Highlights
- Theresa and Robert Fraijo pitch VeggieMama, a line of frozen fruit and veggie snacks, seeking $75,000 for 15% equity on Shark Tank.
- Despite tough negotiations, Mark Cuban and Barbara Corcoran team up to offer $75,000 for 20% equity without royalties, which the Fraijos accept.
- VeggieMama successfully expands its distribution with Barbara’s help, but the company eventually shuts down in December 2018. Theresa Fraijo now works as an accounts payable manager for the State of Colorado.
Overview
| Category | Details |
|---|---|
| Name | VeggieMama |
| Founders | Theresa and Robert Fraijo |
| Industry | Health Food, Frozen Snacks |
| Product | Frozen fruit and veggie pops made with all-natural ingredients |
| Funding | Secured $75,000 from Mark Cuban and Barbara Corcoran for 20% equity |
| Investment Ask | $75,000 |
| Equity Offered | 15% |
| Valuation | $500,000 |
Theresa Fraijo created VeggieMama, a line of frozen fruit and veggie snacks, to get her kids excited about eating their vegetables. She, along with her husband, Robert, present the business in the Shark Tank in episode 506 on October 18.
VeggieMama frozen treats are like a freezer pop, but made from fruits and vegetables instead of sugar water. Flavors include Carrot Berry, Citrus Cucumber, and Sweet Potato Pie. All VeggieMama frozen treats put veggies first and they’re all-natural, organic, and gluten free. The only sweetener used in VeggieMama is natural agave nectar.
VeggieMama pops are available in the western US in Sprouts Farmers Markets, Gelsons, and a limited number of Whole Foods Markets. The lone east coast retailer is Natural Foods General Store in New York. There are two VeggieMama stores, one in Anaheim and one in Niagara Falls. The Fraijos will be looking to the Sharks to help with broader distribution and production assistance.
VeggieMama Shark Tank Recap
The segment opens with the Fraijo’s at home explaining their business and how they invented Veggie Mama Garden Pops. Robert dropped out of law school, the Fraijos moved in with Robert’s parents and Theresa sold the diamond in her engagement ring to start their business. They literally put it all on the line to start their business.
When the Fraijos enter, they introduce themselves as Veggie Mama and Veggie Papa. They ask $75K for 15% of their business. They give their pitch, then hand out samples. The Sharks all like them; Kevin didn’t think he would. Each package costs $1.10 and wholesales for $2.25. They have $30K in sales, most of it over the past few months. Veggie Papa was more interested in building the business than law school and Mark likes that because there’s one less lawyer!
Did VeggieMama Get a Deal on Shark Tank?
The Fraijos have invested a total of $140K and they have their own production facility. Mark jumps right in and says he hates the frozen food business and he goes out. Barbara says the Fraijos are in the exact opposite position from a situation in relation of invested cash to sales as other businesses she’s invested in and she goes out too.
Mr. Wonderful makes an offer of $75K with a fifty cent royalty until he gets his money back, then to 25 cents in perpetuity. He references his successful deal with Wicked Good Cupcakes and says this structure works well with food products. Robert likes the product but doesn’t think $75K is enough. He offers $75K for 20% then $75K in a year for a total of $150K for 25%. The Fraijos balk at Robert’s offer and Lori offers $75K for 20%. Then Kevin modifies his offer, with $150K for a 50 cents per unit royalty and 25 cents in perpetuity.
Robert then wants to join Lori for $150K for 20% with a 20 cent per unit royalty. Mark then scolds the Fraijos for not accepting Robert’s initial offer. Barbara then jumps back in and tells the Fraijos to step into the hall to regroup. The Fraijos ask them to drop the royalty and Robert says no. Barbara then asks Mark to partner with her to knock out the other Sharks. She and Mark offer $75K for 20% with no royalties if Barbara agrees to do the work. The Fraijos have a deal!
VeggieMama Shark Tank Update
Mark Cuban and Barbara Corcoran’s surprise turn around, with both coming back in to outbid the other Sharks, turned out to be the best deal that could’ve happened for VeggieMama. True to her word, Barbara has been helping guide the company, and the VeggieMama frozen pops are now available through more Whole Foods and Sprouts stores, as well as through the website.
Although the Sharks all competed for a bite of this sweet deal, Corcoran and Cuban teamed up to make Veggie Mama a rousing success. This is one time it was good for the Sharks to eat their veggies. Theresa ran the company successfully until shutting it down in December, 2018. She is now an accounts payables manager for the State of Colorado.
Posts About VeggieMama on Shark Tank Blog
VeggieMama Information
See what else was pitched! View the other companies that participated with VeggieMama.
Wow! I love the idea of organic, healthy alternatives.
I am interested in purchasing for myself as well as my young adult children. Please advise of close location near my Fullerton home.