Rule Breaker Snacks
NO DEAL
EPISODE SUMMARY
🕓 Air Date: February 5, 2021
Asking For:
$400,000 for 10%
Investor:
No Deal
Deal:
No Deal
PRODUCT SUMMARY
Rule Breaker Snacks creates indulgent brownies and blondies that are plant-based, allergen-free, and nut-free, offering a guilt-free treat for consumers.
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Background Story
Rule Breaker Snacks, based in Brooklyn, New York, was founded by Nancy Kalish. Nancy had a background in the magazine business, where she worked as an editor at Cosmopolitan and authored books on various topics. Later, she transitioned into health journalism, interviewing numerous experts in nutrition and wellness.
Armed with this knowledge and her insatiable sweet tooth, Nancy decided to venture into the food industry and create healthier snack options. She founded Rule Breaker Snacks with the mission of offering indulgent treats that didn’t compromise on taste or healthiness.
The Product
Rule Breaker Snacks distinguishes itself by using chickpeas as the main ingredient instead of eggs, butter, and other animal products. This plant-based approach makes their brownies and blondies better for the planet and suitable for those with allergies.
Their product lineup includes various flavors such as Deep Chocolate Brownies, Chocolate Chunk Blondies, Birthday Cake Blondies, and P’Nutter Chocolate Chip.
How It Went
The company’s position before Shark Tank
The company had lifetime sales of $1.3 million, with $500,000 in sales in the previous year. However, Rule Breaker Snacks had not yet turned a profit and was on track to break even in the coming year. They secured a partnership with a major supermarket chain and were expanding their online presence, with Amazon accounting for 55% of their sales. Nancy had invested $1.6 million of her own money into the business and also had an SBA loan of $123,000 and a home equity line of credit.
The Negotiations:
The Sharks were impressed with the taste and unique health-conscious approach of Rule Breaker Snacks but expressed concerns about the company’s financials. None of the Sharks made an offer, as they felt the business was too heavily burdened with debt.
Kevin O’Leary suggested a debt-heavy deal that Nancy found unpalatable, and she ultimately left the Tank without securing an investment. The Sharks advised her to focus on growing the online side of her business and to be cautious with her financial commitments.
