Speaker A
[Applause] Next up is an entrepreneur who has solved a familiar problem.
Entrepreneurs pitch innovative food-related products on Shark Tank, including a peanut butter pump and condiment slices, seeking investment.
Key Takeaways
- Innovative food products can solve everyday kitchen problems but face challenges in market adoption.
- Crowdfunding and pre-orders help validate demand but manufacturing can delay delivery.
- Sharks critically evaluate product necessity, pricing, and scalability before investing.
- Entrepreneurs must balance passion with realistic business valuations and community feedback.
- Clear communication and transparency about product status are crucial for investor trust.
Summary
- Andy Sharer pitches the Peanut Butter Pump, designed to make peanut butter easier to dispense and cleaner to use.
- Andy shares his background of being laid off and turning to invention, seeking $200,000 for 15% equity.
- Sharks debate the product's market fit, challenges with peanut butter varieties, refrigeration, and pricing.
- Andy admits to delays in Kickstarter fulfillment and manufacturing difficulties but remains committed.
- Emily and Cole Williams introduce Slice of Sauce, a condiment slice alternative to messy packets and bottles.
- They seek $200,000 for 10% equity, highlighting convenience and mess-free condiment use.
- The episode features discussions on product viability, market demand, and investment offers.
- Additional pitches and negotiations occur later in the episode, focusing on food innovation and business growth.
Chapters
- 00:00Introduction and Peanut Butter Pump Pitch
- 02:29Product Demonstration and Features
- 04:00Entrepreneur Background and Kickstarter Discussion
- 05:41Challenges, Community Feedback, and Shark Reactions
- 09:30Slice of Sauce Pitch Introduction
- 11:07Slice of Sauce Product Details and Shark Interaction
- 12:07Manufacturing Challenges and Market Strategy
- 14:44Investment Offers and Negotiations
Full Transcript — Download SRT & Markdown
Speaker A
[Music] It happened so fast. One moment I was the family breadwinner, the next I was unemployed and had to start over. But I didn't get mad; instead, I got hungry.
Speaker A
So I went home and I made a sandwich, and that's when I knew I could change the world—the world of peanut butter. My name is Andy Sharer. I'm asking two hundred thousand dollars for fifteen percent of the company.
Speaker A
Sharks, peanut butter inspired me to become an inventor. It's delicious, it's nutritious, and one bite of that sandwich took me back to my days as a kid in school. A lot has changed since then, but peanut butter hasn't changed at all. It's just
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as hard to get out of the jar and just as messy when you do. I decided it was high time to take peanut butter into the modern age, so I created the peanut butter pump. It makes peanut butter better.
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Now get ready, because for the first time in history on national TV, we're going to download a sandwich. Oh wow.
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[Music] Voila! One downloaded sandwich. That's cool. Now anyone can make a sandwich or a healthy snack quicker, cleaner, and easier than ever before. You
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can easily measure it for your favorite cookie recipe, and look how it cleans the sides of the jar so you don't have to. I designed it to get every last bit of peanut butter from the jar. People love
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this pump. It's truly a game changer. Together, we'll change the world—the world of peanut butter. There's good news here. I am a peanut butter connoisseur. Wonderful. And in my home, I buy artisan peanut butters. Okay, I've been known to
Speaker A
make my own peanut butter. I got a lot of questions. Okay, number one: when you get to the artisan peanut butters, there's a lot of debate about how much chunk you have in the crunch factor. Oh my God, how
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big will you let the chunks be before it clogs up the pump? Right now, the inlet has a 10 millimeter. All right, I'll give you that. Now within the peanut butter community, there's a raging debate over refrigeration after it's open. Okay,
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do I put that giant stack in the refrigerator? No. Do you keep peanut butter in the refrigerator? Oh yeah, many, many. It's a huge debate in the community. In the community, because it gets too hard. No, no, no, no, no, no, no, no. Within the peanut
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butter community, there's a massive debate because the oils separate at room temperature. Where do you find this community? Go online. Do you have a sample of it that's not in the jar? Well, this, this is, uh, that's what the
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poster is, your prototype. So let me tell you—oh, there's no sales yet? Let me tell you, there are sales. I have plenty of pre-orders, but let me tell you, these are prototypes, okay, and it only works for
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stabilized peanut butter. Tell us about your history. Okay, how you came up with the idea. I was laid off from a job in financial services. You worked at a bank, currency exchange, and I was laid off. I decided to become an inventor. How long
Speaker A
ago was that? That was two and a half years ago, and then the peanut butter pump was born, and then the crowdfunding campaign. The initial ask was 20,000, and the total sales now are 129.
