Shark Tank US | Rebel Cheese's Cheesy Pitch Wins Two Sharks
Summary
TLDRFred 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
- ๐ง The pitch is for Rebel Cheese, an artisan vegan cheese company.
- ๐ The founders' love story and shared love for cheese inspired the creation of Rebel Cheese.
- ๐ฑ The company focuses on making premium vegan cheeses using traditional artisan techniques.
- ๐๏ธ Their products are sold through e-commerce, wholesale, and restaurant sales, with the restaurant channel being the largest.
- ๐ญ The company has recently built a new production facility capable of making 8 million wheels of cheese annually.
- ๐ฐ They are seeking $750,000 for 5% equity in their company, valuing it at $15 million.
- ๐ The sharks are impressed with the quality of the cheese, particularly the Brie.
- ๐ Last year's sales were $2.5 million, with a projection of $3.5 million for the current year.
- ๐ค Mark and Lori make an offer of $750,000 for 10% equity, which the founders accept after some negotiation.
- โ๏ธ 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.
Outlines
๐ง Vegan Cheese Entrepreneurs Seek Investment
Fred and Kirsten from Austin, Texas, pitch their artisan vegan cheese company, Rebel Cheese, to the sharks seeking $750,000 for 5% equity. They share their love story, which led to the creation of their business when Kirsten went vegan. They focus on producing high-quality vegan cheeses using traditional cheese-making techniques like culturing and cave aging. Their product line includes over 20 varieties, aiming to appeal to both vegans and cheese connoisseurs. The sharks taste their top-selling cheeses and are impressed by the quality and flavor, which are comparable to traditional dairy cheeses. The entrepreneurs discuss their business model, which includes e-commerce, wholesale, and a restaurant channel, with the latter being their primary source of sales. They also mention their recent expansion into retail and the potential for growth in the vegan cheese market.
๐ธ Sharks Show Interest in Rebel Cheese; Deal Struck
After tasting Rebel Cheese's products and discussing the business model, Mark makes an offer of $750,000 for 10% equity, which is initially met with hesitation due to the high valuation. Lori expresses interest and suggests partnering with Mark, which could provide additional support in distribution and marketing. However, another shark decides to exit the negotiation, citing a lack of understanding of the product's appeal. The entrepreneurs consider the offers and counter with a request to lower the equity share to 6%, which Mark and Lori decline. They emphasize the value of their expertise and the potential for enhanced distribution. After a brief discussion, they accept Mark and Lori's original offer, recognizing the significant opportunity for growth and support that the sharks can provide. The deal is celebrated, and the entrepreneurs express their excitement about working with their new partners.
Mindmap
Keywords
๐กArtisan
๐กVegan
๐กCheese Making Techniques
๐กPlant-Based
๐กShark Tank
๐กInvestment
๐กE-commerce
๐กWholesale
๐กRetail
๐กValuation
๐กDistribution
Highlights
Introduction of Rebel Cheese, an artisan vegan cheese company.
The founders' romantic story inspired the creation of Rebel Cheese.
The company's mission to revolutionize the vegan cheese market.
Rebel Cheese's artisan techniques include culturing and cave aging.
The variety of Rebel Cheese's offerings, with over 20 different types.
Shark's positive reaction to tasting Rebel Cheese's products.
The simplicity of ingredients used in Rebel Cheese's products.
The unique selling proposition of Rebel Cheese's vegan brie.
The founders' explanation of their business model and sales channels.
Rebel Cheese's sales figures and projections.
The cost structure and pricing strategy of Rebel Cheese.
The valuation ask and the sharks' initial reactions.
Mark's offer of $750k for 10% equity in Rebel Cheese.
Lori's interest in partnering with Mark for the investment.
The founders' counter-offer and negotiation with the sharks.
The final deal acceptance with Mark and Lori for $750k for 10% equity.
The sharks' advice and excitement for the future of Rebel Cheese.
