This week Shark Tank fans had a surprise Tuesday night episode, but the surprises didn’t end there. From scratch-made baking kits to bottle cleaning tablets, there was quite a variety of businesses in the Shark Tank. In case you missed all of the action in the latest episode of Shark Tank, here’s how it all went down:
First into the Shark Tank are Leah Tutin and Taya Geiger, founders of Scratch & Grain Baking Company. Leah and Taya asked the Sharks for a $150,000 in exchange for 20% equity in their company. These two moms from Portland came up with Scratch & Grain to make homemade baking easy and fun with pre-packaged baking kits. Based on a Shark taste test, Robert says “might need to eat another 5 or 6” to make up his mind on how tasty they are. The baking kits come int six different flavors, including three gluten-free options, and are currently sold at 220 locations including Whole Foods and Sur la Table. The Sharks love the cookies, but they quickly learn that the margins are less appetizing. Currently, the baking mixes are hand-packages and labeled at a cost of $3.89 a unit, and they’re sold for $7-12/unit retail. The women say that the business could scale to $2.15 a unit with automated production, but the Sharks still aren’t convinced. The Sharks have ideas for bringing down production costs, like packaging the ingredients in one bag, rather than individually, as they are now. But the women know that their current packaging is needed to preserve the quality of the end product. The Sharks are impressed by the duo’s hustle and passion, but they’re put off by the high ask. Robert makes the first offer of $150,000 for 40%, and he wants Leah and Taya to convince Barbara to come in for half his offer. Barbara makes he own offer of $150,000 as a line of credit, in addition to 20% equity, and she also has some choice words for Robert as a partner. Robert maintains his $150,000 for 40% offer, and the ladies have a decision to make. It’s a deal with Barbara!
Last season Shark Tank fans met former CIA agent Jason Hanson and his company, Spy Escape and Evasion. With an investment from Daymond, Jason constructed his Spy Escape Ranch in Utah. Before Shark Tank, Jason has only $306,000 in sales, and since Shark Tank his sales have reached $2 million, including a royalty deal for several products. Congrats guys!
Next into the Shark Tank are Justin Koehneke and Seth Friedman, seeking $75,000 in exchange for 15% equity in their company Bottle Bright. Justin and Seth are mountain bikers who were frustrated with the lack of methods to clean their portable drink containers. Bottle Bright solves the problem with an all-natural organic and mineral-based effervescent cleaning tablet that removes odors and stains from portable drink containers. Kevin makes no bones about his position when he says, “I’m going to bet you have very little sales because no one gives a damn.” While the guys have some sales ($85,000 this year), they reveal that last year was a bad year for them. When testing a new packaging type for one of their private label brands, the packaging was moisture-damaged, which meant the men had to recall their product to the tune of $100,000 lost. While the other Sharks don’t think there’s a need, Lori sees the potential in Bottle Bright. She offers the men $75,000 in exchange for 35% equity. under the condition that her investment will go toward funding POs, not to administrative costs. The men counter at 25%, and Lori says she won’t go below 33.3%. The men are sold with Lori’s counter, and the deal is done!
Third into the Shark Tank is VestPakz owner, Michael Wooley, and licensee, Arthur Grayer, seeking a $50,000 investment in exchange for 10% equity in their company. Vestpakz was the idea of Michael’s sixth-grade daughter, who conceptualized the vest/backpack combo as a way to more equally distribute the weight of a backpack. The Sharks want to know more about sales, but unfortunately sales to date are only $10,000, even with distribution at 75 Walmarts. The Vestpakz cost $4.75 to produce, and they retail for $14.88, of which Michael makes a 6.5% royalty. The Sharks feel like there’s more to the story, and Michael explains that Vestpakz originally appeared on Oprah in 2003, and that his daughter is now 27 years old. When the Sharks learned that Vestpakz is a 16-year-old company with only $10,000 in sales, they’re skeptical of the $500,000 valuation. While the Sharks like the product, they’re not convinced it’s an investable company or that Michael and Arthur have a direction for the brand. With no offers on the table, Vestpakz leaves the tank without a deal.
Last into the Shark Tank are sisters Ellie Brown and Becca Nelson, seeking a $100,000 investment in exchange for 30% equity in their company, evREwares. evREwares makes reusable stickers that instantly transform t-shirts and other products into statement making pieces. Their signature is a sticker tie, which sells for $4.99 – $7.99 apiece. It costs $0.50 to manufacture, but the Sharks have sticker shock over the cost. Also concerning to the Sharks is the fact that the company made $300,000 last year, but is only on track to make $50,000 this year. The women say they made a conscious decision to slow down to focus on their sell-through issues at stores like Party City and The Container Store, but the Sharks are worried that they don’t know their business. The women know they’re hit a hurdle, and it seems like they might leave the tank without a single offer. Then, Mark steps in with a surprising offer of $200,000 for the entire business, and he’ll still contract the women for their designs. As the women step out to discuss, the other Sharks try to convince Mark he’s making a mistake. And yet, it’s decision time with Mark’s deal on the table. The women get emotional as they talk about how much the business means to them, and how its their baby, and then they take Mark’s deal.
Wow— quite an interesting twist with that last offer, Shark Tank fans! Let us know what you thought in the comments.