Off the Cob – Organic Corn Tortillas
NO DEAL
EPISODE SUMMARY
🕓 Air Date: November 21, 2014
Asking For:
$100,000 for 10%
Investor:
No Deal
Deal:
No Deal
PRODUCT SUMMARY
Off The Cob produces Sweet Corn Tortilla Chips made with fresh-picked sweet corn, offering a savory, sweet, real corn-on-the-cob flavor that distinguishes them from chips made with grain corn.
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Background Story
Off The Cob, a venture founded by Cameron Sheldrake, finds its roots in the picturesque town of Ithaca, New York, where Sheldrake’s family farm has thrived since the 1960s. Growing up surrounded by the agricultural landscape, farming became an integral part of Sheldrake’s identity. However, the family faced a common challenge – an abundance of fresh sweet corn that often exceeded demand. It was this surplus that sparked Sheldrake’s entrepreneurial spirit and his determination to transform waste into a delectable product.
Cameron Sheldrake brings a wealth of experience from his familial ties to farming, coupled with a keen understanding of the agricultural industry. With a passion for sustainable practices and a commitment to preserving the family farm’s legacy, Sheldrake embarked on a mission to create something extraordinary with the excess sweet corn. The idea for Off The Cob Sweet Corn Tortilla Chips was born out of the desire to make use of the farm’s bountiful produce creatively. Sheldrake envisioned a snack that not only minimized waste but also celebrated the authentic flavor of fresh-picked sweet corn.
The journey from farm to snack aisle began with Sheldrake’s determination to introduce a unique, healthier alternative to conventional tortilla chips. This commitment is not merely a business endeavor for Sheldrake; it’s a means to sustain the family farm and contribute to the local community. The Off The Cob venture is a testament to the intersection of agriculture, entrepreneurship, and a passion for creating something both flavorful and sustainable.
The Product
Off The Cob Sweet Corn Tortilla Chips stand out as a distinctive and flavorful snack that redefines the conventional tortilla chip experience. Crafted from fresh-picked sweet corn, these chips offer a savory, sweet, real corn-on-the-cob taste, setting them apart from counterparts made with grain corn.
The unique process involves using organic, non-genetically modified sweet corn, ensuring a healthier alternative. Gluten-free, with no cholesterol, trans fat, and very low sodium, Off The Cob chips cater to health-conscious consumers seeking a guilt-free snack option.
The chips can be purchased at natural grocery stores, including esteemed retailers like Whole Foods and Wegmans, primarily in the Northeast. The packaging reflects a fun and vibrant design, recently updated to enhance shelf appeal. The product caters to those looking for a premium, organic snack experience, and the distinctive flavor profile positions it as an attractive choice for consumers seeking a departure from traditional tortilla chips.
With each bite, Off The Cob Sweet Corn Tortilla Chips deliver a burst of freshness, making them a standout option for those who appreciate quality, unique ingredients, and a commitment to sustainable and locally-sourced produce. As an embodiment of farm-to-table principles, these chips embody both a delicious treat and a testament to the entrepreneurial spirit of Cameron Sheldrake.
How It Went
The company’s position before Shark Tank
As of the current assessment, Off The Cob demonstrates a promising trajectory despite facing challenges in the competitive snack market. The company has strategically positioned itself in 45 stores, predominantly in well-known natural grocery chains like Whole Foods and Wegmans across the Northeast region. This distribution network provides Off The Cob with a significant presence in key markets, although there have been instances of stockouts impacting the company’s shelf space. Off The Cob’s financial performance reflects both potential and constraints.
With sales reaching $45,000 in the 13 months since its launch, the company is gradually gaining traction. However, the production cost per bag is relatively high, standing at 85 cents, making it 20 times more expensive than conventional grain corn. Selling to distributors for $1.60 to $1.70 per bag poses a challenge, especially considering the competitive pricing in the snack industry. The company has faced distribution challenges, losing shelf space due to prolonged stockouts. Despite this setback, Off The Cob has secured partnerships with major natural food distributors, and in January, it plans to collaborate with the largest distributor of natural foods in the United States, expanding its reach to 100 stores.
Funding for Off The Cob primarily comes from private investments, with the founder, Cameron Sheldrake, seeking $100,000 for a 15% equity stake on Shark Tank. The current structure involves a core team of individuals dedicated to the company’s success, with plans for growth and reinvestment in the business. While the road ahead involves overcoming financial hurdles and scaling operations efficiently, Off The Cob’s commitment to quality, organic ingredients, and its unique selling proposition provide a solid foundation for potential success in the competitive organic-snack-food market.
The Negotiations:
In the Shark Tank episode featuring Off The Cob, founder Cameron Sheldrake entered seeking a $100,000 investment in exchange for a 15% equity stake in his sweet corn tortilla chip business. The negotiation process unfolded with Sheldrake passionately presenting his product, highlighting its unique qualities and commitment to sustainability. However, the Sharks quickly identified significant challenges, primarily related to the high production cost of using fresh sweet corn, making the chips 20 times more expensive than those made with conventional grain corn.
This cost discrepancy raised concerns among the Sharks, especially in a market where pricing competitiveness is crucial. Despite the Sharks expressing positive feedback about the taste and packaging of Off The Cob Sweet Corn Tortilla Chips, none of them saw a clear path to a quick and lucrative return on investment. Kevin O’Leary questioned the viability of the business, emphasizing the importance of profitability within three years. Mark Cuban shared similar sentiments, advising Sheldrake that if the business isn’t making money after three years, it could be considered a hobby.
Despite the Sharks acknowledging the quality of the product, the challenges in marketing a unique, higher-priced snack, and the competitive landscape of the organic-snack-food market led all Sharks to decline making an offer. Sheldrake, while disappointed, remained determined to continue his venture and expressed gratitude for the feedback. Ultimately, the negotiation showcased the difficulties of introducing a premium, health-focused product into a competitive market, where pricing and profitability timelines are critical considerations for potential investors.
