The Painted Pretzel
DEAL
EPISODE SUMMARY
🕓 Air Date: February 24, 2012
Asking For:
$100,000 for 25%
Investor:
Mark Cuban
Deal:
$100,000 for 25%
PRODUCT SUMMARY
The Painted Pretzel offers gourmet pretzels coated in various chocolates and unique toppings, providing unlimited flavor combinations.
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Background Story
Raven Thomas, the founder of The Painted Pretzel, embarked on her entrepreneurial journey nearly three and a half years ago. Previously in a career she loved, she made the life-changing decision to become a stay-at-home mom. However, her passion for creating delectable treats led her to establish The Painted Pretzel. The inspiration came from the overwhelming response she received when sharing her pretzel creations with friends and family. Their encouragement propelled her to turn her hobby into a business venture.
Driven by her desire to create something unique and delicious, Raven experimented with different chocolate coatings and toppings, resulting in a product with unlimited flavor combinations. With a focus on quality ingredients, innovative packaging, and distinctive flavors, The Painted Pretzel stands out in the market. Raven’s journey as a mother and entrepreneur serves as an inspiration not only to her but also to her children, as she demonstrates the importance of pursuing one’s dreams and the possibility of success through dedication and hard work.
The Product
The Painted Pretzel offers a delightful assortment of gourmet pretzels, each hand-coated in premium chocolates and adorned with a variety of toppings. Customers can choose from a wide range of flavors, including white, dark, and milk chocolate, along with unique options like butterscotch, peanut butter, and mint coatings. Toppings range from classic nuts and candy bars to more unconventional choices like fruit.
The process of ordering from The Painted Pretzel is simple and convenient. Customers can purchase these gourmet treats online through the company’s website or find them in select retail locations such as Neiman Marcus, Sam’s Club, Stein Mart, and airports. The pricing varies depending on the packaging and quantity, with larger orders offering better value for customers.
Each pretzel is meticulously crafted to ensure the perfect balance of flavors and textures. Whether enjoyed as a personal indulgence, shared at gatherings, or given as gifts, The Painted Pretzel offers a memorable culinary experience.
Aside from individual purchases, The Painted Pretzel also caters to wholesale orders, making it an ideal choice for businesses looking to offer unique snacks to their customers.
How It Went
The company’s position before Shark Tank
The Painted Pretzel has experienced steady growth since its inception, with sales totaling approximately $75,000 over the last 12 months. The company recently received a significant order worth $64,000 and has outstanding orders totaling $140,000, indicating strong demand for its products. The company has established partnerships with renowned retailers such as Neiman Marcus, Sam’s Club, Stein Mart, and various airports, expanding its reach to a diverse customer base.
Through strategic placement and effective marketing, The Painted Pretzel has achieved rapid sell-outs in stores and online platforms, demonstrating the appeal of its unique offerings. The company’s profitability is evident from its ability to secure large orders from prestigious retailers like Neiman Marcus and Sam’s Club. With available capital from the investment deal, The Painted Pretzel is poised to capitalize on existing opportunities for growth and expansion.
The company is structured to facilitate scalability and innovation, with a dedicated team focused on product development, marketing, and customer service. By leveraging its strengths and capitalizing on market trends, The Painted Pretzel aims to establish itself as a leading gourmet snack brand in the industry.
The Negotiations:
During the negotiations on Shark Tank, Raven Thomas sought a $100,000 investment in exchange for a 25% equity stake in The Painted Pretzel. While pitching her business, Raven emphasized the uniqueness and appeal of her gourmet pretzels, highlighting their diverse flavor combinations and premium quality ingredients. Despite initial skepticism from some sharks regarding the lack of proprietary technology or unique selling points, Raven remained confident in the potential of her brand. Mark Cuban recognized the value proposition and the untapped opportunities for growth in the gourmet snack market.
After a brief exchange where other sharks voiced their concerns, Mark made a bold offer of $100,000 for 25% equity, which exactly matched Raven’s initial ask. His offer came with the promise of leveraging his existing business platforms, such as the Maverick games and Landmark Theatres, to expand the distribution of The Painted Pretzel.
Raven eagerly accepted Mark’s offer, citing the significant potential for collaboration and growth. The straightforward negotiation process concluded with a handshake deal, showcasing the mutual enthusiasm and confidence in the partnership. Despite initial doubts and challenges, Raven successfully secured the investment she needed to take The Painted Pretzel to new heights. The negotiation not only validated the viability of her business but also highlighted the power of perseverance and conviction in pursuing entrepreneurial dreams.
