Simply Good Jars
DEAL
EPISODE SUMMARY
🕓 Air Date: March 5, 2021
Asking For:
$500,000 for 7%
Investor:
Mark Cuban, Lori Greiner (50/50)
Deal:
$500,000 for 10%
PRODUCT SUMMARY
Simply Good Jars offers fresh and nutritious salads packed into easy grab-and-go jars, designed to make healthy eating convenient.
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Background Story
Jared Cannon, the founder of Simply Good Jars, is a chef hailing from the vibrant city of Philadelphia. His journey into the world of culinary arts, and subsequently into the packaged salad business, is marked by a passion for creating healthy and delicious meals. With Simply Good Jars, he set out to transform the way people think about convenient, on-the-go eating.
Jared’s culinary expertise is evident in his ability to craft exquisite meals, but what sets him apart is his love for salads. Not just any salads, though – he’s a master at creating salads that are both nutritious and bursting with flavor. One of his standout creations is a smoked salmon salad featuring pearled couscous, fennel, radish, feta, and aji amarillo vinaigrette, a testament to his commitment to elevating the salad experience.
The idea for Simply Good Jars was born from Jared’s belief that healthy food should be as easy to grab as a bag of chips. He saw a gap in the market for convenient, ready-to-eat salads that didn’t compromise on freshness or taste. Thus, he embarked on a mission to bring fresh, vibrant, and nutritious salads to the masses, packaged in easily accessible jars.
Jared’s journey with Simply Good Jars represents a fusion of his culinary expertise, a commitment to sustainability through their reusable jar system, and a dedication to making nutritious meals accessible to everyone. With his background in the culinary world and a passion for revolutionizing the way we eat salads, Jared is on a mission to shake things up in the food industry, one jar at a time.
The Product
Simply Good Jars offers a wide range of salads packed into jars for ultimate convenience. Customers can grab a jar, shake it to mix the ingredients, and eat directly from the container. The salads have a nine-day shelf life, making them a perfect option for busy individuals looking for fresh and nutritious meals.
What sets Simply Good Jars apart is its sustainable approach. They encourage customers to return the jars, which are then reused, and for each returned jar, they donate a meal to someone in need. This eco-conscious initiative not only reduces waste but also contributes to a noble cause.
In terms of pricing, Simply Good Jars is accessible to a wide range of consumers, with products typically sold in the price range of $8.99 to $10.99 per jar. This affordability makes it an attractive choice for those seeking healthier meal options without breaking the bank.
In summary, Simply Good Jars offers an innovative way to enjoy fresh, nutritious salads with the convenience of a shake-and-eat design. Their commitment to sustainability and affordability makes them a standout option for anyone looking to make healthier food choices while on the go.
How It Went
The company’s position before Shark Tank
In the face of an exceptionally challenging year marked by the disruptive influence of the COVID-19 pandemic, Simply Good Jars embarked on a remarkable journey of adaptation and resilience. The pandemic dealt a severe blow to their established distribution channels, which were heavily reliant on smart coolers strategically placed in locations characterized by limited access to fresh food.
These locales included hotels, airports, office buildings, and university campuses. Unfortunately, as these sites shuttered due to pandemic-related restrictions, Simply Good Jars found their primary revenue sources suddenly evaporating, necessitating swift and strategic action. In response to this crisis, the company executed a remarkable pivot by shifting their focus to the retail sector. They forged key partnerships, notably securing collaborations with Walgreens in Chicago and a whopping 175 C-stores.
Furthermore, they entered into a strategic partnership with CloudKitchens, a move that allowed them to list their products on meal-delivery platforms. This adaptive strategy was instrumental in their ability to navigate the changing landscape of the food industry, ensuring their continued presence and relevance. Despite the challenges faced, Simply Good Jars demonstrated impressive growth in their financials. The previous year had seen them report approximately $300,000 in revenue.
In the current year, they were on a trajectory to achieve an impressive $750,000 in revenue. However, it’s worth noting that they had not yet reached profitability and had incurred significant losses, amounting to $900,000 in the past. This substantial financial journey was underpinned by a notable infusion of capital, with the company successfully raising $2.5 million in funding to date. This capital infusion was primarily directed towards scaling their operational model, further strengthening their position in the market.
The Negotiations:
The negotiations on “Shark Tank” took an interesting turn. Initially seeking $500,000 for 7% equity, Jared Cannon received offers from multiple Sharks. Kevin O’Leary and Mark Cuban made a joint offer, proposing to provide $500,000 as a debt with 9.5% interest and take 7% equity. However, Mark offered to assist with the Series A round. Lori Greiner and Mark Cuban then teamed up, offering $500,000 for 10% equity, with Mark taking 8% and Lori taking 2%.
They also expressed their intent to work together on scaling the business. Jared eventually accepted this deal, and the negotiations concluded successfully. Daymond John expressed concerns about the company’s financial position and the need for continuous fundraising. He decided not to invest.
Robert Herjavec also had reservations and believed the company would require substantial funding and might face challenges in scaling. He did not make an offer. Ultimately, Jared Cannon accepted the combined offer from Mark Cuban and Lori Greiner, aligning with their vision for the company’s growth.
