Ice Chips Candy
DEAL
EPISODE SUMMARY
🕓 Air Date: November 9, 2012
Asking For:
$250,000 for 15%
Investor:
Barbara Corcoran, Mark Cuban (50/50)
Deal:
$250,000 for 40%
PRODUCT SUMMARY
Ice Chips Candy offers a variety of sugar-free candies made with xylitol, a natural sweetener, that are not only tasty but also beneficial for dental health.
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Background Story
Beverly Vines-Haines and Charlotte Clary, two long-time friends from Yelm, Washington, embarked on a journey to create Ice Chips Candy, a sugar-free candy brand. Despite their initial expectation of enjoying their retirement by engaging in hobbies like scrapbooking and quilting, their entrepreneurial spirit led them to establish a thriving business.
The duo, with 37 grandchildren between them, turned their garage into a candy-making workshop, involving their husbands and grandchildren in the process. Their aim was not only to create a successful business but also to instill the value of hard work in their family members. Ice Chips Candy quickly gained popularity for its delicious flavors and health benefits, becoming a staple in health food stores and dental offices.
The Product
 Ice Chips Candy offers a range of 17 exciting flavors of sugar-free candy made with xylitol, a natural sweetener derived from birch bark. Xylitol prevents the growth of germs and bacteria, making it a favorite among dentists.
The candies are meticulously crafted into chip-like shapes, allowing consumers to enjoy them without worrying about sugar content. They are primarily sold through health food stores and dental offices, with a wholesale price of $3.12 per tin and an average retail price of $5 per tin.
Ice Chips Candy has experienced rapid growth, with sales nearing $342,000 this year and expected to reach $700,000 by the end of the year.
How It Went
The company’s position before Shark Tank
Ice Chips Candy has demonstrated strong sales growth, almost doubling its revenue from the previous year. The company primarily sells its products through health food stores and dental offices, with plans to expand into grocery stores. They have about ten new accounts per week and are constantly increasing their distribution network. The founders have identified the need for automation to scale up production and reduce manufacturing costs, hence their appearance on Shark Tank seeking funding for this purpose.
The Negotiations:
Barbara and Mark offered $250,000 for a total of 40% equity, while Kevin and Daymond proposed a split investment of $250,000 for 30% equity, with plans to outsource manufacturing. However, Kevin later dropped out of the deal, leaving Daymond with a revised offer of $250,000 for 25% equity. Ultimately, the founders chose to accept Barbara and Mark’s offer of $250,000 for 40% equity, valuing their expertise and partnership synergy.
