Mama O’s Kimchi Paste
NO DEAL
EPISODE SUMMARY
🕓 Air Date: October 7, 2022
Asking For:
$250,000 for 10%
Investor:
No Deal
Deal:
No Deal
PRODUCT SUMMARY
Mama O’s Premium Kimchi offers authentic, healthy, and easy-to-make kimchi products, including various kimchi flavors and a kimchi kit.
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Background Story
Mama O’s Premium Kimchi, based in New York City, was founded by Kheedim Oh, alongside his mother, Mama O, and his wife, Amy. Kheedim’s journey to kimchi entrepreneurship began when he needed kimchi for himself but found it challenging to source it in New York. His family lived in Maryland, and he would make trips to acquire his favorite kimchi from them. Determined to bring the flavors of authentic Korean kimchi to New Yorkers, Kheedim asked his mother, Mama O, to teach him how to make it.
He started by selling the kimchi to a local butcher who recommended it as a pairing for ribs, sparking his interest in selling the product more widely. Kheedim began his kimchi business with just $50 and a skateboard, initially distributing it himself. Over time, he expanded distribution to include Whole Foods and partnered with Williams-Sonoma. Kheedim reinvested his earnings into the business, keeping complete control.
Two years before his pitch on “Shark Tank,” Kheedim met his wife, Amy, who joined the company after quitting her well-paying job. With her experience in the food industry and Kheedim’s passion for kimchi, they formed a dynamic team poised for growth, especially with an impending addition to the family.
The Product
Mama O’s Premium Kimchi offers various kimchi options, including the original, vegan, mild, and extra spicy versions. They also provide kimchi paste and kimchili hot sauce.
What sets their kimchi apart is its authenticity and innovative packaging, ensuring it stays fresh for longer. Additionally, they offer a complete homemade kimchi kit that simplifies the kimchi-making process, reducing it to less than 10 minutes.
How It Went
The company’s position before Shark Tank
Mama O’s Premium Kimchi had achieved impressive results at the time of the pitch. Their top-line sales for the previous year totaled $815,000, with a projection of $1,000,000 for the current year. They manufactured a bag of kimchi for $2.65, retailing it from $8.99 and up. The kimchi kit, which they wholesaled for $20, cost $8.25 to produce.
Despite their success, the company had operated without external investment, and Kheedim had reinvested profits into the business. They did not focus on online sales, relying primarily on partnerships with physical retailers like Whole Foods and Williams-Sonoma.
The Negotiations:
Despite the inspiring story and impressive sales figures, none of the Sharks made an offer to invest in Mama O’s Premium Kimchi. Mark Cuban, Lori Greiner, and Kevin O’Leary all expressed their concerns, with Mark pointing out the need for education about the product and Kevin questioning why Kheedim had not yet hired employees to expand the business. Lori also mentioned that she wasn’t personally passionate about kimchi.
In the end, Daymond John, who has a personal connection as a fellow New Yorker, was the last Shark to make a decision. However, even though he admired Mama O and the business, he ultimately decided not to invest, citing a lack of personal passion for kimchi. Kheedim and Mama O left the Tank without a deal but with an appreciation for the opportunity and their family values intact. They remained determined to grow their business and fulfill their dreams with or without the Sharks’ investment.
