Flapjacks in Shark Tank? Why not, it is Kodiak Cakes a wheat flapjack, waffle mix that you just add water and enjoy. The company has their line of Syrups as well. Joel Clark's grandfather made the original recipe of the wheat mix, which is later modified by Joel as a just-add-water product. His mother started the innovative business back in 1994, selling brown paper bags of the mix to the neighborhood.
All the Sharks think Kodiak Cakes are great tasting and they love the companies syrups.
Kodiak Cakes in Shark Tank
Target stores started carrying Kodiak cakes with a $260,000 order placing them in 1600 stores nationwide with a margin of 45%. The stores are reordering their flapjack, waffle mix.
Season: 5 Episode 522
Other companies on this episode: Monkey Mat, Plated, The Paint Brush Cover
Shark: Mark Cuban, Barbara Corcoran, Kevin O'Leary, Lori Greiner, Daymond John
Company: Kodiak Cakes
Entrepreneurs: Cameron Smith, Joel Clark
From: Park City, UT
Ask: $500k for 10% equity
Deal:
So why are Joel and Cameron coming into Shark Tank? They are seeking and investment to grow faster and fill orders. Mark Cuban wonders Kodiak Cakes is not using receivables financing, and Lori wonders why they don't put the profits back in to fund the growth.
Joel and Cameron responded by saying they are buying slotted fees to draw attention to Kodiak Cakes, which makes sense to both Mark and Lori. The current year is on a five million dollar run rate, and they are looking to double that in the following year. They expect to sell twenty-five million dollars in year four.
Kodiak Cakes competition, Aunt Jemima is 50% lower cost than they are, and yet Kodiak Cakes is growing at 50% year over year. Joel points out that they are profitable selling half as much as the big guys.
What do the Sharks say about Kodiak Cakes?
Kevin O'Leary announces they are building a commodity that you are tying to sell me at ten times pre-tax profits. The only way he would consider doing the deal is $500,000 for 50% of the company, and he knows they won't so he is out.
Robert Herjavec offers $500,000 for 35% of the company because he is factoring in the risk of doing this deal.
Barbara Corcoran has a partial offer of $250,000 for 20% contingent upon them getting another Shark. I am not sure why they would pay more for Barbara's money over Robert's?
Lori Greiner is not a fan of pancakes, so she is out.
Mark thinks the challenges are going to be enormous to grow this business even though he thinks they have done an awesome job so far. He is out.
Kevin O'Leary get's back in on Barbara's deal but wants 25% for $250,000.
Joel and Cameron appreciate the offers for Kodiak Cakes but think they take more equity than they are willing to give up so the turn down the offers.
Get Kodiak Cakes Flapjacks now on Amazon