Entrepreneur Juan Ignacio Stewart introduced Frescos Naturales on a memorable episode of Shark Tank, capturing the attention of investors and viewers alike. With a mission to provide a healthy alternative to the sugar-filled, processed drinks that dominate the market, he created a unique, refreshing beverage company. Focusing on using natural ingredients such as fruits, grains, seeds, and flowers, Frescos Naturales offers a fresh take on traditional Latin American drinks.
As Juan Ignacio Stewart presented his vision for Frescos Naturales on Shark Tank, he managed to strike a deal with investor Daniel Lubetzky, who saw the potential in the company’s mission and products. Securing an investment of $130,000 for an 8% equity stake, the newly formed partnership set out to transform the Latin American beverage market and offer consumers healthier beverage options they could feel good about drinking.
Frescos Naturales has continued to make strides since its appearance on Shark Tank. By continuously expanding its product line, the company has managed to keep its loyal customers satisfied while also attracting new ones to its refreshing, health-focused mission. This Shark Tank success story is a positive example of how innovative entrepreneurs like Juan Ignacio Stewart can make a significant impact in the competitive beverage industry.
Founding Story
Inspiration Behind the Idea
The idea for Frescos Naturales came from the desire to provide healthier and refreshing alternatives to the processed and high-on-sugar beverages that dominate the market. This inspiration led to the creation of a Latino-owned beverage company focused on crafting drinks with a blend of fruits, grains, seeds, flowers, and water, prioritizing both taste and well-being.
The Founder: Juan Ignacio Stewart
Juan Ignacio Stewart, a passionate entrepreneur, is the driving force behind Frescos Naturales. Juan’s journey began in Boulder, Colorado, where he attended the University of Colorado Boulder. It was in this vibrant college town that Juan’s passion for promoting health and wellness took shape, ultimately leading to the establishment of Frescos Naturales.
Prior to founding Frescos Naturales, Juan gained valuable business experience as the founder of Green Belly Foods, a company focused on producing healthy and environmentally friendly products. This background not only helped develop Juan’s leadership and management skills but also deepened his commitment to creating products that have a positive impact on both the environment and the consumer.
Frescos Naturales’ success is a testament to Juan’s perseverance and belief in the vision of creating a brand that represents both heritage and healthful living. As the company continues to grow and evolve, Juan remains dedicated to expanding the product offerings and refining the production process to better serve an increasingly health-conscious market.
Pitch on Shark Tank
Season 14, Episode 12
In Season 14, Episode 12 of Shark Tank, entrepreneur Juan Ignacio Stewart took the stage to present his business, Frescos Naturales. This Latino-owned beverage company creates refreshing and healthy drinks made from fruits, grains, seeds, flowers, and water. Passionate about his product, Stewart sought an investment of $130,000 in exchange for an 8% equity stake in the company.
During his pitch, Stewart managed to pique the interest of the Sharks in attendance, who included Daniel Lubetzky, Daymond John, Kevin O’Leary, Mark Cuban, and Lori Greiner. The product seemed important, refreshing, and poised for growth.
After some discussion and negotiation, Shark investor Daniel Lubetzky made a counter offer, proposing to invest the desired $130,000, but for a 25% equity stake in Frescos Naturales instead. Recognizing the value and potential assistance that Lubetzky could bring to the company, Stewart agreed to the deal. This brought the final valuation of Frescos Naturales to $520,000.
With the help of Lubetzky’s investment, Frescos Naturales has continued to expand its retail presence and develop new flavors while working on reducing production costs. This friendly partnership certainly holds promise for the future growth and success of the company.
Products Overview
Sparkling Beverages
Frescos Naturales offers a range of six delightful and healthy sparkling beverages, each inspired by the founder’s Latin American culture. These beverages are made using natural ingredients like water, fruit, and flowers, providing a healthier alternative to traditional processed and high-on-sugar drinks available in the market.
The six flavors of Frescos Naturales sparkling beverages include:
- Sparkling Mango: A tropical and refreshing drink that carries the natural sweetness of mangoes.
- Sparkling Pineapple: Invigorating and tangy, this drink captures the essence of pineapples to provide a delightful taste.
