TaDah Foods
DEAL
EPISODE SUMMARY
🕓 Air Date: September 29, 2019
Asking For:
$300,000 for 10%
Investor:
Daniel Lubetzky
Deal:
$500,000 for 25%
PRODUCT SUMMARY
TaDah! Foods offers a frozen line of plant-based products, including Falafel Street Wraps and the world's first stuffed falafel poppers, providing a convenient and flavorful taste of the East Mediterranean cuisine.
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Background Story
John Sorial, the founder of TaDah! Foods, hails from Washington, D.C., and is the son of Egyptian immigrants. Growing up on the East Mediterranean foods his grandmother made, he realized the lack of availability of these authentic dishes on a broader scale. Motivated by a desire to share the flavors of his heritage, he created TaDah! Foods.
John’s background includes a degree in chemical engineering from Johns Hopkins University and a career in oil refining, but his passion for food and cultural connection led him to venture into the culinary world. The company’s inception was born out of a desire to bring the richness of falafel, a popular Middle Eastern dish, to a wider audience in a fresh and convenient way.
The Product
TaDah! Foods specializes in offering frozen plant-based products, with the spotlight on falafel. The Falafel Street Wraps come in various flavors like Sweet-n-Spicy Harissa with Lebni and Lemon Roasted Garlic Hummus, providing a burst of authentic taste in just three minutes.
A standout innovation is the gluten-free stuffed falafel poppers, a first in the market. These poppers take the classic falafel and infuse them with one of TaDah!’s signature creamy dips, creating a unique and convenient snacking experience. The frozen nature of the products ensures a shelf life of approximately 18 months.
How It Went
The company’s position before Shark Tank
TaDah! Foods has faced challenges in its journey, experiencing rapid growth initially but encountering a significant setback when their co-packer became financially insolvent. This led to a production issue, causing a decline in sales from 2.3 million to 1.7 million and eventually stabilizing at 1 million in the last 12 months. Despite the challenges, TaDah! Foods boasts impressive lifetime sales of over $8.2 million.
The company has proven its popularity by being recognized as one of the top 10 frozen products nationwide and the fastest-growing brand in the frozen natural space. A commitment to charitable causes is embedded in the company’s ethos, with 25% of distributed profits from original founders dedicated to various not-for-profit organizations, particularly those focused on supporting impoverished children.
The Negotiations:
The Sharks expressed concern over the company’s structure and financials. John faced tough questions about the equity distribution, with Daniel Lubetzky offering $500,000 for 25% equity. Kevin O’Leary and Mark Cuban both expressed concerns about the complex structure and declined to invest. Lori Greiner also bowed out, emphasizing that other Sharks could better help accelerate the company’s growth.
Eventually, John accepted Daniel Lubetzky’s offer, valuing TaDah! Foods at $2 million. Daniel’s generous offer included not just financial support but a line of credit. However, it was a tough decision, as Mark Cuban also presented an attractive offer of $300,000 for 20%, showcasing the competitive nature of the negotiation. John ultimately chose Daniel Lubetzky for his industry expertise and commitment to supporting TaDah! Foods’ growth.
