Southern Culture Artisan Foods
DEAL
EPISODE SUMMARY
🕓 Air Date: February 21, 2014
Asking For:
$100,000 for 25%
Investor:
Barbara Corcoran
Deal:
$100,000 for 38%
PRODUCT SUMMARY
Southern Culture Artisan Foods offers premium pancake and waffle mixes in unique flavors such as Banana Pudding, Oatmeal-Raisin Cookie, and Bourbon Salted Pecan, made with organic, all-natural ingredients and suitable for various diets.
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Background Story
Erica Barrett, hailing from Atlanta, Georgia, is the visionary founder behind Southern Culture Artisan Foods, a venture born out of her passion for gourmet breakfasts and frustration with the high costs associated with quality ingredients. Despite lacking formal culinary training, Erica’s journey into the food industry was fueled by her desire to create convenient yet delicious breakfast options reminiscent of her Southern upbringing. The inspiration for Southern Culture Artisan Foods struck one morning as Erica prepared breakfast for her husband. Faced with the task of sourcing organic flour, pure cane sugar, fresh strawberries, and premium vanilla for their favorite strawberry pancakes, she was taken aback by the hefty price tag at the checkout counter.
Determined to find a solution to this dilemma, Erica embarked on a mission to develop a line of gourmet pancake and waffle mixes that would offer the same level of quality and flavor without breaking the bank. Armed with her entrepreneurial spirit and a keen eye for innovation, Erica founded Southern Culture Artisan Foods, positioning the brand as a beacon of Southern hospitality and culinary excellence. Drawing inspiration from her Southern roots and her love for indulgent breakfast treats, she meticulously crafted each pancake and waffle mix to deliver an unforgettable dining experience for customers across the country.
Despite facing initial challenges due to her lack of formal culinary experience, Erica’s determination and unwavering commitment to quality propelled Southern Culture Artisan Foods to success. Her hands-on approach to product development and her dedication to sourcing the finest ingredients have earned the brand a loyal following and garnered attention from high-end retailers like Nordstrom and T.J. Maxx. Through her venture, Erica aims to share her love for Southern cuisine and elevate the breakfast experience for food enthusiasts everywhere.
The Product
Southern Culture Artisan Foods offers a delectable selection of ShortStacks Pancake & Waffle Mixes, meticulously crafted to provide a gourmet breakfast experience in the comfort of one’s home. Each mix is thoughtfully prepared with premium, all-natural ingredients, ensuring a superior taste and quality that sets it apart from traditional pancake mixes.
Customers can choose from a variety of unique flavors, including Banana Pudding, Oatmeal-Raisin Cookie, and Bourbon Salted Pecan, each offering a delightful twist on classic breakfast favorites. The mixes are easy to use, requiring only the addition of a few basic ingredients like milk and eggs to create fluffy, flavorful pancakes or waffles.
One of the key benefits of Southern Culture Artisan Foods’ products is their versatility, suitable for various dietary preferences as they contain no powdered dairy. Additionally, the mixes are free from artificial additives and preservatives, appealing to health-conscious consumers seeking wholesome breakfast options.
ShortStacks Pancake & Waffle Mixes can be purchased directly from the company’s website or through select retailers such as Nordstrom, T.J. Maxx, and Marshalls. Each package retails for $7.99 and yields either 12 pancakes or 4 large waffles, making it a convenient and affordable choice for breakfast enthusiasts looking to elevate their morning routine with gourmet flavors and quality ingredients.
How It Went
The company’s position before Shark Tank
Southern Culture Artisan Foods has demonstrated impressive growth and stability since its inception, positioning itself as a leading player in the gourmet breakfast market. With a strong emphasis on premium quality and unique flavors, the company has cultivated a loyal customer base and secured partnerships with reputable retailers. The brand’s success is reflected in its robust sales figures, having achieved $100,000 in sales within its first 12 months of operation. This rapid growth is further supported by gross profits of $62,000, indicating healthy margins and efficient operations.
Southern Culture Artisan Foods has strategically partnered with high-end retailers such as Nordstrom, T.J. Maxx, and Marshalls, expanding its distribution network and reaching a broader audience of breakfast enthusiasts. Key wholesalers include Nordstrom, T.J. Maxx, and Marshalls, which have embraced the brand’s premium offerings and contributed to its widespread availability. These partnerships have not only increased the company’s visibility but also provided a steady stream of revenue and opportunities for growth. The company’s target customers are discerning individuals who appreciate gourmet breakfast options and prioritize quality ingredients in their culinary creations.
Southern Culture Artisan Foods caters to a diverse demographic, including health-conscious consumers, food enthusiasts, and individuals seeking indulgent yet wholesome breakfast experiences. In terms of funding, Southern Culture Artisan Foods has primarily relied on sales revenue to fuel its growth and expansion efforts. As for the company’s structure, Southern Culture Artisan Foods operates as a small team led by founder Erica Barrett. The company’s success is attributed to Erica’s entrepreneurial vision, hands-on approach, and dedication to delivering exceptional products.
The Negotiations:
During the negotiations on Shark Tank, Erica Barrett, the founder of Southern Culture Artisan Foods, showcased her gourmet pancake and waffle mixes to the Sharks. While the Sharks expressed interest in the product’s quality and unique flavors, they raised concerns about the company’s pricing, scalability, and operational challenges. Barbara Corcoran and Daymond John both made offers to invest in the company. Barbara offered $100,000 for a 40% equity stake, highlighting the challenges Erica might face as the business grows.
Daymond offered $100,000 for a 38% equity stake, expressing concerns about Erica’s readiness to handle the hurdles of scaling the business. Kevin O’Leary proposed a royalty deal, which Erica ultimately declined, opting for equity investment instead. Despite some hesitation from the Sharks, Erica’s passion and confidence in her product ultimately led her to accept Barbara’s offer, believing in her expertise and guidance.
The negotiations highlighted the challenges and opportunities facing Southern Culture Artisan Foods as it seeks to expand its presence in the competitive food industry. Erica’s decision to partner with Barbara reflects her determination to overcome obstacles and achieve long-term success for her brand. With Barbara’s support and strategic guidance, Southern Culture Artisan Foods is poised to capitalize on its momentum and take its gourmet breakfast offerings to new heights.
