Ka-Pop! Snacks
NO DEAL
EPISODE SUMMARY
🕓 Air Date: January 19, 2020
Asking For:
$350,000 for 5%
Investor:
No Deal
Deal:
No Deal
PRODUCT SUMMARY
Ka-Pop! is an ancient grain pop chip powered by sorghum, offering flavors like rosemary garlic, salt and vinegar, vegan cheddar, and olive oil and sea salt, with a focus on being vegan, non-GMO, gluten-free, and allergen-free.
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Background Story
Ancient inGRAINed, founded by CEO Dustin Finkel, brings Ka-Pop!, a line of ancient grain pop chips, to the Shark Tank. Dustin, with 13 years in the food industry and a background in investment banking at Goldman Sachs, decided to venture into the startup world to create authentically healthy snacks.
His motivation stems from a passion for defeating common snack villains like gluten, allergens, and empty calories. Dustin’s journey started with a vision for genuinely nutritious snacks, leading him to launch Ka-Pop! with sorghum, an ancient grain unadulterated since ancient Egypt.
The Product
Ka-Pop! pop chips are made from sorghum, a nutrient-rich ancient grain, and come in flavors like rosemary garlic, salt and vinegar, vegan cheddar, olive oil, and sea salt. The snacks are vegan, non-GMO, gluten-free, and allergen-free, ensuring a healthy alternative to traditional snacks.
Dustin emphasizes the simplicity of the product, made by air-popping sorghum, adding cold-pressed oil and seasoning—no fillers or unnecessary ingredients. The chips are positioned as a delicious yet nutritious snacking option, providing whole-grain fiber, protein, antioxidants, and minerals. The product’s differentiation lies in its commitment to authenticity and health, avoiding common pitfalls like GMOs and empty calories.
How It Went
The company’s position before Shark Tank
Ancient inGRAINed, seeking $350,000 for 5%, faced skepticism from the Sharks. Despite having notable investors, including the ex-head of Whole Foods grocery and founders of prominent brands, the Sharks probed into the company’s financials. With $150,000 in sales the previous year and a projected $1.2 million for the current year, the company showed promising growth.
However, concerns were raised about profitability and the challenging nature of the food industry’s gross margin game. Dustin highlighted a strong selling rate of 100% across 1,000 doors, crediting influential investors for opening doors.
The Negotiations:
The negotiation took an unexpected turn when Mr. Wonderful, Kevin O’Leary, proposed a deal but with a substantial increase in equity—$350,000 for 17.5%. This proposition deviated significantly from Dustin’s initial ask, leading to a valuation misalignment. Despite attempts to bridge the gap, the Sharks and Dustin couldn’t find common ground.
Other Sharks, including Lori Greiner and Mark Cuban, expressed concerns about the challenges ahead for the business and ultimately opted out. The negotiation highlighted the disparity in valuation expectations, with Dustin unwilling to compromise below a $4 million valuation, and the Sharks seeking more favorable terms. Despite leaving the Tank without a deal, Dustin remained optimistic, considering the Sharks’ positive reception of the product as a win for Ancient inGRAINed.
