The Sharks Take a Slice From Slice Of Sauce | Shark Tank US | Shark Tank Global

first into the tank is an innovative way to add flavor to sandwiches [Music] hi sharks i'm emily williams and i'm cole williams emily's husband and we're seeking 200 000 in exchange for 10 of our business we're not here to talk about a problem we're here to talk about catastrophes we're talking sandwich catastrophes how about those pesky packets they're tough to open impossible to spread in their never the right amounts and what about soggy buns that's the worst fear not my sharky friends your saucy heroes have arrived with slice of sauce slice of sauce transforms traditionally bottled condiments like ketchup sriracha barbecue sauce mustard and more into mess free slices it's flavor in a new form just like a slice of cheese but it's your favorite condiment or sauce we use only the finest ingredients and a unique process to bring bold flavor and the perfect bite every time so sharks who wants a slice of this sauce so are we ready to eat let's see yes hungary's always ready to always so you guys in front of you you have a grilled cheese sandwich with slice of sauce classic ketchup and spicy sriracha which does have some heat oh wow yeah packs a punch got some kick yeah this is pretty damn cool let me just tell you that is a good idea thank you is this real ketchup that's just been the water's been removed we are removing the water yeah so what's proprietary about that why can't you be knocked off by the big ketchup guys very good question a couple of reasons um one we do have a unique process we've opted for trade secrets so we've forgone the patents we also have licensing agreements on deck with mccormick and stubbs and frank's tapatio and secret aardvark how long is the shelf life of this because it's not refrigerated right correct it's an ambient product it has a 12 month shelf life it's interesting i mean it's almost like a fruit roll-up yeah but this is ketchup we liken it a lot yeah a slice of cheese right it's the same use case it tastes really good thank you thank you what does this sell for and what is the cost to make that retails for 5.99 our cost is 1.75 so do you think that's high you only get eight servings you can dress eight hamburgers it's over whereas with my tomato ketchup bottle i'm gonna have it for what maybe 20 30 hamburgers we are a premium product and we would like to stay positioned that way this really isn't just a slice of ketchup this is flavor what are your sales so far so we launched a kickstarter campaign in 2018 and it went viral within about four days we raised thirty four thousand dollars and our sales after that point where we worked we are still pre-revenue and we'll launch in november and i'd love to tell you about what we've been doing over the last two years because just so we're clear yeah no sales you put the kickstarter on in 2018 and here two years later you're still pre-revenue correct so the question is yeah so we discovered really quickly that manufacturing this is really hard so how are you making these we've been manual and which is why we have not yet launched is because we've had such huge can't find a co-packer to take this and run with the machinery we do need machinery and that's why we're here today this barber to your point will help us bring down costs how much money have you put into it yourself we've invested about 120 000 of our own cash and we've also raised about 500 000 whoa we raised from who we raised a friends and family round of 300 on a convertible note at a three million dollar cap we also participated in techstars accelerator they gave us a hundred thousand dollars this is a down round the last valuation is actually at five million so it is in fact a serious discount because we really want to partner with a shark i have to say i find it absolutely amazing that you're able to raise 300 000 from your family and friends plus a hundred thousand dollars and say confidently that you have this valuation when there hasn't been a single bag sold i would like to believe in that kind of magic because i love magical things but i don't and so for that reason i'm out thanks barbara thank you barbara what is your plan for growth and what is your plan for world domination yeah oh my gosh our focus for the first 12 months is really online we know that there's a retail play here we've had a lot of retail interest we don't want to go there first because it's expensive but then after we we do head into retail there's a food service play um whether it is stadiums or quick service restaurants or uh grabbing grab-and-go sandwich kiosks to me it's extremely important to know three things when you're trying to bring to market a product is it something that people need and want can it be done at an affordable price and does it solve a problem right right so you you gave the problem i don't think it's a huge problem of not being able to carry around your condiments but the complexity here for me is i don't know the need and is it something that can be made an affordable price you don't know yet so i like the innovation but i'm out i think the sharks have a good point and i don't know how you're going to address it because you don't have enough data yet but i'm going to make you an offer structured against the risk i see here because you need a shark to help blow this thing up i'm going to give you the 200 000 and i'm going to put a royalty structure on it to a limit of seven hundred thousand in other words i want a tin excuse me mark i don't need any noise buckle your seat belts exactly clip clips emily does know numbers do you want to hear the offer or not yeah let's go because right now it's the only offer you have so i suggest you focus absolutely all right i'm going to give you the 200 000 against a 10 cent royalty per package until i recoup 700 000 and the royalty goes away and i'm going to ask for five percent equity i'm the only chef up here chef wonderful the rest of these guys are ignorant in the ways of the kitchen he said his offer is better than nothing maybe nothing's better than that yeah well let's hear your offer alex what are you forecasting revenue year one we'll start in november and we're forecasting one point eight one point eight you're going to accomplish that but we have our website we have amazon and we have thrive market um that we're going to partner with amazon will be interesting but you got to go through such a process to educate people right i mean emily you know the only offer you have is some chef wonderful now as these sharks drop out that gives me more i don't know leverage and my offer may change two sharks are out emily and cole have an offer on the table from kevin for their unique condiment company slice of sauce does anybody else yes i would start asking that that would be a good idea okay let's drill down i see these as a proof of concept that are going to be really hard to sell no chance you're doing 1.8 million of these selling online because people aren't going to know what to expect in term of taste right it's the weird stuff that you otherwise would not have in your refrigerator that are that's going to work what are the things you hit the key too it's refrigerator we're not looking at the refrigerator we're looking at places where the refrigerator isn't right so it's a picnic it's a it's a camping trip there's an rv but you've got to look at it where my buying decision is made because you're a new category people aren't going to think i need sliced ketchup it's just not going to happen it sounds like you're on the fence obviously mark you're on the fence i'm not i'm going to make them an offer okay do what you gotta do we live on the road we have four kids we're watching football games concerts baseball but you said something earlier code that i really liked mess free yeah now with four kids that's a premium at my house so there's two rules in investing as i see it rule number one is don't lose money right rule number two is don't forget rule number one yeah okay so i'm gonna make this investment as convertible debt okay i'm gonna offer you two hundred thousand dollars for twenty percent when you hit your 1.8 it will convert into equity okay that's my offer okay you understand the dilution of that i do would you do it for 15 alex so guys before you jump before you go i'll do it for 15 but that means you can't listen to mark what are you gonna do i would take mr wonderful's offer like that why give up all that equity just to be clear co and emily i'm investing 200 000 as a convertible node which means if you don't hit the 1.8 in sales it would stay as debt on the business okay okay got it um would there be um options for po financing and uh lines of credit on top of the 200. i would consider that yes um alex you have a deal all right thank you thank you thank you oh my god you can't pass up a good offer and we had one from alex and i have no regrets at all no regrets i'm curious whether mark was really going to make an offer right absolutely what was yours 200k for 20 i didn't think they get an offer from anybody but they found two stupid people you

Channel: Shark Tank Global

Views: 434,141

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, slice of sauce shark tank, slice of sauce review, slice of sauce ketchup, slice of sauce shark tank episode, slice of sauce shark tank deal, slice of sauce alex rodriguez, shark tank season 12

Id: FbsKto4gg14

Length: 10min 42sec (642 seconds)

Published: Mon Sep 19 2022