you're as sweet as she is. -ahh! -good deal. blakely: [ chuckles ] ♪ barb: go[ laughs ] it real hard. lemonis: tonight on "the profit," super sweet entrepreneur barb batiste... barb: barb. let me give you a hug. man #1: okay. lemonis: have you taught everybody to hug? barb: thank you. lemonis: ...is determined to parlay the success of her sweet shop into a beverage-and-food empire. it's really good. with the help of her overzealous partner, they've launched three distinct businesses. holy moses, look at all this. and now they've added a new one -- a canned tea-and-coffee company. you guys are busy. but despite the backbreaking grind... barb: i'm dying. i'm tired. lemonis: ...they have yet to taste success... what do you get paid there? kurt: nothing. lemonis: ...as the new businesses threaten to kill the old ones. if it costs you $1.83 to make it, it actually costs barb money to be in this business.

kurt: well, that's...yeah. lemonis: but i see spectacular potential here. barb: we're nationwide at whole foods, and that is new, a sku. lemonis: you're nationwide? barb: we are, 168 stores. lemonis: pretty awesome. but if i can't get barb to toughen up... you should almost shut this business down. ...this business will be killed by kindness. barb: [ sobbing ] lemonis: i'm marcus lemonis. and i risk my own money to help businesses. i love investing in american businesses. woman #1: these people are here because they care. lemonis: it's not always easy, but i do it to create jobs, and i do it to make money. we have a deal? let's rock and roll. man #1: yeah! lemonis: this is "the profit." when i travel back and forth to los angeles, there's times where i visit different places, and it just so happens that b sweet is somewhere that i had been before, and i actually really loved it, and they contacted me because they've been expanding into new areas and they've hit some hiccups.

when i walk in the store, i was surprised at how busy the place was. in fact, there was a line almost out the door, and you can see that people are enthusiastic about what they're doing, and there's tons of sweets and desserts. man #2: awesome, thank you. lemonis: i'm definitely, definitely excited. barb: hi, marcus. lemonis: hi. how are you? nice to meet you. i was just ordering. i was just getting in line to order stuff. barb: okay. how are you? lemonis: do you know that i've been here before? i used to come here all the time to get different things, and every time i came, the menu got bigger and bigger. barb: i've got so much going on, marcus. lemonis: so these are all the items? barb: so these are all the desserts that we have, so i like to showcase them, so people know what they look like. so i'd started 10 years ago, and so i opened the restaurant because it's something that i've always wanted to do. i was doing sweets. i have an amazing vegan carrot cake. lemonis: wow. barb: and then we also have ube. it's a filipino purple yam. lemonis: can i try it? barb: oh, please. can i grab you one? lemonis: yeah, please. i love every kind of cake,

but i've never had purple cake. i've heard of ube, but i didn't know what it was going to taste like. don't knock it until you try it. barb: in the philippines, it's a big flavor. lemonis: it's really good. what was your motivation to start this? barb: my husband, greg, says, "well, you know what? you should open your own business," because everybody tells me and writes to me about this banana bread. he used to give it out to his clients every year instead of a bottle of wine. lemonis: is that the famous banana bread? barb: that's the chocolate chip banana bread. lemonis: my first impression of barb is that she's effervescent. what's it taste like? she's bright and bold. now, everybody knows that i love sweets and desserts. the question is, i'm not sure what exactly they want help with. what's the on-tap stuff here? barb: so the on-tap, we have a coffee, a green tea, the matcha, and that is our thai tea. this is what we did first, so the nitro coffee. it's just coffee, water, and then a little bit of nitrogen, which is the nitro in it. you give it a good shake to activate the nitrogen. lemonis: nitro coffee is a manufacturing process that actually adds nitrogen to the keg or to the can that gives it a sense of creaminess.

so this is just black coffee with nitrogen? barb: yeah. lemonis: ooh, it's strong. barb: yeah? lemonis: so this is matcha tea? it's like green tea, though. barb: yes, a matcha green tea. it's very light. lemonis: okay, it's different. let me try this one. barb: yeah, the thai tea. it has oat milk and a little bit of monk fruit sugar. it's a fruit that grows in china. lemonis: it's really good. barb: yeah. so this is the hibiscus. lemonis: it's very different than what i thought it was going to be. there's no calories in here? barb: there's no calories. it's coffee, water and nitrogen. lemonis: okay, this one has no calories, as well? barb: yeah. lemonis: so none in this. the thai tea has 45 calories. barb: yeah. the whole line is vegan. we're nationwide in whole foods, and that is new, a sku. lemonis: you're nationwide? barb: we are. you know where we have it? 168 stores back east called fresh market. lemonis: you guys make them here? barb: we do in camarillo. we have a brewery that we do it there, and they do it for us. they can, and they can there. lemonis: is it a copacker for you? barb: correct, yes, yes, yes. lemonis: okay.

