Sisters Coco Cabezas and Mafe Cabezas pitched their guilt-free Latin foods company, Toast-It, on Shark Tank Season 15. The company primarily focuses on South American classic foods like Arepas and Bites, which are ready to eat in just 10 minutes.
Did any of the Sharks support these two sisters in their business journey, or not? What ultimately happened to this business? Read on to find out the answers to all these questions.
| Company Name | Toast It | |
| Founder/Co-Founder | Coco Cabezas and Mafe Cabezas | |
| Founded | 2019 | |
| Product | South American classic foods | |
| Asked For | $100k for 5% equity | |
| Final Deal | $150k for 20% equity | |
| Shark | Daniel Lubetzky | |
| Episode | S15 E2 | |
| Air Date | Oct 6th, 2023 | |
| Business Status | In Business | |
| Website | Visit Website | |
| Headquarters | Miami, Florida, United States | |
| Annual (Revenue) | $0.5M *estimated | |
| Worth / Valuation | $2 Million | |
| Buy and Watch | Buy Now | Amazon Prime |
What Is the Background of The Founder?
Coco Cabezas and Mafe Cabezas, who are sisters and business partners, co-founded the company Toast It in 2019 after moving from Venezuela to the United States. Mafe, an MBA graduate, has worked at major companies like Citibank, Pfizer, and PepsiCo, and she is currently the Co-Founder and CEO of Toast It.
Business Pitch Episode Recap
Coco and Mafe asked the Sharks for $100,000 in exchange for 5% equity in their company. They explained that after moving from Caracas, Venezuela to the United States, they searched for authentic South American food options but found none that were both authentic and convenient. This led them to start Toast It.
All 5 Sharks tasted the original arepas in different flavors and liked them. The company’s food is frozen. Mafe shared that their products are currently available in over 900 stores across the United States, including Publix, Walmart, Whole Foods, Winn-Dixie, and Central Market in Texas.
Kevin O’Leary asked about sales and product costs. Coco explained that last year, in 2022, they made $200,000 in sales, and in the first 5 months of 2023, they had already made $190,000 in sales. They project $500,000 in sales by the end of the year.
The cost to make each product is $2.30, and it sells for $3.23, resulting in a 30% gross margin. However, after accounting for distribution expenses, the margin drops to 20%. They are working on reducing packaging and food ingredient costs to address the distribution expense.
In the frozen aisle category, the company has no direct competition. However, other arepas are positioned in the refrigerated aisle.
Kevin O’Leary noted that the business margins are very low. He offered $100,000 but requested 20% equity in the company.
Mark Cuban said that it’s just not something he gets excited about, so he is out.
Daymond John’s concern is that refrigerated trucks are costly and there isn’t much space in grocery stores, so he is out.
Lori Greiner praised Coco and Mafe’s business journey but said that this business isn’t for her, so she is out.
Daniel Lubetzky asked how they plan to improve the margins. The sisters explained that they would first optimize production processes with better machines and second, negotiate for better packaging deals to potentially cut their packaging costs in half.
Daniel Lubetzky asked about their level of commitment. Coco responded that the business is like their baby, and she left her full-time banking job for it.
Mafe added that the business is her first baby and she is pregnant with her second. They are passionate about their product and are dedicated to promoting their culture.
Daniel matched Kevin’s offer with $100,000 for 20% equity. Coco countered with $150,000 for 15% equity. Kevin declined, but Daniel countered with $150,000 for 20% equity. Coco and Mafe accepted Daniel’s offer.
Sharks Offers list!
| Sharks | Offers |
|---|---|
| Daniel Lubetzky | $100k for 20% equity (#1) $150k for 20% equity (#2) |
| Kevin O’Leary | $100k for 20% equity |
| Mark Cuban | No Offer |
| Daymond John | No Offer |
| Lori Greiner | No Offer |
| Founder’s (Countered) | $150k for 15% equity (Kevin & Daniel) |
| Final Deals | $150k for 20% equity |
Toast It Latin Foods Shark Tank Update
Since the episode aired, the company has seen a significant boost in sales. Many people purchased frozen Arepas foods, leading to Corn Arepas, their best-selling product, becoming completely sold out.
The foods are now available at Winn-Dixie, Whole Foods Market, Walmart, Publix, and some independent retail stores in Florida.
Toast It is worth $2 million.
Check out Shark Tank Season 15 Business Update.
You can see some businesses from Season 15 here.