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During the community, thank you. How much does it cost? What do you sell it for? The average price on the campaign was 27. Is that a lot? It's a lot. Let's focus on the task at hand. The truth is, 30 want chunky, it's a raging
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debate in the community. Everybody knows that, so I have to buy, I have to buy two pumps to have both available, and you won't let me refrigerate it to offset the rancidness. Kevin, who is the leader of the peanut butter community, the
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community has two debates. All right, no, but who's the leader? I am. That why do you know so much about this? It only works for stabilized, so for people who are stabilizing, that means stabilized, which includes extra wax, which I'm
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against because it taints the pureness, the virginal aspect of our arms and peanuts. Kevin, we don't care. So, Mr. Andy for peanut butter pump, when are you telling your Kickstarter contributors that you will deliver within the coming months? I've already passed the
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initial promise date, but I've been upfront and transparent. But you need money to make them. I do, I need money. So you took in the money and you already spent it? I haven't spent all the money; however, I
Speaker A
have withdrawn a little bit of money, and I'm, I'm—that's not really what it's for, but I mean, I'll go ahead and do this even if I have to sell my house. I mean, I'm going, I mean, I'm going to make good
Speaker A
on it. That's really the whole point. You have to—got a question? Please, please, Damon, I got a question. What, what problem is it actually solving? It's really the classic last mile, but for peanut butter. I mean, you have to
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take it out of the jar, you have to scoop it, you have to scrape the sides of the jar. I mean, some people get—I'm out. Okay, Damon. However, you know, 30 days, a hundred thousand dollars in sales in 30
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days? You did 100,000? That's correct. If you use peanut butter once a month, you're not going to need a pump. Isn't this better used in a commercial? Because how do commercial, how do hotels, whatever the cases, how do they buy? They probably
Speaker A
buy in huge tubs. Right, this is for high volume users, so families with children, with school-aged children. That's probably about 14, 15 million households. Juice bars, every fitness bar has a juice bar. Anybody really needs a pump to get
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their peanut butter out of a jar? So I'm sorry. Well, I don't think anybody needs a pump to get hand lotion out either, and yet I think it's different. Andy, I think this is different. I mean, I think this is a very elegant design that
Speaker A
you've come up with for a problem that I'm not sure exists. So I'm sorry, I'm out. So Andy, let's disclose the community now because they're watching. You are not supporting the 40 percent of the community that wants to refrigerate
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after opening. You know that they want refrigeration after opening because it's weird because it—you can't put that. You're not supporting Kevin. I am associated. No, true or false? Disclosed now. Andy, I am so sick of your peanut butter mark.
Speaker A
This is very important. Are you ever going to solve for the viscosity created by refrigerated peanuts? I have told people not to put it in the refrigerator. The real basic problem is two hundred thousand dollars for fifty percent is
Speaker A
crazy. There's no bigger advocate for the commodity than I am, but this price is nuts. Like two hundred thousand, fifty percent. The whole business isn't worth two hundred thousand right now. I wish you the best of luck, but I'm out.
Speaker A
Andy, you're being a great sport, right? We're having a little bit of fun at your expense, and you're going with it. Everything's factual, Mark. Don't insult the community. Anyways, from an investment standpoint, it's just not a fit for me, so
Speaker A
for those reasons, I'm out. Good luck, Andy. Good luck, good luck. First into the tank is an innovative way to add flavor to sandwiches.
