Mrs. Goldfarb’s Unreal Deli
DEAL
EPISODE SUMMARY
🕓 Air Date: November 17, 2019
Asking For:
$100,000 for 10%
Investor:
Mark Cuban
Deal:
$250,000 for 20%
PRODUCT SUMMARY
Unreal Deli offers mouthwatering, decadent vegan corned beef made from 100% plant-based ingredients.
WATCH HERE
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Background Story
Jennifer Goldfarb, the founder of Unreal Deli, hails from New York City but moved to Los Angeles about a decade ago. Her deep love for authentic New York delis persisted even after becoming vegan, and when she couldn’t find a satisfying vegan alternative to corned beef and pastrami, she decided to create her own.
Jennifer, a fighter with a family history in the deli business, was inspired by her great-grandfather, who emigrated from Romania and owned several delis in New York City. After becoming vegan herself, she experimented with plant-based ingredients to recreate the classic deli meat experience. Unreal Deli was born out of a desire to provide a healthy and delicious alternative for vegans and non-vegans alike.
The Product
Unreal Deli’s vegan corned beef is crafted using 100% plant-based ingredients that are low in carbs, low in fat, and protein-packed. The meat is made from a blend of beets, chickpeas, tomatoes, and a complex spice blend to achieve an authentic, classic deli flavor. The product is designed to mimic the traditional deli meat experience, offering a variety of options like corned beef and pastrami. The vegan deli meat is not only delicious but also nutritious.
Jennifer showcased different variations of sandwiches during the pitch, highlighting the versatility of Unreal Deli. From a sweeter rendition with Russian dressing and apple slaw to a zingier version with kraut and spicy mustard, the product caters to various taste preferences. The goal is to make Unreal Deli meat a staple in grocery stores, delis, and restaurants worldwide.
The company recently launched its e-commerce platform, making the product available online. Jennifer mentioned that they had a successful start, selling $2,000 worth of products within the first 24 hours, even without extensive advertising.
The pricing ranges between $8 to $10 per pound, with a production cost of $3.80 per pound. Unreal Deli is entering major retail chains, including Whole Foods, and has already secured placement in iconic Los Angeles delis.
How It Went
The company’s position before Shark Tank
Unreal Deli is a relatively new company, having been incorporated just this year. Within a few months, the company secured placement in about half a dozen of the largest and most iconic delis in Los Angeles. The founder, Jennifer Goldfarb, revealed that they pulled off $10,000 in sales from these local delis. Furthermore, the company is expanding its reach by entering 58 Whole Foods stores and partnering with 30-plus chain restaurants starting in January.
In terms of financials, Unreal Deli reported $2,000 in online sales within the first 24 hours of launching their e-commerce platform. Jennifer mentioned that the company has caught the attention of plant-based investors, with offers reaching half a million for 10% equity. The company’s projected revenue for the next year is $3 million, indicating a strong growth trajectory. Jennifer emphasized her family’s history in the deli business, spanning almost 100 years, tracing back to her great-grandfather’s migration from Romania to New York City.
This legacy and her personal journey into veganism form a unique background story for the brand. Unreal Deli aims to position itself as a leader in the plant-based deli meat market, capitalizing on the growing demand for vegan alternatives. With partnerships with major retailers and iconic delis, the company is strategically positioned for expansion and increased market penetration.
The Negotiations:
Jennifer Goldfarb entered the Shark Tank seeking $100,000 for a 10% equity stake in Unreal Deli. However, the negotiation process did involve some back-and-forth. Daymond John, referencing the competitive landscape with large plant-based meat companies, questioned the $1 million valuation, stating that he had made three times that amount in profit with another plant-based meat investment in just three weeks.
The Sharks were curious about Jennifer’s decision to seek funding from them when plant-based investors had already approached her with a half-million-dollar offer for 10%. When asked about the high valuation, Jennifer explained that plant-based investors had expressed interest, but she believed that the Sharks brought unique value, stating that “one Shark dollar is worth five regular dollars.”
The negotiation heated up when Kevin O’Leary and Mark Cuban both made offers. O’Leary proposed $100,000 for 20%. Mark Cuban immediately expressed interest and made an offer of $250,000 for a 20% equity stake. Jennifer accepted Mark Cuban’s offer, securing a deal that valued her company at $1.5 million.
After some banter between the Sharks, Jennifer chose to accept Mark Cuban’s offer of $300,000 for a 20% equity stake. The negotiation showcased Jennifer’s strategic approach and belief in the value the Sharks could bring to her company, leading to a successful deal with Mark Cuban.
