The entire world is becoming more health conscious in its day-to-day lives. So, everyone now wants to have only healthier sodas. Jim Otteson liked to drink sodas, and hence, struck by the motivation, he decided to launch a healthy soda company. For this, he set up Luma Soda.
Otteson served as a trial attorney for 26 years, and he often had diet soda when getting prepared for a trial. As soon as he understood that there were bad additives and chemicals in diet sodas, he started to look for a healthier and lower-calorie soda.
He found craft sodas in the market but they contained a high amount of sugar. He also found sparkling drinks. But he did not like any one of them. That is why he came up with his soda and named it Luma Soda.
Jim resigned from his job as a lawyer and started to create a pure, naturally sweetened, low-calorie soda. He began to sweeten the Luma drinks with monk fruit and a little bit of honey.
He does not use any caffeine or Stevie for making the Luma drink. He does not even use any artificial colors in the Luma sodas. Luma soda is available in four distinct flavors that are Cola, Lemon/lime, Cola, and Blood Orange.
There are only 25 guilt-free calories in every Luma soda can. Jim appeared on Shark Tank intending to get an investment of $500,000 in exchange for a 20% share of his business but it is a matter of sorrow that he is not able to convince any sharks to invest in his company.
Shark Barbara wanted to sign the deal and invest money but she had a condition. She said that she would invest in the company only if Rohan Oza made a partnership with her as he was an expert in beverages.
Oza was not ready because of the huge investment amount and low return. For this Barbara too went out of the show. That is finally the founder left the show without any deal. Let’s learn about Luma Soda in detail.
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A short overview of Luma Soda
Luma Soda is nothing but a drink that is trying to make a revolution in the carbonated soft drink industry by providing a healthier and more genuine alternative to traditional sodas.
The primary mission of the company is also to offer consumers a guilt-free,
refreshing, and enjoyable carbonated drink without compromising the quality as well as taste.
The Luma Soda company knows what kind of health issues may come from consuming a lot of popular sodas that contain high amounts of sugar and artificial components. That is why the company tries its best to provide a healthy beverage consumption experience by maintaining the nutritional criteria highly.
Luma Beverage has managed to keep itself away from the competition with its mixture of genuine fruit flavors and shortage of artificial sweeteners and preservatives.
Luma has managed to gain this by replacing cane sugar with genuine alternatives like monk fruit and stevia, decreasing the calorie count per can to only 25 calories, which is only a fraction of the conventional calories of soda.
Moreover, Luma Soda boasts itself as a non-GMO, low glycemic, gluten-free, kosher-certified, and vegan drink. The company provides a highly praiseworthy solution to the increasing health issues related to carbonated soft drinks.
The company can fulfill the demands of health-conscious customers with the help of innovative methods incorporated with genuine components.
The company has proven that we can enjoy a tasty carbonated drink without creating any health risks.
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Who created Luma Soda?
Jim Otteson, a prosperous businessman with a healthcare background, created Luma Soda. He is, by profession, a dentist. He realized the effects of sugary beverages on oral health and overall wellness.
That is why he was trying to find an alternative to conventional sodas. Otteson came up with the idea of Luma Soda because he wanted to provide a drink that would give pleasure to the consumers without creating any health issues.
He wanted to retain the same soda experience without the deficiencies of the high sugar range and artificial ingredients. That is why he crafted a soda that contained low sugar using natural components by utilizing his knowledge of health and wellness.
He did not use any artificial sweeteners for taste.
Before appearing on Shark Tank, the Luma soft drink company tried to create a loyal consumer base by grabbing the attention of those who liked to have healthier soda.
They distributed Luma in some specific stores and made the drink available online. At that time, Otteson realized that there was a huge scope for expanding his business. Hence, Otteson appeared on Shark Tank season 10.
By appearing on national television and a popular platform, Luma Soda was able to reach a wide audience and they were able to grab the attention of investors for growing its distribution channels.
So, the appearance of Shark Tank was indeed a useful step for Luma Soda by which it has become successful.
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Jim Otteson took part in Shark Tank and represented Luma Soda with premium lemon and cherry cola flavors which is a healthier alternative to the traditional diet soda. He simply pitched his product. He says that he was addicted to diet soda and wanted to offer a healthier alternative.
He was intending to get an investment of $500,000 in exchange for a 20% share in his business. Otteson proudly declared that Luma Soda has managed to generate $180,000 in direct-to-customer online sales for the recent calendar year.
However, he confessed that there was a shortage of repeat consumers and admitted feedback from his consumer base who wanted to have more accessibility, particularly in conventional grocery and health food shops all over North America.
The sharks were concerned about the price of Luma Soda. The online selling price of a single 12-pack of the healthy flavored soda was $19.99 which is relatively higher than conventional sides available in grocery shops. The sharks did not like the pricing policy.
When the sharks asked about his investment in the businesses, Otteson said that he had only invested $2 million into the business.
