Little Saints offers non-alcoholic cocktails infused with functional mushrooms, providing a healthy alternative to traditional drinks. Discover the brand’s growth story.
Megan Klein faced a significant challenge in her life: the negative effects of alcohol, especially when it came to her social life. After enjoying cocktails for years, she began to experience that familiar, uncomfortable feeling after drinking—headaches, sluggishness, and the overall “hangover” effect. She didn’t want to give up cocktails’ fun and social aspect but realized there had to be a healthier alternative. This insight sparked the creation of Little Saints, a brand of non-alcoholic cocktails infused with functional mushrooms that not only offers a healthier lifestyle choice but also gives people the same socializing experience of traditional alcoholic drinks without the drawbacks.
Key Takeaways
- Little Saints is a non-alcoholic beverage brand created by Megan Klein. It offers cocktails infused with functional mushrooms, such as Reishi and Lion’s Mane, known for their health benefits.
- The drinks are sugar-free, low-calorie, and provide a healthier alternative for those looking to reduce alcohol intake while still enjoying social experiences.
- Megan pitched Little Saints on Shark Tank Season 16, seeking $500,000 for 5% equity. Despite receiving offers, she rejected them, staying confident in her company’s valuation.
- After the show, Little Saints secured a $20 million fundraising round and partnered with Sprouts Farmers Market, expanding its reach to 400 stores.
- The company has grown rapidly, with products now available in nearly 800 stores. Plans for international expansion and eco-friendly packaging are in the works.
- Little Saints continues to tap into health trends, offering promotions during Dry January and collaborating with wellness brands, mixologists, and yoga studios.
What are Little Saints?
Little Saints is a unique product that fills a growing gap in the beverage market: non-alcoholic cocktails and spirits powered by functional mushrooms. These drinks are made with ingredients like Reishi and Lion’s Mane mushrooms, both known for their positive effects on stress levels, mental clarity, and overall wellness. Little Saints delivers the social experience of traditional cocktails but with none of the negative effects associated with alcohol, such as weight gain, fatigue, and the hangover that can often come after a night of drinking.
In an era where health and wellness are becoming paramount for many individuals, Little Saints offers an option for those who still want to partake in social drinking without compromising their mental and physical health. The drinks are sugar-free, low-calorie, and non-alcoholic, making them the perfect alternative for health-conscious consumers who are cutting back on alcohol or looking for an alternative beverage to enjoy in a social setting.
Megan’s Journey to Create Little Saints
Megan Klein, a former lawyer and passionate entrepreneur, had always enjoyed the social aspects of drinking cocktails with friends and colleagues. However, she soon noticed that alcohol began affecting her health in ways she didn’t like. The feeling of sluggishness, mental fog, and physical fatigue that often followed a social night out made her rethink her drinking habits.
Megan’s desire to maintain a fun, social life without the downsides of alcohol led her to experiment with creating a drink that could provide the same experience of traditional cocktails without the harmful effects. Combining her passion for wellness with her love for cocktails, Megan created a line of non-alcoholic beverages powered by functional mushrooms. These mushrooms, known for their cognitive benefits, are the perfect ingredient to help people feel more focused, energized, and relaxed—without the crash that typically follows alcohol consumption.
Megan started by blending functional mushrooms like Reishi, which is known for its ability to support immune function and reduce stress, and Lion’s Mane, which promotes brain health and mental clarity. She wanted these drinks to taste good and offer real health benefits, making them a standout product in the wellness market. She also ensured that the drinks were free from sugar and artificial additives, aligning with the growing trend of consumers seeking healthier, clean-label products.
The Pitch on Shark Tank
Megan’s appearance on Shark Tank Season 16 was pivotal in Little Saints’ journey. The opportunity to present her product to the sharks was a chance to gain the investment and mentorship she needed to scale the business further. When she appeared on the show, Megan asked for $500,000 in exchange for 5% equity in her company. She shared the story of how Little Saints came to be and the rapid success her business had experienced in a relatively short time.
Little Saints was already generating impressive sales at the time of the pitch. Megan shared that her business had experienced a 600% growth over the past year, reaching $5 million in sales since October 2023. She also revealed that the production cost of each bottle was $7, and when shipping and fulfilment were factored in, the total cost per bottle was $23. Each bottle was sold for $49.99, giving Little Saints a healthy 54% profit margin. These figures showcased the business’s potential profitability and how it resonated with health-conscious consumers.
Despite the impressive numbers and Megan’s passionate pitch, not all of the sharks were convinced by the company’s valuation.
The Sharks’ Responses:
- Rashaun Williams and Kevin O’Leary: The duo offered $500,000 for 15% equity. This offer indicated that they saw potential in the brand but felt Megan’s valuation was high.
