Brazi Bites – Brazilian Cheese Bread
DEAL
EPISODE SUMMARY
🕓 Air Date: November 20, 2015
Asking For:
$200,000 for 10%
Investor:
Lori Greiner
Deal:
$200,000 for 16.5%
PRODUCT SUMMARY
Brazi Bites offers a line of delicious Brazilian cheese bread, naturally gluten-free, with four flavors that go from freezer to oven in minutes.
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Background Story
Junea and Cameron, a husband and wife team from Portland, Oregon, introduced Brazi Bites to Shark Tank. Junea, originally from Brazil, missed the Brazilian cheese bread she grew up with when she moved to the U.S. Unable to find it anywhere, they decided to share Junea’s family recipe with the American market.
They developed a product line that includes four flavors of Brazilian cheese bread, aiming to provide the best-tasting and highest-quality option available. The business started three years ago, and since then, they’ve tripled their revenue each year, reaching over $1 million in projected sales for the current year.
The Product
Brazi Bites’ Brazilian cheese bread is made from tapioca flour, making it naturally gluten-free. With flavors like garlic asiago, pepper jack, and bacon, the bread is known for its crispy exterior and fluffy interior. The product is sold as frozen dough, and the baking process is simple, going straight from the freezer to the oven.
Each serving consists of three pieces, totaling 120 calories, with only eight ingredients and no preservatives. The founders emphasize the ease of preparation, comparing it to baking frozen pizza at home.
How It Went
The company’s position before Shark Tank
Brazi Bites has gained a strong presence, being available in approximately 700 grocery stores across the country, including well-known chains like Whole Foods Market and Sprouts Farmers Market. The founders, Junea and Cameron, initially built the business by personally knocking on doors and establishing relationships with retailers.
Their revenue has seen significant growth, starting at $60,000 in 2013, reaching $600,000 last year, and projecting over $1 million for the current year. The company had taken on a debt of about $200,000 to build its production facility, but they were in the process of transitioning to a co-packing partner with a 50-50 partnership.
The Negotiations:
The Sharks showed great interest in Brazi Bites, with offers coming from Lori Greiner, Kevin O’Leary, and Daymond John. While Lori secured the deal at $200,000 for 15%, there were counteroffers and negotiations. Kevin and Lori both suggested 20%, with Lori later dropping to 15%. Daymond, initially offering 25%, eventually dropped to 12.5%.
Mark Cuban bowed out early, citing concerns over the already distributed ownership of the company. The negotiation process showcased the challenges the founders faced due to having already given away 50% of their company to a co-packing partner. In the end, Junea and Cameron accepted Lori’s offer of $200,000 for 16.5%, recognizing the value Lori could bring to their growing brand.
