Shark Tank US | Rebel Cheese's Cheesy Pitch Wins Two Sharks

Summary

Fred and Kirsten from Austin, Texas, pitch their artisan vegan cheese company, Rebel Cheese, seeking $750,000 for 5% equity on Shark Tank. They share their love story that led to creating premium plant-based cheeses using traditional techniques like culturing and cave aging. With a focus on e-commerce, wholesale, and restaurant sales, they've achieved profitability and are set to scale up. After a series of negotiations, they accept a joint offer from Mark and Lori for $750,000 in exchange for 10% equity, promising enhanced distribution and marketing support.

Takeaways

• 🧀 The pitch is for Rebel Cheese, an artisan vegan cheese company.
• 💑 The founders' love story and shared love for cheese inspired the creation of Rebel Cheese.
• 🌱 The company focuses on making premium vegan cheeses using traditional artisan techniques.
• 🛍️ Their products are sold through e-commerce, wholesale, and restaurant sales, with the restaurant channel being the largest.
• 🏭 The company has recently built a new production facility capable of making 8 million wheels of cheese annually.
• 💰 They are seeking $750,000 for 5% equity in their company, valuing it at $15 million.
• 🔍 The sharks are impressed with the quality of the cheese, particularly the Brie.
• 📈 Last year's sales were $2.5 million, with a projection of $3.5 million for the current year.
• 🤝 Mark and Lori make an offer of $750,000 for 10% equity, which the founders accept after some negotiation.
• ⚖️ The negotiation highlights the importance of distribution and marketing support, as well as the founders' valuation of their expertise.

Q & A

What is the name of the vegan cheese company featured in the script?

The name of the vegan cheese company is Rebel Cheese.

What is the unique selling proposition of Rebel Cheese?

Rebel Cheese's unique selling proposition is creating real cheese made only from plants, using artisan techniques such as culturing and cave aging to create premium vegan cheeses.

What is the couple's background and how did they come up with the idea for Rebel Cheese?

Fred and Kirsten from Austin, Texas, fell in love over a shared love for cheese and European-style picnics. When the girl in the story went vegan, they both followed suit, and seeing a gap in the market for gourmet vegan cheese, they started Rebel Cheese.

What are the main ingredients used in Rebel Cheese's products?

The main ingredients used in Rebel Cheese's products are cashews, water, salt, and culture.

How many different varieties of vegan cheese does Rebel Cheese offer?

Rebel Cheese offers over 20 different varieties of vegan cheese.

What are the three sales channels through which Rebel Cheese sells its products?

Rebel Cheese sells its products through e-commerce subscriptions, wholesale programs, and restaurants.

What was the company's sales figure for the previous year and what is the projection for the current year?

Rebel Cheese's sales for the previous year were $2.5 million, and they are projecting to make $3.5 million in the current year.

What is the cost structure for producing a wheel of Rebel Cheese's Brie, and how is it priced at retail?

It costs Rebel Cheese approximately $4.67 to make a wheel of Brie, which they then sell to retailers for about $9, with a manufacturer's suggested retail price (MSRP) of about $15 to $20 per wheel.

How does the valuation of Rebel Cheese compare to traditional cheese?

Rebel Cheese's valuation is comparable to that of traditional high-end Brie, with their vegan cheese priced similarly at retail, between $10 to $20 per wheel.

What was the initial investment offer from the sharks and what was the final deal?

The initial investment offer was $750,000 for 10% equity in the company. The final deal accepted was $750,000 for 10% equity, with the investment coming from two sharks, Mark and Lori.

What additional support did the sharks offer to Rebel Cheese beyond the financial investment?

The sharks offered enhanced distribution support and one shark, Mark, even committed to going to a grocery store in Austin to hand out samples.