NuMilk made headlines in 2021 when entrepreneurs Ari Tolwin and Joe Savino appeared on Shark Tank.
Already making millions in revenue, the business partners made an instant impression on the show.
But what is the story behind NuMilk and what is its net worth?
Who are Ari Tolwin and Joe Savino?
Ari Tolwin and Joe Savino are close friends who worked together to set up their own company in 2017.
Both were vegetarians with an eager interest in entrepreneurship, who previously studied business and university. Savino graduated from the Lubin School of Business, while Tolwin received an MBA from Duke University.
Before partnering together, Tolwin had founded his own firm, the Happy Tree Maple Water company, while Savino set up the Harvest Beverage Group, producing a range of independent beverages.
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The creation of NuMilk
Ari Tolwin and Joe Savino joined together in 2017 to make NuMilk.
Savino came up with the idea of a machine that would allow customers to make fresh almond milk on demand. It would also only require almonds and purified water to make the product, removing many of the unnatural extra ingredients used in most mass-produced brands.
The pair set about manufacturing a machine that could be stocked in supermarkets across the US. Customers would just need to insert a bottle into the machine and press “start” for it to begin producing fresh milk.
NuMilk’s machines were given a retail price of $299.
NuMilk on Shark Tank
Ari Tolwin and Joe Savino appeared on the US investment show Shark Tank in 2021, asking for investment of $1 million in return for 5 per cent equity.
The request for so much money in return for such a small share automatically caught the Sharks’ attention. They were impressed to hear the business partners had already raised £12 million in investment and that they had successfully rolled out their product in some US stores.
However, there was concern when the Sharks delved into the finances.
The NuMilk machines were expensive to produce with Tolwin and Savino admitting to raking up significant debt in their previous three years.
They said that they had anticipated making $6 million in revenue in 2021, which would have seen them cancel out their previous losses but coronavirus had hindered their progress.
A number of stores had decided against stocking the self-producing milk machine due to the pandemic, meaning the company eventually only made $400,000 in revenue.
Investors Lori Greiner, Daymond John, and Barbara Corcoran all bowed out once they were given a rundown of the situation. However, both Kevin O’Leary and Mark Cuban put forward offers of investment.
O’Leary offered to give Tolwin and Savino the $1 million they were after but as a loan over three years, with a 9.5 per cent interest.
Cuban – a vegan himself – offered to put up $2 million in order to help ensure the company didn’t run into a cashflow problem. He offered an initial $1 million for a 7 per cent stake in the company with the additional $1 million available if necessary. The extra funding was made available as a loan with a 3 per cent interest in return for a further 3 per cent in equity or advisory shares.
After a brief standoff as Tolwin and Savino attempted to get Cuban to negotiate, the business partners took the $2 million offer.
NuMilk after Shark Tank
Despite successfully getting a deal with Mark Cuban on Shark Tank in 2021, the deal ultimately fell through when it came to negotiations post-filming.
Despite not getting the huge cash investment from the TV show, Ari Tolwin and Joe Savino managed to raise an additional $222,000 for s Kickstarter campaign.
The company has now shifted its strategy away from retail outlets to focus on its home-based product.
What is NuMilk’s net worth?
NuMilk is thought to have a value of $55 million.
The sum is a significant increase on what the company was valued at when Ari Tolwin and Joe Savino appeared on Shark Tank in 2021. Back then, the two founders claimed that their company was worth $20 million – however, the investors on the show cast doubts on this valuation and suggested that it was worth less than was claimed at the time.