Frescos Naturales: Here's What Happened After Shark Tank

Aguas frescas are a popular drink throughout Latin America, made by combining sugar, fruit, and water to create something that's not quite a juice, but not quite an infused water, either. Juan Ignacio Stewart, a Guatemalan immigrant, had his own beloved recipes for these refreshing drinks, but it wasn't until his son suggested bottling them that he saw their business potential.

Combining aguas frescas with a touch of carbonation, Stewart founded Frescos Naturales in Boulder, Colorado as his second food company, his first being a hot sauce brand called Green Belly Foods. Frescos Naturales set itself apart from competitors by using real fruit and a touch of sugar in its beverages, and the additional bubbles allowed it to compete with not only juices, but soda brands as well. Despite aluminum shortages during the COVID-19 pandemic — and his son getting diagnosed with cancer — Stewart persevered through his first year in business, achieving $182,000 in sales. These profits were from selling only one flavor, Rosa de Jamaica (hibiscus).

Shortly after, Frescos Naturales expanded to offer six flavors, all based on popular aguas frescas recipes. But to expand his business in its second year, Stewart needed outside assistance. Bringing along plenty of his most popular drinks, the entrepreneur stepped into "Shark Tank," seeking a $130,000 investment for 8% of his business.

Juan Stewart came to "Shark Tank" with samples at the ready, and the Sharks lauded the Rosa de Jamaica, passion fruit, and guava flavors of Frescos Naturales. They were even more impressed when Stewart explained his co-packing deal, which included future distribution to major retailers like Kroger and Ralph's. However, things soured a bit when he announced that six months into 2022, his company had only gained $100,000 in sales.

Guest Shark Daniel Lubetzky was quick to point out his confusion over Frescos Naturales' pursuit of a $1.6 million valuation, given its sales numbers. Stewart replied that he expected to reach $350,000 in sales by the end of the year, but the Sharks weren't convinced after hearing that each can could retail at just $4.50. From the sports beverage Electra to the birch and maple-derived Sap!, the drink market was nothing new to the Sharks, and they had little enthusiasm for the industry. Daymond John swiftly dropped out, followed closely by the rest of the Sharks — save for Lubetzky.

Lubetzky offered Stewart a unique deal: Convince one of the other Sharks to invest, and he would go in for 50% of the deal. Kevin O'Leary pounced, offering a $130,000 investment for 30%, split between himself and Lubetzky. Stewart countered with an offer for 20%, but O'Leary denied it. After some back and forth, Lubetzky offered $130,000 for 25% of Frescos Naturales, which Mark Cuban told Stewart not to accept, as it would value his company at only $500,000. But after some deliberation, Stewart accepted Lubetzky's offer.

In a podcast interview in 2023, Juan Stewart revealed that the cans he offered to the Sharks to sample were actually purchased by him from retailers. The previous year, Frescos Naturales suffered setbacks with its co-packers, preventing it from replenishing its inventory, and the business was steadily draining money. After Stewart's appearance on the show, he secured a line of credit and the co-packer reopened, allowing the business to narrowly fulfill its first Kroger order. At this point, Stewart was ready to capitalize on Daniel Lubetzky's mentorship to create a company capable of wisely handling future investment.

Sticking to a core lineup of six flavors, Stewart felt confident in his products' value and diversity. In the first quarter of 2023, Frescos Naturales tripled the business it had done in 2022. Stewart focused on expanding his products' availability, supporting launches at new retailers by attending in person and offering samples.

Stewart never forgot the roots of his business plan, either. He continued to sell his beverages in person at small art gallery openings and farmers markets, and he attended trade shows hosted by the Specialty Food Association, a not-for-profit trade organization. It was Stewart's charisma and energy that eventually won over Lubetzky, and it continues to be his greatest resource to grow Frescos Naturales.

Frescos Naturales is indeed still in business, and still owned by Juan Stewart. Despite its high price point compared to other canned beverages, it continues to win acclaim in the city of Boulder's local markets as a premium soft drink.

Despite slowing down on its social media posts, Frescos Naturales is regularly tagged by local stores and restaurants that have begun carrying its drinks. On its Shark Tank episode, Mark Cuban was opposed to entering the drink market due to the high cost and volatility of the industry. While major retailers often require that small producers pay higher slotting fees and advertising costs, it seems that Boulder's local shops enjoy the novelty of having a locally-owned brand available for purchase.

While there's no hard information available on Frescos Naturales' net worth, Daniel Lubetzky's 25% stake for $130,000 puts it at $520,000. While this is considerably less than Stewart once hoped for, he claims to enjoy the hustle of entrepreneurship, even if it doesn't yield a ton of short-term financial gain.

There's no sign that Juan Stewart has given up on his dreams of creating an international drink brand. However, for the present, he plans to continue collaborating with Colorado businesses and groups, such as Naturally Colorado, a non-profit promoting naturally-derived products created in the state.

Frescos Naturales has always been about spreading the unique cuisine of Latin America to the wider world. While he has made deals with national retail chains, Stewart never forgot the markets that gave Frescos Naturales its start. It continues to partner with local Latin-American events such as Festival de Sol, held in Chautauqua Park in Boulder, and frequently holds a space at the Boulder Farmers Market. Given its success, a dual focus on national chains and local businesses seems to be a winning combination.

Frescos Naturales plans to continue making its products available in more states, and it can now be found in Minneapolis. A store locator on its website makes finding the products even easier. While many people outside of Colorado will have to wait for a taste, Frescos Naturales and its CEO show a real commitment to success that will, hopefully, expand one day.