The Cave Shake founders created a dairy-free, carb-free, and gluten-free shake made with coconut milk.
Ketosis is based on a high fat, low carbohydrate diet; when the body does not have enough glucose for energy, it begins burning fat instead.
While the couple did not walk away from the televised event with their desired agreement, they did obtain one.
What is Cave Shake?
Cave Shake Smoothie is a dairy-free, gluten-free, low-carb coconut milkshake that is ready to drink. It is available in three flavors: vanilla, chocolate, and coffee. It’s the ideal snack (or meal replacement) for anyone following a keto or paleo diet.
In October 2018, Holly Heath and Billie Cavallaro of Los Angeles pitched their food business on Shark Tank.
They entered the Tank looking for a $250,000 investment in exchange for 10% equity and walked out with a deal from guest Shark Charles Barkley – $250k for 20%.
|Company Name||Cave Shake|
|Founder||Billie Cavallaro And Holly Heath|
|Product||Cave Shake Keto Milk Shake|
|Investment Seeking||$250,000 For 10% equity in Cave Shake|
|Final Deal||$250,000 For 20% equity in Cave Shake|
|Episode||Episode 4 Season 10|
Who is the Founder of Cave Shake?
Hollie and Billie, long-time friends, wanted to twist Keto diets, and here is how it all began. The duo created sweet shakes to quell cravings while avoiding dairy, carbohydrates, sugar, and gluten.
Cave Shake was one of the category’s pioneers, offering a ready-to-drink Keto shake as a meal replacement for those following a Paleo or Keto diet.
What inspired them?
Holly Heath and Billie Cavallaro, the entrepreneurs, had personal experience with Paleo-Keto eating and were certain that it was healthy.
Billie was a “hardcore” athlete who competed in sports such as ski racing and discovered that the diet helped him recover more quickly and with less pain.
While Holly described how she had been involved in an auto accident and was left in pain, she concluded that only a Paleo-Keto diet might alleviate her symptoms.
Cave Shake Before Shark Tank
Billie Cavallaro and Holly Heath, founders of Cave Shake, devised a ready-to-drink, low-carb shake free of dairy, gluten, and sugar a few years ago.
They were utilizing personal experience and inventiveness to stay ahead of one of the most popular diet and nutrition fads in recent memory: the Keto diet.
As if producing a magical drink with no sugar, carbs, or dairy wasn’t enough, they gave it a cute, creative name: Cave Shake, a tribute to the drink’s Keto and Paleo-friendly ingredients. (In other words, even our cave-dwelling forefathers could drink it.)
Their product Cave Shake retailed for $7.99 per jar; while the diet smoothies were initially sold only in California, efforts were underway to expand distribution to other states.
Additionally, the company joined with LA Libations, a Coca Cola-affiliated incubator, granting a 15% ownership in exchange for the collaboration.
The shake came in four flavors and may be used as a meal replacement or snack/dessert.
Billie and Holly approach the Sharks for assistance with their delectable diet drink in Season 10, Episode 4. They’re seeking a hefty sum of $250,000 in exchange for a 10% stake in their business.
How Was the Shark Tank Pitch of Cave Shake?
Billie and Holly approached the Tank beaming with excitement. They performed a skit and song about overcoming cravings and sugar crashes, claiming that Cave Shake would enhance your energy and allow you to indulge in a treat without jeopardizing your Keto diet.
Following that, they distributed samples of their coconut milk-based beverage. While some, such as Lori, expressed satisfaction with the flavor, Robert wondered why it tasted strange.
Holly stated that it was sweetened with Stevia and that some people may not love it if they are not used to Stevia products. Billie reported that only one in every hundred people disliked the taste of Stevia.
Robert inquired as to the beverage’s calorie content. When Billie informed them that it was 480 per serving, they laughed.
Holly began to say that you shouldn’t be concerned about calories, and the Sharks laughed once more.
However, Billie emphasized that they were calories derived from healthful plant-based fats that “trick” the body into fat-burning mode. (This fat-burning state is well-documented as ketosis.)
It was time to discuss the numbers. Cave Shake sold for $7.99 a jar and had an average cost of $1.86 across all flavors.
At the time, they were only available in Southern California, in specialty health food stores. In 2017, sales totaled $270,000, and to now, in 2018, they have totaled $182,000.
Billie and Holly were questioned about their personal histories and what prompted them to make the shake.
Billie explained that she used to be a competitive athlete, notably a ski racer and that a ketogenic diet helped her manage her inflammation. Holly revealed that Keto helped her body recuperate following a vehicle accident.
Kevin had doubts about their $2.5 million valuations. That’s when Billie said that they were collaborating with a Coca-Cola-affiliated incubator Called LA Libations.
Holly stated during their appearance on the show that the incubator was a strategic partner.
They were on target to earn an additional $750,000 that year with the incubator’s assistance. Still, guest-Shark Charles Barkley inquired what the two had to give up to collaborate with the incubator.
