Magic Cook Portable Cooker
DEAL
EPISODE SUMMARY
🕓 Air Date: November 21, 2014
Asking For:
$100,000 for 20%
Investor:
Daymond John
Deal:
$100,000 for 33%
PRODUCT SUMMARY
Magic Cook is an innovative outdoor, on-the-go cooker that utilizes a unique heat pack to cook meals without the need for power, battery, gas, or fire.
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Background Story
Sharon Yu, the founder of Magic Cook, brings a wealth of experience from the promotional product industry, spanning 15 years. Her entrepreneurial journey led her to introduce Magic Cook on Shark Tank. The company operates in China, where the manufacturing of its innovative product takes place. Sharon’s background in the promotional product industry equipped her with valuable insights into manufacturing processes, allowing her to navigate the complexities of dealing with Chinese suppliers effortlessly. The inception of Magic Cook was inspired by Sharon’s recognition of a gap in the market for a convenient, on-the-go cooking solution.
Fueled by her own experiences and a keen understanding of the challenges faced by outdoor enthusiasts and individuals working in environments without access to traditional cooking methods, Sharon conceived the idea for Magic Cook. The goal was to create a portable, self-contained cooking device that could be used anytime, anywhere, without the need for power, batteries, gas, or fire. The pitch on Shark Tank showcased Sharon’s passion for the product, as she demonstrated the Magic Cook in action, preparing a hot and delicious salmon meal within minutes.
Her vision extended beyond outdoor activities, emphasizing its utility for office lunches, camping, and emergency preparedness. Sharon’s ambition to make Magic Cook a hot commodity was evident as she sought the Sharks’ support to propel her product into the mainstream market. Overall, Sharon Yu’s entrepreneurial spirit, combined with her extensive background in the manufacturing industry, positioned her as a determined founder seeking to revolutionize on-the-go cooking with the innovative Magic Cook.
The Product
Magic Cook, a groundbreaking outdoor cooking solution, comprises a portable plastic container and a stainless-steel cooking chamber. The product’s simplicity lies in its unique heat pack, which contains quicklime. To prepare a meal, users add fresh ingredients and the heat pack to the plastic container, along with water.
After locking the lid tightly, the water rapidly boils within approximately 30 seconds, initiating the cooking process. After 24 minutes, a perfectly cooked meal, such as a salmon dish, is ready for consumption. The versatility of Magic Cook extends beyond traditional outdoor activities, making it an ideal solution for office lunches, camping trips, and emergency preparedness.
The product’s appeal lies in its ability to cook without the need for power, batteries, gas, or fire. Additionally, Magic Cook offers a bottle variant for heating soups or beverages on the go. Magic Cook is available for purchase at various outdoor markets, including Dick’s Sporting Goods, Sports Chalet, and Cabela’s.
The lunch boxes are priced at $29.99, while the cups, designed for heating beverages, are priced at $19.99. The product caters to individuals seeking a convenient, self-contained cooking solution for diverse scenarios, ranging from outdoor adventures to everyday office lunches. With a focus on simplicity and portability, Magic Cook revolutionizes on-the-go cooking experiences.
How It Went
The company’s position before Shark Tank
Magic Cook, having launched just a year ago, has shown promising performance in its initial phase. The company reported a revenue of $150,000 in its first year of operation, demonstrating a solid start in the market. The product is strategically positioned in outdoor markets, with partnerships established with reputable retailers such as Dick’s Sporting Goods, Sports Chalet, and Cabela’s. These partnerships align with Magic Cook’s target audience of outdoor enthusiasts, campers, and individuals looking for on-the-go cooking solutions.
Wholesalers play a crucial role in the company’s distribution network, and Magic Cook has successfully entered the market through channels like Dick’s Sporting Goods and other outdoor-focused retailers. The product’s availability in these outlets signifies the company’s commitment to reaching its target audience effectively. Magic Cook’s customer base primarily consists of individuals passionate about outdoor activities, campers, and those seeking portable cooking solutions for various scenarios. The company’s focus on outdoor markets has allowed it to cater to a niche yet engaged customer demographic.
In terms of funding, Magic Cook has not disclosed specific details about its current funding sources or the amount of capital raised. However, Sharon Yu’s background in the promotional product industry, coupled with her experience in manufacturing, indicates a potential reliance on private funding or bootstrap strategies to support the company’s growth. As for the company’s financial health, Magic Cook reported $150,000 in revenue in its first year, showcasing a positive start. Magic Cook’s early success, strategic partnerships, and focus on a niche market position it well for future growth.
The Negotiations:
The negotiations for Magic Cook on “Shark Tank” were dynamic and led to a successful deal with Shark Daymond John. Founder Sharon Yu started by seeking $100,000 for a 20% equity stake in her company, presenting the innovative outdoor cooker as the first of its kind. The Sharks initially expressed skepticism about the product’s market appeal and utility, questioning its niche nature and limited target audience. Daymond John stepped in with an offer of $100,000 for a higher equity stake of 33%, expressing his confidence in the potential partnership.
This initial offer prompted Sharon to pause, as she considered the terms. Other Sharks, including Kevin O’Leary and Lori Greiner, raised concerns about the product’s mass-market appeal and the challenges of convincing a broader audience to adopt the unconventional cooking method. Ultimately, Sharon accepted Daymond John’s offer of $100,000 for 33%, securing the deal. The negotiation highlighted Daymond’s belief in the product’s potential success and his recognition of the value Sharon brought to the table with her manufacturing expertise.
While some Sharks had reservations about the product’s widespread appeal, Daymond saw an opportunity for growth and collaboration, emphasizing the shared background in manufacturing. The negotiation showcased the founder’s determination and the Sharks’ diverse perspectives on the product’s market viability. Sharon’s decision to accept Daymond’s offer marked a pivotal moment, demonstrating her commitment to taking Magic Cook to the next level with the support of an experienced and strategic business partner.
