ABS Protein Pancakes
DEAL
EPISODE SUMMARY
🕓 Air Date: January 5, 2016
Asking For:
$120,000 for 40%
Investor:
Daymond John
Deal:
$120,000 for 42%
PRODUCT SUMMARY
ABS Protein Pancakes offers guilt-free, low-calorie protein pancakes as a healthy alternative for fitness enthusiasts.
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Background Story
Ashley Drummonds and Josh McClelland, founders of ABS Protein Pancakes, hail from Tampa, Florida. Both were deeply involved in the fitness industry, initially working as trainers while also participating in amateur photoshoots to build their portfolios. Their journey into creating ABS Protein Pancakes stemmed from their own struggles with self-esteem and the restrictive diets often associated with the fitness industry. They identified a gap in the market for a nutritious breakfast option that didn’t compromise on taste, leading them to develop their unique pancake mix.
The Product
ABS Protein Pancakes offers a convenient and healthy breakfast alternative. Each serving contains four fluffy pancakes with under 250 calories and over 24 grams of protein, catering to individuals focused on fitness and nutrition.
The mix is gluten-free, made from a protein powder blend with coconut flour and sweetened naturally, providing a guilt-free option for those looking to maintain a balanced diet. The product can be purchased directly through their website for $42.95 per package, available in flavors like vanilla cake batter and chocolate chip.
How It Went
The company’s position before Shark Tank
With sales exceeding $100,000 in just 11 months, ABS Protein Pancakes has demonstrated promising growth. The company primarily sells its products through its website, with a significant portion of sales coming from repeat customers, indicating a strong demand for their offerings. While the cost to produce each package ranges from $12 to $14, the retail price of $42.95 reflects the premium nature of the product and the target market’s willingness to invest in quality nutrition.
The Negotiations:
The Sharks initially expressed concerns about the taste, pricing, and gluten-free focus of the product. While Mark Cuban and Lori Greiner were critical of the taste and pricing, Daymond John saw potential in the fitness market. Robert Herjavec offered $120,000 for 50%, which was countered by Daymond John at the same equity but $120,000 for 50%. Kevin O’Leary expressed his dislike for the taste and dropped out, leaving Robert and Daymond as potential investors.
Ultimately, Daymond offered to decrease his equity to 42%, and the founders agreed to have that investment at that valuation. The founders accepted Daymond’s offer, securing a deal for $120,000 for 42%. Despite initial concerns, the founders were relieved and excited about Daymond’s involvement, recognizing the potential for growth in the fitness market.
