O’Dang Hummus
DEAL
EPISODE SUMMARY
🕓 Air Date: October 2, 2015
Asking For:
$50,000 for 10%
Investor:
Robert Herjavec, Lori Greiner
Deal:
$50,000 for 20%
PRODUCT SUMMARY
O'Dang Hummus offers a unique and flavorful twist to traditional hummus with unconventional, healthy flavors, and they are expanding into the market with innovative hummus salad dressings.
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Background Story
Jesse Wolfe, a UCF student from Orlando, Florida, founded O’Dang Hummus, driven by a passion for reinventing the hummus experience. Wolfe’s journey began with testing the product at local farmers’ markets, gaining unexpected success and turning O’Dang into an Orlando sensation. With a background in sales, including a stint at AutoZone, Wolfe invested $40,000, earned from his job, into the venture. The accidental success in farmers’ markets led to a pivotal moment when social media efforts inadvertently crashed Publix’s Facebook, leading to a meeting with the grocery giant.
The Product
O’Dang Hummus distinguishes itself by offering unconventional hummus flavors like Dillionaire Dill Pickle and Sweet & Spicy Black Bean, departing from traditional options. The product is positioned as a healthier alternative with only 30 calories per serving, approximately one-third of store-bought hummus.
Beyond this, the company is expanding its product line with innovative shelf-stable hummus salad dressings, featuring flavors such as Ranch on Ranch, Buffalo Wing, and Hummy Mustard. These dressings are touted as oil-free, with the potential to be distributed through major retailers like Publix.
How It Went
The company’s position before Shark Tank
O’Dang Hummus is in the early stages of retail expansion but has already gained traction with $70,000 in accidental sales. The company is negotiating with Publix, aiming for placement in 1,100 stores, with projected sales of $1.3 million for the current calendar year. Despite being a relatively new player, O’Dang has caught the attention of major retailers due to its unique products and enthusiastic customer base. Funding-wise, Jesse Wolfe invested $40,000 of his own money, and the company’s profit margin stands at 40% with plans to reduce costs through scale.
The Negotiations:
Jesse Wolfe faced a challenging negotiation as the sharks expressed concerns about his lack of experience in the food industry. Robert Herjavec, impressed by Wolfe’s passion but skeptical about his readiness for the big-box stores, was the first to make an offer of $50,000 for 15%. Kevin O’Leary countered with a more substantial offer, proposing $50,000 for 20% and emphasizing his expertise in the food business. Lori Greiner, recognizing Wolfe’s determination, also made an offer of $50,000 for 25%, with the condition that Robert Herjavec joins her.
In the end, Lori Greiner and Robert Herjavec teamed up, offering $50,000 for 25%. However, Kevin O’Leary stepped in, willing to match the money and take a 20% equity stake. After a brief negotiation, Lori Greiner and Robert Herjavec agreed to Wolfe’s counteroffer of $50,000 for 20%, sealing the deal. Despite the intense negotiations, Jesse Wolfe successfully secured the investment he needed to take O’Dang Hummus to the next level.