i just want to remind everybody that the beverage business is now a billion-dollar business. it's one of the most competitive spaces in all of packaged goods in a grocery store. the fact that they do more than coffee is what's getting my attention. all these other flavors that are really exotic and different, honestly, now i'm interested. are there others in development? barb: yeah, there are, so we're working on an ube latte. whole foods has asked us to work on a matcha-green-tea latte. lemonis: who comes up with all the flavors you've come up with? barb: kurt does. so my very best friend, our family friend who's like a brother to me, and i call him my business partner, developed the coffee. lemonis: do you own 100% of the equity? barb: i own 100%, yes. lemonis: but you treat him like a partner? barb: of course, yeah. lemonis: but the paperwork -- barb: does not say that. lemonis: like, if you got hit by a bus, nobody would know other than you and him. barb: that's right. lemonis: okay. barb: this is kurt. lemonis: how are you doing, my friend? nice to meet you. kurt: nice to meet you. lemonis: how did you guys meet? kurt: got the entrepreneurial itch, and i opened my gym with her husband 16-ish years ago. barb: 16 years ago. kurt: so she came in every day and helped me for nothing.

barb: the gym eventually closed down, but... lemonis: the gym lose a lot? kurt: total, probably half a million. lemonis: all gone. kurt: yeah. lemonis: did you invest, too? barb: $60,000. lemonis: gone. barb: gone. lemonis: heartbreaking? barb: the money wasn't the heartbreaker. it was seeing my friend lose everything that he worked really hard for. that was the most difficult thing, so it was like, "how do i help him?" my husband, greg, he's like, "you should have kurt help you with the business." lemonis: you guys are like brothers and sisters. barb: pretty much. kurt: 16 years, we've been best friends now, so she is one of a kind, for sure. lemonis: you're kind of awesome. who's in charge between the two of you? barb: he's my ceo. kurt has really huge dreams, and so he's like, "you know, we've got to get our own trucks," and i said, "how are we going to afford this, you know? with what, your good looks?" and... lemonis: you are good-looking, so maybe it'll happen. kurt: i'm the work husband, basically. lemonis: look, it's clear to me that barb and kurt have a long-standing relationship. he kind of has equity, but it is not documented, and she invested in his business, and it went bad. it's not really conventional. so should i think about the business as this location?

barb: i have another store, you know, eight doors down... lemonis: oh, you do? barb: ...which is big boi. lemonis: what is that? barb: it's a filipino restaurant. lemonis: what? another store? okay, hold on, canned-tea business, a dessert business, a food truck business. now she's got another shop a couple doors down? what is that? barb: it's named after my late father. these are my parents. so angel is my dad's real name, but boi is his nickname. lemonis: is that a filipino thing? barb: yeah, all the recipes are my mom's. sorry, she just passed away in april. lemonis: aw, i'm sorry. barb: so that's a tough one to talk about, so i still can't do it without a lump in my throat. my dad has been gone for six years. lemonis: oh, my gosh. barb: yeah, it's tough. lemonis: when i meet somebody that has such a strong love and commitment to family, there's a sense of honesty about that. can we walk down to the other counter... barb: yeah, please. lemonis: ...so i can see this? we're going this way? barb: this way, yeah. so welcome to big boi. the logo, which kurt created for me, are the two bees, but they're the three hearts entwined, so it's my mom, my dad, and me. kurt: everything is made in-house.

lemonis: holy moses, look at all this. who does all of this, the pictures and the graphic? who does all that? you do? wow, you guys are busy. i think big boi looks like an amazing concept, but while i am super impressed, honestly, it's too much. barb: i mean, kurt's wanted to open two or three stores by now. lemonis: and you said, "why don't we do this ourselves?" kurt: yes, but that's the thing. lemonis: "because we don't have enough going on. we need more distractions." kurt: that's always my thought. barb: i'm so glad you understand me. lemonis: "kurt, what are you doing to me?" one of the challenges that exists with solid entrepreneurs is that they have more ideas than they have hours in the day, and i don't want to dismiss any of the ideas, but it is important to understand that you can only pick so many at a time. what does this retail for? kurt: the coffee is $3.99. lemonis: what does it cost you to make? kurt: $1.40. lemonis: and what do you wholesale it for? kurt: $1.77. lemonis: so not a spectacular margin. barb: it's not. kurt: not yet. lemonis: even at his current cost and current retail, the margins aren't great,

and so if you had to bring the retail down to find your way into more markets, that means the margins are even going to get worse. hi, sir. greg: how you doing? barb: and there's greg. lemonis: oh, it's your husband! barb: yeah! lemonis: how you doing, sir? nice to meet you. you have an awesome wife. greg: oh, i know. yeah. [ laughter ] lemonis: and who's in charge between the two of you? greg: she's definitely in charge. lemonis: do you have the financials for the separate businesses? barb: yeah, joe can print them. lemonis: so why don't you guys gather those up? and then we can sit down in here and go through it. does that work? barb: yes. lemonis: okay, so b sweet has catering, big boi, and the b sweet shop. last year's financials, business did $2.1 million in revenue, all the businesses combined, and lost $17,000. this is year-to-date for this year, nine months. so, so far, b sweet's done $1 million, then big boi is... it's only done $352,000. so let's say another three, four months of business,

