FunBites Shaped Food Cutters
DEAL
EPISODE SUMMARY
🕓 Air Date: February 6, 2015
Asking For:
$75,000 for 20%
Investor:
Lori Greiner
Deal:
$75,000 for 25%
PRODUCT SUMMARY
FunBites aims to make healthy eating fun for kids by cutting food into bite-size, playful shapes.
WATCH HERE
IN A RUSH?
Click these to jump to the section you want to read.
Background Story
FunBites, founded by Bobbie Rhoads and headquartered in Westport, Connecticut, stands at the intersection of culinary creativity and child nutrition. Bobbie, with an extensive background as the youngest Vice President of Marketing at Revlon and a graduate of Carnegie Mellon in Pittsburgh, embarked on a journey driven by a desire to transform the often challenging task of getting kids to eat healthily. The inspiration for FunBites struck Bobbie during her time as a stay-at-home mom, raising children with discerning palates.
Faced with the common struggle of introducing nutritious foods to picky eaters, Bobbie realized that making the eating experience enjoyable and interactive could be the key. This realization led her to conceptualize FunBites, a product designed to make healthy food fun and appealing to children. Having experienced the marketing realm firsthand during her tenure at Revlon, Bobbie applied her skills to create an innovative solution to a widespread parental concern. The product, FunBites, simplifies the process of crafting bite-sized, playful shapes from various foods, providing a creative and enticing approach to mealtime for kids.
Bobbie’s background in marketing and her hands-on experience as a mother uniquely position her to understand the challenges parents face in encouraging healthier eating habits for their children. FunBites, born out of this understanding, has evolved into a promising solution, not just for parents dealing with picky eaters but also for children with special needs, as highlighted by the AblePlay award for its appeal to kids with autism. The founder’s journey reflects a blend of professional acumen, personal insight, and a commitment to improving the well-being of children through a fun and nutritious approach to meals.
The Product
FunBites is a revolutionary kitchen tool designed to make healthy eating enjoyable for children. The product simplifies the process of creating fun, bite-sized shapes from various foods, transforming mealtime into a playful and interactive experience. The user-friendly tool involves a straightforward two-step process.
First, the user places the FunBites cutter on top of the food, firmly rocking it back and forth to cut through the material. The result is an array of whimsical shapes, including squares, hearts, and triangles. The second step involves inserting the popper top and effortlessly pushing it through the food, releasing the bite-sized pieces in a creative arrangement.
This innovative product offers several benefits. Studies show that allowing children to play with their food and presenting it in fun shapes encourages them to try new foods and adopt healthier eating habits. FunBites provides a solution for parents struggling with picky eaters, making it an invaluable tool for fostering a positive relationship between children and nutritious foods.
FunBites can be purchased through various channels, including the company’s website and approximately 50 partner websites. With a retail price of $9.99 and a wholesale cost of $6, the product not only promotes healthy eating but also offers attractive profit margins for retailers. Its accessibility, coupled with the engaging aspect of food preparation, positions FunBites as an essential tool for parents aiming to make mealtimes both nutritious and enjoyable for their children.
How It Went
The company’s position before Shark Tank
FunBites has demonstrated a robust and promising performance in its trajectory, establishing itself as a key player in the market dedicated to transforming children’s eating habits. With nearly $400,000 in sales over three years, the company showcases a steady and growing financial health. In the last 12 months, they have generated $150,000 in revenue, and in the most recent three-month period, sales reached $40,000. This consistent upward trend indicates a positive market response to FunBites’ innovative approach to making healthy eating enjoyable for children. The company has strategically partnered with major retailers and wholesalers to expand its reach.
FunBites has secured placement in about 50 websites, showcasing a diverse online presence. Notable retail partners include Kohl’s and Bed Bath & Beyond, demonstrating the product’s appeal to mainstream consumers. The recent approval from Target and expressed interest from retailers such as Toys”R”Us to Nordstrom further solidifies FunBites’ position in the retail landscape. Funding for FunBites has been primarily derived from its sales revenue, demonstrating the company’s self-sufficiency and market viability. The founder, Bobbie Rhoads, has leveraged her professional network and marketing expertise to secure partnerships and retail placements, contributing to the company’s financial success.
The target customer base for FunBites includes parents and caregivers seeking innovative solutions to encourage healthier eating habits in children. The product’s versatility and appeal to a wide demographic make it suitable for various retail environments, from major department stores to niche online platforms. Profits and losses have been well-managed, with the company showcasing a profitable business model. The availability of capital is supported by the steady revenue stream and recent successes at trade shows, demonstrating the market’s interest in the product.
The Negotiations:
The negotiations for FunBites on Shark Tank were dynamic and engaging, showcasing the sharks’ interest in the product and the founder’s strategic decision-making. Bobbie Rhoads entered the tank seeking a $75,000 investment for a 20% equity stake in FunBites. Lori Greiner and Daymond John emerged as the primary contenders for a partnership. Lori offered $75,000 for a slightly larger equity stake of 25%, emphasizing her expertise in retail and licensing. Simultaneously, Daymond proposed a higher investment of $100,000 for a 30% equity stake, emphasizing his desire for a more substantial role in the company.
Mark Cuban, recognizing the licensing potential, made a compelling offer of $100,000 for a 25% equity stake, aligning with Lori’s terms. However, the negotiation took an unexpected turn when Lori sweetened her offer, matching Mark’s terms, creating a unique collaboration proposal. Both Lori and Mark were willing to invest $100,000 for a 25% equity stake, presenting Bobbie with an intriguing decision. Bobbie ultimately chose to partner with Lori Greiner, valuing her expertise in retail and licensing.
Despite Mark’s compelling offer, Bobbie’s decision was rooted in her belief that Lori was the right partner to help FunBites secure prominent retail placements and explore licensing opportunities. The negotiation underscored the importance of strategic partnerships, with Bobbie recognizing Lori’s unique ability to propel FunBites into major retail outlets and explore licensing avenues. The decision reflected a careful evaluation of the sharks’ expertise beyond monetary value, demonstrating Bobbie’s commitment to the long-term success and growth of FunBites in the market.