- Sparkling Guava: Enjoy the unique and delectable flavor of guavas in this sparkling beverage.
- Sparkling Tamarind: A distinct and slightly tangy taste, tamarind flavor adds a unique twist to the drink.
- Sparkling Hibiscus: Also known as rosa de jamaica, this drink features the vibrant flavor of hibiscus flowers.
- Sparkling Passion Fruit: Relish the exotic and aromatic flavor of passion fruit in this sparkling drink.
All these fruity beverages come in glass bottles, ensuring better taste and quality. They are low in sugar, making them a healthier option for those looking for a guilt-free indulgence. What sets them apart is the perfect combination of fruit juices and sparkling water, resulting in an effervescent drink that appeals to a wide range of consumers.
From the unique combination of flavors to the inherent health benefits, Frescos Naturales sparkling beverages successfully provide a tasty and refreshing drink option for those seeking something different from traditional sugar-laden beverages.
Business Strategy
Latino-Owned Beverage Company
Frescos Naturales, founded by Juan Ignacio Stewart, is a Latino-owned beverage company that focuses on providing healthier alternatives to the processed and high-sugar drinks that dominate the market. Stewart moved to the United States from Guatemala and noticed a lack of healthy options in the Latin American beverage market. This inspired him to create Frescos Naturales Drinks, offering a variety of sparkling beverages with flavors such as Rosa de Jamaica, Tamarindo, Maracuya, Piña, Guayaba, and Mango.
The company has gained significant attention after participating in Shark Tank Season 14. Juan Ignacio Stewart pitched his company to the Sharks, securing a deal with investor Daniel Lubetzky. The deal involved an investment of $130K for 25% equity, bringing the company’s final valuation to $520K. Since then, Frescos Naturales’ products have become available in 57 different retail stores across the United States.
Eco-Friendly Practices
One of the core values of Frescos Naturales is its commitment to eco-friendly practices. The company aims to source ingredients and packaging materials that are sustainable and environmentally conscious.
Additionally, Frescos Naturales has made strides in connecting with like-minded brands. For instance, they have been involved with Brass Roots, a venture focused on healthy and sustainable snacks. They also participated in the Natural Products Expo East Pitch Slam, an event designed to showcase innovative and sustainable products in the natural products industry. Such participation demonstrates Frescos Naturales’ dedication to not only offering healthier beverage options but also contributing to a more sustainable and environmentally-friendly future in the industry.
Market Presence
Retail and Online Stores
Frescos Naturales has managed to secure a place in various retail stores and supermarkets around the country since its appearance on Shark Tank. The brand is now available at major chains like Kroger and King Soopers, making their healthy Latino-inspired beverages easily accessible to customers. In addition to these retail outlets, Frescos Naturales also operates an online store, allowing fans of their refreshing and healthy drinks to order directly from the comfort of their homes.
The brand has been particularly popular in regions with a strong Latino community, but their beverages have started to gain traction among consumers of diverse backgrounds. With the growing awareness around the importance of healthy alternatives to sugary and processed drinks, Frescos Naturales has the potential to reach an even wider audience nationwide.
Partnerships and Collaborations
In an effort to reach a larger customer base, Frescos Naturales has been actively engaging in partnerships and collaborations with various entities. These partnerships include restaurants and cafes that want to provide their customers with healthier beverage options. By offering their refreshing beverages in such establishments, Frescos Naturales further expands its market presence.
Apart from these, the company is continually seeking opportunities to connect with potential partners in industries that resonate with their brand values. These collaborations not only help strengthen the brand’s reputation but also contribute to the overall growth of Frescos Naturales in the competitive beverage market.
Success and Growth
Revenue and Net Worth
Frescos Naturales has seen impressive success since its appearance on Shark Tank in January 2023. The company’s net worth is estimated to be around $520,000 as of 2023. The business experienced an all-time high in gross revenue sales in 2022, and the trend is expected to continue in 2023. The success can be partially attributed to the investment deal they secured on Shark Tank, where they received $130,000 for a 25% equity stake.
