Introduction
The story of Oat Haus is a captivating tale of resilience, innovation, and unwavering dedication to offering healthy food alternatives. they, known for being the pioneer of oat-based Granola Butter, grabbed the entrepreneurial spotlight when Ali Bonar, Ari Schaer, and Eric Katz made their appearance on Season 13, Episode 3 of the popular TV show, Shark Tank. Despite not securing a deal from the Sharks, they has continued to thrive, serving as a beacon of nut-free, gluten-free, organic, and vegan food options for health-conscious consumers.
Ali Bonar’s Journey to Oat Haus
Ali Bonar’s path to founding Oat Haus was a profound journey deeply rooted in her commitment to maintaining a healthy lifestyle through mindful nutrition. Ali’s fascination with nutrition began in her childhood and remained a constant throughout her life. However, as her quest for nutritional knowledge deepened, she found herself ensnared by the complex web of dietary information available, ultimately leading to rigid and stressful dietary choices.
This rigidity proved to be a turning point that led to a challenging decade marked by an eating disorder. Ali’s unwavering determination to rekindle her relationship with food and her health eventually revealed a pivotal insight – the necessity for clean, allergen-free, and nutritious food options.
As Ali embarked on a journey to diversify her diet by introducing nuts, an unforeseen obstacle emerged. Her stomach struggled to digest nuts properly, leading her on a quest to find a nut-free alternative that was both delicious and nutritious. Unfortunately, the market failed to offer a viable solution, compelling her to chart her entrepreneurial course.
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The Birth of Oat Haus
With an unwavering resolve to address her dietary needs, Ali Bonar decided to take matters into her own hands. This determination culminated in the creation of it, introducing the world to the first-ever oat-based Granola Butter. This innovative product promises the delightful taste of liquid oatmeal cookies while being entirely nut-free, gluten-free, organic, and vegan.
The founders, Ali Bonar, Eric Katz, and Ari Schaer, presented Oat Haus to the Sharks on Season 13, Episode 3 of Shark Tank, seeking a $375,000 investment in exchange for a 5% equity stake, effectively valuing the company at $7.5 million.
What Sets Oat Haus Apart?
Their unique value proposition lies in its commitment to offering a product that’s nut-free, soy-free, dairy-free, non-GMO, gluten-free, vegan, and allergen-free. The company’s mission is to provide a wide and health-conscious audience with a product that’s safe, delicious, and nutritious.
At the heart of Oat Haus’s success is its signature product, Granola Butter, which has garnered significant praise from consumers, especially among children who appreciate its delightful taste and nutritional benefits. The key ingredients that constitute this unique spread include oats, flax, maple syrup, coconut oil, olive oil, salt, and spices.
To cater to diverse tastes and preferences, they offers an extensive range of flavors. As of October 2022, customers can savor variations like Cookie Dough, Original, Vanilla, Strawberry Shortcake, Birthday Cake, Chocolate, Pumpkin Spice, Brownie Batter, Coffee, and S’Mores. The price of a single jar of Granola Butter is $12.95, while a bundle pack of three jars is available for $34.95. To enhance accessibility, the company provides its products on Amazon, complete with a subscription model that extends a 10% discount to subscribers.
The Driving Force Behind Oat Haus
Oat Haus thrives under the guidance and expertise of its dedicated founders:
Ali Bonar: As the CEO and Co-Founder, Ali is not only deeply passionate about health but also an adept marketing expert. Her professional journey has seen her contributing to renowned companies such as Doximity, MSLGROUP, Chempetitive Group, and Smith Integrative Oncology. She possesses a Bachelor of Science (B.S.) in Nutrition Sciences from the University of California, Berkeley.
Eric Katz: Serving as the COO and Co-Founder, Eric brings a wealth of experience to the table. His background includes roles as a senior consultant at the TAMID Group and as a Business and Technology Integration Consultant at Accenture. Eric graduated with a Bachelor of Science from the University of California, Berkeley.
Ari Schaer: Ari, the CCO and Co-Founder, plays a pivotal role in content creation and more for Oat Haus.
Oat Haus: Pre-Shark Tank Phase
The inception of it traces back to Ali Bonar’s unrelenting pursuit to address her health challenges. Her personal journey, marked by an eating disorder and the quest for allergen-free dietary alternatives, prompted the birth of this unique product. Oat Haus was officially established in 2018, with Ali, Eric, and Ari joining forces to fill the gap in the market by introducing nut-free granola butter.
