Mavens Creamery Macaron Ice Cream Sandwiches
DEAL
EPISODE SUMMARY
🕓 Air Date: April 21, 2019
Asking For:
$400,000 for 10%
Investor:
Barbara Corcoran
Deal:
$400,000 for 25%
PRODUCT SUMMARY
Mavens Creamery produces all-natural macaron-ice-cream sandwiches, uniquely combining homemade super-premium ice cream with scratch-made macarons.
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Background Story
Gwen and Christine, the dynamic sisters behind Mavens Creamery, hail from San Jose, California, and their journey to entrepreneurial success is as captivating as their all-natural macaron-ice-cream sandwiches. The inspiration for Mavens Creamery is deeply rooted in their family history, particularly their father’s remarkable tale as a boat refugee escaping post-war Vietnam. His resilience and unwavering work ethic became a guiding force for Gwen and Christine.
In 2014, Gwen reached a turning point in her life, feeling dissatisfied with her career. Motivated by a shared dream of entrepreneurship, the sisters, despite lacking any culinary background, embarked on a mission to create something extraordinary. Turning to online resources like YouTube and Google, they taught themselves the intricate art of making macaron-ice-cream sandwiches. Their commitment to learning and passion for creating a unique product led to the birth of Mavens Creamery.
The sisters set up shop in San Jose, where they not only crafted delicious treats but also paid homage to their father’s sacrifices. The fusion of homemade super-premium ice cream and handcrafted macarons became the hallmark of their business. Mavens Creamery’s founding story embodies the spirit of resilience, determination, and the pursuit of dreams against all odds. As they narrate their father’s experiences on a boat after the Vietnam War, it becomes clear that Mavens Creamery is more than a business; it’s a tribute to family heritage and a testament to the power of hard work and ambition.
The Product
Mavens Creamery’s flagship product is a culinary masterpiece—the all-natural macaron-ice-cream sandwich. This delectable treat is meticulously crafted by taking homemade, super-premium ice cream and forming it into perfectly shaped hockey puck servings. These ice cream pucks are then nestled between two scratch-made macarons, creating a harmonious blend of textures and flavors that redefine the traditional ice-cream sandwich.
Available in enticing flavors like cookies ‘n cream, strawberry shortcake, salted caramel, and chocolate-toasted almonds, each macaron-ice-cream sandwich offers a delightful experience with an average of 150 calories per serving. The macarons, with their light and airy texture, add a unique touch to the frozen delight, making it a refreshing and indulgent treat.
Mavens Creamery’s product caters to a diverse audience, appealing to those seeking a premium dessert experience. With a wholesale price of $2.24 per unit and a retail range of $3 to $4, the macaron-ice-cream sandwiches strike a balance between affordability and gourmet quality. The product is primarily distributed to independent retailers, fast-casual restaurants, and regional grocery chains, each equipped with a freezer showcasing the Mavens Creamery line.
For those eager to indulge in this culinary delight, Mavens Creamery is gearing up to launch an e-commerce platform in the first quarter of 2019. Customers can soon order these delectable treats online, with shipments carefully packaged in Styrofoam boxes with dry ice to ensure freshness. The meticulous attention to quality, flavors, and accessibility positions Mavens Creamery as a standout player in the premium frozen dessert market.
How It Went
The company’s position before Shark Tank
Mavens Creamery has demonstrated robust financial health and a promising market position, reflecting a trajectory of success in the competitive dessert industry. With year-to-date sales reaching $1.25 million and a projected year-end revenue of $2.1 million, the company exhibits substantial growth. Their strategic pricing model, offering a wholesale price of $2.24 per unit with production costs at $1.08, maintains healthy profit margins. The retail price ranging between $3 to $4 positions their product competitively in the market.
The company operates with a well-defined structure, owning and managing its own factory to ensure quality control and production efficiency. Mavens Creamery has strategically partnered with an equipment company for freezers, demonstrating a savvy approach to managing capital costs. The unique arrangement involves paying a 15-cent royalty fee per unit sold within the freezers, contributing to a mutually beneficial partnership. Mavens Creamery distributes its products to independent retailers, fast-casual restaurants, and regional grocery chains. Their market presence is enhanced by having their own freezer display in each retailer carrying their product, securing a valuable real estate advantage.
Funding for the company’s operations comes from a combination of strategic partnerships and operational efficiency. They’ve managed to secure freezers through a partnership with an equipment company, reducing upfront costs. Additionally, the company is set to launch an e-commerce platform in the first quarter of 2019, potentially diversifying revenue streams and expanding their customer base. Profitability is evident, with a projected profit of $167,000 for the current year. The available capital, bolstered by the recent partnership with Barbara, stands at $400,000. This funding is designated for upgrading their facility and establishing a credit line. Mavens Creamery’s commitment to automating their production process is reflected in the allocation of $200,000 toward this goal, demonstrating a forward-looking approach to scaling their business.
The Negotiations:
The negotiations for Mavens Creamery on Shark Tank were a rollercoaster of excitement, strategy, and eventual success. The pitch started with the sisters, Gwen and Christine, seeking $400,000 in exchange for a 10% stake in their booming business. Right out of the gate, the Sharks were treated to a taste of Mavens Creamery’s unique macaron-ice-cream sandwiches, creating an enthusiastic atmosphere. The Sharks delved into questions about the product’s shelf life, sales figures, and the company’s growth plans. Mark and Daymond bowed out early, expressing admiration for the product but citing reasons for not investing.
Kevin raised concerns about slim profit margins and lack of automation, which became a focal point for the negotiation. Barbara emerged as the sole Shark willing to make an offer. She proposed $400,000, providing $200,000 in cash for facility upgrades and another $200,000 as a credit line. In return, Barbara asked for a significant 33.33% equity stake, emphasizing her marketing expertise and plans for rapid business expansion. A negotiation ensued, with Barbara eventually settling at a 25% equity deal, marking a successful partnership.
The negotiation showcased the sisters’ strategic thinking as they bargained for a lower equity stake while Barbara emphasized the value she brings to the table. The deal concluded on a positive note, with Barbara expressing excitement about the potential for Mavens Creamery and the sisters celebrating their successful negotiation, sealing the partnership with a handshake. Overall, the negotiation highlighted the balance between the entrepreneurs’ vision and the investor’s expertise, resulting in a mutually beneficial agreement that positions Mavens Creamery for continued success.
