It's "a deal" for frozen food brand Toast-It.
The Miami-based company won an investment from a major food entrepreneur on an episode of "Shark Tank" that aired Oct. 6. Co-founders Coco Cabezas and Mafe Romer pitched their product to investors Mark Cuban, Lori Greiner, Daymond John, Kevin O'Leary and guest judge Daniel Lubetzky.
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Toast-It received offers from both O'Leary and Lubetzky, the founder of food company Kind Snacks. Cabezas and Romer decided to strike a deal with the latter to receive a $150,000 investment in exchange for 20% equity.
The sisters knew Lubetzky would be an ideal backer after learning he would be a guest judge on their episode, Cabezas said.
"Every 'shark' is amazing and we admire all of them, but in terms of industry experience and potential to bring us to the next level and fuel our brand, we knew we had to go with Daniel," she said.
Lubetzky's Kind Snacks launched its first fruit and nut bar in 2004, creating a new category of healthy snack bars. Now, the company is an industry giant with $5 billion in revenue reported in 2022. Lubetzky will invest in Toast-It through his company Camino Partners, a business building platform that provides support and mentorship to entrepreneurs.
Founded in 2020, Toast-It is behind a line of frozen, ready-to-toast arepas made with organic ingredients sourced from Latin America. The South American snacks are based on their mother's recipes and are free from unhealthy additives like preservatives. Toast-It products are available at more than 800 retail stores in the southeast, including Publix, Walmart, Whole Foods and Winn-Dixie.
Lubetzsky, who is Mexican-American, also has experience with Hispanic food products. One of the brands that Camino Partners works with is Somos, a line of plant-based Mexican food.
"I love discovering companies like Toast-It that have mastered the formula for bringing beloved Hispanic staples to mainstream consumers in a format that is delicious and convenient," Lubetzky said in a statement.
Toast-It will use the capital to market its brand, expand its retail presence and enter new U.S. markets. Right now, it is targeting the northeast and Texas, which both have sizable Hispanic populations.
"The frozen space is challenging because moving products long distance is expensive," Cabezas said. "So we want to start by focusing on the region's closest to where we produce our products."
Toast-It's line of arepas, pan de bono and plantain bites are made by a third-party manufacturer based in Miami, she added.
It's been a whirlwind year for Cabezas and Romer, who filmed the episode in June. The longtime "Shark Tank" fans said they spent weeks rehearsing their pitch for friends and family before taking the stage. The practice ensured they wouldn't be thrown off by nerves or unexpected questions.
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Originally from Venezuela, the sisters launched Toast-It after they moved to the U.S. and discovered they could not find the kind of authentic, home-made arepas they grew up with. While they had a strong product, Cabezas said she believed her and her sister's personal story was a bigger hook for the judges.
"They see thousands of entrepreneurs, so they're looking for more than a great idea at this point," she said. "Your story is a way to capture their attention and demonstrate why you're committed to the product."
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