Nonetheless, the path to success was far from a smooth one. The initial stages of the business presented numerous challenges, requiring substantial financial investments in product marketing. Despite the hurdles, these investments proved fruitful as Oat Haus rapidly gained traction. The product found its way into select Whole Foods supermarkets across several regions, including the North East, North Atlantic, Florida, and Southern Pacific.
Oat Haus extended its reach beyond Whole Foods, infiltrating over 1,000 local markets across the United States. The brand also ventured into international markets, with its presence felt in Canada’s Nature Market and Nature Sante.
In December 2020, Oat Haus secured a $600,000 investment from Overeasy Ventures in a seed round, highlighting the need for additional financial support and mentorship to further scale the business. This pivotal moment eventually led them to the doors of Shark Tank.
Oat Haus’s Pitch on Shark Tank
Oat Haus entered the spotlight of Shark Tank, Season 13, Episode 3, where Ari Schaer, Eric Katz, and Ali Bonar passionately presented their unique offering to the Sharks. They sought a $375,000 investment in return for a 5% equity stake in their company, effectively valuing Oat Haus at $7.5 million. The presentation included a taste of their spreadable granola butter, leaving a memorable impression on the Sharks.
Their pitch encompassed a compelling deal: a business with lifetime sales amounting to $2.7 million. The journey commenced in March 2018, with first-year sales of $156,000. Subsequent years reflected significant growth, reaching $435,000 in sales in the following year. By 2020, Oat Haus had surpassed the million-dollar mark with $1.2 million in sales, allocating 5% of their gross revenue to marketing efforts. Projections for 2021 hinted at the potential for $2.5 million in sales.
Nonetheless, the Sharks had diverse perspectives:
- Mark Cuban emphasized the need for Oat Haus to differentiate itself further, suggesting that being allergen-free and gluten-free was not a sufficient distinguishing factor. He opted out.
- Barbara Corcoran admired the team, branding, and the unique name of the product. However, she felt that her expertise might not significantly benefit the company and thus opted out.
- Kevin O’Leary raised concerns about the consistency of the business, leading him to opt out.
- Lori Greiner felt that the business did not align with her area of expertise and opted out as well.
- Daniel Lubetzky made the decision to opt out.
In the end, Oat Haus did not secure a deal within the Tank.
Oat Haus’s Post-Shark Tank Journey
While Oat Haus did not secure a deal on Shark Tank, their appearance on the show marked a significant turning point for the business. The Sharks might not have been willing to invest, but the response from the public was overwhelmingly positive.
The one-month sales following their appearance on Shark Tank were nothing short of remarkable. They managed to surpass their monthly sales within just three days, highlighting the impact of the show. Their product garnered significant attention and acclaim.
Oat Haus: Expansion and Market Presence
Oat Haus’s success story extended well beyond the Shark Tank. An announcement on their Instagram account highlighted the availability of their granola butter in Mom’s Organic Market on June 7, 2022, marking another milestone for the brand. On June 27, 2022, Oat Haus made its debut in The Fresh Market. July 18, 2022, was a significant date when the product became available in Nationwide Sprouts Super Market.
Customer feedback and reviews have been overwhelmingly positive, with many praising the delightful taste of the product. According to reports, Oat Haus achieved a sales increase of up to 300% after its Shark Tank appearance.
Additionally, Oat Haus was part of the 2022 CoLab class, as mentioned on the snackfutures website. By the end of 2021, the company had achieved $2.5 million in sales, with expectations of reaching $3 million in sales by October 2022.
Oat Haus’s Estimated Net Worth
Oat Haus has been on an upward trajectory both before and after its appearance on Shark Tank. The company’s annual sales consistently outperform the previous year. With its products available in popular supermarket chains, Oat Haus is accessible to a wide audience. Taking all of this into account, Oat Haus is estimated to be worth between $0.8 million to $1.1 million.
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Oat Haus’s Continued Business Operations
Ali Bonar and her team continue to drive Oat Haus forward. Their primary focus remains on expanding within the United States market, where the product is already available in numerous cities. Customers can easily purchase granola butter through Amazon, and the product has received a remarkable 71% five-star rating from customers on the platform.
As of December 2022, Oat Haus is still actively conducting its business operations and catering to its growing customer base.
In Conclusion
The journey of Oat Haus stands as a testament to the founders’ resilience, innovation, and their relentless passion for providing delicious and allergen-free food options. While the Sharks may not have chosen to invest in the company, the unwavering commitment of the Oat Haus team has translated into significant success. Oat Haus continues to thrive, offering customers a delightful and healthy spreadable granola butter. Its annual sales continue to rise, exemplifying its success as a brand. As the company’s journey unfolds, it remains an inspirational example of entrepreneurship and the potential for success that goes beyond the confines of a television show.
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