Chapul – Cricket Flour Energy Bar
DEAL
EPISODE SUMMARY
🕓 Air Date: March 21, 2014
Asking For:
$50,000 for 5%
Investor:
Mark Cuban
Deal:
$50,000 for 15%
PRODUCT SUMMARY
Chapul produces eco-friendly energy bars containing a sustainable form of protein derived from crickets, aiming to revolutionize the food industry by promoting insect consumption.
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Background Story
Pat Crowley, a passionate environmentalist residing in picturesque Salt Lake City, Utah, is the driving force behind Chapul. Concerned about the sustainability of our planet, Pat sought to create an eco-friendly solution to address environmental challenges. With a background in environmental advocacy and a deep commitment to sustainability, Pat’s journey into entrepreneurship began when he recognized the potential of insect-based protein to revolutionize the food industry. Drawing inspiration from his environmentalist beliefs and a desire to make a positive impact, Pat embarked on a mission to introduce Americans to the concept of consuming insects as a sustainable protein source.
Living in Salt Lake City provided him with a supportive community of like-minded individuals and access to resources conducive to innovation. Pat’s background experience in environmental science and advocacy, coupled with his entrepreneurial spirit, laid the foundation for Chapul. Through extensive research and experimentation, he developed an energy bar made with cricket flour, a sustainable and nutrient-rich alternative to traditional protein sources. This innovative approach not only addressed environmental concerns but also offered consumers a nutritious and eco-friendly option.
The creation of Chapul wasn’t just a business endeavor for Pat; it was a passion project aimed at propelling insect-based protein as the food of the future. Despite facing skepticism and challenges along the way, Pat remained steadfast in his vision, driven by a genuine desire to promote sustainability and change perceptions about food consumption. With Chapul, he sought to inspire others to join the movement towards a more sustainable and environmentally conscious future.
The Product
Chapul offers a unique and innovative product: eco-friendly energy bars made with cricket flour, a sustainable protein source. These bars are meticulously crafted to provide consumers with a nutritious and convenient snack option while promoting sustainability and environmental responsibility.
Each Chapul energy bar is carefully formulated to deliver a balanced blend of protein, carbohydrates, and essential nutrients, making it an ideal choice for athletes, outdoor enthusiasts, and health-conscious individuals alike. The bars come in a variety of flavors, including Thailand-themed coconut ginger lime, Aztec dark chocolate coffee cayenne, and all-American peanut butter and chocolate, catering to diverse tastes.
Chapul bars are designed to be enjoyed on-the-go, whether as a pre-workout boost, a midday snack, or a post-exercise recovery option. With their compact size and convenient packaging, they’re perfect for tossing into gym bags, backpacks, or purses.
Consumers can purchase Chapul bars online through the company’s website or at select retailers, including natural-foods stores, bike shops, rock-climbing gyms, and CrossFit gyms. The bars are competitively priced at $2.99 each, offering exceptional value for a sustainably sourced and nutrient-dense snack option. By choosing Chapul, consumers not only nourish their bodies but also contribute to a more sustainable and environmentally friendly food system.
How It Went
The company’s position before Shark Tank
Chapul has demonstrated strong growth and a solid position in the market since its inception. With a commitment to sustainability and innovation, the company has positioned itself as a leader in the emerging insect-based protein industry. Chapul’s strategic partnerships with cricket ranches in the United States have ensured a consistent and reliable source of high-quality cricket flour, supporting the company’s production and distribution efforts.
The company’s primary wholesalers include distributors specializing in natural foods and specialty fitness products, enabling Chapul to reach a diverse customer base across various channels. Chapul’s customer demographics primarily consist of health-conscious individuals, athletes, outdoor enthusiasts, and environmentally conscious consumers seeking nutritious and sustainable snack options. In terms of funding, Chapul has primarily relied on a combination of personal investment, small business loans, and strategic partnerships to finance its operations and growth initiatives.
Currently, Chapul operates as a privately held company, with founder Pat Crowley maintaining majority ownership and leadership control. The company’s organizational structure includes key roles in product development, operations, sales, and marketing, with a dedicated team passionate about driving Chapul’s mission forward. With a strong market position, growing customer base, and continued investment in innovation, Chapul is well-positioned for further expansion and success in the sustainable food industry.
The Negotiations:
During the negotiations on Shark Tank, Pat Crowley, the founder of Chapul, showcased his passion for sustainability and innovation in the food industry. Initially seeking $50,000 for 5% equity, Pat received varying reactions from the Sharks due to the unconventional nature of his product: energy bars made with cricket flour. While some Sharks expressed reluctance due to the stigma around insect consumption in North American society, others recognized the potential for Chapul to disrupt the market and drive change.
Mark Cuban ultimately made an offer of $50,000 for 15% equity, valuing Chapul at $333,333. This offer allowed Pat to maintain 51% ownership and leadership control, a crucial factor for him. Robert Herjavec initially showed interest in the product but dropped out, only to later reiterate his belief in the business but was too late as Mark had already made an offer.
Despite facing skepticism and challenges, Pat’s strategic approach and commitment to sustainability resonated with Mark Cuban, who recognized the potential for Chapul to make a significant impact in the food industry. Pat accepted Cuban’s offer, securing a partnership that would provide the necessary capital and expertise to scale Chapul and propel it to new heights. The negotiation highlighted Chapul’s unique value proposition and solidified its position as a pioneer in the emerging market of sustainable and insect-based protein products.
