The Sharks Offer Entrepreneur Cheesy Deals for Just The Cheese | Shark Tank US | Shark Tank Global

[Applause] my name is david sharpman and i'm from madison wisconsin i grew up in a family of cheese makers my mom and dad bought a little cheese company in 1991 growing up around a cheese company it was a lot of fun i got to go out on demos selling cheese handing out samples when i was 16 i started working in the factory doing jobs that no one else wanted to do my dad wanted everyone to know that i wasn't getting any special treatment eventually i graduated into sales jobs that didn't require a hair net i loved working at my parents cheese company but i wanted to set out on my own path i tried my hand at bringing wisconsin cheese to asia but that ultimately failed so then i tried to make wisconsin cheese in asia and that also failed i applied to business school after i graduated i became a consultant in new york city ultimately wanted to be back in small business and that's when my wife and i had a great idea and all roads lead back to cheese i need investment from the sharks to get more people to try my product as soon as people try it they love it they keep buying it my family and i have invested over a million dollars in this if this product fails a lot of people lose their jobs a lot of people will lose money it's important for me to make sure i justify the risk my dad took on me i want to make him proud and turn this risk into a huge success [Applause] [Music] oh cheesehead hi my name is david sharpman and i'm the owner of just the cheese and i'm asking for a half a million dollars for five percent of my business wow now i know what you're thinking a half million dollars is a lot of cheddar and you're right but our business is cheese our cheese is delicious and our business is booming you know when you make a grilled cheese sandwich the best part is the cheese that melts off into the pan and gets crunchy well most people look at that and think man i wish i could eat just the cheese since we're a family of cheese makers we look at it and think huh how can we turn that into a snack bar so let me show you how we do it first we start with wisconsin milk make our own fresh cheese in-house shred just a little bit into a cookie cutter mold pop it in the oven that is it no rice no fillers it's just the cheese comes in two bars in a pack it's the perfect grab-and-go snack for anytime anywhere and because it's just the cheese everyone will love it so now for the best part let's try them let's try them feel free to read the ingredient list it's a quick read and short different flavors yep aged cheddar is our top seller if you like stronger flavors i'd start there grilled cheese is more mild really good um i have to admit i've had this before really what yes i bought it on amazon you are not alone with that we sell between four and 700 boxes a day on amazon it's very i believe it's so simple how many calories per bar per bar 75. that's it that's it the package with two bars 150 calories eight grams of protein it's sugar-free gluten-free why can't anybody knock you off i mean you're doing something so simple anybody can do this right theoretically yes but there's a lot of science that goes into cheese making and we have some extremely technical there's a ton of brands out there ahead of you i think your brand is better i love just the cheese you're very direct but there's like three or four big gigantic companies and they're just cheese also yeah so there are two big competitors both of whom have private equity overlords one competitor also puts quinoa brown rice and oat bran in it so it's cheaper and it tastes more like a cracker for reference we're usually ranked in like the mid 300s on all of amazon grocery they're ranked in the 18 000 range well all that matters is your sales tell us about your business sure so last year we launched first year in existence we did three and a half million in sales hello wow year to date we are already at 3.7 and we still have four months of the year live and how many stores are you in 700 stores right now plus 1300 from a prominent convenience store chain 7-eleven i got my first pos today what so what you did 3.5 million year-to-date out of only 700 stores and amazon so plus yeah break that down i will back up because i think chronology will help and you always were to keep an eye on the family business so we had been tinkering around after we saw wisps so we talked to my dad about it and said hey we used to do something similar back in the 90s for the atkins craze when the atkins craze died the product crater so we looked at relaunching it and my wife had the foresight to spot the keto trend and when keto took off we were pretty much the only game in town so did you raise any investment nope this family has self-funded how much did you put in to get to this point we've probably invested a total of maybe a million dollars what does it cost me to make what do you wholesale it for so at our current volume 95 cents and what do you sell it for dollar 27 retailing for 1.99 depending on the skew we make between 17 and 20 percent that's it when we wholesale it to a brick-and-mortar store it's 25. that's terrible margins what what's the plan to make more margin on so if i sell 40 000 boxes a month and what what's that volume yeah it