Biem Butter Sprayer
DEAL
EPISODE SUMMARY
đŸ•“ Air Date: October 14, 2016
Asking For:
$500,000 for 5%
Investor:
Lori Greiner
Deal:
$500,000 for 14%
PRODUCT SUMMARY
Biem is the first and only spray that uses real butter, transforming it from a stick to a spray without chemicals, providing a convenient way to butter various foods.
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Background Story
Biem, the brainchild of Doug Foreman, is rooted in the vibrant city of Austin, Texas. Doug, with a notable history in the food industry, embarked on his entrepreneurial journey in 1989 by founding Guiltless Gourmet, a groundbreaking venture that introduced the first baked tortilla chip in the United States. This initial success marked the beginning of a fruitful career in the food business. After a successful exit from Guiltless Gourmet, Doug explored various business ventures before finding inspiration for Biem. The product’s conception arose from a common yet frustrating culinary challenge—traditional butter being hard and cold, leading to torn toast or burnt pans during cooking.
Recognizing the inconvenience, Doug, who shares a deep passion for cooking, eating, and entertaining, envisioned a solution that would make real butter more versatile and user-friendly. Biem, introduced to the Sharks on Shark Tank, is the first and only spray that seamlessly transforms real butter from a solid stick to a convenient spray in a matter of seconds. The innovative device utilizes heat and air, omitting the need for chemicals or artificial ingredients. Its motion detector feature adds a touch of modernity, activating the transformation process upon lifting the device.
Doug’s extensive experience in the food industry, coupled with his entrepreneurial spirit, drove the development of Biem. The product’s versatility extends beyond mere convenience, offering a solution to common challenges faced in the kitchen. Biem reflects not only Doug Foreman’s dedication to enhancing the culinary experience but also his knack for identifying practical problems and delivering innovative solutions.
The Product
Biem, stands out as a revolutionary kitchen innovation that simplifies and enhances the butter experience. The product operates seamlessly by transforming a solid stick of butter into a convenient spray in just a few seconds. This transformation is achieved through the ingenious use of heat and air, eliminating the need for chemicals or artificial ingredients. The device’s motion detector feature adds a layer of user-friendliness, activating the process as soon as it is lifted.
The versatility of Biem is a key highlight, offering a range of applications. Users can employ it as a nonstick cooking spray for pans, ensuring healthier and tastier cooking. It can also be utilized for buttering bread, rolls, corn on the cob, or even popcorn, presenting a myriad of culinary possibilities. Biem’s design ensures that only the required amount of butter is melted, avoiding wastage and mess.
For consumers interested in acquiring Biem, the product is planned to be initially available through direct-to-consumer channels online. As for the price, the average cost is currently at $43 per unit, with ongoing efforts to optimize production costs. Biem’s patent-pending design and unique features make it an attractive and convenient addition to any kitchen, promising a “butter” culinary experience that is both efficient and enjoyable.
How It Went
The company’s position before Shark Tank
Biem is poised to enter the lucrative U.S. cooking spray market, valuing the company at $10 million. The founder, Doug Foreman, brings a wealth of experience from his successful venture with Guiltless Gourmet and various other business endeavors. The company’s initial strategy involves a direct-to-consumer approach, with plans to sell 100,000 units in the first year.
Biem’s financial health appears promising, projecting a $10 million valuation within the next year. The cooking spray market in the United States is estimated at $375 million, providing a substantial opportunity for Biem’s growth. The patent-pending status of Biem’s design adds a layer of protection to its unique features. The focus seems to be on the direct-to-consumer model, with an emphasis on online sales to reach a broader audience.
Funding details are not explicitly outlined, but Doug Foreman is seeking a $500,000 investment for a 5% equity stake in the company. The negotiations on Shark Tank resulted in a deal with Lori Greiner, who offered $500,000 for a 20% stake, showcasing confidence in the product and its potential for success. The company’s decision to go direct to consumers online suggests a strategic approach to building a customer base and generating revenue.
The Negotiations:
The negotiations for Biem on Shark Tank were marked by strategic maneuvering and enticing offers from multiple Sharks. Doug Foreman entered the Tank seeking a $500,000 investment for a 5% equity stake in his innovative butter spray company. The first offer came from Robert Herjavec, who proposed $500,000 for a 17.5% equity share. Lori Greiner swiftly followed with an offer of $500,000 for a 20% stake, expressing her excitement for the product’s potential in the market.
The negotiations took an unexpected turn when Robert Herjavec’s offer prompted a counteroffer from Kevin O’Leary, who offered the same $500,000 but for a 10% stake. Daymond John also entered the fray with an offer of $500,000 for a 15% stake. Sensing the competitive atmosphere, Mark Cuban decided to pull back his initial offer, citing concerns about Doug Foreman as a potential partner.
Ultimately, Doug Foreman countered Lori Greiner’s offer of $500,000 for a 14% stake in Biem which she accepted . Despite competing offers from seasoned Sharks, Foreman was drawn to Greiner’s experience in retail and selling products. The negotiation process showcased Foreman’s ability to navigate multiple offers and make a strategic decision aligned with his vision for Biem. The deal with Lori Greiner marked a successful partnership, securing the funding needed to propel Biem into the market and capitalize on its innovative approach to butter convenience.
