The Paleo Diet Bar
NO DEAL
EPISODE SUMMARY
🕓 Air Date: May 1, 2015
Asking For:
$150,000 for 20%
Investor:
No Deal
Deal:
No Deal
PRODUCT SUMMARY
The Paleo Diet Bar, endorsed by Dr. Loren Cordain, is a protein-packed, gluten-free, and soy-free snack inspired by the Paleo diet principles.
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Background Story
Shauna Sledge, a dedicated group-fitness instructor hailing from Fort Collins, Colorado, is the driving force behind The Paleo Diet Foods. With a passion for promoting a healthy and active lifestyle, Shauna also runs her own business. Her commitment to wellness is deeply rooted in the Paleo diet, emphasizing lean proteins while avoiding dairy, potatoes, legumes, and processed foods. As a firm believer in the Paleo lifestyle, Shauna understands the significance of dietary choices in achieving overall health.
The inception of The Paleo Diet Foods emerged from Shauna’s multifaceted background. Besides being a fitness instructor, she brings professional training as a dental hygienist into the mix. Fortuitously, Dr. Loren Cordain, the pioneer of the Paleo movement, happened to be one of her dental patients in Fort Collins. Recognizing the potential of creating a product that aligns with the Paleo principles, Shauna collaborated with Dr. Cordain to craft The Paleo Diet Bar.
The idea was born out of the desire to provide a convenient and nutritious solution for those following the Paleo diet. In an era where foraging for the right foods could be challenging, Shauna envisioned a snack that encapsulated the essence of the Paleolithic diet. With a strong belief in the benefits of the Paleo lifestyle and armed with a unique partnership with Dr. Cordain, Shauna embarked on a journey to bring The Paleo Diet Bar to the market. The combination of her expertise as a fitness instructor, dental hygienist, and commitment to the Paleo philosophy formed the foundation of The Paleo Diet Foods.
The Product
The flagship product of The Paleo Diet Foods is The Paleo Diet Bar, a meticulously crafted snack that embodies the principles of the Paleo lifestyle. Designed to cater to the health-conscious consumer, this bar is a powerhouse of nutrition, featuring 17 grams of egg-white protein, complete with all nine essential amino acids. Embracing the core tenets of the Paleo diet, the bar is free from gluten and soy, with a focus on raw, all-natural ingredients.
The Paleo Diet Bar offers consumers a convenient and delicious way to adhere to the Paleo diet, mimicking the dietary choices of our ancient ancestors. It stands out for its commitment to quality, being the only product in the market endorsed by Dr. Loren Cordain, the founder of the Paleo movement. This endorsement not only adds credibility but also positions the bar as a trusted choice for those seeking authenticity in their Paleo-friendly snacks.
The Paleo Diet Bar can be acquired online, providing easy accessibility to health-conscious consumers nationwide. The product’s unique selling proposition lies in its nutritional composition, aligning with the Paleo diet principles, making it a compelling choice for individuals seeking a convenient and wholesome snack option.
How It Went
The company’s position before Shark Tank
The Paleo Diet Foods has demonstrated a solid performance in the health and wellness market, carving a niche in the competitive space of natural and Paleo-inspired snacks. With total sales reaching $135,000, the company has successfully secured distribution in over 350 brick-and-mortar locations, primarily within Colorado and Whole Foods. This retail presence signifies a commendable foothold in the marketplace, showcasing a growing demand for the Paleo Diet Bar. A key aspect of The Paleo Diet Foods’ success lies in its strategic partnership with Dr. Loren Cordain, the esteemed founder of the Paleo movement.
Dr. Cordain holds 5% equity in the company and receives 10% royalties, providing valuable expertise and endorsement that sets The Paleo Diet Bar apart from competitors. The association with Dr. Cordain not only enhances credibility but also serves as a testament to the authenticity and alignment of the product with the Paleo principles. While the company has achieved impressive distribution, Shauna Sledge highlighted the need for the Sharks’ assistance in negotiating buying power to expand further. The Paleo Diet Foods currently relies on a shoestring budget for distribution and expressed the intention to bring on a broker to enhance their presence on the shelves of major retailers.
This strategic move aligns with the company’s goal to amplify its reach and cater to a broader customer base. As for financials, The Paleo Diet Foods faces a hard cost of $1.09 per bar, enabling a retail price of $2.99 and maintaining a 25% profit margin. The company’s online sales contribute approximately $45,000, showcasing a diversification of revenue streams. However, the business acknowledged the need to improve margins and sought the Sharks’ expertise in negotiating better buying terms. The current company structure involves a partnership between Shauna Sledge and Dr. Loren Cordain, emphasizing a collaborative approach to drive the success of The Paleo Diet Foods.
The Negotiations:
In the Shark Tank negotiations, Shauna Sledge, the founder of The Paleo Diet Foods, faced a challenging session with the Sharks who expressed both admiration for her energy and concerns about the company’s direction. While Shauna sought $150,000 for 20% equity, the Sharks expressed reservations about the taste of the Paleo Diet Bar and the scattered nature of the business strategy. Despite Shauna’s openness to tweaking the product and her commitment to the Paleo lifestyle, none of the Sharks were willing to invest.
Mark Cuban, recognizing the potential of the brand and the value of Dr. Loren Cordain’s endorsement, acknowledged the disappointment in the lack of a clear path forward. However, he decided not to invest due to uncertainties about the company’s strategic direction. Other Sharks emphasized the need for focus, citing Shauna’s diverse responsibilities as a potential hindrance to the company’s growth. Ultimately, no deal was struck as each Shark opted out.
Kevin O’Leary expressed his disapproval of the taste of the bar, while Lori Greiner and Robert Herjavec raised concerns about Shauna’s ability to manage multiple roles effectively. Daymond John highlighted the need for a more laser-focused approach. Despite the disappointment, Shauna remained resolute, expressing her determination not to give up on The Paleo Diet Foods. The negotiations underscored the importance of a clear and focused business strategy, leaving Shauna with valuable feedback and the challenge to refine her approach for the future.
