Sienna Sauce
DEAL
EPISODE SUMMARY
🕓 Air Date: February 19, 2021
Asking For:
$100,000 for 10%
Investor:
Kendra Scott
Deal:
$100,000 for 20%
PRODUCT SUMMARY
Sienna Sauce is an award-winning sauce available in three flavors (tangy, lemon pepper, and spicy), versatile for use as a marinade, dip, glaze, or condiment.
WATCH HERE
IN A RUSH?
Click these to jump to the section you want to read.
Background Story
Sienna Sauce is the brainchild of Tyla-Simone Crayton, who, along with her mother Monique Crayton, hails from Houston, Texas. Tyla-Simone’s journey into entrepreneurship started at a young age when her favorite wing place closed, leaving her without her beloved sauce. At the age of 8, she decided to recreate the sauce herself but ended up with something even better. Her creation, Sienna Sauce, was born in her kitchen and has since grown into a line of three delectable flavors.
The sauce is not just delicious; it’s also versatile and has gained recognition, including being featured at the World Food Championships. Sienna Sauce comes in three flavors: tangy, lemon pepper, and spicy. What sets it apart is its gluten-free composition and the absence of high-fructose corn syrup. Customers can use it as a marinade, dip, glaze, or even as a versatile condiment for various dishes.
Tyla-Simone’s entrepreneurial journey is all the more remarkable considering that she started it when she was only 14 years old, following a period of homelessness. Watching “Shark Tank” inspired her to pursue entrepreneurship as a way out of adversity. Sienna Sauce has not only brought them success but also serves as an inspiration to the youth, as Tyla-Simone passionately encourages others to explore entrepreneurship as a viable option.
The Product
Sienna Sauce offers a delectable range of flavors, including tangy, lemon pepper, and spicy. Their sauces are gluten-free, free of high-fructose corn syrup, and incredibly versatile. The tangy flavor, for example, serves as the base for a bacon jam, showcasing its adaptability as an ingredient.
The roasted lemon pepper flavor is their most popular, while the newly introduced smoke sauce adds a smoky twist. Their sauces can be used as marinades, glazes, condiments, and dips, making them suitable for a wide range of culinary applications.
With a retail price of $9.95 online, Sienna Sauce has garnered a strong customer base both online and in stores, generating lifetime sales of $255,000. What sets them apart is not just the quality of their sauces but also their dedication to inspiring and mentoring the next generation of entrepreneurs.
How It Went
The company’s position before Shark Tank
The company in question has exhibited a robust performance in recent years. Their financial health is notably stable, backed by consistent profits and a well-structured capital foundation. They have cultivated strategic partnerships with key industry players and maintain strong relationships with a diverse range of wholesalers.
Their customer base is broad and loyal, demonstrating the company’s ability to meet varying consumer demands effectively. In terms of funding, they currently secure capital through a combination of sources, including venture capital, angel investors, and revenue generated from their core business.
This diverse funding approach ensures the company’s financial sustainability. Their financial reports indicate both strengths and areas for improvement, but their available capital and profit margins position them favorably within their industry.
The Negotiations:
Sienna Sauce entered the Shark Tank seeking $100,000 for 10% of their company. While the sharks were impressed by their product and the company’s achievements, they had concerns about the valuation and the competitive nature of the condiment industry. Tyla-Simone’s inspiring journey from homelessness to entrepreneurship left a strong impression on the sharks, especially Lori Greiner, who offered a deal.
Lori Greiner, moved by Tyla-Simone’s story, offered $100,000 for a 20% equity stake in Sienna Sauce. She saw the potential in the business and believed that her expertise and connections could help propel the brand to greater heights. Despite initial hesitation, Tyla-Simone and her mother accepted Lori’s offer, recognizing the value she could bring to the company.
The other sharks, including Barbara Corcoran, Kevin O’Leary, and Mark Cuban, expressed concerns about the valuation and the lack of sufficient distribution data. Barbara, Lori, and Kevin ultimately opted out of the deal. Mark Cuban, while appreciating the product, also declined to invest.
Tyla-Simone’s inspiring journey and her passion for entrepreneurship, combined with Lori Greiner’s offer and expertise, led to a successful deal. Sienna Sauce left the Shark Tank with a promising partnership and a bright future ahead in the competitive condiment market.
