Bartisans: A Shark Tank Pitch Analysis

Bartisans, a brand founded by Jovita Mascarenhas and Jordan Mascarenhas, recently featured on Shark Tank India Season 3, aiming to secure investment for their newly established brand of manufacturing and selling ready-to-pour cocktail mixers. This analysis delves into the details of Bartisans, encompassing its establishment, ownership structure, business model, products, and the Sharks' decisions regarding their pitch.

Company Details

Bartisans, a brand registered with company name Round The Cocktails Private Limited. with the incorporation date on August 19, 2021 . This company is registered in Mumbai, Maharashtra, India. The shelf life of the products is 1 year with average calories of 39-65.

Ownership

Bartisans is owned by Jordan & Jovita. Bartisans was started in 2020. Jordan was doing an internship in Dubai but with outbreak of COVID-19 he was sent back to Indian. His parents were also an entrepreneur. While Jovita and her husband used to make drinks at home, Jordan decided to start his own business. While Jovita was also excited for this business, she joiend the bandwagon and hence, Bartisans started.

Business Model

Bartisans is a 100% natural and ready-to-pour cocktail mixer brand. Bartisans have multiple flavours for every occasion and each flavour has a story behind it. The Mocktails are as easy as to mix rum and coke. Bartisans has its own manufacturing unit with delivery services available PAN India.

Products and Services

Bartisans has a variety of cocktail mixers in rum , whiskey and vodka such as Raid and Run (Jamun, Cumin & Himalayan Pink Salt), Indian Summer (Mango, Cilantro & Bird's Eye Chilli), Liquid Gold (Ginger & Spices) and many more. A detailed list along with the prices can be searched out on: https://www.bartisans.in/collections/cocktail-mixers

Shark Tank Pitch and Decisions

Bartisans presented their pitch in Shark Tank India seeking an investment of ₹1Cr for 2.5% equity (Valuation ₹40Cr).

1. Vineeta Singh: Vineeta felt some sweetness of Mocktails was missing in the drinks. But she appreciated her attention to minute details and thoughtfulness which money cannot provide. She felt Jovita to be a failed entrepreneur who has enormous power and hence offered a non-negotiable offer of ₹48lac for 3% equity (Valuation ₹16Cr) plus debt ₹52lac for 3 years at 8% interest. The founders rejected the offer because they didn't want to raise money through debt.
2. Radhika Gupta: Radhika asked the calories in the product. She advised the founders to gradually move into boutique segment because the operations in premium market segment might decrease the TAM (Total Addressable Market) in future once the premium segment becomes health conscious and reduces intake of sugary drinks. Hence, she didn’t extend any offer.
3. Aman Gupta: Aman found the branding and the product superb but felt the business and market small. Secondly, the price range of the products didn't make the products consumable by masses. If the founders continue to operate in premium market segment then their TAM will decrease in future and for this reason he was out from the deal.
4. Peyush Bansal: Peyush found the products to be nice but felt requirements of F&B professional who can negotiate with the dealers and set terms and conditions which doesn't pose a problem in future. Hence, he was out from the deal.
5. Ritesh Agarwal: Ritesh believed that their business of concentrated drink will grow more in Horeca Industry. Currently, their operations in B2C has different economics and operations in B2B will have different economics. The clarity between B2B and B2C will be cleared in the upcoming 6 months when with small expenditure on marketing the business will grow profitably else, the founders will probably have better opportunities in B2B segment. Hence, because of this dichotomy, Ritesh was out from the deal.

Despite the negative feedback from other investors, Vineeta Thapar maintained her initial investment proposal to Bartisans. The founders rejected her offer due to the debt component.

Analysis of Shark's Decisions

The Sharks' decisions reflect several key considerations for Bartisans:

• Need for F&B professional: As per the Sharks’ consideration, founders need a solid and knowledgeable F&B professional to scale their business.
• Better opportunities in B2B: Sharks mentioned that the business can find better opportunities in B2B (Horeca Industry) segment rather than in B2C segment.
• Risk of TAM Reduction: The operations of the business in premium market segment may reduce the TAM in future once the premium market customers become health conscious and reduce consuming sugary drinks.
• Operations in small market: Bartisans is operating in small market with a small number of consumers.
• Not priced for mass use: Mocktails of Bartisans are priced for middle class. They cater to premium market customers. Hence, they are not made for use by masses.

Some key strengths and weaknesses of Bartisans:

Strengths:

• Attention to minute details: Founders’ attention to minute details was appreciated by Vineeta. She quoted Jovita as “failed entrepreneur” with so much power within.
• Superb branding: The branding and the products were acknowledged by the founders. Sharks found the product to be good and also liked the taste of the mocktails.

Weaknesses:

• Lack of F&B professional skills: Founders are in the dire need of advice from F&B professional to scale up the business.
• Ambiguity between B2B and B2C: The founders need to figure out the market segment of the business in the upcoming six months to analyze upon the long term sustainability of the business.
• Premium market segment: The founders were selling the products in the premium market due to which the products were not accessible for all classes of people.
• Small market: Operations in the premium market were leading to access to a comparatively small market and hence, they won't be able to gain market share.
• Future risk of preferences: The current premium market share might reduce in future once the premium market customers become more focused on health and gradually reduce consumption of sugary drinks.

Future of Bartisans

The future of Bartisans is uncertain at this stage. It will become more clear after 6 months if with less expenditure on marketing the brand becomes profitable else, the target market segment will have to be changed in the future. Also, a risk of changes in preferences of the customers is also attached to the brand.

Conclusion

The appearance of Bartisans in Shark Tank India Season 3 showcased a business started by a son-mother duo which is not to be seen very easily. The ready-to-pour mocktails offered by the brand were tasty and unique but they were pricey when it comes to approaching the masses. Also, there is a risk of reduction in future demand once people become health conscious and reduce intake of sugary drinks. Additionally, the target market segment will be more clear in the upcoming few months.

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