Speaker A
[Music] Hi, sharks. I'm Emily Williams, and I'm Cole Williams, Emily's husband, and we're seeking 200,000 in exchange for 10 percent of our business. We're not here to talk about a problem; we're here to talk about catastrophes. We're talking sandwich catastrophes. How about those pesky packets? They're tough to open, impossible to spread in their never the
Speaker A
right amounts. And what about soggy buns? That's the worst. Fear not, my sharky friends. Your saucy heroes have arrived with Slice of Sauce. Slice of Sauce transforms traditionally bottled condiments like ketchup, sriracha, barbecue sauce, mustard, and more into
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mess-free slices. It's flavor in a new form, just like a slice of cheese, but it's your favorite condiment or sauce. We use only the finest ingredients and a unique process to bring bold flavor and the perfect bite every time. So, sharks,
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who wants a slice of this sauce? So, are we ready to eat? Let's see. Yes, always ready. So you guys, in front of you, you have a grilled cheese sandwich with Slice of Sauce, classic ketchup, and spicy sriracha,
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which does have some heat. Oh wow. Yeah, packs a punch. Got some kick. Yeah, this is pretty damn cool. Let me just tell you, that is a good idea. Thank you. Yeah, is this real ketchup that's just been the
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water's be—
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what does this sell for and what is the cost to make that retails for 5.99 our cost is 1.75 so do you think that's high you only get eight servings you can dress eight hamburgers it's over whereas with my tomato ketchup bottle i'm gonna
Speaker A
have it for what maybe 20 30 hamburgers we are a premium product and we would like to stay positioned that way this really isn't just a slice of ketchup this is flavor what are your sales so far so we launched a
Speaker A
kickstarter campaign in 2018 and it went viral within about four days we raised 34 dollars and our sales after that point we are still pre-revenue and we'll launch in november and i'd love to tell you about what we've been doing over the
Speaker A
last two years because just so we're clear yeah no sales you put the kickstarter on in 2018 and here two years later you're still pre-revenue correct so the question is yeah so we discovered really quickly that manufacturing this is really hard so how
Speaker A
are you making these we've been manual and which is why we have not yet launched is because we've had such huge changes find a co-packer to take this and run with the machinery we do need machinery and that's why
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we're here today this barber to your point will help us bring down costs how much money have you put into it yourself we've invested about 120 000 of our own cash and we've also raised about 500 000 whoa we raised from who we raised a
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friends and family round of 300 on a convertible note at a three million dollar cap we also participated in techstars accelerator they gave us a hundred thousand dollars this is a down round no the last valuation is actually
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at five million so it is in fact a serious discount because we really want to partner with a shark i have to say i find it absolutely amazing that you're able to raise three hundred thousand dollars from your family and friends plus a
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hundred thousand dollars and say confidently that you have this valuation when there hasn't been a single bag sold i would like to believe in that kind of magic because i love magical things but i don't and so for that reason i'm out
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thanks barbara thank you barbara what is your plan for growth and what is your plan for world domination yeah oh my gosh our focus for the first 12 months is really online we know that there's a retail play here we've had a
Speaker A
lot of retail interest we don't want to go there first because it's expensive but then after we we do head into retail there's a food service play um whether it is stadiums or quick service restaurants or grabbing grab-and-go
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sandwich kiosks to me it's extremely important to know three things when you're trying to bring to market a product is it something that people need and want can it be done at an affordable price and does it solve a problem right so you
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you gave the problem i don't think it's a huge problem of not being able to carry around your condiments but the complexity here for me is i don't know the need and is it something that can be made an affordable price you don't know
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yet so i like the innovation but i'm out i think the sharks have a good point and i don't know how you're going to address it because you don't have enough data yet but i'm going to make you an offer
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structured against the risk i see here because you need a shark to help blow this thing up i'm going to give you the 200 000 and i'm going to put a royalty structure on it to a limit of seven hundred thousand
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in other words i want a tent excuse me mark i don't need any noise buckle your seat belts exactly clip clips emily does know numbers do you want to hear the offer or not yeah because right now it's
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the only offer you have so i suggest you focus all right i'm going to give you the 200 000 against a 10 cent royalty per package until i recoup 700 000 and the royalty goes away and i'm going to ask for five percent
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equity i'm the only chef up here chef wonderful the rest of these guys are ignorant in the ways of the kitchen he said his offer is better than nothing maybe nothing's better than that yeah well let's hear your offer alex
Speaker A
what are you forecasting revenue year one we'll start in november and we're forecasting one point eight one percent you're going to accomplish that but so we have our website we have amazon and we have thrive market um that we're
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going to partner with amazon will be interesting but you got to go through such a process to educate people right i mean emily you know the only offer you have is some chef wonderful now as these sharks drop out
