Premium Jerky Has the Sharks' Mouths Watering | Shark Tank US | Shark Tank Global

Summary

Jordan Baroque and Daniel Foglesson, founders of Three Jerks Jerky, pitch their premium jerky company, offering a unique product made from filet mignon. Seeking $100,000 for 15% equity, they highlight their focus on quality, but also face high production costs. After showcasing their product to the sharks, including Robert Herjavec, Lori Greiner, and Mark Cuban, the founders ultimately accept Damon John’s offer of $150,000 for 33% equity. The deal emphasizes not only funding but also mentorship, which the founders believe will help accelerate the growth of their jerky business in the competitive market.

Takeaways

• 😀 The founders of Three Jerks Jerky, Jordan Baroque and Daniel Foglesson, are seeking a $100,000 investment for a 15% stake in their jerky business.
• 😀 Three Jerks Jerky uses filet mignon, the highest quality beef, to create the most tender jerky, setting it apart from traditional jerky made from tougher cuts like bottom round beef.
• 😀 Their jerky is free from artificial preservatives, nitrates, and gluten, making it a premium, healthier option in the jerky market.
• 😀 In the past 12 months, Three Jerks Jerky has made $350,000 in sales, with each package priced at $11.99.
• 😀 The jerky business is highly competitive, with many small manufacturers claiming to be premium, but Three Jerks Jerky differentiates itself with superior quality and tenderloin beef.
• 😀 The founders are struggling with high production costs due to purchasing ingredients at minimums and need investment to help reduce these costs by purchasing inventory in larger quantities.
• 😀 The sharks react to the jerky, expressing admiration for its taste, with Robert Herjavec calling it ‘amazing’ and others commenting on its quality and flavor.
• 😀 Mark Cuban offers $100,000 for a 33% stake in the company, positioning himself as a third partner in the business.
• 😀 Kevin O'Leary offers $100,000 for a 20% stake, emphasizing his experience with distributors and his love for beef jerky.
• 😀 The founders ultimately accept Damon John’s offer of $150,000 for a 33% stake, believing his experience will help accelerate their business and growth.

Q & A

What is the core product of Three Jerks Jerky?

The core product of Three Jerks Jerky is premium beef jerky made from filet mignon, the finest cut of beef. They offer various flavors including original, Memphis barbecue, and chipotle adobo.

How does Three Jerks Jerky differentiate itself from other jerky brands?

Three Jerks Jerky differentiates itself by using 100% filet mignon, which makes their jerky more tender and flavorful compared to traditional jerky made from tougher cuts like top or bottom round beef. Additionally, they avoid artificial preservatives and gluten.

What was the company's sales performance over the last year?

The company reported $350,000 in sales over the past 12 months.

What is the price point of Three Jerks Jerky compared to the average jerky?

Three Jerks Jerky is priced at $11.99 per package, which is about twice the price of an average package of jerky, especially compared to the jerky typically found at gas stations.

What are the main challenges the company is facing in terms of production?

One of the main challenges the company faces is the high cost of goods, as they are buying inventory at minimums. They aim to reduce costs by purchasing in larger quantities when prices are low.

How does Three Jerks Jerky store its inventory to manage its supply chain?

The jerky is stored frozen, which allows the company to keep it for up to a year without spoilage, helping them manage inventory and reduce waste.

Why is the sodium content of Three Jerks Jerky important, and how does it compare to other jerky brands?

Three Jerks Jerky contains only 19% sodium, which is considered low compared to many other jerky brands. This is part of their focus on using natural ingredients and avoiding artificial preservatives.

How many units of jerky can Three Jerks Jerky produce per week?

The company can produce up to 50,000 units of jerky per week, as their co-packer has the capacity to meet this production level.

What investment offer did the founders seek during their pitch?

The founders sought a $100,000 investment in exchange for 15% equity in the company, aiming to scale their business and reduce costs associated with their current purchasing practices.

What were the offers made by the sharks, and which one did the company ultimately accept?

The sharks made several offers, ranging from Kevin O'Leary's $100,000 for 20% to Damon John's $150,000 for 33%. After some negotiation, the founders accepted an offer from Damon John of $150,000 for a 33% stake in the business.