Frescos Naturales offers their products at various price points, such as a standard 16oz bottle retailing for $19.99, while the production costs remain relatively low. The cost breakdown includes $2.10 for ingredients, $0.88 for packaging, and $4.50 for shipping and handling. This allows the company to maintain healthy profit margins while offering their unique and refreshing beverages to the public.
Expansion and New Targets
Since Shark Tank, Frescos Naturales has focused on expanding their product line and reaching new markets. This expansion includes the introduction of new flavors, targeting a wider demographic and securing additional funding and partnerships. The company’s continued growth can also be seen in the increase in distribution channels, as their products are now widely available online via their website and in various retail outlets.
Frescos Naturales’ success and growth can be attributed to their dedication to providing refreshing and healthy, Latino-inspired beverages, as well as their strategic partnerships and effective management. As the brand continues to grow, they maintain a friendly and customer-centric approach, making them a favorite choice among consumers.
Challenges and Criticisms
COVID-19 Pandemic Effect
The COVID-19 pandemic has affected businesses across the globe, and Frescos Naturales was no exception. With the pandemic disrupting supply chains and affecting consumer behavior, the company faced challenges in maintaining its production and distribution. Nonetheless, Frescos Naturales managed to overcome these obstacles and continue its growth trajectory.
Feedback on Product
Frescos Naturales has received mixed feedback on its product offerings. On the positive side, customers appreciate the healthier alternative to traditional sugary beverages, enjoying the natural flavors and unique combinations.
However, some customers have raised concerns over the price, as a 6-pack of the beverages is sold for $19.99. This relatively high price tag may deter some consumers from trying the product, especially when compared to other, more affordable options. Additionally, there have been suggestions for the company to explore new flavors and consider ways to reduce production costs, further enhancing its appeal to a wider audience.
Impact and Future Prospects
Community and Heritage Influence
Frescos Naturales, a Latino-owned company, has had a significant impact on the community by promoting their heritage and offering healthy alternatives to traditional processed drinks. Founder Juan Ignacio Stewart’s vision was inspired by his son and their shared love for Rosa de Jamaica. As Frescos Naturales continues to grow, it aims to empower the Latino community and contribute positively to the rich cultural heritage.
Emphasizing the importance of community involvement, Frescos Naturales is focused on giving back to its local community. Collaborating with neighborhood partners and participating in local events, Frescos Naturales not only showcases its products but also fosters a sense of cultural identity and pride.
Environmental Contribution
Frescos Naturales is committed to making a positive impact on the environment as well. By offering natural and healthier drink options, the company is directly contributing to a more sustainable future. In addition, the use of eco-friendly packaging materials and earth-conscious production processes minimizes the environmental footprint.
With a more eco-minded approach, Frescos Naturales encourages consumers to make choices that are not only good for their health but also for the planet. As they look to the future, the company is expected to continually evaluate and improve its environmental practices, setting a positive example for others in the industry.
Frescos Naturales has undoubtedly made a strong impression on both the community and the environment since its debut on Shark Tank. With a bright future ahead, the company is expected to further expand its influence in the market and continue promoting healthier drink options, cultural heritage, and environmental sustainability.
Conclusion
Frescos Naturales, a Latino-owned beverage company founded by Juan Ignacio Stewart, has experienced significant growth since its appearance on Shark Tank. On the show, the business secured a deal with Daniel Lubetzky, who invested $130,000 for 25% equity. This investment helped propel Frescos Naturales to reach an all-time high in gross revenue sales in 2022, and the company is expected to achieve even greater success in 2023.
Their product line – which includes refreshing and healthy beverages made from fruits, grains, seeds, flowers, and water – can be found at selected retail outlets across the United States. Customers can also conveniently purchase the drinks directly from the Frescos Naturales website. Priced at $19.99 for a 6-pack, the beverages come in various flavors, such as Rosa de Jamaica, Sparkling Tamarindo, Sparkling Maracuya, Sparkling Piña Guayaba, and Sparkling Mango.
Frescos Naturales has made a positive impact on the market by providing healthier drink alternatives that are perfect for consumers looking to avoid processed, high-sugar beverages. With the support of its Shark Tank investor and its growing popularity, this innovative company is well on its way to continued success.
