Granola Gourmet
NO DEAL
EPISODE SUMMARY
🕓 Air Date: September 6, 2009
Asking For:
$175,000 for 25%
Investor:
No Deal
Deal:
No Deal
PRODUCT SUMMARY
Granola Gourmet offers healthy, gourmet energy bars designed for diabetics but suitable for anyone seeking a nutritious snack.
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Background Story
Jeff Cohen, residing in Stevenson Ranch, California, embarked on the entrepreneurial journey with Granola Gourmet, driven by personal necessity and a desire to create a widely loved product. Having battled diabetes for 15 years, Jeff faced the challenge of finding snacks that were both delicious and didn’t spike his blood sugar levels. Frustrated by the limited options available, he teamed up with his family, leveraging their collective expertise and passion for healthy living to develop Granola Gourmet.
The idea took root during a holiday period when Jeff’s son suggested creating a snack that Jeff could enjoy without health repercussions. This sparked a collaborative effort within the family to research and experiment with ingredients with a low glycemic index. Jeff’s background in software entrepreneurship provided him with valuable business acumen, although it came with the burden of a past bankruptcy. Despite this setback, Jeff remained undeterred, pouring his family’s hard-earned money into Granola Gourmet, fueled by the dream of bringing a nutritious and delicious snack to the masses.
Their dedication to creating a product that not only met Jeff’s dietary needs but also appealed to a broader market drove the development of Granola Gourmet’s energy bars. Through persistence and ingenuity, Jeff and his family transformed a personal health challenge into a thriving business venture poised for growth in the health food market.
The Product
Granola Gourmet’s energy bars are meticulously crafted to cater to the needs of diabetics and health-conscious consumers alike. Each bar is formulated using ingredients with a low glycemic index, ensuring stable blood sugar levels without compromising on taste. The bars come in a variety of delicious fruit flavors, providing a satisfying snack option for individuals with dietary restrictions or anyone seeking a nutritious pick-me-up.
Packed with wholesome oats, nuts, and natural sweeteners, Granola Gourmet’s bars offer a balanced blend of carbohydrates, protein, and fiber, promoting sustained energy levels and satiety. They are conveniently packaged in portable sizes, making them perfect for on-the-go snacking at work, school, or during outdoor activities.
Customers can purchase Granola Gourmet’s energy bars both online and in-store, with distribution primarily through Whole Foods in the Southern California region. The competitive pricing makes these bars accessible to a wide range of consumers, aligning with the company’s mission to provide healthy and tasty snacks for everyone.
How It Went
The company’s position before Shark Tank
Granola Gourmet has made significant strides in its short time on the market, establishing a strong presence primarily in the Southern California region. The company’s main distribution partner is Whole Foods, with their energy bars available in 24 stores, covering approximately 90% of the chain’s locations in the area. This strategic partnership has facilitated steady sales, with monthly revenues ranging from $8,000 to $10,000, indicating consistent demand and customer satisfaction.
While Granola Gourmet’s focus has been on building a loyal customer base through Whole Foods, they also sell their products online, expanding their reach beyond physical retail locations. Their customer base primarily consists of health-conscious individuals, including diabetics seeking nutritious snacks that won’t spike their blood sugar levels. Funding for Granola Gourmet has predominantly come from personal investments made by founder Jeff Cohen and his family. Their bootstrap approach reflects their commitment to the business despite past financial setbacks, including Jeff’s personal bankruptcy from a previous software venture.
Although the company has shown promise with its growing sales figures, its profitability remains a concern, with expenses likely outweighing revenue at this stage. Granola Gourmet’s available capital is likely limited due to their reliance on personal investments and lack of external funding sources. The company’s current structure likely revolves around a small team led by Jeff Cohen, with a focus on product development, sales, and marketing efforts aimed at further expanding their market presence and driving profitability.
The Negotiations:
During the negotiation process on “Shark Tank,” Jeff Cohen sought a $175,000 investment in exchange for a 25% equity stake in Granola Gourmet. The Sharks were initially impressed by Jeff’s entry into Whole Foods a nd the company’s monthly sales figures, reflecting steady growth in a competitive market. However, concerns arose regarding the company’s valuation and Jeff’s past financial struggles, including a personal bankruptcy.
Kevin O’Leary and other Sharks questioned the $700,000 valuation, considering it high relative to the company’s current sales. Despite expressing interest in the product, Kevin Harrington ultimately decided to pass, citing his dislike for the taste of the bars and skepticism about seeing a return on his investment. Barbara Corcoran raised concerns about the need for future capital and Jeff’s ability to secure additional funding given his bankruptcy history, leading her to opt out as well.
Robert Herjavec acknowledged Jeff’s resilience but doubted the business’s scalability without significant financial backing, prompting him to pass on the opportunity. Ultimately, none of the Sharks made an offer, leaving Jeff to continue his entrepreneurial journey without their investment. While the negotiation didn’t result in a deal, Jeff remained optimistic about Granola Gourmet’s potential for success, emphasizing the importance of resilience and second chances in business.
