IncrEdible Spoons
DEAL
EPISODE SUMMARY
🕓 Air Date: October 22, 2021
Asking For:
$500,000 for 7%
Investor:
Lori Greiner
Deal:
$500,000 for 15%
PRODUCT SUMMARY
IncrEDIBLE Eats offers edible cutlery, including spoons, straws, sporks, and chopsticks, to replace single-use plastic utensils and help reduce plastic waste.
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Background Story
Dinesh Tadepalli, hailing from India and driven by a fervent commitment to addressing the global plastic waste crisis, established IncrEDIBLE Eats. His inspiration stemmed from a deep concern for the environment, particularly the detrimental consequences of single-use plastic utensils on ecosystems and oceans. Witnessing the ubiquitous use of disposable plastic cutlery and the prolonged decomposition period these items incurred, he felt compelled to find a sustainable solution.
Dinesh’s academic and professional background in engineering played a pivotal role in the creation of IncrEDIBLE Eats’ groundbreaking edible utensils. Armed with his technical knowledge and fueled by a desire to combat plastic pollution, he embarked on a mission to develop alternatives that were not only eco-friendly but also tantalizing to the taste buds. His vision was to create utensils that would seamlessly replace their plastic counterparts, offering consumers an environmentally responsible and delicious dining experience.
This journey led Dinesh to craft a range of edible cutlery, including spoons, straws, sporks, and chopsticks, designed to withstand the rigors of mealtime while significantly reducing plastic waste. With a deep-rooted passion for sustainability and an unwavering commitment to his vision, Dinesh Tadepalli has positioned IncrEDIBLE Eats as a pioneering force in the fight against plastic pollution, poised to revolutionize the way we dine and impact our planet positively.
The Product
IncrEDIBLE Eats’ edible cutlery is a revolutionary response to the global plastic waste crisis. These edible utensils are engineered to excel in both function and flavor, offering a sustainable and delectable alternative to traditional plastic cutlery.
Designed to withstand the demands of a meal, these utensils maintain their structural integrity when used with hot foods for up to 20 minutes and cold foods for about an hour. This durability ensures a reliable dining experience without the inconvenience of flimsy plastic alternatives.
What sets IncrEDIBLE Eats apart is the delightful array of flavors available. Options like tomato spicy, vanilla, and flavorless cater to diverse culinary preferences, enhancing the dining experience. Whether in a personal or commercial setting, these edible utensils align with eco-conscious values, providing a meaningful way to reduce plastic waste.
From a cost perspective, the production of a single spoon amounts to approximately 20 cents, with a cost of goods at 10 cents. This cost structure offers profitable upselling opportunities for businesses. By offering IncrEDIBLE Eats’ edible cutlery at a slight premium, businesses can actively participate in the global movement to combat plastic pollution while enjoying increased profitability.
How It Went
The company’s position before Shark Tank
IncrEDIBLE Eats had a commendable track record when presenting on Shark Tank, having generated $170,000 in sales over a span of 2.5 years. Their primary focus had been the B2B food service sector, where they established a foothold as an eco-conscious alternative to traditional plastic cutlery. However, like many businesses, they faced challenges due to the COVID-19 pandemic, which prompted them to adapt and explore opportunities in the B2C and direct-to-consumer markets. This strategic pivot allowed them to continue their mission of reducing plastic waste while diversifying their customer base.
As of their appearance on the show, IncrEDIBLE Eats did not have any major partners or wholesalers. Nevertheless, they expressed ambitious plans to expand their market presence by targeting grocery stores and other retail channels, which would potentially open new avenues for distribution and sales. One of the notable aspects that raised eyebrows among the sharks was the company’s valuation, set at $7.1 million. This valuation was a point of concern, as it seemed ambitious given the company’s current sales figures and market presence.
The sharks questioned the alignment between the valuation and the company’s performance.Funding for IncrEDIBLE Eats primarily came from its founder, Dinesh Tadepalli. While this demonstrated his dedication to the venture, it also meant that the company relied heavily on its founder’s capital. The sharks were likely interested in understanding the company’s financial stability, available capital, and long-term sustainability, especially in light of their growth aspirations.
The Negotiations:
During the negotiation phase on Shark Tank, Dinesh Tadepalli faced a pivotal decision as three sharks made offers for IncrEDIBLE Eats. Each shark brought a unique perspective and valuation to the table, making the choice a challenging one. Lori Greiner, known as the “Queen of QVC,” offered $500,000 for 15% equity. Her offer was enticing, as she brought significant expertise in product marketing and a vast retail network. However, Dinesh hesitated initially, potentially due to his initial valuation expectations.
Mark Cuban, a tech billionaire and seasoned entrepreneur, offered $500,000 for 20% equity. Mark emphasized the scalability and market potential of IncrEDIBLE Eats’ product, highlighting its potential for grocery store placements. His offer focused on taking the company to new heights and achieving broader market penetration. Kevin O’Leary, the infamous “Mr. Wonderful,” offered $500,000 for 35% equity. While his offer came with the highest equity stake, it was also the most demanding. Kevin’s focus was on the bottom line, emphasizing profitability and returns on investment.
Ultimately, Dinesh chose to partner with Lori Greiner, accepting her offer of $500,000 for 15% equity. Lori’s extensive experience in product promotion and retail aligns with IncrEDIBLE Eats’ goals of expanding into grocery stores and other retail channels. Dinesh likely saw her as the ideal partner to help realize the company’s full potential. The negotiation showcased Dinesh’s determination and his willingness to adapt his initial valuation to secure a deal. Lori’s offer, combined with her expertise, appeared to be the best fit for IncrEDIBLE Eats’ growth aspirations, making her the chosen shark to join Dinesh on his mission to combat plastic waste.