it's going to get to $550,000, $600,000, so for the year, it'll probably get to $2 million for everything, and it's lost 100 grand year to date. greg: you spent a lot of money on the coffee this year, haven't you? barb: that's correct. lemonis: so that's why i asked about separating the financials, because the original core business is being tasked with research and development all for the nitro can business. greg: exactly. lemonis: and that's putting capital pressure on the b sweet, big boi business. when you keep opening things, it just keeps leapfrogging, taking the capital out to put it in the next one, taking the capital out, and putting it... and unfortunately, the challenge is, if you don't have a plan for the one that's sucking up the most cash, it could kill all of them. now, the catering business is inside of b sweet, and so there are three distinct entities that operate here. there's the b sweet sweet shop, there's the big boi filipino fast-casual restaurant, and there's the canned business. the b sweet business makes money and does quite well. the thing that's making the most is actually funding

the other things that are not. barb: it's just been a struggle. i'm so tired of this coffee thing. i'm so exhausted, but i know it's good, but i'm dying. i'm tired. i'm exhausted, and i don't know what to do. [ sobs ] lemonis: what barb and kurt have to realize is that in order to come up with new ideas, you have to put in fresh working capital. there's just not enough working capital and not enough human capital to go around. the brewer that makes everything, do you owe them some money today? barb: uh-huh, i do. i owe them $50,000. lemonis: and do you have other payables that are backed up a little bit? barb: i think maybe the coffee but not so much. i think it's about $10,000. lemonis: so you owe $60,000 to your vendors in the nitro can business. barb: correct. lemonis: and how much is your receivable that you're owed? barb: i'm thinking about $30,000. kurt: probably. lemonis: so right now, you're upside down 30 grand. kurt: for this month, yeah. lemonis: so why don't we do this? i feel like i understand the financials. i'm going to take a minute and just sort of look around myself, and then we can sit down, and we'll figure out if there's something here.

it's a bit of a danger for me to invest in something where i feel like the person is all over the place. she is spread way too thin. if it costs you $1.83 to make it, and you're selling it for $1.77, it actually costs barb money to be in this business. kurt: that's...yeah.

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to digest lemonall of the information,week and it's clear to me that barb is spread way too thin, and what i want to clarify is her real motivation for being in the beverage business and that it's not just to appease kurt. how are you? barb: i'm good. lemonis: i feel like big boi is a labor of love that's you and your family, and i feel like b sweet is like your baby, and honestly, i don't think either of those businesses need me. i only have interest in investing in the beverage business. barb: okay. lemonis: i think we have to work on flavor development, drink development, and i don't like the name b sweet on it. it doesn't describe what it is. it creates an illusion of something that isn't

really there, like calories, and it's not actually sweet. barb: i am concerned about changing it. people recognize the name because they recognize b sweet the brand. it has made a name for itself. i feel strongly about that. lemonis: well, you don't do much business today. i mean, it's not out there. barb: it is out there. i mean, it's nationwide. it's a nationwide product. lemonis: i think the business needs to clean up its debt. i think it has to clean up its copacking/potential self-manufacturing process, a real business plan... barb: i need that help. lemonis: ...a legitimate process. barb: i don't know how to do all those things. lemonis: for that business, we need people that have specialty in all those areas. i want to invest in the beverage business, in a standalone entity that doesn't have the restaurant or the sweet shop inside of it. i think if you could relieve yourself of the burden and know that that's not putting pressure on those two businesses and you could sleep at night, i think you would feel different. barb: i believe that's true. lemonis: okay, so i want to make an offer.

my offer is $250,000 for 50% of the business. only in the canned-beverage business. $50,000 would clean up the past-due stuff that's keeping you up at night, and then the other $200,000 would be dedicated to product development and inventory. barb: i've never had to make a decision like this before. i'm nervous, you know? lemonis: you should be, and it's a big decision. think about it for a minute. if you want to call greg. barb: i need to feel good about what i say yes to, and i don't think anybody can tell me that, not even my husband. lemonis: i love the fact that barb said that to me. if i'm good with it, it don't matter how everybody else feels. she understands the importance of the decision and the fact that ultimately, it's her call. what i love about what you've come up with with the beverages is that i think there's a lot of crossover with other businesses that i have, and i think the ability to scale it could be pretty exciting.

barb: okay. lemonis: we have a deal? barb: you have a deal. lemonis: okay. barb: thank you, marcus. ♪ lemonis: what's up? barb: hi, marcus. how are you? lemonis: is this your commercial setup? kurt: it is. lemonis: any time i go and invest in a business, i'm looking for the people, the process, and the product. i clearly love the people, and the product is amazing, but it's still unclear to me what the process is, so i wanted to visit their commercial kitchen to understand how they develop ideas and how they bring them to market. kurt: so because the oat milk market is really growing... lemonis: yeah. kurt: ...you know, there's some that we've worked with before. these guys are local, so they're willing to kind of work with us on, like, size. lemonis: califia is in california. kurt: they're here in l.a. lemonis: you got a hibiscus, a green, a coffee, and a thai.

