Heidi Ho Vegan Cheese
DEAL
EPISODE SUMMARY
🕓 Air Date: November 14, 2014
Asking For:
$125,000 for 20%
Investor:
Lori Greiner
Deal:
$125,000 for 30%
PRODUCT SUMMARY
Heidi Ho offers a plant-based cheese line made from organic nuts, seeds, vegetables, herbs, and spices, aiming to provide a healthier alternative to traditional dairy-based cheeses.
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Background Story
Heidi Ho, a plant-based cheese company based in Portland, Oregon, was founded by Chef Heidi. Her journey towards creating Heidi Ho stems from a personal transformation that began with her struggles related to weight and health. Graduating from high school at almost 300 pounds, Heidi realized the negative impact of her traditional American diet on her well-being. Motivated to change her lifestyle and adopt a healthier approach, Heidi embraced a plant-based diet. This decision not only resulted in significant weight loss but also sparked a passion for cooking and nutrition.
Inspired by her own positive experience with plant-based living, Heidi sought to address a common love for cheese while eliminating the associated health concerns. Recognizing the widespread adoration for cheese in American culture but acknowledging its drawbacks like saturated fats, cholesterol, and high sodium content, Heidi set out to revolutionize the cheese industry. Her vision was to create a product that retained the flavor and texture of traditional cheese but was entirely plant-based and free from the health drawbacks associated with dairy-based alternatives.
This vision led to the establishment of Heidi Ho in Portland, a city known for its embrace of sustainable and health-conscious lifestyles. Heidi’s personal journey, from battling weight issues to embracing a plant-based lifestyle, became the foundation for her business. By combining her culinary expertise with a commitment to organic, plant-based ingredients, Heidi Ho emerged as a pioneer in offering a healthier and cruelty-free alternative to traditional cheese, catering to the growing demand for sustainable and mindful food choices.
The Product
Heidi Ho’s plant-based cheese line represents a groundbreaking approach to a beloved culinary staple. Crafted from organic nuts, seeds, vegetables, herbs, and spices, the cheeses are a flavorful and nutritious alternative to traditional dairy-based options. One of their flagship products, the Chia Cheese, combines chia seeds with cashews, creating a delectable mixture enriched with various natural ingredients.
The innovative aspect lies in the absence of dairy, making Heidi Ho’s cheese a suitable choice for those looking to eliminate saturated fats, cholesterol, and excess sodium from their diets. The plant-based cheeses maintain the rich taste and texture associated with traditional varieties, offering a guilt-free indulgence for cheese lovers.
Available in select regions of Whole Foods Market, the product aims to expand its presence to 400 stores by the end of the next year. The accessibility through Whole Foods aligns with the company’s commitment to partnering with reputable retailers that share their values. Consumers can enjoy the plant-based goodness of Heidi Ho’s cheeses by purchasing them at Whole Foods Market locations where the brand is available.
How It Went
The company’s position before Shark Tank
Heidi Ho has showcased commendable performance, establishing itself as a notable player in the plant-based cheese market. With sales reaching $245,000 over the past 12 months and $140,000 in the current year, the company has demonstrated consistent growth. The product is currently available in four regions of Whole Foods Market, with plans to expand into five more, projecting a presence in 400 stores by the end of the next year. This strategic partnership with Whole Foods positions Heidi Ho in a reputable retail space, targeting health-conscious consumers.
In terms of funding, the company entered the “Shark Tank” seeking $125,000 for a 20% equity stake. Heidi Ho’s structure involves collaborations with Whole Foods Market, serving as a key retail partner. The brand’s focus on organic, plant-based ingredients aligns with Whole Foods’ commitment to quality and sustainability. This partnership reflects a strategic approach to reaching a broader audience of conscious consumers. Heidi Ho’s increasing sales figures indicate a positive trajectory.
The available capital, post the deal with Lori Greiner, positions the company for strategic investments in areas such as marketing, distribution, and product development. The current structure of the company involves navigating the complexities of the food industry with a focus on sustainable, plant-based offerings, backed by a successful partnership with a prominent retail chain and a seasoned investor like Lori Greiner. This foundation sets Heidi Ho on a path towards continued success in the competitive market of plant-based alternatives.
The Negotiations:
The negotiations for Heidi Ho’s plant-based cheese on “Shark Tank” were dynamic and engaging, with Chef Heidi seeking $125,000 for a 20% equity stake in her company. The pitch resonated well with the Sharks, particularly Mark Cuban, who was visibly enthusiastic about the product. Mark Cuban made a compelling offer, expressing his love for the product and extending a deal of $125,000 for a larger equity share at 30%. His offer reflected not only financial support but also a strategic partnership that could benefit Heidi Ho in terms of mentorship, guidance, and access to his vast business network.
While Mark’s offer stood out, other Sharks, including Robert Herjavec, expressed their appreciation for the cheese but did not make competing offers. Lori Greiner and Mark engaged in a playful banter, with Lori attempting to persuade Heidi to accept Mark’s offer immediately. However, Heidi opted to consider other potential offers, creating a moment of suspense in the negotiation. Barbara Corcoran advised Heidi against waiting for additional offers, emphasizing the risk of losing Mark’s offer. Despite the tension and excitement in the Tank, Heidi Ho eventually accepted Lori Greiner’s deal, securing $125,000 for a 30% equity stake.
This decision not only provided the necessary funding for Heidi Ho’s expansion but also aligned the company with a highly successful entrepreneur and investor. The negotiation showcased Chef Heidi’s commitment to her business and her willingness to carefully evaluate the offers presented. Lori Greiner involvement not only brought the required capital but also opened doors for strategic growth, making it a pivotal moment in the evolution of Heidi Ho as a prominent player in the plant-based cheese market.
