The Oilerie Olive Oil Bar
NO DEAL
EPISODE SUMMARY
🕓 Air Date: October 24, 2014
Asking For:
$500,000 for 35%
Investor:
No Deal
Deal:
No Deal
PRODUCT SUMMARY
Oilerie USA offers a unique Olive-Oil-Bar system where customers can taste various fresh oils and aged balsamic vinegar before purchasing. The company promotes the concept of buying fresh oils instead of choosing blindly from pre-bottled options.
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Background Story
Curt Campbell, a resident of picturesque Egg Harbor, Wisconsin, and his wife Amy Joe, embarked on their entrepreneurial journey inspired by a serendipitous encounter during a 2003 trip to Poland. While exploring the streets of Krakow, they stumbled upon a small shop that captivated them — a shop that was bottling olive oil right in front of customers. The novelty of the experience struck a chord, and the couple instantly recognized the absence of such a concept in the United States. Driven by their shared passion and entrepreneurial spirit, Curt and Amy Joe decided to bring the art of freshly bottled olive oil to America.
In 2003, they established Oilerie USA, making history by opening the nation’s first-ever olive oil store. Their journey, however, was not without its challenges. The couple weathered financial hardships, going paycheck to paycheck and enduring tough years. Despite the struggles, their optimism and determination never wavered. The Oilerie concept was born out of a desire to revolutionize the way Americans purchased olive oil. Instead of blindly selecting from shelves filled with pre-bottled options, Curt and Amy Joe envisioned a unique Olive-Oil-Bar system. This system allowed customers to sample an array of fresh oils and aged balsamic vinegar stored in exclusive stainless steel tanks known as “Fustis” before making a purchase.
The couple’s commitment to providing a personalized and enjoyable shopping experience became a cornerstone of their business. Over the years, Oilerie USA expanded beyond a single retail location, evolving into a franchise system with seven stores across different locations. Curt Campbell’s background experience, coupled with his and Amy Joe’s unwavering dedication, laid the foundation for Oilerie’s success. The couple’s journey from a chance discovery in Poland to establishing a thriving business reflects their resilience, entrepreneurial spirit, and commitment to bringing a unique and fresh approach to the olive oil market in America.
The Product
Oilerie USA’s flagship product is an innovative Olive-Oil-Bar system, offering a distinctive way for customers to engage with and purchase premium oils and aged balsamic vinegar. At the heart of Oilerie’s concept is the opportunity for customers to sample a variety of fresh oils and aged balsamic vinegar before making a purchase. This is made possible through the exclusive use of stainless steel tanks called “Fustis,” which store the products in-store.
Oilerie prides itself on providing a diverse selection of flavors, ranging from traditional olive oils to unique options like white truffle. This allows customers to explore and choose products that suit their taste preferences. After customers make their selections, the unique selling point comes to life. Oilerie bottles the chosen oils right in front of the customers, ensuring transparency and freshness.
This process eliminates the uncertainty associated with pre-bottled oils and adds an interactive element to the shopping experience. Oilerie’s product offers customers the benefit of trying before buying, ensuring satisfaction with their purchase. The system encourages exploration and experimentation with flavors, elevating the culinary experience for consumers.
Prices for Oilerie’s products vary based on the type of oil or vinegar selected. For instance, a bottle of truffle oil was mentioned to be priced at $16.50 during the pitch.Customers can visit Oilerie USA’s retail locations to experience the Olive-Oil-Bar system firsthand. The franchise model allows the brand to expand its reach, providing consumers in different regions with the opportunity to engage in this unique shopping experience.
How It Went
The company’s position before Shark Tank
Oilerie USA has demonstrated robust performance, positioning itself as a unique player in the olive oil retail market. The company’s financial health is reflected in its impressive sales figures, reaching $3.1 million in the previous year. This success is attributed to Oilerie’s franchise system, which comprises seven locations strategically spread across various regions. The company’s strategic approach involves establishing partnerships and collaborations to enhance its market presence. Oilerie has successfully entered into franchise agreements, expanding its reach to locations such as Hilton Head Island, Ohio, Milwaukee, Fish Creek, and the Twin Cities of Minneapolis-Saint Paul, among others.
Oilerie’s customer base is diverse, attracting individuals interested in exploring and purchasing high-quality olive oils and aged balsamic vinegar. The company’s unique Olive-Oil-Bar system, offering a tasting experience before purchase, appeals to consumers seeking a personalized and interactive shopping experience in the culinary domain. Funding for Oilerie’s operations primarily comes from the franchise fees paid by individuals interested in owning and operating an Oilerie store. The franchise fee is specified at $37,500, with ongoing royalties set at 8%. The company’s ability to establish a franchise model showcases its adaptability and responsiveness to customer demand.
The company’s available capital is likely influenced by its franchise system’s success and the ongoing royalties generated from its franchisees. Oilerie’s current structure revolves around a franchise model, with Curt Campbell highlighting the development of the Oilerie USA Franchise System to meet the high demand and interest generated by the original retail store. The system has successfully expanded the company’s footprint, emphasizing the potential for further growth and national recognition. In summary, Oilerie USA stands as a financially sound and innovative player in the olive oil market, utilizing a franchise model to broaden its reach.
The Negotiations:
The negotiations for Oilerie USA’s pitch on “Shark Tank” took an unexpected turn as the sharks expressed varying degrees of skepticism and ultimately chose not to invest in the company. Curt Campbell sought $500,000 in exchange for a 35% stake in Oilerie USA. Kevin O’Leary, a connoisseur of olive oils, expressed concerns about the mid- to low-market positioning of Oilerie’s products, especially given the competitive landscape in major cities like New York and Chicago.
Mark Cuban, focusing on scalability, questioned whether the business was ready for national expansion. He believed that Oilerie’s success might be rooted in the lack of alternatives in its current locations rather than a scalable, nationwide concept. Despite acknowledging Curt Campbell’s impressive journey and hard work, Robert Herjavec, Lori Greiner, and Barbara Corcoran all decided not to invest. Herjavec and Greiner were concerned about Campbell’s ability to handle the stress and day-to-day operations, critical factors for a successful partnership.
Corcoran, appreciating Campbell’s story, concluded that the business might not be ready for the franchise model or align with her investment preferences. While expressing admiration for Campbell’s dedication, Cuban also opted out, stating that the olive oil business, in his opinion, wasn’t investable. Despite the sharks’ decision not to invest, they commended Campbell’s resilience and hard work, providing valuable insights into the challenges of entrepreneurship. In the end, Campbell left the tank without a deal, but with appreciation for the exposure and advice received.