what's the next flavor? kurt: i have an ube latte kegged and ready to go. lemonis: that [bleep] is purple. kurt: yeah, so you see how that comes out. lemonis: feel like i'm drinking barney. [ laughter ] is there oat milk in here? kurt: that one is almond and coconut. that's what we've been doing on tap so far. lemonis: well, what is your proposed for cans? kurt: probably oat milk. lemonis: so then why don't you test it the right way the first time? kurt: i haven't gotten to the ube part yet. lemonis: well, yeah, you are. it's right here. kurt: we're testing for sure. like you said, i'm the impatient one. i would love to keep launching. lemonis: if oat milk is going to be the premise behind it, then fine. if it's not, then that's okay. i just want to know what the process is. so if i said to you, "i want to make ube with oat milk the same way you make everything else," could you do it? kurt: yeah, so oat milk and a little bit of sweetener. that was completely eye-balled so far. barb: it's good. lemonis: i kind of like it better now. i don't like the fact that kurt is starting to show that there's a little bit of inconsistency with his process.

so what's still not clear to me is how you actually develop a flavor, and what the written process is to do that. barb: we don't have one. lemonis: so we can't have a business where we don't have one. kurt: mm-hmm. ♪ lemonis: hey, barb. barb: oh, hey! lemonis: how are you? i asked barb and kurt to meet me at the copacker in california. i wanted to understand, who's making their product, what's the process like, how sophisticated is it, and is is scalable? if we want to sell a million cans a month, can this place do it? jay: so this is our canning machine. our coffee goes into this buffer tank. it uses pressure to push the coffee out through the bottom. lemonis: putting a little nitro in there. jay: the bubbles of nitrogen are very small, and they provide a sweetness and texture element, so like a guinness. lemonis: [bleep] what was that? kurt: oh, uh-oh. lemonis: snafus like that don't normally...

i was not impressed. the place did not look as organized as i wanted it to be. i want to be able to eat off of a production-facility floor. i want to know that the machinery is the most sophisticated automated facility that i can find. i feel like "laverne & shirley." ♪ so this machine can do how many an hour? kurt: 2,000 to 3,000 cans an hour. lemonis: so it seems like if we got to a million cans a year, i think they would fumble a little bit. kurt: yeah, no, i mean, we have had our ups and downs over the years. lemonis: have you looked for alternatives? kurt: yep, we've been making some calls. lemonis: i would have alternatives even if they're not -- if you have a west coast one, a midwest one, an east coast one. one of the most important things in identifying and selecting a copacker is, who are their current customers? what does their facility look like? what standards are they adhering to, and what capacity do they have? i'm looking to check all those boxes because the fact that they used this copacker before is fine and nice,

but in the new company, i want to know that it's going to be right. this so far, it doesn't look so right to me. do you have enough demand to warrant increasing production? kurt: yes. right now, we've wanted to do a couple million cans per year. lemonis: how much does one can cost? kurt: $1.40. lemonis: great, so of the $1.40, break that out for me. what are the parts and pieces? part one, how much does the can cost? kurt: sleeved and ready to go is $0.32. lemonis: okay. what's the next thing? kurt: box, so $0.02. lemonis: what's the next component? kurt: lid, $0.04. lemonis: all right. what's the third thing that goes into this? kurt: uh, the coffee. lemonis: okay. kurt: i would say $0.60. lemonis: what's the next thing? kurt: it's brewing cost. jay: yeah, brewing cost. it ends up being about $0.55 for small batches. lemonis: what's next after that? kurt: the canning. lemonis: how much is that? jay: canning right now is $0.30. lemonis: let's add that up. kurt: so right now, it says $1.83. lemonis: so where did you get $1.40 from? kurt: the cost of canning, i think, threw me off.

lemonis: threw you off? kurt: yeah. lemonis: what do you wholesale this can for? kurt: that can is $1.77. barb: i'm losing money. jay: you're losing $0.06 per can. lemonis: if it costs you $1.83 to do it, and you're selling it for $1.77, it actually costs barb money to be in this business. kurt: that's...yeah. lemonis: not only is the company losing $0.06 per can every time they wholesale the product, but kurt was 30% off with his assessment of what it actually costs them to make versus what he thought it cost. that's a big problem if you start to do millions and millions of dollars of business. you'll be out of business. and so right now, you should almost shut this business down. if we really want to grow the brand, i think we need to have a team effort. i'm going to bring them in with me. barb: i'm not open to changing that at all.

