Bee Free Honee – Apple-based Honey Substitute
DEAL
EPISODE SUMMARY
🕓 Air Date: February 12, 2016
Asking For:
$100,000 for 10%
Investor:
Barbara Corcoran, Mark Cuban, Chris Sacca (33.3)
Deal:
$210,000 for 30%
PRODUCT SUMMARY
Bee Free Honee offers a 100% plant-based, sustainable honey alternative made from apples, providing a bee-friendly option for vegans and those concerned about honeybee populations.
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Background Story
Katie Sanchez and Melissa Elms, hailing from Minneapolis, Minnesota, and Nolanville, Texas, respectively, are the passionate founders of Bee Free Honee. The idea was born when Katie accidentally created the product while trying to make apple jelly in 1999. Concerned about the declining bee population and inspired by the vegan community’s support, they decided to create a sustainable honey alternative.
Over the years, they perfected their recipe, using apples grown in the U.S.A. Bee Free Honee entered the national market two years ago and secured placements in 9 out of 11 regions of Whole Foods. The founders are committed to building their own kitchen to meet growing demand and have recently tested with Costco for a future rollout.
The Product
Bee Free Honee is crafted from 80% U.S.-grown organic apples, with lemon juice as the only preservative and a hint of vegan-quality non-GMO cane sugar for viscosity. The product can be used as a honey substitute on bread, granola, or oatmeal. Priced at $5.99 per bottle at retail, it competes with traditional honey in terms of cost. The founders emphasize the product’s appeal to the vegan community and its potential to contribute to saving bees.
How It Went
The company’s position before Shark Tank
Bee Free Honee has been on the national market for two years, with $104,000 in year-to-date revenue and $78,000 in the previous year. The product is available in 9 out of 11 regions of Whole Foods. The founders are looking to expand their production capacity by building their own kitchen. They have also tested with Costco and anticipate a rollout in the near future. The $100,000 investment is intended to fund the kitchen expansion.
The Negotiations:
The Sharks were intrigued by the product and its potential impact on the declining bee population. Daymond John offered $100,000 for 25%, but the founders received multiple offers. Chris Sacca and Mark Cuban combined forces, offering $200,000 for 30%. Barbara Corcoran proposed a partnership, suggesting $210,000 for 30%, with each Shark contributing $70,000 for 10%. Ultimately, the founders accepted Barbara Corcoran’s offer, securing a deal with three Sharks: Barbara Corcoran, Chris Sacca, and Mark Cuban.