would be 75 cents per at a dollar 27. so my margin increases substantially as i grow if there's ever a royalty deal this is it look there's no way he's in stores everywhere lori i'd like to make an offer thank you hey look i don't have a cheese provider in my portfolio i have a lot of wine wine cheese you kind of get what i'm talking about here i'll give you the 500 000 and i want a a 20 cent royalty per bar which is good silence while i make an offer he can decide whether he wants to take it or not i don't need the noise from the cheese factory right here i'm trying to i'll give you the 500 000 for a 20 cent royalty and i will give you tremendous marketing leverage on this because i think this could be a fantastic business if you can get more distribution with all due respect i think that that piggy backs off the hard work we've already done but i can add a lot of value here bringing this into my portfolio and making you a shark tank company and our interests are totally aligned i'm only asking for a little cheese on my beak every time we sell a bar look i think you've done an amazing job getting it out there i think you're probably one of the fastest zero to million plus in sales we've had on the show but i don't like the taste of it it's not a knock on it it's just a personal thing for me yeah so you know only for that reason i'm out but i congratulate you on the success i think kevin's offer smells i think he cuts the cheese i was waiting for someone to go there david here's my thoughts i think you have a superior brand but farmers of cheese are looking and shopping around to see who would like them to make these products so there's going to be more entrance i just don't think there's space and i'm up okay so i like your packaging a lot i think it's really smart it's really good but i'm seeing so many places ads for things that are competitive and i'm not sure who's going to wind up being the leaders in this and for half a million dollars at 5 i don't feel solid enough to invest so i'm out okay i'll give you another angle and this is what dawned on me at a 10 million dollar valuation even if you sell the company for 50 million dollars and i get five times my money my total upside is 2.5 million over 500 000 that's not enough for the risk that's involved i just don't see a way to overcome that so for those reasons i'm out all is not lost because the yellow cheese road leads back to mr wonderful four sharks are out david has one offer on the table for his cheese snack company just the cheese david to be clear i give you half a million dollars i ask for 20 cents a bar as a royalty i get no equity in perpetuity absolutely how else am i going to do this deal perpetuity is a very long time it's a word i like so how flexible are you in the royalty fee itself and the term of the deal i'm not negotiating against myself i'm trying to come up with a reasonable deal on the fly i just gave you one david make a counter here i'll help him i'll give you half a million dollars for 15 cents a bar still perpetuity what are you going to suggest so i'd like to make a reasonable offer so i'd like a pen and paper because i don't want to make an offer that's insulting to any of you here you go so if you were going to take 20 cents a bar yeah you would get 360 k based on my amazon sales from last year yeah that seems for lack of a better word nuts well i'm looking at a nickel [Music] a nickel in perpetuity nope 10 years a nickel for 10 years wait how many bars did you sell last year last year on amazon i did 1.8 million individual packages well i'm sticking at 15 cents until i recoup 750 000. with all due respect that puts too much short-term cash flow stress on the business i can't be siphoning more and more cash out so david david i'll offer you 500 000 i want 15 no royalty yes or no so while i respect both kevin and laurie's offers i'm out you're out oh you're out now now you have two offers what do you want to do with all due respect i do appreciate that you were the first to give me an offer yes but i'm going to have to decline i made that offer because of the tie i like it so back to me david 15 is high for me so i would ask if you'd consider seven and a half no because there's got to be enough upside for me it needs to get the scale in order for it to be worth anything to anybody and the difference between eight percent in equity if we get it to scale is buckets it's a reasonable offer but i'm going to politely and respectfully say no fair enough we wish you the best david it was an interesting ride it was a pleasure guys thank you so much [Music] i'm feeling a little disappointed my wife my family everyone who pours their heart so into making such a great product so i'm disappointed for them that i couldn't bring home a deal but i hope they're proud of me anyway you

Channel: Shark Tank Global

Views: 1,461,417

Keywords: Shark Tank, Shark Tank US, Shark Tank Australia, Kevin O’Leary, Barbara Corcoran, Daymond John, Robert Herjavec, Mark Cuban, Lori Greiner, Dragons’ Den, Money Tigers, Entrepreneurship, investment, reality tv, just the cheese shark tank, just the cheese bars, just the cheese grilled cheese, just the cheese update, just the cheese shark tank update, just the cheese snacks

Id: EI9C5IHWdYk

Length: 11min 48sec (708 seconds)

Published: Sat Dec 18 2021