Transcripts
first in the tank is a modern product
made in traditional artisanal
[Music]
ways hi sharks I'm Fred Zar and I'm
Kirsten maand and we're from Austin
Texas we're seeking
$750,000 in exchange for 5% of our
company wow sharks who doesn't love a
cheesy love story boy falls in love
because Girl Is Awesome but also the
boy's romantic who loves to create these
impressive European style picnics which
girl loves however that meant the
foundation of a relationship relied on
one very important thing
cheese but then uhoh the girl goes vegan
uh- oh again boy goes vegan and with no
truly premium Gourmet shakuri style
cheeses on the market boy and girl go
into business together and create Rebel
cheese The Artisan vegan cheese company
that is inviting vegans back to the
picnic again we create real cheese but
made only from plants and just like with
love there is no shortcuts we spent
years mastering the artisan cheese
making techniques such as culturing and
Cave aging to create the most perfect
textures and flavors that will fool even
the most committed cheese lover imagine
a creamy rinded bre with a true rind a
Tangy sharp cheddar smoked with real
mosquite chips and with over 20
different varieties of cheese we're here
to revolutionize the vegan cheese game
so sharks who's ready to write their own
cheesy love story and take a bite out of
the vegan cheese market with redel
cheese got to try it I am yeah I'm
hungry and ready to try it and sharks in
front of you you have our five top
selling SKS we have our Brie we have our
honey pistachio Chev sundried tomato
forage sharp cheddar and also our
pimento oh my God that's so good the
pimento do it primarily cashew or have
you used multiple plant-based Solutions
we do multiple um what sets us apart is
our techniques so we actually have caves
that we cave age debris in WoW debris is
incredible thank you and it's just four
ingredients it's cashews water salt and
culture so it's super clean oh my God
that sundried tomato fromage is fabulous
I've tried them all and and I'm a huge
cheese guy I'm a huge wine guy so I'm
very sensitive
the one you nailed it on is the breed
there is no way to tell the difference
thank you I mean these are interesting
but the texture is like pretty similar
on all of them right it's kind of very
mushy and pasty the texture is throwing
me a little bit CHR are you the only one
that makes a vegan cheese no no to this
to this level standard there aren't many
people that are making Artisan vegan
cheese at scale there's no one making
vegan bre at scale we just just um built
our new production facility we can make
8 million Wheels a year though so guys
you came in with a pretty Punchy ask so
explain to us the business model today
yes so we have three different channels
that we're selling in currently we have
our e-commerce which is through
subscription that entails about 16% of
our business we also have our wholesale
program which is about 177% of our
business and then our restaurant that is
65% of our business well that's
interesting a single location yes a
single location and what's the
restaurant uh Rebel cheese so during Co
we had a pivot like every other uh
restaurant in America we pivoted to an
e-commerce to start with and that
started taking off and now we're in
about a 100 retailers any of the large
Majors like Foods or they they reached
out to us in the beginning but we
weren't ready for them um those 100 for
you for recognizing that what's the
price of this versus a traditional wheel
of high-end Brie so it cost us about
$467 to make that and that's after
overhead and labor we then landed at the
retailer for about $9 and then we have
an MSRP of about $15 to $20 per wheel
how does that compare with real cheese
our real cheese is anywhere from between
10 to $20 so we're right there with them
Fred what are the sales today so our
last year's sales were 2.5 million this
year we're projecting to make 3.5
million what will this whole thing make
if you hit the 3.5 million pre-tax this
year after you pay yourselves so we've
been profitable for 4 years that's what
also sets us what are you going to make
this year this year we're hoping to
break even to be honest with you because
scaling next year we want to be in 500
stores which will put us about $7
million just in our distribution Revenue
I'm trying to get my head around the
deal because the differentiation for
Rebel cheese is this extraordinary Leap
Forward in Brie and yet you're asking uh
$15 million valuation I think you asked
for too much money if anybody here
should invest in this it's me but I'm
out all right I'll offer you 750k for
10%
wait what do you think wait
wait wait wait wait one shark is out
Fred and Kristen have an offer on the
table from Mark for their vegan cheese
company Rebel cheese but Lori also seems
interested wait wait
wait wait wait
wait I
just I have to jump in and say something
I did a deal with border we are
surpassing by Christmas 30 million in
retail sales within one year we make the
most fabulous cheese and shakery boards
that you can imagine and we have no
vegan cheese I'm happy to go in with
Mark if Mark wants to go in with me we
can do that I'm not your customer I'm
not a big cheese guy so I'm going to be
out really appreciate thank you so guys
I'll make this really nice and easy for
you I'm going out it's to me I don't
really understand their product I don't
think it's as amazing as everybody's
talking about I don't get it apparently
Mark and Lori do 750k 10% you get two of
us would you guys be willing to drop
down to 6%
no you're getting two of us you get two
of us a million for
10% you get two of us you get two of us
you can't hire it cost more than that to
hire us yeah so another thing that we'd
be looking for is help with our
distribution we'd be also looking for a
spokes person we'd be looking for
somebody to help us with marketing yeah
look I'll even commit I'll I'll go to a
grocery store in Austin and hand out
samples and I already have I already
have border where boom we sell the
millions of people in this go right into
our line like that what do you would you
guys be willing to do 7 and a half%
no don't let it go let it go well you
know for 3% you could lose this 2 and 1
12% you could lose
this do you want to talk about yeah can
we have us second to talk about it yeah
sure okay guys guys before you leave let
me just say something in sharp tank lore
I've been around here so long I'm the
vampire on the set okay 200 plus years
here on Shark Tank there are only a few
moments in your life you get like this
you made it on Shark Tank that's
impossible to do you have an offer from
two sharks who are passionate about your
business and give you enhanced
distribution and you're worried about 2
or 3% you don't need to walk anywhere
you'd be out of your you know what Minds
not to take that
deal and this isn't even my deal I'm
just saying this is your moment AB what
the are you
doing I almost never agree with him but
what he said for
[Music]
else thank you we'll accept the deal
y you can thank me now Mark thanks so
much thank you
so good well done
congratulations very excited so work
with Mark and Lori the part that really
got me I don't know about ciron per se
is where Mark even said he'll come down
to Austin to hand out samples yeah we
were like done after I think Mark one
day will learn you don't have to buy the
company you can just buy customer buy
the chase it's more fun when I get to
say but it's
mine for
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