Grease Bags Eco-Friendly Oil Disposal
DEAL
EPISODE SUMMARY
🕓 Air Date: January 13, 2017
Asking For:
$75,000 for 25%
Investor:
Barbara Corcoran
Deal:
$75,000 for 50%
PRODUCT SUMMARY
Grease Bags offers a solution to the common kitchen problem of grease disposal. The product is a convenient, disposable bag with a home compostable packaging that absorbs oil, preventing clogs in pipes.
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Background Story
Grease Bags, founded by Latangela Newsome from Allen, Texas, was born out of a combination of culinary expertise, environmental consciousness, and the challenges of home cooking. Latangela, a noted home cook and single mother, showcased her skills in the kitchen, particularly with her son’s favorite dish – deep-fried chicken wings. However, the cleanup process posed a significant problem, especially when dealing with the disposal of grease.
Living up to her reputation as a woman of many talents, Latangela recognized the widespread issue of grease disposal at home, often leading to environmental problems and costly pipeline replacements for cities. Motivated by a desire to find a practical and eco-friendly solution, Latangela embarked on a journey to create Grease Bags. The innovative product she developed provides a convenient and responsible method for disposing of grease. Latangela’s background in oil-absorbing solutions, inspired by materials used in oil spills and bioremediation, laid the foundation for the unique design of Grease Bags.
The bag and its patented pad work together to absorb oil, preventing clogs and offering a sustainable alternative to conventional methods. Latangela’s entrepreneurial spirit shines through as she seeks a $75,000 investment to bring Grease Bags to market. With a solid plan, a pending patent, and a commitment to eco-friendly practices, she aims to revolutionize how households handle grease disposal, making Grease Bags a crucial addition to kitchens everywhere.
The Product
Grease Bags, the brainchild of Latangela Newsome, introduces an innovative solution to the age-old kitchen dilemma of grease disposal. The product is a simple yet effective answer to the messy aftermath of cooking, particularly when dealing with frying oils. Encased in a home compostable packaging, the Grease Bags come with an absorbent pad made from all-natural oil-absorbing materials, similar to those used in environmental cleanup.
Using Grease Bags is hassle-free – users open the bag, pour in the used grease, and witness the magic as the absorbent pad efficiently soaks up the oil. This prevents clogs in pipes and promotes responsible and eco-friendly disposal practices at home. Latangela demonstrated the product’s efficiency by showcasing its ability to separate oil and water.
The Grease Bags are not only suitable for kitchen use but also versatile enough to be employed for oil-based paints or changing car oil at home. Latangela plans to sell the bags in packs of three, priced at $12.99, with a manufacturing cost of $2.34 for the set. Despite being a prototype, the bags offer a promising solution to a widespread problem, providing users with a convenient, environmentally conscious, and affordable means of handling used cooking grease.
How It Went
The company’s position before Shark Tank
Grease Bags is currently in its early stages, with Latangela Newsome actively working on establishing the company’s foundation. At this point, the company has secured a manufacturer on the brink of production, indicating a positive step towards bringing the product to market. While Latangela has not yet started selling Grease Bags, she has successfully navigated the challenges of patent filing, manufacturer identification, and supply chain setup.
Latangela emphasized that the Grease Bags are in prototype status, indicating that the product is not yet in full-scale production or distribution. Regarding funding, Latangela is seeking a $75,000 investment on the show, indicating a reliance on external capital to kickstart production and marketing. The specifics of available capital, profits, and losses are not disclosed in the provided information, as the company is likely in the early stages of financial planning and execution.
Given the early stage and prototype nature of the product, Grease Bags may operate with a lean structure, with Latangela as the founder and potentially a small team involved in product development and business operations. Overall, Grease Bags exhibits promise, with Latangela’s proactive approach to addressing the need for an eco-friendly grease disposal solution. As the company progresses, partnerships, wholesalers, funding sources, and financial performance will likely become more defined, shaping the trajectory of Grease Bags in the market.
The Negotiations:
In the negotiation phase on Shark Tank, Latangela Newsome sought a $75,000 investment for 25% equity in her company, Grease Bags. Barbara Corcoran expressed concern about the product’s price point, proposing a reduction to $6.99 for three bags. Despite this, she offered the full amount but requested a steep 50% equity stake. Latangela acknowledged the need for a price adjustment and accepted Barbara’s offer, marking a strategic compromise to secure the deal.
Other Sharks, including Mark Cuban and Kevin O’Leary, opted out, expressing reservations about the limited market for environmentally conscious consumers. Mark highlighted potential challenges in marketing to health-conscious individuals who may not engage in frequent frying. Ultimately, Barbara’s belief in Latangela’s entrepreneurial spirit and the potential impact of Grease Bags on responsible grease disposal led to a successful deal. The negotiation showcased Latangela’s determination and Barbara’s strategic investment approach.
The agreement solidified as Barbara agreed to invest $75,000 for a 50% equity share in Grease Bags, aligning the interests of both parties. Latangela’s charismatic presentation, coupled with her commitment to finding an eco-friendly solution, played a crucial role in securing Barbara Corcoran’s investment. The negotiation underscored the importance of adapting the product’s pricing strategy to meet market demands and highlighted the unique value proposition Grease Bags brings to environmentally conscious consumers.
