Hillbilly Brand
DEAL
EPISODE SUMMARY
🕓 Air Date: April 8, 2011
Asking For:
$50,000 for 25%
Investor:
Robert Herjavec, Jeff Foxworthy, Daymond John (3)
Deal:
$75,000 for 100% of the company and 7% royalty
PRODUCT SUMMARY
HillBilly BRAND offers country lifestyle clothing representing outdoor living and pride in the country lifestyle.
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Background Story
Shon Lees and Mike Abbaticchio, childhood friends hailing from Parkland, Florida, found themselves on a transformative ski trip to Colorado. It was during this excursion that Mike unveiled his creation: the HillBilly logo, embodying the spirit of outdoor living and the country lifestyle. This revelation sparked a shared vision between the two friends, igniting their entrepreneurial journey. Despite initial skepticism from their spouses, Shon and Mike’s belief in the potential of their brand remained unwavering.
Their inaugural sales experience at a local rodeo, where they sold out of merchandise within four hours, validated their instincts. Witnessing the enthusiastic response from patrons, who identified with the HillBilly ethos, solidified their resolve to pursue this venture. Their backgrounds, though not specifically in fashion or retail, provided a complementary skill set for their endeavor. Their shared history since elementary school fostered a strong bond, facilitating seamless collaboration and communication.
Both brought a wealth of life experiences and a deep understanding of their target audience—the country lifestyle enthusiast. Inspired by the evolving perception of the term “hillbilly” to symbolize pride in rural heritage and outdoor pursuits, Shon and Mike saw an opportunity to create a brand that resonated with this demographic. Their journey from that ski trip to launching HillBilly BRAND reflects their passion for the country lifestyle and their determination to build a recognizable and beloved clothing line that celebrates it.
The Product
HillBilly BRAND offers a diverse array of clothing and accessories tailored to embody the essence of the country lifestyle. The product line includes comfortable and stylish t-shirts, hats, and tank tops adorned with the iconic HillBilly logo, reflecting a sense of pride in outdoor living and rural heritage. Designed for both men and women, these garments serve as wearable symbols of affinity for hunting, fishing, skiing, and other outdoor activities cherished by country enthusiasts.
Crafted from high-quality materials, HillBilly apparel not only exudes authenticity but also ensures durability and comfort, making them suitable for various occasions, whether it’s attending a rodeo, music concert, or simply embracing the laid-back charm of rural life. The brand’s commitment to authenticity and quality resonates with its loyal customer base, comprising country music and NASCAR fans, outdoor enthusiasts, and individuals proud of their country roots.
HillBilly BRAND products are primarily sold at events such as rodeos, mud fests, and concerts, where the brand’s presence creates a vibrant atmosphere akin to a country-themed party. Additionally, HillBilly has recently expanded its distribution channels, with plans to feature its merchandise in select Sports Authority stores and through Barjan, a distribution company catering to travel plazas and truck stops nationwide.
How It Went
The company’s position before Shark Tank
HillBilly BRAND has demonstrated steady growth and a promising position in the market, fueled by its unique brand identity and strong connection with the country lifestyle community. With sales totaling approximately $271,000 over three and a half years, the company has proven its appeal to a dedicated customer base. Despite facing modest profitability, with a cash flow of over $7,000 for the current year, HillBilly maintains a positive trajectory, reinvesting all profits into the business to support its expansion efforts. The company’s strategic partnerships play a crucial role in its growth strategy.
HillBilly has secured a vendor agreement with Sports Authority, paving the way for its products to be featured in approximately 30 stores across the Southeast. Additionally, a distribution partnership with Barjan extends the brand’s reach to travel plazas and truck stops nationwide, expanding its market presence and accessibility to customers. HillBilly’s customer base consists of country music and NASCAR fans, outdoor enthusiasts, and individuals proud of their rural heritage. These customers resonate with the brand’s authenticity and celebrate its representation of the country lifestyle.
By leveraging its strong brand identity and loyal following, HillBilly aims to further penetrate the market and establish itself as a household name synonymous with outdoor living and rural pride. Currently, HillBilly BRAND operates with a lean structure, with Shon Lees and Mike Abbaticchio serving as co-owners and managing the day-to-day operations of the business. With a clear vision and strategic partnerships in place, the company is poised to capitalize on its momentum and continue its upward trajectory in the competitive apparel market.
The Negotiations:
The negotiations during the Shark Tank episode showcased the resilience and adaptability of HillBilly BRAND’s founders, Shon Lees and Mike Abbaticchio, as they navigated the investors’ scrutiny and explored various deal structures to secure the best outcome for their company. Initially seeking $50,000 for a 25% equity stake, Shon and Mike presented their case confidently, highlighting their brand’s unique appeal and modest but promising sales figures. However, the sharks expressed concerns about the company’s profitability and the viability of its retail expansion strategy.
Robert Herjavec, Jeff Foxworthy, and Daymond John emerged as potential partners, offering a $75,000 deal in exchange for a 7% royalty agreement. This deal, which allowed the founders to retain ownership of their company while gaining access to the sharks’ expertise and networks, presented an attractive proposition. Despite some hesitation, Shon and Mike ultimately accepted the offer, recognizing the value of aligning with seasoned investors who shared their vision for the brand’s future.
The negotiations underscored the importance of flexibility and strategic thinking in securing a mutually beneficial deal. By leveraging their brand’s strengths and remaining open to alternative funding structures, Shon and Mike successfully secured the investment needed to propel HillBilly BRAND to the next level of growth and success.
