The Sharks Are Intrigued By This Dessert Hummus Pitch | Shark Tank US | Shark Tank Global

Summary

McKenzie Marsli pitches her innovative company, Delighted By, which offers dessert hummus made from chickpeas as a healthy, vegan, and gluten-free alternative to traditional sweets. Despite reaching $1 million in sales and expanding to 1,200 stores within 13 months, McKenzie faces challenges with high valuation and fierce competition. The Sharks, concerned about these risks, focus on the need for a strong team and strategic growth. In the end, Mark Cuban and Lori Greiner offer an investment deal combining a loan and equity, emphasizing the importance of scaling the business and hitting key benchmarks.

Takeaways

• 😀 McKenzie Marsli, founder of Delighted By, seeks $600,000 for 12% equity in her company, which produces healthy dessert hummus.
• 🍪 The product is a healthier alternative to traditional desserts, made from chickpeas and flavored like cookie dough, brownie batter, and other sweet treats.
• 🌱 Delighted By's hummus is 100% vegan, gluten-free, non-GMO, and contains less than 5g of sugar per serving.
• 😋 Despite being made from chickpeas, the hummus tastes like dessert, offering a guilt-free indulgence option for consumers.
• 💡 McKenzie came up with the idea after creating a healthy cookie dough dip for a Super Bowl party, which was well-received and mistaken for actual cookie dough.
• 📈 Delighted By hit the $1 million mark in gross sales just 13 months after launching on shelves, with projections for $1.5 million in sales in the current year.
• 🚐 McKenzie drove across seven states to personally pitch her product to stores, demonstrating her determination and commitment to growth.
• 💼 The company has been successful in getting into 12,200 stores but faces challenges in the refrigerated sector, competing with larger hummus brands.
• 📊 The valuation of the company was raised at $4 million during previous funding rounds, but the Sharks are skeptical of its high valuation relative to projected earnings.
• 🤝 Mark Cuban ultimately agrees to loan McKenzie $600,000 at 11% interest with 6% equity, contingent on hitting specific benchmarks, offering a combination of debt and equity funding.

Q & A

What is the primary product being pitched in this Shark Tank episode?

The primary product being pitched is 'Delighted By,' a dessert hummus made from chickpeas, marketed as a healthy, vegan, gluten-free alternative to traditional desserts. It comes in various sweet flavors like brownie batter, snickerdoodle, vanilla bean, and chocolate chip.

What makes 'Delighted By' dessert hummus different from regular hummus?

'Delighted By' is a sweet, dessert version of hummus, made from chickpeas but flavored like cookie dough or other desserts. It is different from regular hummus, which is savory, and aims to provide a healthy alternative to traditional sweet snacks.

How much equity is McKenzie asking for in exchange for her $600,000 investment request?

McKenzie is asking for $600,000 in exchange for 12% equity in her company, 'Delighted By.'

How did McKenzie initially validate the product concept before launching it in stores?

McKenzie initially validated the product concept by creating a healthy cookie dough dip made from chickpeas for a Super Bowl party. After bringing it to the party, everyone mistook it for regular cookie dough, which confirmed to McKenzie that it could be a viable product.

What challenges did McKenzie face in getting her product into stores?

McKenzie faced significant challenges in getting her product into stores, including competing for limited refrigerated shelf space with other hummus products. She also personally drove a van up and down the East Coast, visiting 88 Wegmans stores to introduce her product, demonstrating her dedication and resourcefulness.

What is the projected sales revenue for 'Delighted By' this year?

McKenzie projects $1.5 million in sales for 'Delighted By' this year, which she considers a conservative estimate.

What type of investors does McKenzie seek, and why does she value them highly?

McKenzie seeks 'smart capital,' meaning investors who can provide not just financial backing, but also strategic guidance and industry expertise. She values the sharks because of their experience and ability to help scale businesses.

Why is McKenzie hesitant to hire a large team at this stage of her business?

McKenzie is hesitant to hire a large team because her business is still in its early stages, and she has been doing most of the work herself. She mentions hiring an intern, but it didn't work out as expected, and she is now focusing on building a more effective team.

What was the major concern that some sharks had regarding McKenzie's business?

A major concern among the sharks was the high valuation of the company, with some arguing that McKenzie's business was being valued too highly given its current revenue and the challenges of scaling in a competitive sector. Additionally, the lack of a solid team was also a red flag for some investors.

What deal does Mark Cuban ultimately offer McKenzie, and what conditions are attached?

Mark Cuban offers McKenzie a deal that includes $600,000 in the form of a loan at 11% interest and 6% equity in the company, contingent on meeting certain performance benchmarks. He also proposes using his expertise to help McKenzie build her business further.