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that gives me more i don't know leverage and my offer may change does anybody else yes i would start asking that that would be a good idea okay let's drill down i see these as a proof of concept that are going to be
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really hard to sell no chance you're doing 1.8 million of these selling online because people aren't going to know what to expect in term of taste right it's the weird stuff that you otherwise would not have in your
Speaker A
refrigerator that are that's going to work what are the things you hit the key too it's refrigerator we're not looking at the refrigerator we're looking at places where the refrigerator isn't right so it's a picnic it's a it's a
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camping trip there's an rv but you've got to look at it where my buying decision is made because you're a new category people aren't going to think i need slice ketchup it's just not going to happen it sounds
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like you're on the fence obviously mark you're on the fence i'm not i'm going to make them an offer okay do what you got to do we live on the road we have four kids we're watching football games concerts
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baseball but you said something earlier code that i really liked mess free yeah now with four kids that's a premium at my house so there's two rules in investing as they see it rule number one is don't lose money right rule number
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two is don't forget rule number one yeah okay so i'm gonna make this investment as convertible debt okay i'm gonna offer you 200 000 for 20 when you hit your 1.8 it will convert into equity okay that's my offer okay
Speaker A
you understand the dilution of that i do would you do it for 15 alex so guys before you jump before you go i'll do it for 15 but that means you can't listen to mark what are you gonna do
Speaker A
i would take mr wonderful's offer like that why give up all that equity just to be clear co and emily i'm investing 200 000 as a convertible node which means if you don't hit the 1.8 in sales it would
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stay as debt on the business okay okay got it um would there be um options for po financing and uh lines of credit on top of the 200. i would consider that yes okay um alex you have a deal
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all right all right thank you so much well you're even more beautiful in person amazing opportunity thank you thank you thank you first into the tank is a healthier version of a favorite snack [Music] hello my name is michael pam and i'm
Speaker A
from portland oregon my company is pans and i'm here today to talk to you about something that's near and dear to my heart jerky sharks you're all busy and know what it's like to need fuel on the go
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and jerky is a convenient tasty nutritious snack people have enjoying for centuries let's take a moment to appreciate our jerky in all of its glory i can't think of anything more satisfying than ripping into a meaty chewy delicious piece of jerky
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almost brings a tear to my eye pans is high in fiber and vitamin d it's paleo soy free gluten free and there are just six simple ingredients in our original recipe and all our flavors have their own unique umami taste well
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i didn't mean to go on and on about our jerky without you being able to taste it i'd love for you each to take a bite so please go ahead now i can't wait to hear your thoughts but
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before you share them i have to admit something that marvelously meaty texture that you're experiencing great really good thank you love it is actually mushrooms that's right pans mushroom jerky i was wondering i love it even more this is
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great we have four delicious flavors oh my god original zesty thai salt and pepper and applewood barbecue all of them have a delicious flavor and satisfying texture that fans of jerky love now sharks i'm seeking three hundred thousand dollars in exchange for 10
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equity who's ready to take another bite wow that was a great reveal thank you these are all shitakes by the way so tell us your story how did you get into mushroom jerky so my father was born and
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raised in a small fishing village in malaysia luckily i had the opportunity to go visit family to learn about my heritage and where i came from and one of these visits to malaysia there was a bowl of food on the table i reached in
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and try it and immediately i thought oh this is this is great it must be pork i was really confused the person who served it was my cousin and he was vegetarian buddhist and he had been making the snack for himself for his
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family for people in the area and selling it locally and as vegetarians they had a really hard time finding food that not only tasted great but also had a really great texture and mushrooms were very satisfying and also very
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healthy i was blown away and i knew at that point that we had something that had to be shared with the rest of the world what does it cost landed what's the store selling it we make it for a
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dollar 67 okay our msrp is between 7.99 and 8.99 who's your biggest chain right now selling it whole foods whole foods yeah we're in two regions of whole foods at the moment what did you say your sales were in 2018 we ended at 300 000
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uh to start off with um in 2019 we more than doubled we got to about 755k and i'm happy to say in 2020 so far we're at 620 thousand dollars in sales and how many stores are you in now we're
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about over 700 stores right now and where are most of your sales coming from uh 60 of our sales are on retail and 40 are online so how much have you invested yourself and have you raised any money and if so how
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much yeah so i put in a hundred thousand dollars myself and how much did you raise from outside none all bootstrapped what about borrowing or anything i have borrowed um and we have a few loans and obviously with cobit happening we were
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one of the businesses that took advantage of the ppp loan i also took an sba cover disaster loan as well would you say you're on track to do a million dollars this year yes we think we're getting 1.5 1.5 we're about 95 000 to
