Transcript

00:00 First into the tank is a healthier option for kids got a bad feeling about this. One hello. My name is Ashi gelinck and I am seeking $200,000 for 8% equity in my company kids love. This is my son Phoenix. My kids are my world and keeping Phoenix and his siblings healthy is a top priority of mine and as a parent we all know how difficult it can be to make sure your kids are eating well. There is sugar in everything and sugar is sneaky. It hides in the most innocent looking places like juice. Most juices on the market have upwards of 25 g of sugar if you were to give your kid an 8 oz glass of juice every day. For a year you would be giving them 20 lb. Of sugar. Don't do it. Oh Phoenix. You are sugarcoated my friend. I knew I had to give him something better and that's why I created kids love. Okay Phoenix get into position kids. Love has this much sugar yeah. Gotcha kidss love has no sugar but you know what it does have vitamins and minerals all 12 essential ones. I've created the first zero sugar functional drink for kids that has certified vegan vitamins and hydration kids love it and parents do too so who wants to help me spread the love.

01:48 Let's try it. I have samples for you to try good. Job Phoenix Pho a standing performance. See you guys here. You go both flavors both flavor andon. Thank you you are welcome. Mr wonderful thank you thank you thank you so much here you go. Ashie tell us what we have here. So we have our two flavors as of now.

02:16 It's a flying Flamingo and starstuck coconut cute all right and what is the sweetening ingredient that is replacing the sugar. So that's my secret recipe. It's my trade secret. W that's really good. But it is a combination of coconut water juice a little bit of regular water and then I sweeten it to cover the vitamins with less than 0.1 gram of stevia not bad. What's really amazing is that it is only 10 calories. I know I can really taste the stevia though is that real coconut tast really delicious taste. The stevia but basically I tried to formulate without the stevia and then you get the back Taste of vitamins and are the kids pushing back on the C aftertaste or not. No most kids don't notice that the messaging around cane sugar is definitely on Trend because even adults how do I keep this at Donna's body. I just don't drink any sugar ashy where are you selling it at so I'm selling right now in independent grocery stores. In California. It is shelf stable for how long a year a year yeah I'd love to hear your background yeah so tell us about you I um was actually this was not my background. Doing beverage. I worked in the hotel business before so how did you know to create a formula.

03:34 Where did you go to do that. So at first I started trying to do it in my kitchen which was very not successful. Some of these V how do you find vitam. Some these vitamins are not soluble. Vitamins right. So I found a formulator that helped me work on this product. It took me a year to create the product. It took me a lot of time to develop the flavors. These are the first two flavors we have another two flavors that are ready to go do you have any sales.

03:58 So since February 2018 I've only sold 55,000 pack. How much money did you have to put in just for those two flavors give or take. Like 15 $200,000. Wa wait wait wait wait wait wait wait there's no such thing as give or take 100 or50 or 200,000 cuz. That's a big Delta I'm just questioning your understanding of the numbers and how important you make money considering you're asking for our money. Yes I understand that right so he's just saying which one was it 150 or 200. So it was probably close to $200,000 and where did you get the $200,000 and how much Allin have you invested so far. So so far. I have done a family and friends round of financing on a 3.5 million convertible note wow capped post money must how much did you raise a million dollars. A million. Yes I know that sounds like a lot yes. It's a lot. But it's taken a lot for me to come up with the vegan vitamins to Source. It I am in talks right now with one big box National retailer to do a test okay. So how much how much cash do you have left in the bank. I have 50,000 left in the bank 50,000. A million you burn through 950. I want how you bur 50,000. So it's been 3 and 1/2 years that I have been working on this where did the bulk of the 950 go so regulatory. What is that La so yes why did you m.

05:17 I did International um licensing and international IP and National IP. What did you spend on that so on that I spent around $150,000 $150,000. Oh so I have all that done though I've trademarked the name kids love as well as the parent company name which is the loving company. A she just listened this so painful but I pay for my manufacturing run as well. How much did you pay for a manufacturing run was um that I just did so I just finished a run and I spent um 57,000 on the run because it's tetr pack my plan and why I'm here is to really focus on West Coast right now and then do duplicate that plan to other coasts in a very strategic pattern. Following where my demographics are I got it that sounds very fancy but where are you going to get the money to do any of that well so right now. I'm also in the process of talking to my current investors about putting money in to basically track me and what your origal investors say going back to them for more money are they eager to lend it. You know now that I'm finally have gotten distribution in order and I'm ready to be in stores listen to me. A minute. You did all that and spend all of that money before you found out the most important component which is can it sell how fast can it sell how much of it can. I sell okay. So I am at that point now that I have my distribution in lock. I understand that I spent money.

06:45 I am totally willing to own my mistakes and ways that I could have Sav here's here's the rub you're not owning your own mistakes really. The investors that gave you their money are really owning your mistakes and then you come here and you're asking us to follow your other investors down that little yellow path well. It makes absolutely no sense it's amazing to me that you don't see what's wrong with that picture for all of those Reasons I'm out yeah AI. I mean the one thing that you haven't owned up to is saying that you're going door too and I understand it's tough with the family I am I'm doing Grassroots marketing efforts. Marketing is not sales. Marketing is trying to create demand so that there sell through it.But I am selling the product what I had to do in order to get it to the market is to come up with a strategy and unfortunately I did not plan on that the distribution was going to take this long to lock down again. You say the word distribution yeah. I didn't say distribution you're just talking about me doing it. Yes whose company is it mine who's responsible for it who should be doing all the selling me. That's what I'm doing now no going out and getting a distributor is not doing all the selling for those Reasons. I'm out a I wish you all the best okay thank you this. Idea has Merit but we need sell through data because I don't know if the kids are going to love it. I don't know because I don't see reorders through the distribution you have yet. So we are online. Thrive Market in the last 6 months has reordered every month. We have sold out so many times that I actually have out of stock problems encouraging.

08:20 But I don't want to take this journey with you. I just can't do it. I'm out. I'm sorry okay. Ash I have to tell you I admire how much your standing your ground you've made mistakes. Everybody here makes mistakes.The problem is Cash is the lifeblood of the business agreed once you run out of cash. You're dead. You've learned the theory of great business plans with all due respect honestly. Notri maret I am getting the re fighting in the trenches you're not out there selling it. That's all I'm doing. I have three little kids at home and I'm the person hopping on the plane to sell the product I burn through $50,000,000 coming in actually. I'm sorry I it makes me nervous about giving you more money. I'm out listen you went through the process of trying to overprotect patent. Everywhere it cost you a fortune and that was a big hole for you. Because the bottom line is you didn't even know if your product would sell well. I feel that while I liked the product you got into that trap but unfortunately as an investor I wouldn't want to be involved with it. And I'm sorry. I hope you do well. But I'm out thank you I blame you for it. You made a huge mistake. I'm sorry. It's just the numbers don't lie good luck. We wish all our entrepreneurs good luck but you've got a wall to climb good luck. Thank you so much. I feel like I did get a little beat up. I think that you know because the shks got so hung up on the money that I've raised. They didn't see the true value of kids love and unfortunately because of that they're obviously not the right investors that was a huge mistake on the patent I got to tell you when it's my money and I lose it. I feel bad. But when I take a dollar from you that is I wake up every day to give you your money back and she didn't even feel bad about it dive into the Shark Tank Youtube channel. And subscribe now.