Parker’s Maple Syrup
NO DEAL
EPISODE SUMMARY
đź•“ Air Date: October 21, 2016
Asking For:
$200,000 for 20%
Investor:
No Deal
Deal:
No Deal
PRODUCT SUMMARY
Parker Maple offers a diverse range of maple products, including maple syrup, maple cotton candy, and their innovative product, maple butter—a creamy and natural spread suitable for various uses.
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Background Story
Parker Maple, a thriving maple syrup company, traces its roots to the small town of Canton, New York. Founded by the ambitious and driven 18-year-old entrepreneur, Joshua Parker, the company’s inception is a testament to Joshua’s passion for maple syrup, entrepreneurship, and a deep connection to his family. Joshua’s journey into the world of maple syrup began at the age of 11 when he participated in a school field trip to learn about the syrup-making process. This experience ignited a profound love for the texture, flavor, and the entire process of creating maple syrup. However, it was at the age of 15 that Joshua decided to turn this passion into a bona fide business.
With a vision to establish one of the most innovative and fastest-growing maple syrup companies in the country, Joshua knew he needed more than just passion—he needed resources. Fortunately, his father, recognizing his son’s determination, played a pivotal role in the company’s early stages. He co-signed a significant bank loan and lent Joshua $70,000, providing the necessary capital to acquire equipment and initiate the business. The heart of Parker Maple’s innovation lies in Joshua’s desire to bring unique maple products to the national market. From traditional maple syrup to creative offerings like maple cotton candy, the company showcases a diverse product line.
Notably, the introduction of maple butter—a delightful, creamy spread suitable for various culinary applications—illustrates Joshua’s commitment to redefining the boundaries of maple-based products. The company’s location in Canton, New York, not only signifies its geographical roots but also serves as a hub for maple syrup enthusiasts. Joshua’s background experience, coupled with his entrepreneurial spirit, has positioned Parker Maple as a symbol of determination and success within the competitive industry. The company’s story is not just about creating maple products; it’s a narrative of familial support, resilience, and the pursuit of turning a childhood passion into a flourishing business.
The Product
Parker Maple’s standout product is their innovative and delectable maple butter, a creamy spread that elevates the traditional maple experience. Sourced from high-quality maple syrup, this product undergoes a meticulous process to transform it into a smooth, spreadable consistency.
The versatility of Parker Maple’s maple butter shines through in its various uses. Whether slathered on toast for a delightful breakfast, used as an icing for fruits, or incorporated into a range of culinary creations, this product adds a rich and natural maple flavor to every bite. Its unique creamy texture makes it an ideal substitute for traditional butter or spreads, providing a distinctive twist to everyday meals.
Parker Maple has recently undergone a re-branding process, attracting interest from major retailers like Costco, where it retails for $11.99. Despite its thin profit margins due to the high-quality nature of the product, the maple butter has already secured a substantial $100,000 order from Costco, signaling its market appeal.
Customers can easily purchase Parker Maple’s products through various channels, including major retail outlets and potentially online platforms. The company’s commitment to delivering a premium maple experience is reflected not only in the product itself but also in its accessibility and ability to become a staple in households seeking a unique and flavorful addition to their culinary repertoire.
How It Went
The company’s position before Shark Tank
Parker Maple has exhibited robust growth, positioning itself as one of the fastest-growing and most innovative maple syrup companies in the country. The company’s health is characterized by a notable track record, with $360,000 in sales to date and a promising projection of reaching $1.5 million by the year’s end. Despite facing financial challenges, including total liabilities of $300,000, the company possesses valuable assets, including production equipment and an inventory worth approximately $180,000.
The company has strategically partnered with major retailers, with a significant order secured from Costco during the recent re-branding process. This partnership not only validates the appeal of Parker Maple’s products but also opens doors to a wider consumer base through the extensive reach of such retail giants. Wholesalers play a crucial role in Parker Maple’s distribution strategy, contributing to the company’s sales volume. Parker Maple’s customers are diverse, ranging from individual consumers seeking premium maple products to larger retailers like Costco. The company’s appeal lies in its commitment to delivering a unique and high-quality maple experience, as evidenced by the positive reception of its products during the pitch.
Funding for Parker Maple has primarily come from a combination of a bank loan co-signed by Joshua Parker’s father and a personal loan amounting to $70,000. This capital injection has been instrumental in acquiring equipment, initiating operations, and facilitating the recent re-branding efforts. While the company acknowledges thin profit margins due to the high-quality nature of its products, it demonstrates resilience in pursuing opportunities with big-box stores and major retailers. The availability of capital, inclusive of liabilities and assets, positions Parker Maple on a solid foundation for future growth and expansion.
The Negotiations:
Joshua Parker’s pitch for Parker Maple on Shark Tank showcased his passion for maple products and the challenges faced by his company. Seeking $200,000 for a 20% equity stake, Joshua’s ask valued his business at $1 million. Despite the Sharks expressing admiration for Joshua’s entrepreneurial spirit and the quality of his products, none of them extended an offer. Mr. Wonderful, Kevin O’Leary, was the first to bow out, expressing concerns about the ambitious sales projections and the thin profit margins. Other Sharks echoed similar sentiments, with Mark Cuban and Lori Greiner questioning the viability of achieving $1.5 million in sales by the end of the year, especially without concrete orders or commitments from major retailers.
As the negotiation progressed, Joshua revealed the company’s total liabilities of $300,000, highlighting a setback caused by a $125,000 purchase order that fell through. Despite this setback, Joshua remained resilient, emphasizing the recent re-branding efforts and a $100,000 order from Costco as signs of the company’s upward trajectory. Sharks continued to express reservations about the financial health of the business, its profitability, and the significant equity stake Joshua was offering. One by one, the Sharks opted out, with Robert Herjavec, Daymond John, and Lori Greiner expressing concerns about the company’s current valuation and the challenges ahead.
In a surprising turn of events, even “Maple Man” (Kevin O’Leary) abstained from making an offer, emphasizing the substantial equity request for a business that has yet to turn a profit. Ultimately, Joshua left the Tank without securing a deal, but the Sharks commended his determination and encouraged him to reevaluate his pricing strategy for better scalability. The negotiation highlighted the importance of realistic projections and sustainable profit margins, aspects that Joshua will likely consider as he charts the future course for Parker Maple.
