Quevos Egg White Chips
DEAL
EPISODE SUMMARY
🕓 Air Date: January 22, 2021
Asking For:
$200,000 for 5%
Investor:
Daniel Lubetzky
Deal:
$400,000 for 10%
PRODUCT SUMMARY
Quevos are healthy snacks made from egg whites, offering high protein and fiber content with delicious flavors.
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Background Story
Quevos, founded by Nick Hamburger and Zack Schreier, originated from their shared passion for creating a healthy snack. The two young entrepreneurs hail from Chicago, Illinois, and their journey began when Nick was diagnosed with type 1 diabetes, which forced him to scrutinize his diet. He realized that crispy pieces of egg white that formed when making omelets had a chip-like texture.
This inspired the idea of creating a snack from egg whites. The founders started working on Quevos during their college years, with Zack taking a year off from Williams College to develop the product from concept to a shelf-ready product. They launched Quevos in 2018, initially raising $72,000 through Kickstarter and later expanding to retail stores.
The Product
Quevos chips are a unique snack made from egg whites, providing a crunchy and satisfying experience without the unhealthy aspects of traditional chips.
Each serving of Quevos chips contains eight grams of protein and four grams of fiber, making them a healthier option for snack enthusiasts. Their keto-friendly flavors offer only four net carbs per bag, appealing to those following low-carb diets.
Quevos chips are available for purchase online and in retail stores, with prices ranging from $2.50 to $3 per bag. They have received over 500 five-star reviews on Amazon, highlighting their delicious taste and nutritional value.
Quevos chips are not fried; instead, they are made using a proprietary and novel baking process, which the founders keep confidential.
How It Went
The company’s position before Shark Tank
Quevos has shown impressive growth since its launch in 2018, with $260,000 in sales in the previous year and a projected $1.3 million in sales for the current year. The company relies heavily on online sales, which account for 80% of their revenue, while the remaining 20% comes from retail, with Quevos available in 400 stores.
The founders have raised $1.6 million in funding to date, with support from notable investors, including Kraft Heinz, who accepted them into their incubator program. The product has achieved widespread customer acclaim, with a strong presence on Amazon and numerous positive reviews.
Quevos is structured with Nick Hamburger as the CEO, supported by a team of seven full-time employees handling production. While the founders have considered working with co-packers for scalability, the cost estimates provided by co-packers have been significantly higher than their current in-house production cost of 83 cents per bag.
The Negotiations:
In the “Shark Tank” negotiations, Quevos initially asked for $200,000 in exchange for 5% equity but received offers from two Sharks. Daniel Lubetzky offered $200,000 for 10% equity and a $200,000 line of credit. Kevin O’Leary also made an offer, proposing a $200,000 investment and a $200,000 line of credit, but for a 12% equity stake. After some back-and-forth, Quevos accepted Daniel Lubetzky’s offer of $200,000 for 10% equity and a $200,000 line of credit.
Overall, the negotiation showcased the founders’ willingness to consider various offers but ultimately chose the deal that allowed them to retain more equity while benefiting from Lubetzky’s expertise in the food industry.
