Overview
Pricklee Cactus is a plant-based beverage that is made from prickly cactus plants. The founders, Mo Hassoun and Kun Yang, developed the drink as a healthier alternative to coconut water.
The drink is full of antioxidants and is sustainable to grow.
The company was officially launched in 2021 and has since expanded its distribution to 875 locations, including Stop & Shop, 7-Eleven, and Green Naturals Food. The beverage firm is also available online on Amazon and Pricklee.com.
The company is currently worth an estimated $3 million.
Shark Tank Appearance
Mo and Kun appeared on season 13 of Shark Tank, asking for $200,000 for 5% of their startup.
The Sharks liked the product, but some were cautious about investing as the beverage space is really competitive. Mark Cuban pointed out that they didn’t do a great job at promoting the main benefits of the cactus. Also, their anti-coconut stance was a little too much.
After four Sharks went out, Kevin O’Leary offered $200,000 for 20%.
The founders asked if it could be done through a line of credit, but Mr. Wonderful wasn’t willing to budge. Barbara Corcoran came back in and agreed to a $200,000 line of credit and 5% equity.
Post Shark Tank
The Pricklee Cactus episode aired in 2021, and the company is continuing to expand its distribution.
The cactus drink is currently in 875 locations, with over 90% of locations on the North East Coast and only 7 stores on the West Coast. The company is eyeing the West Coast as a key driver of growth in 2024.
Pricklee Cactus is also available online on Amazon and Pricklee.com, where it has a 3.9-star rating from 498 reviews. The company has not shared any recent revenue figures, but it should make around $500,000 to $750,000 in annual revenue.
If the company can get the distribution and do over $10 million in annual revenue, it’s likely one of the big beverage companies will acquire them.
The Founders
Mo Hassoun and Kun Yang are the heart of the company.
Hassoun is originally from Lebanon and relocated to the United States to study health sciences. He earned a bachelor’s degree in anatomy and cell biology at McGill University and became a Doctor of Pharmacy at the University of Maryland School of Pharmacy.
Yang is also a healthcare enthusiast.
Though Mo and Kun were the only ones who pitched the product on Shark Tank, they have three other co-founders: Sarwang Shah, Aakash Dheri, and Jaanai Babb. All five met at the Massachusetts College of Pharmacy and Health Sciences.
Founding Pricklee Cactus
Mo, Kun, Sarwang, Aakash, and Jaanai shared the same fondness for plant-based beverages.
In 2017, Hassoun proposed a prickly cactus pear drink his grandmother used to make in Lebanon. The team tried it out and found that the drink was delicious and had numerous health advantages over other plant-based drinks.
The aspiring entrepreneurs used their money to start production and officially launched Pricklee Cactus in 2021. A few months after starting, the company was already making $50,000 a month.
Lessons From Pricklee Cactu Water’s Success
Based on the Shark Tank episode about Pricklee Cactus Water , here are three practical tips for aspiring young entrepreneurs:
1. Differentiate your product with unique attributes
Pricklee Cactus water differentiates itself from the oversaturated coconut water market by offering a unique product with distinct benefits, such as lower sugar and calories, and higher antioxidant content.
Entrepreneurs should focus on what makes their product stand out and clearly communicate these unique selling points to their target audience.
2. Leverage Personal stories and cultural heritage
One of the founders connected the product to his childhood memories of drinking cactus water in Lebanon, which adds a personal and authentic touch to their brand.
Sharing personal stories or cultural heritage can create a deeper connection with customers and add authenticity to the brand.
3. Prepare for distribution and scaling challenges
The founders acknowledged the challenges in beverage distribution, such as securing shelf space and managing shipping costs.
Entrepreneurs should anticipate and plan for logistical and distribution challenges, considering strategies for scaling production, managing costs, and effectively reaching their target market.
This preparation can make the business more attractive to investors and increase the chances of long-term success.
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