As soon as Lori Grenier tasted the drink he was so dissatisfied with the flavor that he decided not to invest in the business. The other sharks too went out one by one. Ultimately, Ottenson did not get any deal.
Unfortunately, after the Shark Tank, Luma Soda was unable to maintain its business operations and ultimately shut down the business in 2021 because of economic issues. It neither got any deal on Shark Tank nor received the required attraction for surfing in the market although it was healthy.
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Most people want to know what happened to Luma Soda after Shark Tank. After appearing on Shark Tank, Jim Ottenson appealed to the sharks to make an investment of $500,000 in exchange for a 20% stake in his company. However, the founder did not receive any investment for his Luma drink soda.
Barbara was indeed interested in investing. She said that she would invest in a partnership with Rohan Oza. But Rohan Oza was not ready to invest as it was a small-scale company and he wanted to invest in such businesses that have wider growth possibilities.
Mark Cabuan went out by saying to Otteson that he should use his energies in other places. Although Otteson did not get any deal from the sharks, he still did not lose hope for his Luma Soda after Shark Tank. He invested a lot of money, nearly $1.75 million in his business and raised money through a home equity loan and his life insurance policy.
The company was running its operations line and some partner sales channels. The company held an inventory valued at $600,000 in 2019 and conserved a cash resource of $30,000. In that very year, Luma Soda managed to generate $180,000 in sales.
Despite spending a lot of money on marketing every month the company was free of any debt and held an aggregate worth of $2.5 million.
But still, Luma Soda encountered a lot of challenges. The company has to finally stop its operations in October 2021. But still, the products of Luma Soda are available on many online platforms although most flavors are out of stock.
What is the revenue of Luma Soda?
According to Jim, the earnings of Luma Soda were $180,000 as of 2019 along with a cash reserve of $30,000 and stock valued at $600,000.
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Luma Soda after taking part in Shark Tank faced a lot of challenges in its business. The founder asked for a $500,000 investment in return for 20% of his business. But he was not able to secure any deal from the sharks.
Finally, the company ceased its operations. The Facebook account of Luma Soda has been inactive since 2018 and its website has vanished. The company was not able to enter the competitive beverage industry without the investment of the sharks.
Moreover, giants kike Coca-Cola, PepsiCo, and Nestle dominated the non-alcoholic beverage industry. So, it was not so easy for small companies to survive. Moreover, due to the highly competitive market, it became just next to impossible for Luma Soda to succeed.
After stopping the business, Jim Otteson moved to another profession. He became a senior counsel at Dechert LLP and a managing director at Major, Lindsey, and Africa. We do not know what happened to the soda stock worth $600,000.
While some sources suggest that Luma Soda went out of business and its online presence has been inactive for several years, conflicting information is available.
As per a source, Luma Soda kept distributing its products through particular partners and online platforms.
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A lot of people ask if Luma Soda is still in business. No, Luma Soda is not in business anymore. The website of the company has vanished and the products are not available online anymore. The Facebook page of the company has been inactive since September 2018. In 2921, the company ceased all its operations.
Luma Soda is not in business anymore. So, Luma Soda’s net worth in 2022 is zero. The company was set up in 2027 and was pitched on Shark Tank in 2019. He asked for $500,000 in exchange for a 20% stake in his business. But the sharks did not want to invest. At that time Luma Soda’s net worth was $2.5 million.
Luma Soda’s net worth was $180,000 as of 2019. The company is not active anymore. We are not sure what happened to the rest of the stock of Luma Soda. But we hope that they are either sold or contributed.
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We think that there is a wide market for Luma Soda. Although they were not able to make a deal with any of the sharks, they created a great impression in the market.
According to the sharks, the company is not worthy of investing but the company proved all of them wrong. The founder of the company has marketed his product very beautifully. The revenue of the company was good in sales. A lot of people fell in love with the taste of Luma Soda.
Who is Luma for?
Those who are looking to drink soda that does not contain any harmful chemicals or ingredients. The drink is available in four distinct flavors and assures you that you will get a healthier option to the soda. A huge number of people like to consume sodas. According to the reports, Americans spend nearly $65 billion per year on soda whereas they spend only $11 billion on coffee because they contain a huge amount of sugar and synthesized artificial sweeteners.
The best part of Luma Soda is that it enables you to have as many sodas as you like without bothering about the bad impacts as they do not contain any harmful chemicals or preservatives. The beverage is sweetened naturally. You do not need to worry about how much sugar they are consuming and they will not have any bad impact on their health too.
Is there any alternative to Luma Soda?
There are a lot of alternatives to Luma Soda available in the market that are free from preservatives, additives, and harmful ingredients. But no other drink can beat Luma Soda. It is very difficult to choose a healthy beverage. By choosing a healthy beverage like Luma Soda you do not need to worry about your health as they do not have any bad effects.
Who invested in Luma Soda?
The sharks on the Shark Tank show were not ready to invest in Luma Soda. However, the founder, Jim Otteson invested $1.75 million in creating, marketing, and promoting Luma Soda by taking a home equity loan.