Reely Hooked Fish Co. – Smoked Fish Dip
DEAL
EPISODE SUMMARY
🕓 Air Date: November 12, 2017
Asking For:
$75,000 for 25%
Investor:
Mark Cuban
Deal:
$75,000 for 25%
PRODUCT SUMMARY
Reely Hooked Smoked Fish Dip is a healthy, preservative-free, and flavorful dip made with a unique recipe using Greek yogurt as a base and adding apples for sweetness.
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Background Story
Steve Markley and James Arcaro, both Florida natives and full-time wildland firefighters, wanted to reinvent the traditional smoked fish dip dominated by mayonnaise or cream cheese. They envisioned a healthier alternative, leading to the creation of Reely Hooked Smoked Fish Dip. The founders met during the fire academy and discovered their shared interests and vision for a business.
One day, the idea of smoked fish dip emerged, and they embarked on the journey to revolutionize it. Facing the challenge of a busy fire season, they strategically targeted microbreweries, successfully selling their product to three of them. With $10,000 in sales over three months, they appeared on Shark Tank seeking funding to scale their business.
The Product
Reely Hooked Smoked Fish Dip stands out for its use of Greek yogurt as a base, making it a healthier alternative to traditional dips. The addition of apples not only sweetens the flavor but adds a touch of sophistication.
The production process involves three key phases – brining, smoking, and mixing. The result is a fresh and unique smoked fish dip with 245 calories and 32 grams of protein per container. The founders use king mackerel for its oily texture, ensuring optimal smoking. Priced initially at $10, they believe $12 is a better price point.
The product has garnered positive feedback for its taste and nutritional benefits. It caters to health-conscious consumers who seek a guilt-free indulgence. The founders aim to expand their market by targeting restaurants and potentially large retailers like Publix. With a current production cost of $4.50 per container, they see room for cost reduction through larger-scale fish purchases and improved facilities.
How It Went
The company’s position before Shark Tank
Reely Hooked Fish Co. has achieved $10,000 in sales within three months, primarily through partnerships with microbreweries. They have successfully sold their smoked fish dip to three breweries, with the goal of expanding into restaurants. The founders expressed excitement about the potential for growth and mentioned their strategic plan to use the funding for acquiring proper equipment and enhancing their facility. Currently, the business is operated by the founders, who are also full-time wildland firefighters.
The company’s primary sales channel is through microbreweries, accounting for almost all of their sales, with only one small retailer in the mix. The founders believe that expanding into restaurants is the next logical step for growth. They have identified potential challenges, such as the need for refrigerated trucks to scale operations.
The Negotiations:
The Sharks were initially impressed with the product’s taste and nutritional value. Lori Greiner, Robert Herjavec, and Kevin O’Leary opted out early, citing concerns about the business’s scalability and the founders’ ability to increase sales substantially. Mark Cuban, however, expressed interest in the potential for gradual expansion and offered the requested $75,000 for 25%, which the founders enthusiastically accepted.
The negotiation highlighted the founders’ dedication, patience, and belief in their product’s potential for success in a wider market. While some Sharks doubted the business’s current scale, Mark Cuban saw the opportunity for slow but steady growth, securing a deal that aligned with the founders’ vision for Reely Hooked Fish Co.