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barb: looking at those numbers, almost my stomach sank.ss down. these are the things i fear every night. this is the stuff that keeps me awake. this is my only debt. lemonis: in order for this company to stay in business and to prosper, they're going to have to dramatically drive down their cost of manufacturing the product. today at $1.77, it doesn't work, and in order to make real margins, you're going to have to be down closer to a dollar. the way you're going to get there is by knowing your cost in each particular area -- the cost of the can, the cost of the coffee, the cost of the copacker, the cost of delivery, each part and piece to get us close to that dollar number. jay, thank you so much. jay: yep. barb: thank you so much. lemonis: thank you. barb: thanks, marcus. lemonis: okay, guys. it's now clear to me that kurt is as overworked and spread thin as barb is, because these really big things are slipping past him, and i want to spend some time with him to understand what's inside of his head and what's causing these problems.

what's at stake for you if this doesn't work out? kurt: this is everything to us, but... lemonis: no, just to you. you're not a partner today, right? kurt: not on paper, no. lemonis: and what do you get paid there? kurt: nothing. lemonis: excuse me? kurt: nothing. i mean, at this... lemonis: what do you mean nothing? kurt: i don't... lemonis: you don't have a paycheck? kurt: i don't have a paycheck, any salary. lemonis: come on. how long has that been going on? kurt: 10 years. lemonis: you've worked for free for 10 years? kurt: it's a family thing. lemonis: no, no. no, no, no. no, no, no. how do you pay your bills? kurt: i moved back in with my dad. i mean, i can save money. lemonis: well, you don't have any money to save. i mean... kurt: yeah. i mean, i... lemonis: you're not getting paid. that's crazy. barb and kurt have 16 years of history of working together, and there's clearly a loyalty that each one is demonstrating to the other, but as a new investor in a new entity, i need to be sure that all the i's are dotted and all the t's are crossed and that everybody's taken care of.

♪ i love the fact that this small can that just started less than a couple of years ago is nationwide in places like whole foods and fresh market. to get into these kind of retailers is really impressive. one of the things that i wanted to do is see how the product was displayed on the shelves and how their whole process works. so what are you competing with here? tons of stuff. what is this? it looks very similar. who came first? kurt: we did with the black can. i mean, that's one of the things that whole foods talked to us, too. lemonis: they want you to change because of them? kurt: they would like us to... lemonis: there's another black can. kurt: ...adjust. lemonis: so where's your guys? kurt: they are loading it. lemonis: why were they out? kurt: uh, our distribution, they're saying it's a hiccup, but -- lemonis: i went to a whole foods last night on my way home, and they also didn't have it. kurt: super frustrating to us, as well, because for us, every time... lemonis: well, who's ultimately responsible for it?

kurt: i mean, me. lemonis: this isn't something that's been missing for a day. kurt: yeah. lemonis: how long have you been off this shelf? kurt: i don't know. lemonis: a week, a month? kurt: i... lemonis: six months? kurt: i don't know. lemonis: "i don't know" doesn't work because the retailer, they're not going to accept "i don't know." barb: i think it's been hard, and it's frustrating because it's almost like you have to visit it every day because they move things around so much. lemonis: ultimately, if the retailer doesn't feel like you're fulfilling the product fast enough, guess what? they're going to find somebody else who will. i'll see you guys, okay? ♪ i knew that when i invested in barb and kurt that i had the perfect kind of company for them to learn from. mike: how you doing? lemonis: great to see you. mike: long time no see, how's it going? richard: how you been? lemonis: i wanted you to meet barb. richard: hi, barb. barb: hi. nice to meet you. lemonis: now, mr. green tea is a business that i invested in about seven years ago. man #3: we physically cannot

fill our orders to the distributors. lemonis: in the early years, the distribution wasn't right. the product didn't show up right. the packaging wasn't perfect. michael, you and i worked on that sweet sesame package. mike: i think this is a step in the right direction. lemonis: and it took us several years to figure all that out, so i think it may be time to introduce these two parties together. so barb is an amazing entrepreneur. barb: i've got a lot going on. lemonis: i want to jump into the factory. i want to show them how the process works. it was about a $1 million, $1.5 million company when i first invested. today, it's close to a $20 million-a-year business and going nowhere but up. mike: so ice cream, like beverage, as well, temperature control is critical. lemonis: barb, what's the single biggest difference that you see in being in this factory versus the copacker that you took me to? barb: number one, the cleanliness. kurt: professional machinery? barb: yeah. kurt: to see all that beautiful equipment, brand spanking new, we call this stainless envy. lemonis: precision, that's really been their key to success,

and precision is what kurt needs to learn the most. maybe we can test some of the flavors? mike: it looks creamy. you'll see it cascade like a guinness beer for about 30 seconds, and you'll get a head on top. lori: that's really good. mike: this to me is thin and empty. this is fantastic, and this needs work. kurt: the thai tea is our newest baby. it's the only naturally colored thai tea out there. lori: it's much sweeter than the others, also. mike: it has a sweetener in it that's not sugar. kurt: yeah, we use monk fruit sugar in ours, yeah. lemonis: would you buy it at the store? lori: in decaf, 100%. mike: how much? kurt: $3.99. lori: how much of it would i buy? mike: per can? kurt: yeah. mike: we've got to get that down. lori: $3.99 per can? kurt: yeah. lori: i would not spend that much money. mike: i think the concept is good. i think there's a lot of refinement needed. obviously, we haven't seen the manufacturing process yet. i'd like to dive into the recipes and look at that a little more, see where there's inefficiencies. lemonis: if we really want to grow the brand, i think we need to have a team effort, so what i'd like to do, i'm going to bring them in with me so that you're partners with all of us because i believe that they bring

