Mr. Tod’s Pie Factory
DEAL
EPISODE SUMMARY
🕓 Air Date: August 9, 2009
Asking For:
$460,000 for 10%
Investor:
Barbara Corcoran, Daymond John (50/50)
Deal:
$460,000 for 50%
PRODUCT SUMMARY
Mr. Tod's Pie Factory specializes in a variety of handmade pies, with a focus on sweet potato pies.
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Background Story
Tod Wilson, a resilient entrepreneur hailing from Somerset, New Jersey, is the visionary behind Mr. Tod’s Pie Factory. His journey into the world of pies began with humble roots and a passion for crafting delicious, homemade treats. Prior to founding Mr. Tod’s Pie Factory, Tod had experiences that shaped his entrepreneurial spirit. He initially ventured into the pie business by assisting a competitor, gaining valuable insights into the industry. However, faced with challenges and financial setbacks, including a period of homelessness, Tod persevered and emerged with a renewed determination to succeed.
Inspired by a family recipe developed over two decades in collaboration with his mother, Tod embarked on a mission to create a pie brand that would captivate taste buds and warm hearts. Located in Somerset, New Jersey, Mr. Tod’s Pie Factory quickly gained traction, offering a wide array of handmade pies, each crafted with care and using only the finest ingredients. Among their offerings, the sweet potato pie emerged as a standout, capturing the essence of tradition and home-cooked goodness.
Tod’s vision for Mr. Tod’s Pie Factory transcended mere commerce; it was about sharing joy, comfort, and nostalgia with every slice. With a commitment to quality and authenticity, Tod and his team transformed raw North Carolina jumbo yams into delectable pies that became a beloved staple in the local community and beyond. Through perseverance, passion, and a dedication to his craft, Tod Wilson turned his dream into a thriving business, proving that with determination and a great recipe, success is always within reach.
The Product
Mr. Tod’s Pie Factory offers a delectable range of handmade pies, each crafted with care and precision to deliver an unparalleled taste experience. Among their standout offerings is the renowned sweet potato pie, a beloved classic that embodies comfort and tradition. Made with raw North Carolina jumbo yams processed in-house, these pies boast a rich, velvety filling encased in a flaky, buttery crust.
The sweet potato pie from Mr. Tod’s Pie Factory is not just a dessert; it’s a symbol of warmth and hospitality, perfect for any occasion, from family gatherings to holiday feasts. Its irresistible flavor profile, combining the natural sweetness of yams with hints of cinnamon and nutmeg, appeals to palates young and old alike.
Customers can purchase Mr. Tod’s pies directly from the factory outlet or through selected retailers, ensuring convenient access to these culinary delights. Prices vary depending on the size and flavor of the pie, with options available to suit every budget. Whether enjoyed as a dessert after a hearty meal or savored as a midday indulgence, Mr. Tod’s sweet potato pie promises to delight the senses and leave a lasting impression with its homemade taste and artisanal quality.
How It Went
The company’s position before Shark Tank
Mr. Tod’s Pie Factory has demonstrated robust performance and a strong market position, buoyed by its commitment to quality and innovation. With $850,000 in sales last year and a consistent net income averaging around 20% annually, the company has proven its ability to generate revenue and maintain profitability. Operating both wholesale and retail channels, Mr. Tod’s Pie Factory has established partnerships with a variety of retailers, including local and national food service chains, as well as fast-food restaurants.
The company’s primary wholesalers are national food service chains and local fast-food establishments, with the sweet potato pie representing a significant portion of their wholesale business. Targeting diverse customer demographics, Mr. Tod’s pies appeal to both individual consumers and commercial clients seeking high-quality, handmade desserts. In terms of funding, Mr. Tod’s Pie Factory recently secured $460,000 in investment from Daymond John and Barbara Corcoran in exchange for a 50% equity stake.
This infusion of capital will be allocated towards expanding production capacity, implementing marketing initiatives, and strengthening the brand’s presence in the market. The company’s organizational structure consists of Tod Wilson as the founder and primary decision-maker, supported by a team of dedicated staff members responsible for various aspects of operations, including production, sales, and marketing. With a solid financial foundation and strategic partnerships in place, Mr. Tod’s Pie Factory is well-positioned to capitalize on opportunities for growth and expansion in the competitive dessert market.
The Negotiations:
The negotiations at Mr. Tod’s Pie Factory were marked by a mix of tension, strategic maneuvering, and ultimately, a successful outcome. Tod Wilson initially sought $460,000 for a 10% equity stake, valuing the company at $4.6 million. While impressed by the company’s success and product quality, Kevin O’Leary and Robert Herjavec expressed reservations about the high valuation and the risk of overexpansion, leading them to decline the offer.
Kevin Harrington proposed a controlling stake in the company, which Tod rejected. However, Barbara Corcoran and Daymond John saw potential in Mr. Tod’s Pie Factory and expressed interest in investing. Barbara offered $230,000 for 20% equity, contingent on Daymond joining her. Daymond countered with a proposal for a 50% equity stake if they partnered, citing the need for a larger share to justify the investment and mitigate risk.
Despite initial hesitation about giving up half his company, Tod accepted their offer, recognizing the strategic value of partnering with experienced investors who could provide guidance and resources for growth. The deal provided crucial funding to expand production capacity and scale the business, securing Mr. Tod’s Pie Factory’s future success in the competitive dessert market.
