an offer when there was all these Sharks. Mr. Wonderful's pissed, okay? I don't care. I'm out. You've got Robert, go for it."
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At the end, the founders left the tank with Robert in exchange for 16% equity.
Kevin O'Leary walked away from Sweetkiwi negotiations on Shark Tank
During the Shark Tank pitch, Michael Akindele started detailing their marketing plans. The founders explained their production costs stood at $2.25 per pint, with profits directed toward brand development. Akindele's presentation showed their intention to use the investment funds primarily for marketing campaigns and brand story development.
The founders shared specific data about their retail expansion, mentioning partnerships with major chains and discussing their distribution strategy. They outlined how their Greek yogurt-based product contained protein and probiotics and maintained lower sugar content, with each pint containing 25-40 grams of sugar.
The Sharks sampled various flavors during the presentation, including vanilla, chocolate hazelnut, raspberry, and mango mojito variants. O'Leary started negotiations by offering $250,000 for 20% equity in Sweetkiwi. The Shark Tank investor questioned their current market position and sales figures while analyzing their financial statements.
The discussion continued as Akindele explained their pricing structure, emphasizing how their marketing strategy would increase brand recognition. O'Leary pressed for more details about profit margins and manufacturing costs, showing particular interest in their production scaling plans.
The founders responded by providing specific sales data and market penetration statistics. They mentioned their successful track record in Nigeria, where they had built a significant frozen yogurt chain, though clarifying this venture remained separate from their current U.S. operations. The company founders continued focusing on brand building rather than immediate profitability metrics.
By this time, Shark Tank's Daymond John voiced concerns about the company's valuation and decided not to invest. Mark Cuban withdrew from negotiations, stating uncertainty about their marketing strategy. Lori Greiner also stepped away due to her existing commitment with a similar business, The Frozen Farmer.
Kevin O'Leary, who made an offer before even other sharks voiced concerns, was seeing founders giving marketing-focused responses. After multiple attempts to redirect the conversation toward financial metrics, O'Leary also exited the negotiations.
Final deal and post-Shark Tank performance
Robert Herjavec remained interested despite the previous exits. He discussed the business potential, stating his desire to learn about the frozen dessert market. Herjavec made a clear statement about business priorities, emphasizing profit generation over emotional aspects. He presented his vision of growing Sweetkiwi into a $50-100 million business and offered $250,000 for 20% equity.
The founders countered Herjavec's offer with a proposal of $250,000 for 7.1% equity plus 5% advisory shares. After further discussion, both parties agreed on a middle ground. The final deal settled at $250,000 for 16% equity. This agreement concluded the pitch session, marking a significant shift from the earlier tension with O'Leary.
As per Shark Tank Blog, the company's performance following the episode showed significant growth. Sweetkiwi expanded to over 2,000 stores across the United States by mid-2024. Their product line gained placement in additional major retailers, including Whole Foods, Mom's Organic Market, and Ralph's.
The company's annual revenue reached $2 million by 2024, demonstrating substantial market expansion after their Shark Tank appearance.
Fans can watch Shark Tank season 16 on the ABC network.
