Slice of Sauce Condiment Slices
DEAL
EPISODE SUMMARY
🕓 Air Date: January 15, 2021
Asking For:
$200,000 for 10%
Investor:
Alex Rodriguez
Deal:
$1,000,000 for 15%
PRODUCT SUMMARY
Slice of Sauce transforms traditional condiments into mess-free, sliceable form, making it easier to enjoy on sandwiches and more.
WATCH HERE
IN A RUSH?
Click these to jump to the section you want to read.
Background Story
Slice of Sauce is a condiment innovation brought to the Shark Tank by Emily Williams and her husband, Cole Williams. They were seeking $200,000 in exchange for 10% of their business. The idea for Slice of Sauce was born out of a desire to solve common sandwich problems, such as messy packets and soggy buns.
The founders recognized that traditional condiment packets were difficult to open, spread, and often not the right amount, leading to sandwich catastrophes. To address this, they developed a unique process that turned bottled condiments into slices, similar to cheese, using only the finest ingredients.
The Product
Slice of Sauce takes traditional condiments like ketchup, Sriracha, barbecue sauce, and mustard and transforms them into sliceable, mess-free, and easy-to-use portions. These condiment slices can be added to sandwiches, burgers, or any dish where a burst of flavor is desired.
The product comes with a 12-month shelf life, doesn’t require refrigeration, and retails for $5.99. Slice of Sauce plans to sell through their website, Amazon, and partner with Thrive Market.
The company’s position before Shark Tank
Slice of Sauce had a successful Kickstarter campaign in 2018, raising $34,000, surpassing their $15,000 goal. However, they had not generated revenue up to the point of the Shark Tank pitch. They had invested $120,000 of their own money and raised approximately $500,000 from friends and family, with a valuation of $5 million during their last funding round. They also received $100,000 from Techstars Accelerator.
The Negotiations:
Kevin O’Leary offered $200,000 for a 10-cent royalty per package until he recouped $700,000, along with a 5% equity stake. Alex Rodriguez initially offered $200,000 for 20% equity as convertible debt, converting to equity upon reaching $1.8 million in sales. Mark Cuban offered $200,000 for 20% equity, with a similar convertible debt arrangement. Barbara Corcoran and Lori Greiner opted out, expressing concerns about the product’s potential and lack of sales history.
After some negotiation, Alex Rodriguez agreed to adjust his offer to 15% equity for $200,000 as convertible debt, with the possibility of exploring options for P.O. financing and lines of credit. The founders accepted Alex Rodriguez’s offer. Kevin O’Leary and Mark Cuban’s offers were turned down.
