Entrepreneur Megan Klein used to drink a lot of alcohol, which negatively affected her body and mind. After struggling to quit alcohol, she launched Little Saints, a non-alcoholic cocktails business, during the 2021 pandemic. She appeared on Shark Tank Season 16 Episode 1 to seek investment from the Sharks.
Did any of the Sharks show interest in investing in her business? Let’s find out what happened to her business and how it is doing now.
| Company Name | Little Saints | |
| Founder/Co-Founder | Megan Klein | |
| Founded | 2021 | |
| Product | non-alcoholic cocktails | |
| Asked For | $500k for 5% equity | |
| Final Deal | No Deals | |
| Shark | No Sharks | |
| Episode | S16 E1 | |
| Air Date | Oct 18th, 2024 | |
| Business Status | In Business | |
| Website | Visit Website | |
| Headquarters | Miami, Florida, United States | |
| Annual (Revenue) | $4 Million *estimated | |
| Worth / Valuation | $10 Million | |
| Buy and Watch | Buy Now | Amazon Prime |
What Is the Background of The Founder?
Megan Klein is both an attorney and an entrepreneur. She studied law at Fordham University School of Law and earned her MBA from Northwestern University. After leaving her job as an attorney, she joined FarmedHere, LLC as President in March 2014.
In February 2017, she started a plant-based food business called Field + Farmer, but that business shut down by 2020. In May 2021, she founded Little Saints, a non-alcoholic cocktails business.
Business Pitch Episode Recap
Megan asked the Sharks for $500,000 in exchange for 5% equity in her company. She explained that she always enjoyed drinking in social settings, but after some time, she started to feel terrible.
However, she couldn’t stop drinking. She searched for an alternative to alcohol but couldn’t find a better option. That’s why she created Little Saints, non-alcoholic cocktails, and SPIRIT.
The non-alcoholic cocktails are mainly made from different types of mushrooms. Megan invested $1 million to start this company, which she earned from her previous two plant-based businesses.
Additionally, she raised two rounds of funding with company valuations of $6 million and $9 million, totaling $2.2 million. By October 2023, the company’s growth had skyrocketed by 600%, reaching $5 million in sales over the past 12 months.
Kevin O’Leary asked about the company’s debt ratio, and Megan explained that the company has a $650,000 line of credit, out of which $500,000 has already been used. Additionally, the company has $200,000 in cash.
The issue is that the company is losing $30,000 monthly because it has struggled to find its target customers. As a result, in 2022, the company made $500,000 in sales but incurred a loss of $1.1 million. However, by 2024, sales reached $4 million, reducing the loss to only $160,000.
The company’s best-selling product is its NON-ALCOHOLIC SPIRIT, which sells for $49.99 and costs $7 to make. Including shipping and packaging, the total cost to produce the product is $23. Additionally, the customer acquisition cost is $42, and the return on ad spend is 2.5 times per year.
Lori Greiner said she couldn’t relate to the product, so she decided to pass and stated, “She is out.”
Daymond John mentioned that the company’s valuation was too high for him, so he is out.
Rashaun Williams offered $500,000 but asked for 10% equity in the company. Megan made a counteroffer of $500,000 for 5% equity, along with a $2 million line of credit.
Mark Cuban said that it wasn’t his space, so he was out.
Kevin approached Rashaun to team up and offered $500,000 but wanted 15% equity in the company. Megan declined the offer, believing it was based on a low valuation. In response, Kevin made a counteroffer of $500,000 for 10% equity.
Megan then made another counteroffer to Kevin and Rashaun, proposing $1 million for 10% equity, but they refused. Megan ultimately decided that she wasn’t ready to make a deal below a $10 million valuation.
Sharks Offers list!
| Sharks | Offers |
|---|---|
| Rashaun Williams | $250k for 5% equity |
| Kevin O’Leary | $250k for 5% equity |
| Mark Cuban | No Offer |
| Daymond John | No Offer |
| Lori Greiner | No Offer |
| Founder’s (Countered) | $1 million for 10% equity |
| Final Deals | No Deals |
Little Saints Shark Tank Update
As of October 20, 2024, checking Little Saints’ official website revealed that the price of the company’s best-selling product, St. Ember NON-ALCOHOLIC SPIRIT, is $42.49, while the price for the cocktails is $50.99.
After the Shark Tank episode aired, Megan released a video on the company’s official Instagram handle, #littlesaintsco, revealing that she wanted to make a deal with Mark Cuban.
However, Mark was not interested in investing in her category. Megan also shared that she recently completed a fundraising round with a valuation of $20 million.
We have covered more businesses from Season 15, and you can also check them out!
