Luma Soda is a healthy soda drink. It is made with natural ingredients and is different from other carbonated drinks. Luma Soda does not contain any harmful chemicals and preservatives and is available in many flavors like- Blood Orange, Cola, Cherry, and Lemon Lime.
Luma Soda contains only 4 grams of sugar. It has natural sweeteners like Honey and Monk fruit. It is a much healthier alternative for people who enjoy carbonated drinks or diet sodas. As carbonated drinks and diet sodas contain harmful chemicals, additives, and preservatives to increase their shelf life as well as they are packed with sugar and other synthetic flavors to enhance their taste.
Luma Soda at a glance:
|EPISODE NO||Season 10 Episode 19|
|BUSINESS IDEA||A healthy soda drink made with natural ingredients.|
|ASKED FOR||$500,000 for 20% at $250,000 valuation|
|ACCEPTED OFFER||Received no deal.|
|BUSINESS STATUS||Out of Business|
Who is the Founder of Luma Soda?
Jim Ottosen founded Luma Soda in 2017. Jim has been an Attorney for 26 years. While preparing for a trial he used to drink a lot of diet soda. But soon he realized that these diet sodas contain preservatives that can be really harmful.
So he stopped drinking these diet sodas and started finding other low-calorie sodas. But he was not satisfied with the products available in the market. So he founded his own company that provides healthy, low-calorie, and preservative-free sodas made with natural ingredients.
How was the Luma Soda Shark Tank pitch?
Luma Soda appeared in Episode 19 of season 10 of Shark Tank. Jim Ottosen was seeking $500,000 for 20% equity. In the episode, Jim discussed the current status of the company. The Sharks gave the entrepreneur some suggestions regarding how to increase sales and free up cash.
Barbara Corocan offered $250,000 and said she will invest only if guest Shark Rohan Oza joins her. But Rohan decided not to invest as he thought this business is a zero-scale startup and he said he prefers to work with entrepreneurs who can turbocharge.
So, Barbara and Rohan refused to take the deal further. Mark tried to motivate Jim but said this business does not fit him so he is out too. Mr. Wonderful also refused to take the deal further and suggested that this entrepreneur should also close the business like others. So, Luma Soda was left without a deal.
How do they make money?
The company is selling the drinks online as well as in stores. The drinks cases are available for sale on online websites like Amazon as well. Luma Soda currently has some selected partners with whom they are working. Their 12-pack soda can set costs about $19.99, which is slightly more expensive than other sodas in the market.
What happened after Shark Tank?
Jim took a home equity loan and in total invested $1,750,000 in the company. Even though the company does not have any debt, they spend $15,000 on marketing every month. As mentioned in Shark Tank, the company has $600,000 in inventory and $30,000 in cash reserves. In total, the value in 2019 was $2,500,000.
In 2019, Luma Soda earned $180,000 through sales. They have an inventory of $600,000 and $30,000 in cash reserves. The company failed to make a deal on Shark Tank. But, the entrepreneur has invested his own money in the company. He took a home equity loan and the value of his life insurance and invested $1,750,000 in the company.
Even though Luma Soda did not get any deal on Shark Tank, the company is still in business and growing. The company is currently selling drinks cases with some selected partners in the USA and the product is available for sale online as well.
Zevia Zero calorie soda:
The company says that Zevia is a movement and it is much more than just a soda. These drinks are made using Stevia leaves instead of sugar. These sodas are available in many flavors. That’s why the customers have a wide variety of flavors to choose from and the soda is healthy and artificial sugar-free.
Bubly sparkling water:
Bubly is a sparkling water range started by the same company that launched Pepsi and Mountain dew. This sparkling water is available in eight exciting flavors. The product does not contain sugar and is a zero-calorie drink.
Is the company profitable?
The product is still available for sale on various online platforms but most of the flavors are unavailable. But, the company is very much still in business.
- Jim invested his life insurance value money and took a home equity loan to invest in the company.
- Even though the sodas are available on Amazon.com for sale, all the flavors are unavailable.
- In 2019, as mentioned by Jim, the company spent $15,000 a month on online marketing. But that did not add much to the company’s reach and in generating sales.
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What is Luma Soda?
Luma Soda is a healthy soda drink. It is made with natural ingredients and it is different from other Carbonated drinks and does not contain any harmful chemicals and preservatives.
Who founded Luma Soda?
Jim Ottosen founded Luma Soda in 2017. Jim has been an Attorney for 26 years.