Himalayan Dog Chew
NO DEAL
EPISODE SUMMARY
🕓 Air Date: February 6, 2015
Asking For:
$750,000 for 5%
Investor:
No Deal
Deal:
No Deal
PRODUCT SUMMARY
Himalayan Dog Chew turns authentic cheese from the Himalayas into nutrient-packed dog treats using traditional methods with only four ingredients.
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Background Story
Himalayan Dog Chew, a unique venture founded by Suman Shrestha, Nishes Shrestha, and Sujan Shrestha, originates from the breathtaking landscapes of the Himalayas. The founders, all hailing from this region, brought with them a rich cultural heritage that served as the inspiration for their innovative product. The journey of Himalayan Dog Chew began with the founders’ deep connection to the authentic cheese consumed by the people in the Himalayas. Drawing from this cultural tradition, they envisioned transforming this cherished cheese into a nutritious dog treat.
The idea emerged as a fusion of preserving their cultural roots and catering to the growing demand for natural and wholesome pet products in the market. Suman, Nishes, and Sujan, embodying the spirit of hardworking immigrants, embarked on their entrepreneurial endeavor with a modest initial investment of $2,000. Their dedication and disciplined financial approach propelled the company’s growth. Despite the challenges, they reinvested every profit back into the business, showcasing their commitment to its success.
The founders’ background experiences, deeply rooted in the Himalayan culture, played a pivotal role in shaping the authenticity of their product. The use of traditional methods and only four ingredients – yak and cow milk, salt, and lime juice – reflects a commitment to preserving the genuine essence of their cultural heritage. Himalayan Dog Chew, therefore, stands not only as a business venture but as a testament to the founders’ passion for their roots, translated into a product that bridges tradition and innovation in the pet industry.
The Product
Himalayan Dog Chew offers a distinctive and natural dog treat crafted with care using traditional methods and four simple ingredients – yak and cow milk, salt, and lime juice. The process involves boiling and coagulating the milk into cheese, which is then dried and smoked for several weeks, resulting in hard, smoked cheese chews.
The product serves as a nutrient-packed treat for dogs, combining the nutritional benefits of authentic Himalayan cheese with a unique chewing experience. Dogs love the chews, and dog parents appreciate the all-natural composition without any artificial additives.
Importantly, to address safety concerns, the founders have ingeniously designed the chew to be transformed into a crumbly, crunchy cheese puff after chewing, reducing choking hazards and minimizing waste. Himalayan Dog Chew can be purchased directly, with distribution through about 6,000 independent pet-specialty retailers.
The packaging is designed for convenience, and the founders are keen on providing samples during their pitches to showcase the product’s appeal. While the exact pricing details were not disclosed in the pitch, the product’s success is evident from the impressive sales figure of $5.6 million in the previous year.
How It Went
The company’s position before Shark Tank
Himalayan Dog Chew has demonstrated robust performance, achieving remarkable success in the pet treat market. With sales soaring to $5.6 million in the previous year, the company has positioned itself as a formidable player in the industry. The founders attribute this success to their disciplined financial approach, reinvesting profits and maintaining a strict rein on costs. Despite starting with a modest $2,000 initial investment, the company’s prudent financial management has allowed them to thrive.
In terms of distribution, Himalayan Dog Chew has established partnerships with about 6,000 independent pet-specialty retailers, showcasing a strategic approach to reaching their target market. The choice to distribute through independent retailers reflects a commitment to providing a personalized experience for customers who prioritize natural and unique pet products. The founders mentioned that they only started taking salaries the previous year, emphasizing their dedication to reinvesting in the business for growth.
The company’s structure and partnerships indicate a focus on building a strong presence within the pet-specialty retail sector. The absence of information regarding profits and losses, as well as available capital, makes it challenging to provide a comprehensive financial overview. However, the impressive sales figures and strategic distribution partnerships position Himalayan Dog Chew as a thriving business with potential for further expansion and success in the pet industry.
The Negotiations:
The negotiations for Himalayan Dog Chew in the Shark Tank were marked by a dynamic exchange of offers and counteroffers. The founders entered seeking $750,000 for a 5% stake in their company, valuing it at $15 million. Kevin O’Leary was the first to make an offer, proposing a $750,000 loan for 15% equity. However, the founders, seeking equity, declined this offer, leading to a series of counteroffers. Lori Greiner expressed interest in joining the deal but favored a debt structure. Despite the founders’ preference for equity, they declined this offer as well.
Mark Cuban and Robert Herjavec then presented an offer of $750,000 for 15%, with Mark suggesting it as a loan. The founders countered, seeking a higher equity stake, leading to a brief exit from the negotiation table. Upon their return, they declined the offered deals, expressing a commitment to proving their company’s value without compromising their equity. In the midst of these negotiations, the Sharks’ diverse perspectives emerged. Kevin O’Leary, advocating for a debt deal, eventually offered a straight equity deal of $750,000 for 15% when the founders rejected the loan structure.
However, the founders rejected this deal as well, aiming for a higher equity stake. The negotiations showcased the founders’ dedication to their vision and their reluctance to accept terms that did not align with their strategic goals. Ultimately, the founders left the Tank without a deal, choosing to continue their journey independently, confident in their ability to further elevate Himalayan Dog Chew in the pet industry.