Holly admitted that they promised 15%. Mark considered a large sum to offer to an incubator and questioned why the startup required assistance from the Sharks.
Billie believed it was critical to collaborate with a diverse group of intelligent individuals to aid in decision-making.
At the same time, Mark questioned why he should supply cash to a company that would offer him less equity than a company that had provided no money at all.
Kevin interjected and inquired as to whether their incubation agreement included a royalty clause.
Holly stated that the incubator would earn a commission on sales above $10,000 but did not specify how much commission they owed the incubator.
Kevin objected to another corporation receiving a royalty for nothing, while he would receive no commission on a $250,000 investment. He was no longer present.
Robert spoke out and stated that he disliked the product’s taste and found the branding unclear. He, too, withdrew.
Mark deemed it to be too much work and thus became the third Shark to pass. Lori stated that she would rather eat her calories than drink them, so she opted out.
That left Charles wondering if Cave Shake included the necessary components to generate energy for sports.
Billie stated that the drink was high in MCTs, which are excellent sources of fuel. Charles offered the two $250,000 in exchange for a 20% stake in the company.
Billie asked if he would reduce his offer to 14%, but Charles believed it was reasonable because they had previously given the incubator 15% for free.
He mentioned that he was considering investing because he had always struggled with weight and wanted to support a product that aids in weight loss.
He believed that investing in good people was a priority. “I enjoy your company, you two,” he stated.
Holly pressed him to reduce his percentage further, asking if 20% was his final offer, but Charles was unmoved.
Holly remained apprehensive, not wanting to give too much away, but Billie was desperate to work with an athlete like Charles Barkley. Holly conceded, and the two took up the offer.
What Happened To Cave Shake After Shark Tank?
Cave Shake eventually become a Shark Tank success story – albeit under a new moniker. Cave Shake has been renamed Space Shake.
While the company’s website is operational and the firm continues to operate, Space Shake’s press and retail location sections are blank — not a good indication.
Holly and Billie claimed that their relationship with LA Libations had just begun during their appearance on the show.
Soon after they shot, the incubator assisted them with securing shelf space at Whole Foods Market – albeit the chain’s geographic distribution is unknown.
After the show aired, demand in California continued to grow, and the owners partnered with LA Libations to extend beyond Southern California and establish a scaling infrastructure.
They are now only available in Southern California, but you can purchase them through Amazon, which ships worldwide.
Since the product’s debut on Shark Tank, the company has made many improvements. It dropped the strawberry flavor, switched from jar to pouch packaging, and lowered the calorie count per serving — first to 320, then to 210.
This is likely to encourage more people to consume it as a snack rather than a meal substitute.
The company has developed a bar and is developing a snack-sized container for the beverage in terms of snacks.
However, one significant modification appears to have gone unmentioned in marketing materials: Cave Shake changed its name to Space Shake as part of the contract with Barkley.
However, what does the name imply? It is not explained elsewhere – not even on the website’s FAQ or About sections.
On the company’s website (of course), reviews are overwhelmingly positive. However, the limited number of reviews on Amazon is mixed.
The company receives a 2.6 out of 5 ratings on Facebook, and despite having over 21,000 Instagram followers, engagement is modest.
Perhaps with improved distribution, the brand will acquire traction – but in a crowded nutritional-drink market, Space Shake will need to find a way to differentiate itself from its competitors.
Charles Barkley, the new Shark, provided the entrepreneurs $250,000 in the capital at a 20% discount to the original 10%.
The couple expressed reservations about the concept and questioned whether equity could be reduced to 14 percent and subsequently to at least 18 percent. The couple anticipated Charles would drop below 18 percent, but he remained steadfast.
When the Sharks learned about the incubator deal between Cave Shake and LA Libation, their enthusiasm waned, and a few opted out.
Charles was in, and despite receiving no compensation for learning about the incubator transaction between Cave Shake and LA Libation, he gave a quarter-million-dollar investment. Charles did state that the offer is realistic.
Personally, it aids in my weight loss and business advancement, as well as everyone’s growth.
Charles Barkley offered entrepreneurs Holly Heath and Billie Cavallaro a deal worth $250,000 with 10% equity.
Cave Shake is now known as Space Shake…with more flavors and a broader market reach.
Business Model of Cave Shake
Their firm has flourished after the Duo signed a deal with Charles Barkley on Shark Tank.
The shakes cost an average of $1.86 per unit to manufacture and sell for $7.99 at retail, resulting in a large profit margin on the product.
Cave Shake grossed $270,000 in sales in 2017. The company earned $180,000 in 2018 and was on track to reach a target of $540,000 before pitching on Shark Tank.
In 2019, sales reached $750,000 when pre-orders were included, owing to the Shark Tank effect.
The product was initially sold at health food stores and online in Southern California. What’s more, it’s now accessible on Amazon as well.
Cave Shake has rebranded as SPACE SHAKE and has built a thriving business that will reach $3 million in revenue by 2020.