Mee-Ma’s Gumbo
DEAL
EPISODE SUMMARY
🕓 Air Date: May 3, 2013
Asking For:
$200,000 for 20%
Investor:
Kevin O'Leary, Lori Greiner (50/50)
Deal:
$200,000 for 50%
PRODUCT SUMMARY
Mee-Ma's Louisiana Gumbo Bricks offers a convenient frozen, fully seasoned gumbo base inspired by a secret family recipe.
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Background Story
Carole Foster, the founder, hails from Compton, California, where she lives with her daughter. Carole, a long-haul truck driver for 13 years, developed Mee-Ma’s Gumbo Bricks after realizing the time-consuming nature of preparing traditional gumbo. Inspired by her grandmother’s recipe, she sought to create a convenient, ready-to-use gumbo base. Facing financial struggles, Carole turned her family recipe into a business venture, eventually securing a deal with Costco but lacked the funds to meet demand.
The Product
Mee-Ma’s Louisiana Gumbo Bricks are frozen, fully seasoned gumbo bases that customers can customize with their choice of meat and vegetables. To prepare, customers add 6 to 8 cups of water and up to 5 pounds of meat to each gumbo brick, resulting in a ready-to-eat gumbo in 45 minutes or less.
Sold to Costco for $9.99 per unit, the gumbo bricks cost $4 to make and come with packaging included. Carole plans to expand distribution beyond Costco to other retailers and box clubs.
How It Went
The company’s position before Shark Tank
Mee-Ma’s Gumbo Bricks have generated approximately half a million dollars in sales over the past two years, primarily through Costco. However, production limitations have hindered the company’s ability to meet demand. Carole’s family, including her six siblings, is involved in the business, which operates out of a commercial co-packer kitchen.
Despite Costco’s interest in making Mee-Ma’s Gumbo a permanent item, inventory constraints have prevented full-scale production. The company’s profits have been used for living expenses, with Carole and her daughter currently facing housing instability.
The Negotiations:
Carole initially sought $200,000 for 20% of her company, valuing it at a million dollars. However, several sharks expressed concerns about the company’s readiness for scaling and questioned its valuation. Eventually, Lori Greiner and Kevin O’Leary made an offer of $200,000 for 50% of the company, emphasizing their intent to guide the company toward success. Carole accepted their offer, expressing gratitude for the opportunity to move forward and provide for her daughter.
