Just The Cheese
NO DEAL
EPISODE SUMMARY
🕓 Air Date: April 10, 2020
Asking For:
$500,000 for 5%
Investor:
No Deal
Deal:
No Deal
PRODUCT SUMMARY
Just The Cheese produces snack bars made entirely of cheese, providing a convenient and delicious grab-and-go option for cheese lovers.
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Background Story
David Scharfman, hailing from Madison, Wisconsin, grew up in a family deeply rooted in the cheese industry. His parents acquired a cheese company in 1991, and David, involved from a young age, performed various roles, even working in the factory at 16. After trying to introduce Wisconsin cheese to Asia without success, he pursued business school, worked as a consultant in New York City, and eventually, with his wife, came up with the idea for Just The Cheese.
The concept stemmed from the desire to transform the crispy cheese around grilled sandwiches into a convenient snack bar. Despite previous setbacks, David sought an investment from the Sharks to expand the product’s reach and make it a success, honoring the risk his father took on him.
The Product
Just The Cheese uses Wisconsin milk to create its snack bars, starting with in-house cheese production. The process involves shredding a small amount of cheese into a mold, and baking it, resulting in a snack bar free of rice or fillers.
Packaged with two bars, it is promoted as a healthy and convenient grab-and-go snack. The product, available in flavors like Aged Cheddar and Grilled Cheese, boasts 75 calories per bar, 8 grams of protein, and is sugar-free and gluten-free. David highlighted its simplicity and emphasized the absence of competitors producing a similar pure cheese snack.
How It Went
The company’s position before Shark Tank
Just The Cheese experienced a successful first year, achieving $3.5 million in sales. Year-to-date, they reached $3.7 million, with products available in 700 stores and a significant presence on Amazon, selling between 400 and 700 boxes daily. The family invested over a million dollars into the venture, and the business is currently self-funded.
Although current margins range between 17-20%, David explained that scaling up could substantially increase profitability. The family business has a history of cheesemaking, and Just The Cheese became a standout player in the market due to its focus on the emerging keto trend.
The Negotiations:
David entered the tank seeking $500,000 for a 5% equity stake. However, concerns were raised about low margins and the competitive market. Both Lori Greiner and Kevin O’Leary made offers involving a royalty per bar, but David declined, expressing concerns about short-term cash-flow stress. Mark Cuban and Daymond John bowed out of the deal.
Despite Kevin O’Leary’s initial offer, negotiations continued with both him and Lori Greiner. However, David ultimately turned down the offers, expressing reservations about the proposed royalty structure. Despite leaving the tank without a deal, he expressed pride in his product and hoped his family would still be proud despite the disappointment.
