A frozen food business from South America secures a deal on Shark Tank.
Miami As Marina Corina “Coco” Viete Cabezas put it, arepas are “basically what would happen if a bagel and a tortilla had a baby.” They are a daily staple of many South American diets and appeal to a number of popular American trends.
“Arepas are fantastic because they just contain three ingredients, taste very good, are vegan, gluten-free, and devoid of added sugar and preservatives,” the speaker stated.
It seemed natural to her to develop a handy version of the traditional corn-based cake, which is frequently eaten as a snack, side dish, or component of a sandwich in her home countries of Venezuela and Colombia. Three years ago, Ms. Cabezas and her sister Maria “Mafe” Fernanda Romer, who had no prior expertise in food manufacturing, introduced a line of freezer-to-toaster arepas that were based on their mother’s recipe. During a recent appearance on the entrepreneurial reality series “Shark Tank,” the two managed to get an investment to assist the expanding firm.
Three frozen arepas varieties—original, chia flaxseed, and cassava—are offered by their brand, TOAST-IT. They are promoted as sandwich thins and available in 900 supermarkets nationwide, including Walmart, Publix, and Central Market. Frozen snacks like plantain buñuelos and pandebono bites are among the other offerings.
“We knew there was a lot we could bring to this category, not only arepas but many other products,” Ms. Cabezas told Food Business News. “We shifted from an arepa brand to a guilt-free Latin American brand.” “Although we currently fall into the frozen category, we believe there are many opportunities outside of it as we grow.”.
The sisters moved to Miami eight years ago, seeking refuge from the social and political turmoil that characterized their native land. Ms. Cabezas stated, “We just didn’t have time to prepare the foods we grew up eating, and we found ourselves missing our mom’s food very deeply” after they graduated from college and started working in corporate positions. They quickly saw “a very interesting hole in the market for authentic products that are convenient for busy lifestyles,” according to her.
Additionally, she stated, “we discovered that the majority of Hispanic products on the market are loaded with terrible ingredients and preservatives, and they didn’t really meet the needs of the Hispanic population because we’re so used to eating organic and clean products back home.” “Thus, we believed we could innovate with many different products that we grew up eating and bring a very interesting take on the Hispanic category.”
The sisters, who have been avid viewers of “Shark Tank,” applied to present to the panel of affluent venture capitalists on the show, and they were given the chance early this year. Among the usual tycoons seated there was guest investor Daniel Lubetzky, who founded Kind Snacks and eventually offered to pay $150,000 for a 20% stake in TOAST-IT. Concurring that he was “our dream Shark” because to his background as a fellow Hispanic immigrant and his successful business career—he co-founded SOMOS, a ready-to-eat Mexican food brand—the sisters accepted the terms. In addition, he founded the company development and investment platform Camino Partners.
“Mafe and Coco have built the magical bond of sisterhood into a formidable business partnership,” Mr. Lubetzky said after the deal. As a co-founder of SOMOS Mexican Foods and a perplexed Mexican Jewish American, I adore finding businesses like TOAST-IT that have perfected the art of introducing well-liked Hispanic classics to mainstream consumers in an appetizing and practical manner.
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The show debuted on October 6. In addition, she said, “it not only provides the opportunity to give your brand a lot of awareness because millions of people watch the show, but also getting feedback from the Sharks… is invaluable, and to get a deal with one of the Sharks has the potential to fuel your business.” Ms. Cabezas described her experience pitching on “Shark Tank” as “nerve-wracking” and “surreal.”
The owners of TOAST-IT, who have Mr. Lubetzky’s backing, want to “bring Latin food to more mainstream markets,” Ms. Cabezas stated, pointing out that there aren’t many lesser-known cuisines available in American grocery stores.
“We think that Mexican food has become so popular that people of all ethnicities know it so well, but there are so many dishes that we feel have the potential to become very popular that are from South or Central America that are really not that well known,” the speaker stated. “We want to keep advancing our culture and heritage through delicious products that are exciting, delicious, and guilt-free.”