a technical knowledge of food processing and science to the table plus distribution, plus manufacturing. are you okay with that idea? barb: i do absolutely love that idea. kurt: yes, the copacking alone, let's see what we can do together. i'll work with you on it. lemonis: look, i feel like kurt having somebody like michael on board will really help him. michael's a scientist-engineer-genius, but when i first met him, he was also rushing through things, like kurt. kurt: we've been working with whole foods on making the cans pop a little bit more. we love the black. mike: the logo is very busy. it's difficult to see from a distance. barb: i'm not open to changing that at all. it's either -- i mean, the heart itself, the "b," like, i love that. lemonis: oh, gosh, she's defensive. i mean, it's clear to me what's important to barb, her and her parents, and i want to respect it, but we're just trying to get it right. mike: give it to a graphic artist that knows better than all of us put together. i think it's way more attractive in white than it is in black. when i mean refine it like that, i mean like that, maybe take the weight of certain lines down.

lori: don't get upset. lemonis: come here, come here, come here, come here. [ barb sobs ] if he's responsible for the day-to-day operations, pick a monthly wage. barb: 4 grand. lemonis: okay. this is where you have to put your big-boy pants on. if you're looking to take your business to the next level, log on to theprofitcasting.com. i'm christina stembel and i chose the spark cash card from capital one with unlimited 2% cash back on everything i buy why wouldn't i get this card?! i redeemed $115,000 in cash back, which doubled our marketing budget last summer. what's in your wallet?

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that knows better than all of us a put together.t i think it's way more attractive in white than it is in black. lori: don't get upset. lemonis: come here, come here, come here, come here, come here, come here, come here. [ barb sobs ] i love the logo and the thought that she put behind it that it's her and her mom and her dad, and it's something from the heart, but when people are talking about improving their packaging when it's their own, it's a sensitive topic. lori: it's very, very hard. i mean, we've been through this, you know? but when marcus says, "trust the process," it's really, really important. barb: you're making changes to things that are very, very important to me. lori: important to you, i understand. i totally get it. barb: when he said it needed a little refinement, i was just kind of done. lori: you know, he's looking at it in terms of to make it as successful as possible. barb: absolutely, and that -- lori: and he doesn't have the emotion attached to it that you do. barb: yeah. mike: i'm sorry, barb. barb: no, you do not owe me an apology.

lemonis: i think it's just about making sure that you preserve the integrity and your identity, so there's a process to it, and it's not a ripping the band-aid off. it's an evolutionary process. it isn't just me. it isn't just you. this beverage thing could be huge, and the idea that you guys came up with is pretty freaking great. kurt: yeah. barb: the partnership, i think, is going to be so great because there's so much that we can learn from you. lemonis: awesome. well, you guys are connected now. kurt: yeah. lemonis: michael's gonna come out. we're going to go to califia almond milk, oat milk plant in bakersfield. mike: yeah, mm-hmm. lemonis: michael will help mentor you. it'll be good to have michael there because he's going to ask questions that you don't think about. kurt: right, it would be awesome, yeah. lemonis: okay? kurt: yeah. lemonis: thank you, guys. hi, guys! group: hi. lemonis: what's the good word? how are you? we here at califia farms in bakersfield, california, because i want to show kurt and barb how they can drive the price of their actual final product down by sourcing almond milk and oat milk directly from the manufacturer. greg: i'm kind of a lifelong entrepreneur, and back in 1980,

i started a little juice company called odwalla. i just bought one box of oranges and started squeezing orange juice and just getting up earlier than anybody else did. all right. lemonis: all right. greg: let's do it. lemonis: we're excited to go in! so califia farms is a state-of-the-art facility that really shows people how the refinement and the process needs to be established to keep consumers safe, to maximize profitability, and to maximize production. mike: so this product that you're making now, is it pasteurized beforehand or once it's in the bottle? greg: beforehand. kurt: and this machine can do multiple sizes? greg: well, different lines are set up. this one is set up just for the big one. kurt: how many hours do you do one sku at a time? greg: a couple of days, but sometimes, we're doing three products in one day. kurt: really? wow. greg: i pay a lot of attention to as many details as i can. kurt: i mean, this is unbelievable.

