We all love drinking Soda, and the most exciting aspect about Soda is its fizzy zing. If you are a 90’s kid, Soda is among the most popular and favorite drinks for the summers.
However, we all have ignored or removed Soda from our fridges and shelves with the trend of eating healthier items. We all crave soda, but we tend to ignore it because of its sugar content.
So if you are like me and among those who love drinking Soda but skip them for health purposes, then Luma Soda can be the perfect solution for you.
I have been super impressed and in love with this drink known as Luma Soda.
Luma Soda is the healthier alternative to regular sodas, which replaces the sugar content of regular Soda with fruit alternatives to make the drink healthier.
One other option you might think of is Diet Coke, but there have been different reports that Diet Coke is not good for health.
Luma Soda was founded by Jim Ottosen in Palo Alto, CA, as an alternative to regular sodas to create a healthier option for the people who loved drinking soda.
Jim was a regular soda drinker and understood the effect of too much sugar on his health.
He decided to create Luma Soda, a calorie-free and healthier alternative to sports drinks, soda, and even apple juice that contained too much sugar.
What is Luma Soda?
Luma Soda is a carbonated drink that aims to replace regular soda as it contains very few calories compared to regular soda.
Luma Soda stands out from regular soda as it does not contain sugar. The sweetness of Luma Soda comes from natural ingredients.
You can select from different flavors of Luma Soda. Luma Soda is available in various flavors such as Blood Orange, Cherry, Lemon Lime, Cola, and many more. Also, Luma Soda is free from preservatives and other hazardous chemicals.
Luma Soda’s sweetness comes from natural sweeteners such as monk fruit and honey and has just 4 grams of sugar per serving.
If you are among those people who want to enjoy soda but skip them for being unhealthier, then Luma Soda is the perfect drink for you.
You can switch to Luma Soda as a healthier alternative to regular soda. Luma Soda does not contain additives, harmful chemicals, and preservatives to enhance flavor and extend shelf life.
If you enjoy drinking a small amount of caffeine, you will enjoy Luma Soda. The average American spends $65 billion on Soda and just $11 billion on coffee.
So, if you are a caffeine lover, you will enjoy Luma Soda as your coffee. Luma Soda may be the perfect alternative for you if you love artificially flavored sodas and can’t seem to get enough of them.
|Product/Startup||Naturally Sweetened Sodas|
|Investment Seeking||$500,000 For a 20% stake in Luma Soda|
|Final Deal||No Deal|
|Shark Who Invested||No Shark|
|Episode Aired||Season 10 Episode 19|
|Business Status||Out of Business|
Who is the Founder of Luma Soda?
Jim Ottosen is the founder of Luma Soda. Jim has been a lawyer for more than 25 years and consumes a lot of soda while preparing for his trial.
Jim became concerned about his health and stopped drinking soda when he learned that this soda contains a lot of sugar, preservatives, additives, and harmful chemicals that were harmful to his health.
He stopped drinking soda and started looking out for a low-calorie diet. Even after researching for a long time, he could not find a reliable and healthier alternative to regular soda. He found some products mentioned as healthier alternatives to soda, but they didn’t satisfy him.
That was when he decided to create a low-calorie drink and founded Luma Soda. He decided that the soda he would create would be free from harmful chemicals, additives, and preservatives.
How Was The Luma Soda Shark Tank Pitch?
Jim Ottosen appeared on Shark Tank requesting an investment of $500,000 in exchange for a 20% stake in Luma Soda.
Jim presents his story about how he got the idea to create Luma Soda and what motivated him to promote this product. Also, he handed over a few samples of Luma Soda to the sharks.
Some of the sharks seem to be enjoying the different flavors of Luma Soda; however, the sharks gave mixed reactions to Luma Soda.
The sharks questioned him about how much he invested in Luma Soda and what were the sales figure.
Jim replied that he had invested $1.75 million into Luma Soda and had generated $180,000 from the total sales of Luma Soda with just less than 10% reorder.
The Sharks seemed concerned looking at the sales figure. Some sharks offered valuable entrepreneur advice to promote their product and boost sales.
Barbara Corocan offered $250,000 with the condition that if the show guest Rohan Oza invests in Luma Soda.
Rohan denied investing in Luma Soda as he thought it was a zero-scale initiative, and he prefers to work with business owners who can accelerate their business. Hence, Barbara and Rohan decided not to invest in Luma Soda.
Jim rejected Mark’s offer as he thought Luma Soda was not the company for him; hence he left.
Other Sharks rejected to invest in Luma Soda as they thought Jim should close his business and focus on something else as it would not generate the sales Jim expected.
Hence, Luma Soda could not reach any agreement or secure any deal on the Shark Tank Show.
Final Deal: No deal between Sharks and Luma Soda.
What Happened To Luma Soda After Shark Tank?
Despite not getting any deal on the Shark Tank show, Luma Soda kept growing. Luma Soda is out of business as of 2022.
Luma Soda sells its drinks in the United States through a few partners. Moreover, you can purchase Luma Soda online if you wish to take a few sips of this healthier soda alternative.
Are There any Alternatives To Luma Soda?
You can find various Luma Soda alternatives in the market that are free from additives, preservatives, and harmful chemicals. However, no other drink can replace Luma Soda.
You can drink Luma Soda as many Luma soda as it doesn’t contain any artificial sweeteners or harmful ingredients.
Choosing a healthy beverage is difficult because only a few choices are available. You do not have to be concerned about health issues and adverse effects when you drink Luma Soda.
How Does Luma Soda Make Money?
Luma Soda makes money by selling sugar-free and preservative-free drinks Luma Soda. Luma Soda drinks are available in hundreds of physical and online stores.
Luma Soda has collaborated with some of the carefully chosen online partners, including Amazon. The cost of a 12-pack soda can is $19.99, which might seem a bit costlier than other similar options.
What Is The Net Worth Of Luma Soda?
Jim said he had invested $1.75 million into Luma Soda with a home equity loan on the Shark Tank Show. Hence, Luma Soda appears to be debt-free, but they spend a hefty amount of $15,000 per month on marketing.
Luma Soda had an inventory worth $600,000 and cash reserves of $30,000. Hence, the net worth of Luma Soda can be estimated at $2.5 million in 2019. The recent figure of Luma Soda’s net worth is not available.
What is the Revenue of Luma Soda?
As per Jim’s statement on the Shark Tank Show, the revenue of Luma Soda was $180,000 in 2019, with a cash reserve of $30,000 and inventory worth $600,000.
Who Is The Investor In Luma Soda?
Luma Soda and Sharks could not agree on the shark tank show. Hence, Luma Soda did not receive any investment from the Shark Tank show.
However, the entrepreneur Jim Ottosen had invested $1.75 million to create, market, and promote Luma Soda with the help of a home equity loan.
Is Luma Soda Still In Business?
Luma Soda ceased its operation in late 2018 though you can find a few units of Luma Soda on Amazon. Also, the website of Luma Soda has been terminated, and its social media pages have gone ghosts since 2018.
Jim introduced a great product, but he should have listed Shark’s advice regarding the beverage industry.
It was very difficult for Jim to stabilize his business without the assistance of an angel investor.
Interesting facts about Luma Soda:
- According to Jim, the company spent $15,000 a month on online marketing in 2019. This did not increase the businesses’ reach or generate sales much.
- The company benefited from Jim’s life insurance benefit and home equity loan.
- Amazon.com does sell sodas, but they do not all have a selection of flavors.
Luma Soda Shark Tank Update
It’s not surprising that Luma Soda did not get a Shark deal since they have done well in the market.
The sharks also predicted Luma Soda would fail, but they have always been proved wrong in the past.
Jim Otteson, who developed the soda, has done well and is still selling well in his marketing. Luma Soda has become popular among consumers because of its delicious flavor, making it a healthy alternative to soda.
Is Luma Soda Still In Business?
Luma Soda shut down its operation in 2020 as the company went out of business.