Souper Cubes Food Freezing Tray
DEAL
EPISODE SUMMARY
🕓 Air Date: February 19, 2021
Asking For:
$400,000 for 5%
Investor:
Lori Greiner
Deal:
$400,000 for 5%
PRODUCT SUMMARY
Souper Cubes is a silicone tray system that simplifies food storage by allowing users to freeze food in perfect portions, reducing food waste, and streamlining meal preparation.
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Background Story
Jake Sendowski and his wife, Michelle, from Los Angeles, California, introduced their innovative product, Souper Cubes, on Shark Tank. The idea for Souper Cubes came from their own frustration with conventional food storage methods. They noticed that freezing food in plastic bags was messy, and using glass containers risked breakage in the freezer.
Additionally, they found it challenging to defrost small portions when they’d frozen food in larger containers. This inspired them to create a solution that would simplify food storage and reduce waste. Jake and Michelle, along with their friend Jerry, developed Souper Cubes, a range of silicone trays with four different sizes to freeze food in 2 cups, 1 cup, 1/2 cup, or 2-tablespoon portions.
The Product
Souper Cubes simplifies food storage by offering silicone trays in various sizes, allowing users to freeze food in precise portions. To use, one simply pours food into each compartment up to the fill line, secures the snug-fitting lid, and stacks the trays in the freezer.
This system eliminates the mess of plastic bags and the risk of glass containers breaking in the freezer. The product’s benefits include reducing food waste, streamlining meal preparation, and offering convenience in defrosting only the required portions.
Customers can buy Souper Cubes through various channels, with about 78% of sales coming from Amazon, 8% from their website, and 14% from retail partners like Sur La Table and Williams Sonoma.
How It Went
The company’s position before Shark Tank
Souper Cubes had a remarkable performance leading up to their Shark Tank appearance. In their first full year of sales in 2019, they generated $940,000 in revenue. By the time they entered the tank, their sales had soared to $1.6 million in the current year, with a projected annual revenue of $3.3 million.
The company’s distribution strategy is diversified, with approximately 78% of sales coming from Amazon, 8% from their own website, and 14% from renowned retail partners, including Sur La Table and Williams Sonoma. Their ability to secure partnerships with these retailers demonstrates the product’s appeal to a wide customer base.
The Negotiations:
During the Shark Tank pitch, Jake and Michelle received multiple offers from the Sharks. Lori Greiner was the first to make an offer, proposing $400,000 for 5% equity while offering them her coveted “golden ticket.” This special offer symbolizes her belief in their product and its potential. Kevin O’Leary presented two options. The first was a $0.40 royalty on each unit sold, paired with 3% equity. The second was a straightforward $400,000 for 15% equity with no royalty.
However, Jake and Michelle expressed concerns about the perpetual nature of the royalty. Mark Cuban, impressed by their product and accomplishments, offered $400,000 for 10% or $800,000 for 20%. The latter offer was deemed too steep by the founders. Ultimately, the Sendowskis accepted Lori Greiner’s offer of $400,000 for 5% and the “golden ticket,” appreciating her belief in their product and the expertise she could bring as a mentor.
