Henrys Humdingers
DEAL
EPISODE SUMMARY
🕓 Air Date: March 14, 2014
Asking For:
$150,000 for 25%
Investor:
Mark Cuban, Robert Herjavec (50/50)
Deal:
$300,000 for 75%
PRODUCT SUMMARY
Henry's Humdingers offers natural condiment honey with a kick, featuring spicy-flavored honey varieties like Grumpy Grandpa, Naughty Nana, Phoebe's Fireball, and Diabolical Dad.
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Background Story
Henry’s Humdingers is a unique company based in Deming, Washington, founded by Henry Miller. Henry’s journey began at the age of 11 when he sat next to a beekeeper on a plane and learned about colony collapse disorder, realizing the critical role bees play in the ecosystem. Inspired by this encounter, Henry asked his parents for a beehive for his 12th birthday, which they generously provided. With an abundance of honey on his hands, Henry began selling it on the side of the road. However, Henry quickly realized that he needed to differentiate his product in a market flooded with traditional sweet honey.
Drawing on his entrepreneurial spirit, he decided to experiment with adding spices to honey, creating unique flavor combinations that would appeal to a broader audience. Thus, Henry’s Humdingers was born. Despite his young age, Henry’s passion for beekeeping and innovative product development drove him to turn his hobby into a full-fledged business. Supported by his parents, who invested $150,000 from their retirement fund, Henry expanded his operations while still attending school.
His dedication and hard work paid off as Henry’s Humdingers gained traction, with its spicy-flavored honey varieties becoming increasingly popular. Today, Henry’s Humdingers continues to thrive, offering a range of condiment honey with a kick, including flavors like Grumpy Grandpa, Naughty Nana, Phoebe’s Fireball, and Diabolical Dad. Henry’s story exemplifies the power of passion, creativity, and determination in turning a simple idea into a successful business venture.
The Product
Henry’s Humdingers offers a tantalizing range of natural condiment honey with a kick, featuring innovative spicy-flavored varieties that add a unique twist to traditional honey. Each jar is meticulously crafted to infuse the sweetness of honey with a flavorful punch, making it perfect for culinary experimentation and adding an extra dimension to dishes.
The product line includes enticing flavors such as Grumpy Grandpa, Naughty Nana, Phoebe’s Fireball, and Diabolical Dad, each with its own distinct blend of spices to suit various tastes and preferences. Whether drizzled over chicken, mixed into meatloaf, spooned onto ice cream, or shaken into martinis, Henry’s Humdingers promises to elevate any dish with its bold and zesty flavors.
Customers can purchase Henry’s Humdingers products online through the company’s official website or find them in over 300 stores across 34 states, including major distributors like Unify East and West. The pricing of Henry’s Humdingers varies depending on the flavor and size of the jar, with options to suit different budgets and preferences.
With its innovative approach to honey condiments, Henry’s Humdingers offers a versatile and flavorful addition to any kitchen, catering to adventurous food enthusiasts seeking to spice up their culinary creations.
How It Went
The company’s position before Shark Tank
Henry’s Humdingers has made strides in establishing itself as a unique player in the condiment market, with a presence in over 300 stores across 34 states, including partnerships with major distributors like Unify East and West. Despite its relatively small size, the company has managed to secure reorders from prominent retailers like Wegmans, indicating a growing demand for its innovative products. The company primarily targets food enthusiasts and adventurous cooks looking to add a flavorful twist to their dishes with its range of spicy-flavored honey condiments.
While Henry’s Humdingers faces competition from traditional honey producers, its focus on niche spicy-flavored varieties has helped it carve out a distinct market niche. In terms of funding, Henry’s Humdingers initially received a significant investment of $150,000 from the founder’s parents, who supported Henry’s entrepreneurial endeavors. This investment has been crucial in funding the company’s operations and expansion efforts. As for the company’s financial performance, Henry’s Humdingers has achieved sales totaling $67,000 over the past three years, with revenue for the last 12 months reaching approximately $50,000.
The company’s current structure revolves around Henry Miller as the founder and visionary behind Henry’s Humdingers, with his parents actively involved in the day-to-day operations of the business. Despite its family-run nature, the company faces challenges typical of small businesses, including limited resources and scalability concerns. However, with strategic partnerships and a commitment to innovation, Henry’s Humdingers is poised for continued growth and success in the competitive condiment market.
The Negotiations:
During the negotiations on Shark Tank, Henry Miller presented his company, Henry’s Humdingers, seeking $150,000 for a 25% stake. Mark and Robert made a joint offer of $300,000 for 75% equity, emphasizing their belief in the potential of the business and the need for seasoned professionals to drive its growth. Despite initial reluctance to relinquish majority ownership, Henry ultimately accepted the offer after consulting with “the bees,” expressing gratitude for the opportunity to repay his parents’ investment.
The negotiation showcased Mark and Robert’s strategic vision for scaling the business and their willingness to invest significant capital to support its expansion. While Kevin and Lori expressed reservations about the product’s market viability and the challenges of educating consumers about spicy-flavored honey, they ultimately bowed out of the deal.
Barbara encouraged Henry to pursue crowdfunding as an alternative funding source, recognizing his charisma and the potential for public support. Overall, the negotiation highlighted the balancing act between retaining control and securing necessary resources for growth, culminating in a mutually beneficial agreement that positioned Henry’s Humdingers for future success.
