AU Baby Blankets Update | Shark Tank Season 15
Alexandra Ulmer pitched on Shark Tank (Season 15) for seeking investment for her luxurious and sustainable baby blanket brand, AU Baby, pronounced “Oh Baby.”
The purely plant-dyed, smell-proof, and soft Merino wool-made blankets of AU Baby are cozy and skin-friendly for babies.
These blankets can stay clean for a year and are guaranteed to not fade with washing, offering parents a dependable and eco-friendly option for their infants.
In Shark Tank, Alexandra pitched her brand with an ask of $80,000 in return for 25% equity in her company.
Will any shark invest in her business? Find out what happened to AU Baby after Shark Tank.
If you’re in a hurry and don’t have time to read the whole story, here is a brief overview of what happened to AU Baby blankets after Shark Tank.
Alexandra asked for a $80,000 investment in return for a 25% stake in AU Baby company. Despite top-quality products, the sharks found them expensive and were not impressed with Alexander’s response about the customer acquisition cost and the marketing strategies.
However, she got a last-minute offer of $80,000 for 35% equity from Kevin O’Leary. After the airing of the episode, AU Baby has seen a drastic boost in its sales, and the company is making profits.
We are hoping that Kevin will ask Alexandra to launch the products on Amazon, Walmart, Target, and other e-commerce platforms to increase revenue. As of February 2024, AU Baby blankets are only available to purchase on the brand’s official website.
| Company Name | AU Baby Blankets |
|---|---|
| Founders | Alexandra Ulmer |
| Founded | 2019 |
| Products | Toxin-free blankets for newborns |
| Ask | $80,000 for 25% equity |
| Deal | $80,000 for 35% equity |
| Sharks | Kevin O’Leary |
About AU Baby Blankets
Alexandra Ulmer, who is originally from Oklahoma City, pursued a degree in knitwear design from CSM in London before beginning her career as a design assistant in 2006.
With her impressive background in knit design for brands like Prabal Gurung, Opening Ceremony, and as a Knit Designer at Nike, she utilized her expertise to establish AU Baby in 2019.
Thus, a seasoned knitwear designer and inventor of patented materials, Alexandra also became an entrepreneur.
She started this business because other brands were only focusing on warmth and softness and using cotton tainted with pesticides or polyester.
Understanding the significance of a safe and sound climate for infants, Ulmer decided to reinvent the industry of essential baby blankets.
AU Baby was the result of this vision, which reflects her commitment to providing parents with the best for their children with a superior, toxin-free alternative.
The company produces all blankets in Los Angeles, USA. They ethically source merino wool from free-roaming sheep in Argentina to form the material.
The standout products from AU Baby incorporate:
- Cashmere Cloud Collection: A high-quality blend of organic cashmere and merino wool that is breathable and soft. The cashmere offers excellent softness while the merino controls temperature, making it gentle for sensitive skin.
- The Popcorn: A blanket with a heavy weight and a popcorn stitch with a lot of texture for maximum coziness. This is the best-selling blanket of AU Baby, which is made from 100% extra fine merino fiber.
- The Sawa: A medium-weight blanket with a refined honeycomb design, giving both style and solace. It is made from plant-dyed merino and can be customized with chain stitch embroidery.
The production cost of each blanket is $74, and the retail price is $160. Above that, there is an option to customize each blanket with monograms at $10 per letter.
Anyone can buy these blankets from the AU Baby online store. They also ship their products globally via DHL Global Express.
AU Baby Shark Tank Episode Recap
Alexandra Ulmer participated in Shark Tank to showcase her brand, AU Baby, and to ask for $80k for a 25% stake at a $320,000 valuation.
Alexandra began the pitch by describing how messy and leaky babies are and, above all they can’t tell what they need, like when they feel hot or cold.
She introduced the sharks to her product, AU Baby Blanket, which is naturally stained and odor-resistant and can be kept clean for up to a year.
Sleep quality and skincare concerns of babies are additionally resolvable with their blankets. She likewise demonstrated Sharks, her product samples, and the Italian plant dye material that is utilized in the blankets.
Guest Shark Emma Grede asked Alexandra about her background and was impressed to know her incredible working experiences in Knitwear designing for well-known brands.
Shark Lori Greiner inquires as to why she chose to make blankets for babies rather than for adults. The reason, according to Alexandra, is that babies are particularly susceptible to environmental toxins.
The Sharks then asked Alexandra about the product price and sales figures of the company. Ulmer informed that the higher quality Merino Fiber of her blankets requires $74 to make, and the selling price is $160, which the Sharks found pretty expensive.
The lifetime sales of AU Baby are $62,000; sales in 2022 have reached $38,000, and presently, in 2023, sales have reached $14,000 and are supposed to reach $100,000 this year.
Instead of engaging in traditional digital marketing, Alexandra has formed a partnership with a PR firm that works with juvenile products and appears in the top 20 podcasts to focus on building a long-term community.
Despite the beautiful blankets, the sharks were having difficulty accepting the high prices. Due to the cost of acquisition issue, Robert Herjavec went out of business.
Mark Cuban said Alexandra hadn’t figured out the best way to market the product, so he refused to invest.
Lori considered the cost to be a major issue, and it’s simply too soon to contribute, so she is out. Emma left as well, mostly for the same reasons.
Kevin O’Leary was the only remaining shark, and Ulmer fought hard to make him invest. After some to and fro, Kevin offered $80,000 for 50% equity, which is double the equity she requested.
Ulmer countered for $80,000 for 30% equity. Kevin counter-offered for 40% equity, and she negotiated again for 35% equity, which Kevin accepted.
It was due to her phenomenal pitch Alexandra managed to get a deal with Kevin O’Leary for $80,000 for 35% equity for her brand, AU Baby.
AU Baby Company Update
AU Baby has gained tremendous appreciation and love for its visionary way of dealing with baby blankets, getting appreciation from a huge number of satisfied clients.
The brand’s commitment to making a healthier and more secure option in the baby blanket industry has not gone unnoticed, drawing acclaim from influential people, including various celebrities like Miranda Kerr and Rocky Barnes.
Through its appearance on ‘Shark Tank Season 15,’ AU Baby has favorably extended its reach, presenting its eco-conscious and premium baby blankets to a larger crowd, subsequently adding to a positive change in the industry towards safer and more supportable decisions for newborns.
The overall market for baby blankets is expected to reach $2.5 billion in FY 2024, developing at a yearly rate of 3.80%, which definitely expands the possibilities of development for AU Baby.
Also Read:
Who founded AU Baby Blankets?
Former Knitwear Designer Alexandra Ulmer is the founder and CEO of AU Baby, a luxury blanket brand for newborns.
What is the material of AU Baby blankets?
The material used to make AU Baby blankets is primarily ethically sourced, pure Merino wool that is durable, sustainable, and tender in nature.
How to purchase AU Baby blankets?
AU Baby is a direct-to-customer (DTC) brand so their products are solely available for purchase on their official website.
Conclusion
AU Baby challenges the toxic textile industry with its eco-conscious baby blankets. Utilizing Ulmer’s fashion design background, the brand offers ethically sourced, natural materials for the safest baby blankets on the market.
These blankets, made from renewable materials, aim to improve sleep, prevent stains, and soothe skin, outperforming traditional plastic-based options.
Despite concerns about cost and customer acquisition, Kevin’s investment secured a deal, highlighting AU Baby’s innovative approach to sustainability.