- Lori Greiner: Lori, known for her expertise in product development and marketing, expressed a strong passion for Megan as an entrepreneur but admitted that the product itself didn’t convince her. Lori ultimately decided not to make an offer.
- Daymond John: Daymond also opted to pass on the opportunity, citing concerns about Megan’s valuation, which he felt was too high given the current stage of the business.
- Mark Cuban: Mark also decided to pass, stating that he wasn’t interested in the product.
- Kevin O’Leary and Rashaun Williams’ joint offer: While Kevin O’Leary and Rashaun Williams saw potential in Little Saints, they offered $500,000 for a 15% stake in the company, which Megan rejected. She stuck firmly to her original offer of $500,000 for 5% equity, confident in her company’s future and valuation.
Why Megan Rejected the Offers:
Megan ultimately left Shark Tank without a deal. While the sharks saw some potential in her product, they disagreed with her company’s valuation, and their offers didn’t align with what Megan felt her business was worth. Megan had invested her savings, a total of $1 million, into Little Saints and had also raised $2.2 million in funding. With these resources, she grew her business significantly and was unwilling to give up more equity than she felt was fair.
Despite the lack of a deal on the show, Megan remained optimistic about Little Saints’ future. She knew that the company had already achieved impressive growth and had the potential to continue scaling. In her mind, the value of her company was only going to increase, and she was committed to staying true to her vision.
Post-Shark Tank Success:
Megan’s rejection of the sharks’ offers proved to be a wise decision. After her Shark Tank appearance, Little Saints went on to experience even more success, securing a $20 million fundraising round at a valuation double what was offered on the show. This valuation reflected the strong momentum the company had gained, and it signified that Megan’s vision for the future was paying off.
Key Achievements After Shark Tank
- Partnership with Sprouts Farmers Market: One of the most significant accomplishments post-Shark Tank was the partnership with Sprouts Farmers Market. This partnership allowed Little Saints to gain placement in 400 stores nationwide, significantly expanding the reach of the product and making it accessible to a broader audience of health-conscious consumers.
- Product Line Expansion: Little Saints also launched a new flavour, Spiced Old Fashioned, and expanded its retail presence. This latest offering attracted more consumers looking for fresh and exciting flavour options in non-alcoholic beverages. The company also continued to expand its product line to include even more non-alcoholic alternatives, catering to a wide range of tastes and preferences.
- Growth in Retail Locations: As of 2024, Little Saints had expanded its retail presence significantly, with nearly 800 stores now carrying the product. This rapid growth in retail placements further validated the product’s popularity and demand among consumers.
- Strategic Partnerships with Wellness Brands: Little Saints has collaborated with wellness brands, yoga studios, and health-focused influencers to strengthen its brand positioning. These partnerships have been instrumental in raising awareness about the benefits of functional mushrooms and how they can help improve overall wellness.
- Collaborations with Mixologists: To ensure that the drinks remained fresh, creative, and appealing, Little Saints partnered with mixologists to craft unique, high-quality flavours. These collaborations helped the brand stay on top of the latest trends in the beverage industry, appealing to a broader range of consumers.
- International Expansion Plans: With its strong growth trajectory, Little Saints has begun exploring international expansion, looking to bring its innovative non-alcoholic cocktails to markets outside the United States. This move is part of the company’s broader strategy to tap into the growing global demand for wellness-focused products.
- Sustainability and Eco-Friendly Packaging: Little Saints is planning to introduce eco-friendly packaging as part of its commitment to sustainability. This aligns with the growing demand from consumers for companies to prioritize environmental responsibility. The company’s push for sustainable packaging will resonate well with eco-conscious customers who care about the ecological impact of the products they purchase.
- Promotions for Health Trends: Little Saints has quickly tapped into health and wellness trends like Dry January, offering special promotions to cater to the growing demand for non-alcoholic alternatives during this period. These promotions have helped the brand gain visibility during key times of the year when people are more likely to be interested in reducing alcohol consumption.
The Future of Little Saints
Looking ahead, Megan and Little Saints are poised for continued success. The brand’s expansion into new retail stores and international markets and its commitment to sustainability and wellness ensures that Little Saints will remain a major player in the non-alcoholic beverage space. With a growing consumer base increasingly interested in healthier, more mindful alternatives to alcohol, Little Saints is perfectly positioned to capitalize on these trends.
Megan’s refusal to accept a deal on Shark Tank has proven to be the right decision, as the company has thrived in the months following the pitch. The company’s future looks incredibly promising, and it will be exciting to watch Little Saints continue to grow and innovate in the non-alcoholic beverage market.
For the latest updates from Shark Tank Season 16, Episode 1, explore the links below:
