A Perfect Pear
DEAL
EPISODE SUMMARY
🕓 Air Date: August 16, 2009
Asking For:
$500,000 for 15%
Investor:
Kevin Harrington, Robert Herjavec
Deal:
$500,000 for 50%
PRODUCT SUMMARY
A Perfect Pear offers a range of gourmet food products, with their flagship product being Cinnamon Pear Jelly, originating from Susan Knapp's passionate hobby.
WATCH HERE
IN A RUSH?
Click these to jump to the section you want to read.
Background Story
Susan Knapp, the founder of A Perfect Pear from Napa Valley, embarked on her entrepreneurial journey fueled by a passion for culinary craftsmanship and a desire to share her creations with the world. Located in the picturesque Napa Valley, California, Susan’s venture began as a humble hobby of making Cinnamon Pear Jelly, a recipe she perfected over time. With a background deeply rooted in the culinary arts and a keen eye for gourmet flavors, Susan honed her skills through years of experimentation and refinement.
Her dedication to sourcing the finest ingredients and her meticulous attention to detail set her products apart, earning recognition and accolades within the gourmet food industry. The inspiration for A Perfect Pear stemmed from Susan’s love for preserving the bountiful harvest of pears abundant in the Napa Valley region. Drawing on her surroundings and her innate creativity, Susan transformed her homemade jelly into a diverse line of gourmet food products, each embodying the essence of artisanal craftsmanship and culinary excellence.
Driven by a desire to share the flavors of Napa Valley with a broader audience, Susan embarked on a mission to turn her passion into a thriving business. Despite facing challenges in accessing financing and navigating the competitive food market, Susan remained steadfast in her pursuit, fueled by a vision of creating a brand synonymous with quality, taste, and authenticity. Through perseverance, dedication, and unwavering commitment, Susan Knapp transformed A Perfect Pear into a successful enterprise, with a loyal customer base and a growing presence in retail stores across the country.
The Product
A Perfect Pear from Napa Valley offers a range of gourmet food products, with its flagship item being the Cinnamon Pear Jelly. Handcrafted using premium-quality ingredients sourced from the fertile lands of Napa Valley, this jelly delivers a symphony of flavors that captivate the palate.
The Cinnamon Pear Jelly boasts a harmonious blend of ripe pears infused with aromatic cinnamon, creating a versatile condiment that complements both sweet and savory dishes. Its rich texture and robust flavor profile make it a delightful addition to breakfast spreads, cheese platters, desserts, and glazes for meats.
Each jar of Cinnamon Pear Jelly is meticulously crafted in small batches to ensure superior quality and taste. Made with natural ingredients and free from artificial preservatives, it embodies the essence of artisanal craftsmanship and culinary excellence.
Customers can purchase A Perfect Pear’s products through various retail channels, including specialty food stores, gourmet markets, and online platforms. The company offers its gourmet food products at a premium price point, reflecting the exceptional quality and craftsmanship behind each jar of Cinnamon Pear Jelly.
How It Went
The company’s position before Shark Tank
A Perfect Pear from Napa Valley has demonstrated strong growth and resilience in the competitive gourmet food market. With over $700,000 in sales and partnerships with approximately 650 retail stores, the company has established a solid presence and garnered a loyal customer base. A Perfect Pear’s products are distributed through various wholesalers and retailers, including specialty food stores, gourmet markets, and online platforms, enabling broad accessibility to consumers seeking premium-quality culinary experiences.
While the company has achieved impressive sales figures, concerns arise regarding its profitability, with a projected net profit of only 2.43% for the current year. This suggests potential challenges in managing operational costs and optimizing revenue streams. However, Susan Knapp’s personal investment of over $800,000 underscores her commitment to the company’s success and provides a foundation for future growth.
In terms of funding, A Perfect Pear sought investment on Shark Tank to address production challenges and fulfill customer orders. Ultimately, Susan Knapp accepted Kevin O’Leary’s offer of $500,000 for 51% equity, valuing the importance of financial support and a clear decision-making structure for the company’s growth. The company’s current structure likely revolves around Susan Knapp as the founder and primary decision-maker, with support from a team of dedicated employees and strategic partners. With a focus on preserving the flavors of Napa Valley and delivering exceptional gourmet food products, A Perfect Pear remains poised for further expansion and success in the culinary industry.
The Negotiations:
During the negotiation process on “Shark Tank,” Susan Knapp sought $500,000 for a 15% equity stake in A Perfect Pear from Napa Valley. However, the Sharks expressed concerns about the company’s low profitability, with projected net profits of only 2.43%. Kevin O’Leary and Robert Herjavec initially proposed investing $500,000 for 50% ownership, emphasizing the need for control and financial stability.
Despite alternative offers, Susan ultimately accepted Kevin O’Leary’s offer of $500,000 for 51% equity, valuing the importance of financial support and a clear decision-making structure for the company’s growth. This deal allowed Susan to retain a controlling interest in the company while securing the necessary funding to address production challenges and fulfill customer orders. Throughout the negotiation, there was a tension between the Sharks’ desire for a larger equity stake and Susan’s reluctance to relinquish control.
Kevin O’Leary’s offer provided a compromise that satisfied both parties’ objectives, highlighting the importance of finding mutually beneficial solutions in business negotiations. Despite the intense deliberation and competing offers from other Sharks, Susan ultimately made a strategic decision that aligned with her vision for A Perfect Pear’s future.
