Sanaia Applesauce, founded by Keisha Smith-Jeremie, had a vision: to create a delicious and healthy applesauce for adults, inspired by her Bahamian heritage. While the dream started strong, featuring unique flavors and sleek packaging, the reality of running a food business, especially after a memorable but ultimately unrealized Shark Tank deal, has required significant pivots. Let’s dive into the story of Sanaia Applesauce, exploring the challenges they faced, the strategic changes they made, and where they are today. It’s a compelling case study in resilience and adaptation in the competitive food industry.

From Shark Tank Dream to Real-World Hurdles

Keisha Smith-Jeremie entered the Shark Tank seeking $150,000 for 15% equity in her company. The sharks were intrigued by her unique approach: offering six distinct flavors of applesauce designed for adult palates, a departure from the traditional children’s market. Mark Cuban saw promise in the concept, particularly the potential of packaging the applesauce in plastic cups for a grab-and-go convenience. He offered $150,000 for 25% equity, contingent on this packaging change.

However, the deal with Cuban ultimately fell through. This, coupled with existing production costs, presented a major challenge. The initial plan focused on selling a 4-pack of glass jars on Amazon. But the high cost of producing each glass jar – \$1.03 – when the retail price was \$3.99, proved unsustainable. This led to a critical reassessment of their business model.

The Pandemic Pause and the Pivot to Plastic

The challenges didn’t stop there. In 2020, the COVID-19 pandemic forced Sanaia Applesauce to halt production entirely. This unexpected setback provided an opportunity to regroup and strategize.

Recognizing the need for change, Sanaia Applesauce relaunched in April 2022, armed with \$750,000 in funding and a renewed focus. This relaunch centered on the very thing Cuban had suggested: plastic cup packaging. To understand the rationale behind this packaging shift, delve into the full analysis of Sanaia’s post-Shark Tank challenges..

Rebuilding the Foundation: Product, Distribution, and Market Positioning

The relaunch involved more than just packaging. It represented a complete rethinking of Sanaia Applesauce’s strategy. Here’s a look at the key areas of focus:

  • Product Focus: Prioritizing the plastic cup version of their applesauce over the glass jars. This allowed for lower production costs and greater accessibility for consumers.
  • Distribution Strategy: Shifting from a primarily direct-to-consumer model to retail partnerships. Sanaia Applesauce aimed to get their product into major retailers like Walmart and other stores across the country. They also maintained an online presence through Amazon and their company website.
  • Market Positioning: Continuing to target adult consumers seeking a healthy, plant-based snack. Sanaia Applesauce aimed to justify its premium price point by offering unique flavors and appealing to health-conscious individuals. This included highlighting the applesauce as a vegan and dairy-free alternative.

Founder’s Vision and Operational Reality

One of the concerns raised by the Sharks was Keisha Jeremie’s ability to dedicate herself full-time to Sanaia Applesauce. At the time of the Shark Tank appearance, she was working full-time in HR.

To address this, Keisha hired a COO to manage the day-to-day operations of the company. This allowed her to focus on the overall strategy and vision for Sanaia Applesauce. Her emotional explanation on Shark Tank of her family responsibilities resonated with the sharks, underscoring her drive and determination.

Business Model Evolution

Sanaia Applesauce’s journey is a testament to the importance of adapting a business model based on real-world feedback and market conditions. The shift from glass jars to plastic cups, driven by both cost considerations and the potential for wider distribution, exemplifies this. So did the shift from direct-to-consumer sales to retail partnerships.

Here’s are the Business Model shifts,

  • From glass jars to plastic cups based on shark feedback.
  • Focus on retail partnerships (Walmart, other stores) after initial direct-to-consumer efforts.
  • E-commerce (Amazon and website) for direct sales.

While the company initially projected \$35 million in revenue based on retailer interest from expos, these were not firm orders. For a detailed breakdown of Sanaia’s revenue projections and market positioning arguments, explore the dedicated analysis..

A Continuing Story of Adaptation and Innovation

The story of Sanaia Applesauce is far from over. It’s a story of resilience, adaptation, and a founder’s unwavering commitment to her vision. By embracing change, focusing on cost-effective solutions, and strategically targeting the adult snack market, Sanaia Applesauce is carving out its own space.

Instead of simply trying to recreate the initial Shark Tank vision, Sanaia Applesauce is forging a new path forward. And its focus on retail partnerships and streamlining production are key steps in building a sustainable and successful business.