for us, we're still at the point where we're opening each individual container and would definitely love to talk to you guys about bulk sizes. greg: we like to support entrepreneurs, and we'll try to make it happen faster for you. lemonis: one of the benefits of having a direct relationship with califia farms is, currently, barb and kurt use distributors to buy those products, and it's obviously driving up their costs. by having a direct relationship with califia farms, they're going to be able to drive down the cost of their raw ingredient by 35%. now, that may not sound like a lot, but every single penny costs in our effort to drive the final cost down to a dollar a can. kurt: awesome, yeah. greg: very cool. lemonis: thank you so much for taking time tonight. kurt: unbelievable. lemonis: this is great. hey, guys. kurt: hi. lemonis: hi. so i thought it would be a good idea to talk about how kurt could frame his future. look, now that we're making a lot of progress

on the manufacturing side, what's most important to me is the business relationship and arrangement between kurt and barb and the company. kurt has made great progress in taking his time and making decisions and being more collaborative, and in order for me to be comfortable to move forward from this point, i want to know that barb sees it, as well. if she doesn't, i don't know that i'm going to be comfortable moving forward. what are the things that are important for you specifically? kurt: for me? lemonis: yeah, you can't continue to work for free. kurt: i'd love to have pocket money to go around and go on a date or move out. lemonis: so, you have to have a wage, you have to have a title, and you have to have opportunity to make more. so if that's the case, what's the title? if he's responsible for the day-to-day operations, is he a co-founder of the business? barb: yes, he is. lemonis: so let's start with that. you like that? kurt: yeah, oh, yeah. lemonis: okay, now you need a title that reflects your decision-making.

so, you know, maybe it's co-founder and president. kurt: ooh. lemonis: now we need a wage, and we need to know what his opportunity is to make more. pick a monthly number. barb: 4 grand. lemonis: okay. kurt: i mean, it's crazy to think about, but at the same time, i don't want to take too much out of a company that we're trying to grow. lemonis: i appreciate that, but i won't invest in a business where the guy that's running it isn't getting paid. this is where you have to put your big-boy pants on. mike: what's going on here? barb: i wanted to keep that name. mike: i'm just a little worried that if we're going to pitch gelson's today, and we don't have the clear understanding of what the branding is... barb: this is unbelievable. [ sighs ] lemonis: for exclusives, extras, and business advice, visit theprofit.cnbc.com.

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that we're trying to grow. too much out of a company lemonis: i appreciate that, but i won't invest in a business where the guy that's running it isn't getting paid. so i think there should be two components from your cash compensation. there should be a base pay, and there should be something directly associated with the volume of business that is being done. barb: correct. lemonis: and i would say a half a percent of sales. so if the company does $2 million, you'll make an additional $10,000. we good on that so far? barb: yes. lemonis: okay. opportunity. barb: i mean, i have 50% of the business right now. lemonis: so do i. barb: right, but i'd like

to take my 50% and make him an equal partner, give him 25%. [ chuckles ] why is there silence? lemonis: is this hard for you? kurt: yeah. [ chuckles ] lemonis: what's hard about it? kurt: i feel appreciative, of course. 10 years we've worked on b sweet. just talking about wages is awesome. lemonis: i think kurt's emotions really demonstrate how much he really has committed to barb and this company. we'll do the $48,000. we'll do the percentage of sales and then the 25%, which is amazing. we have a deal? you two shake on it. barb: hug-shake. kurt: thank you. lemonis: you gave him way more than i would have. that's what i love about you. barb: thank you. lemonis: kurt and barb let me know that they were able to arrange

a meeting with gelson's, which is a really great grocery store in california, and they carry luxury items, and they carry all sorts of great new foodie items. barb: set up the glasses, yeah? kurt: sure. lemonis: the primary benefit in this gelson's presentation is not only picking up a huge customer but also to see how the company has evolved, what their process is, how they deal with objection, and to get them into a rhythm and a flow to always be successful when they stand in front of somebody. mike: so what's going on here? barb: so in thinking about everything and when we were in new york talking about it, b sweet, that name has stuck for me. i wanted to keep that name. that was very important to me. i've never really thought of the name b sweet as something that was about sugar, sugar and... mike: yeah, but it's not about what you think. it's not about what we think. it's about what the potential customer thinks, and i do think that there are consumers that we're targeting that we're kind of confusing. i'm just a little worried that if we're going to pitch gelson's today and we don't have, like, a clear understanding of what the branding is,

that might send a little bit of the wrong message. barb: yeah, i also have a lot of concerns about what the product that's already been out there, has been out for the last two years, how will that affect the stores that i'm already in. you know, big markets that i'm already in? if i just do this change, how is that that name going to affect me? mike: no retailer is going to be bothered by a product that sells better, ever. i think we've got to talk to marcus and see what he thinks. i have a feeling that marcus is going to agree with me. barb: this is unbelievable. okay. ♪ [ sobs ] lemonis: what's happening? barb: [ sighs ] man #4: i have to say, one concern is the term "sweet." some customers don't spend the time to read the label, and i think some people might make the assumption that there's some sweetener in there.

