The owners of Kodiak Cakes may have just come into the Shark Tank a few years ago to propose their product, but the firm has been growing for quite some time. Unlike many rivals on the market, the cake mix is based on a family recipe and uses only whole grains.
Penny Clark, the originator of the Kodiak Cakes mix, sent her 8-year-old son out in 1982 throughout the neighborhood to sell some of her mix to neighbors, and the Red Wagon became an iconic symbol in the Kodiak family. He piled bags of her mix onto his red wagon and set off on his sales expedition. The family understood it meant something when he returned with an empty cart; here was where the firm actually began.
The firm has developed tremendously over the years, yet it is still family-owned. Their small-business attitude has helped them to remain competitive and successful. They may be creating things for people all across the nation, but their attitude toward quality and care is the same as it was when they were only selling to their neighbors. They’d rather not interfere with the mentality that gave them success in the first place.
Joel Clark described his mother as being ahead of the curve in terms of trying to offer nutritious, whole-food components on their website’s ‘Our Story’ page. Whereas most pancakes are produced with white flour and sugar, Kodiak Cakes are created with whole grains and oats, which provide some health advantages. It’s a healthy way to consume something sweet like a waffle or a pancake.
Many of their consumers are millennials who are major fans of Kodiak Cake’s Protein Mix. It’s easy to see why this is their best-selling product since it has more protein than the usual blend. People desire more protein in their diets, and they want a healthier diet in general. People, on the other hand, do not want to give up everything they like eating in the name of a diet. Kodiak provides a fantastic answer to the issue.
Shark Tank’s Kodiak Cakes
Season 5 Episode 22 Of Shark Tank
Joel Clark and Cameron Smith addressed the Sharks with a well-crafted proposal, detailing the origins of Kodiak Cakes and why they believed it could become a competitive product and household brand.
The firm’s founders were looking for a $500,000 investment in exchange for a 10% interest in the company. They discussed the product’s attractiveness and why it would be worthwhile to invest in it. The fact that there are no additional fats or sweets, as well as the fact that people are becoming more health-conscious, are key selling points. People want to be able to enjoy sweets without feeling bad about what they put into their bodies.
Fruit syrups are also available from the firm. When the Sharks are given samples of the pancakes and syrups, they unanimously rave about them.
As they stood in front of the Sharks, the firm was on target to make $5 million in sales that year. Making the pancake mix costs around $1.50, and the boxes of the mix cost about $3. Although the $3 price tag is more than the competition, Joel and Cameron explain that customers are prepared to pay more for quality and wellness.
The $500,000 is required to cover slotting costs. They want to put the money towards getting their product on more store shelves.
Kevin begins by stating that he feels they place an excessive amount of value on themselves. He claims that he would not make an offer, but his theoretical offer would be $500k in exchange for 50% ownership of the firm. They wanted the same amount but in exchange for a 40% interest in the firm, which they are ready to grant. Robert steps in and agrees to a $500k transaction in exchange for a 35 percent stake in the company.
The owners of the Kodiak take the bids into consideration, but they don’t like what they’re hearing. Barbara then makes her offer: half of what they were asking for, $250k in exchange for a 20% stake in the firm, and she wants another Shark to join her. Kevin, to his surprise, decides to take part in the arrangement.
Joel and Cameron think about it, but finally, decide to walk away from the agreement. The sole offer of $500k would entail giving up much too much equity. The second proposal was just half of what they were looking for, but it still required them to make a double-digit expenditure. They leave without an agreement after thanking the Sharks for their time.
After Shark Tank, There’s Life
Even if a company does not get a contract on Shark Tank, earnings often skyrocket. Kodiak Cakes is no different. Within a year of their debut on the program, their sales had doubled.
Go to your local supermarket and go down the pancake aisle if you want to check how the firm is doing now. There’s a good chance you’ll see Kodiak Cakes. It seems that all they needed was publicity. People will continue to purchase the product when they run out because it is so wonderful. When compared to its rivals, this product stands out because of the extra protein.
Joel and Cameron have created a fantastic product. During the years after Shark Tank, sales have continued to rise. Things have naturally plateaued to some level, but they are now many times more valuable than they were when they first debuted on the program. The product may be found at most supermarkets around the country.
Royal Pitch is not linked with Kodiak Cakes, Shark Tank, or any of its subsidiaries, and the information presented in this article is only for educational purposes.
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