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100 dollars in sales a month right now i want to talk about something more exciting and fun how good it tastes yes which is your but just these thank you look at this i've i've nothing left uh yeah
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i'm in the bags here yeah this is fantastic thank you lauren it's totally my cup of tea is there anybody else doing this there are others starting to do this and that's obviously why i'm here we want to
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move faster but uh we really rely on our taste and texture is superior to anyone else [Music] michael are you making money yet we are our margins around 77 across all channels at the moment what will the company make if it hits its sales
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targets this year and profit in profit so far this year we are netting one thousand dollars so you're saying there's a ten percent profit margin all right yes so i'm gonna sum this all up you're offering ten percent for three
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hundred thousand dollars um you'd have to grow the company significantly for me to make at least twice my money back right um and i like this stuff but for me to get my money back and a little something extra
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it's a long road so i'm out thank you very much so i want you to know um i adore this i love jerky but i don't want to eat jerky i don't want to eat high sodium this is so healthy it tastes
Speaker A
fantastic all of them blake and i were talking between the two of us we'd like to make you an offer and i want to share a little bit of our thinking um my band and bagels we got into
Speaker A
starbucks nationwide and that was 9 000 stores starbucks is great if you can get in there and on their shelf they don't have a lot of things to pick and they like healthy stuff like this oh the strawberries love
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this we both have incredible relationships there yes and then the whole foods albertsons kroger even walmart everybody wants something like this so our thought was to try to blow this up into all those places but blake's going to tell you our ass
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because to do that we need to be special partners yeah i mean here's the thing i only make two maybe three investments a year uh and the reason i do that is i wanna come in and be a founder i wanna be a
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partner i wanna be like really building something uh and i think this has enormous potential sounds expensive what i like about where you are right now is it reminds me a lot of where i was at toms and that until i sold toms i
Speaker A
owned 100 the business uh i brought in a 50 partner you know seven years in to help grow globally i smell 50 percent and uh are you going to bring this offer it's not going to be that strong let's
Speaker A
hear it that's a great way to teach 40 i think it's 40 i think it's 20 20. what lori and i want to do is we think the 300k we'd love to do that but we need to see 30 for us 15 for me and 15 percent
Speaker A
michael now before you interrupt let me just say is this show's not about like getting the very best deal it's about getting the best partner and a great partner exactly is going to build your business far better than five or ten percent points
Speaker A
you might not have wanted to give away so we'd love to be your partner but also we will blow it up but i'm gonna do what mark cuban does all the time i'm gonna say you have to tell us now michael
Speaker A
michael here just real quick i've done this before this would be added to the portfolio i'll do 300k for 20 percent if you say yes now no no you can't do that because mark does that all the time so
Speaker A
blake why would you want one shot when you can have two don't do that we are passionate about this michael i do it i've done it all the time it's a decision how much equity you want to use the word portfolio
Speaker A
you're just going to be one no no the whole point is the whole point is they're all plant-based companies so we already are in whole foods we already have alyssus we already have snacks you're not in starbucks and that's not true that is not true
Speaker A
because we just got unreal deli another plant-based we've got them into starving well one of many years or somebody's going to fan i'm a vegetarian so i live this you have to make a decision you have to make yourself what would you
Speaker A
like to do michael wait don't force him on a clock yeah this is the very beginning do you understand the offer that's right do you understand both offers um it's a lot going on in my head right now but well let's just highlight
Speaker A
it it's 300 000 for 30 or it's 300 000 for 20 and two sharks two sharks or one and obviously i'm more than just one shark because i'm going to be more focused on this than the other sharks are going to
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have who do you want to do the deal with i love all you guys i mean you guys are all amazing you have to make a decision you've got two honor to blake and me i think we have an undecisive uh
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entrepreneur right here don't worry about it it's only the most important decision of your life i appreciate all the offers and all the interest from all the feedback it means the world to me for how much effort i
Speaker A
put into this and it's very validated thank you just thank you it's been a really crazy year and um the equity side is is a bit too much that i'm willing to give up um so i don't know if there's a way to
Speaker A
what would we do and then mark i mean i i'd love to work with you also obviously is there any way you come down a little bit just to meet me somewhere and i i have to negotiate a little bit 15
Speaker A
with that work and we can get this done and start going 18 you got a deal no i'll do it for 15. yes or no to 18. you just gave me an offer you're going to live up to it i'll do it for 15. mark
Speaker A
you got a deal i love you guys mark thank you we're hugging next year i'm telling you i'm sorry thank you so much i love both very much i thought you were gonna blow that congratulations man michael michael jordan you can change
Speaker A
your mind you can't change your mind i thought we had a deal thank you very much i love preaching let's go go we're gonna go thank you were you in with blake and then you snaked him and went in by yourself and
Speaker A
said 15 yes i yes and then mark snake you just got shataki you
Topics:Shark TankPeanut Butter PumpSlice of Saucefood innovationentrepreneurshipinvestment pitchcrowdfundingkitchen gadgetscondimentsproduct development