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now you can take control of your home wifi and get a notification the instant someone new joins your network. only with xfinity xfi. downlaod the xfi app today. lemonis: barb: [ sighs ]g? lemonis: how are you? barb: hey, marcus. can i talk to you for a second? lemonis: you want to chat? barb: i do. lemonis: okay, let's go chat, you and me only, though. barb: yeah. lemonis: okay? barb: [ laughs ] so i've been going back and forth on the name change. lemonis: is it the name or the font on the can? barb: it's the name. i'm not married to the font. lemonis: you're open to a modification... barb: oh, absolutely. lemonis: ...on the cans for that. barb: absolutely. lemonis: perfect. barb: 100%. lemonis: so you want to keep the name of the product b sweet? barb: i do. lemonis: great. barb: what? [ laughs ] lemonis: i'm open to that.

in this particular case, because she feels so passionate about it and it has such deep meaning for her, i'm willing to give her one, as long as there's a compromise of cleaning up the logo and the way it looks. what i think you've learned through this process by me being tough is that you have to be tough with me. you have to stand up for what you believe in. "i'm willing to compromise on this, and i'm not willing to compromise on this." barb: it's pretty incredible to feel that i've grown that much in just a short time. lemonis: unbelievable how much you've grown. we had a cry-free conversation! there's nothing else to do here. let's go home. barb: hey, we get to keep the name. kurt: which name? barb: b sweet. kurt: what? lemonis: what do you think? barb: and i think... kurt: a pleasant surprise. it's a lot cleaner. lemonis: i wonder if there's any other surprises on the cans because you get what you want, and now kurt and i get what we want, right? barb: what do you mean? lemonis: so this is what will be on the back of the can. barb: so that's still a no-cry-free zone?

lemonis: you can cry if you want. barb: wow. that is beautiful. lemonis: this will be the back, a picture of your family and your mom and dad, and this will be the front. barb: i'm totally surprised. like, i didn't... i wasn't expecting any of that. that is... lemonis: all kurt. barb: ...pretty cool, thank you. kurt: i had a little help. barb: thank you. lemonis: okay, so now that everybody has had their whole love-fest, can we sell something and make some money? barb: yeah. lemonis: how are you? man #4: hi, guys. how are you? lemonis: i'm marcus. nice to see you. barb: thank you for having us today. we really appreciate being here. man #4: certainly. lemonis: how many locations are you guys up to now? man #4: we have 27 stores, all here in southern california. right now in the store we're in, this is the cold brew and kombucha holy land, we call it. barb: ah. lemonis: okay, yeah. man #4: this store actually sells more kombucha and cold brew than they sell milk, okay? barb: wow. lemonis: this could be a huge account, and with their 30 stores, could be a quarter of a million dollars a year. i am fired up about the opportunity. barb: b sweet's been around for 10 years.

kurt and i worked to get the nitro, the first nitro coffee in l.a. that was canned. kurt: we tried to call out the calorie count. and then also, like, it's no sweetener. man #4: i have to say, one concern is the term "sweet." some customers don't spend the time to read the label, and i think some people might make the assumption that there's some sweetener in there. barb: the name for me, my name is barb batiste, so that's what the "b" is for, and sweet is what my father always called me. that name means a lot of me. man #4: i'm not saying that it's wrong. i'm just saying that it's something that you need to combat, make sure people know that it's not sweetened and really push that part. can you crack one open, and we can try it? kurt: none of them have preservatives. they're as crisp and clean as we can make it. man #4: that's great. lemonis: this was the first time that i really saw kurt and barb step up and take everything that we've learned along the way and put it together in one pitch. it's clear to me that gelson's is definitely interested in the tea line because they realize it's a total differentiator in the market.

i've got to be honest with you. it's a huge deal for me, and the way this company is going to grow is, you have to pick up these kind of accounts one at a time. man #4: that's great. it's almost a great alternative to a juice. kurt: and it's a good mixer too. we've had a lot of people that... man #4: now, you're talking. kurt: yeah, we've had a lot of people that have had fun mixing it with drinks, too. man #4: i can imagine, yeah. mike: yeah. man #4: we can definitely see what we can work out here in the next few weeks. lemonis: awesome. mike: that's fantastic. kurt: we appreciate it. lemonis: look forward to it. man #4: thank you. appreciate it. mike: thank you very much. man #4: thank you, thank you. barb: thank you. lemonis: i thought their level of professionalism and the fact that they got the account right there and then shows that this thing is... it's off to the races. you have landed on the brand. you have somebody that can help you through the process. barb: excited for that. lemonis: you are looking at new distributors and new retailers, and i thought your presentation was very tight. i honestly think this business could be a $50 million business no problem, and if it takes a few extra years like mr. green tea did to fully blossom, i'm okay with that. thank you, guys. barb: thank you. mike: see you later. lemonis: slow and steady

wins the race, and there's no kleenex required. cry-free zone, barb. you did really well. [ laughter ] mike: you kick ass. ♪ ♪ lejerry: about a week.st time youlemonis: let's go!e? tonight on "the profit"... my god, i'm already dizzy. ...a family fun center located on 7 acres in las vegas has become one of the city's most popular destinations. taylor: whoo! we're the birthday party capital of the world. lemonis: this feels like it. after nearly 27 years in this industry, owners jerry and matisun barton are ready to hand over the keys to their son, taylor. jerry: you're doing good, buddy. lemonis: but taylor struggles to fit in, sometimes appearing totally out of control. taylor: we sell fun here, so if you're not smiling, i'm gonna send you home. lemonis: your attitude, i want to throw it in the trash. previously, taylor was a nascar driver, but his career came to a screeching halt.