Victory Coffees
NO DEAL
EPISODE SUMMARY
🕓 Air Date: January 6, 2017
Asking For:
$250,000 for 20%
Investor:
No Deal
Deal:
No Deal
PRODUCT SUMMARY
Victory Coffees is a veteran-owned and veteran-operated coffee company that delivers organically grown, fairly traded, premium international blends, including the world's strongest K-Cups.
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Background Story
Cade Courtley, the founder of Victory Coffees, brings a unique background to the entrepreneurial world. A former Navy SEAL, sniper, and security contractor, Courtley’s experiences in some of the world’s most hostile environments, including Bosnia, Iraq, and Afghanistan, shaped his perspective on the importance of finding moments of normalcy amid chaos. His inspiration for starting Victory Coffees stemmed from a desire to enjoy a good cup of coffee, something he craved in the unpredictable and high-stakes environments he worked in.
, Courtley’s military background is integral to the brand’s identity. As a veteran-owned and veteran-operated company, Victory Coffees aims to deliver not just coffee but a sense of patriotism and normalcy to its customers. The transition from a career as a Navy SEAL to an entrepreneur in the coffee industry reflects Courtley’s resilience and adaptability. His commitment to creating a product that brings comfort and quality resonates with his military ethos of excellence.
The company’s focus on sourcing organically grown, fairly traded beans from regions like Central and South America, Africa, and Sumatra underscores a commitment to quality and ethical business practices. In essence, Victory Coffees is not just a coffee brand; it’s a manifestation of Courtley’s determination to provide a premium product with a patriotic touch. The venture embodies the fusion of military values, entrepreneurship, and the universal love for a great cup of coffee.
The Product
Victory Coffees offers a diverse range of premium international coffee blends, catering to coffee enthusiasts with a penchant for quality and a patriotic flair. The product line includes both whole bean and ground coffee, allowing customers the flexibility to choose their preferred brewing method. Notably, Victory Coffees boasts the claim of producing the world’s strongest K-Cups, providing a convenient and potent option for those who favor single-serve brewing.
Sourced from select regions known for their exceptional coffee beans, such as Central and South America, Africa, and Sumatra, Victory Coffees ensures a rich and distinct flavor profile. The emphasis on organically grown and fairly traded beans aligns with the brand’s commitment to quality and ethical sourcing practices.
Customers can purchase Victory Coffees directly through their online platform, employing a subscription-based model. The company initially targeted the business-to-consumer market before pivoting to business-to-business, securing a significant purchase order from a major insurance agency.
How It Went
The company’s position before Shark Tank
In its eight months of operation, Victory Coffees has demonstrated a resilient start, achieving year-to-date sales of $30,000 without investing in advertising. The company’s focus on direct commercial sales is evident through a major purchase order secured from one of the largest insurance agencies in the country. This strategic move into the business-to-business sector suggests an early success in positioning Victory Coffees as a supplier for large corporations.
The founder, Cade Courtley, emphasizes the patriotic angle, aligning the brand with iconic American businesses. The notable mention of a significant purchase order highlights a strong initial foothold in the market, particularly within the insurance industry. Courtley mentions working directly with two Marine buddies based in Washington, D.C., who have been roasting coffee for about three years. This direct sourcing approach aligns with the company’s commitment to maintaining control over the coffee quality. Courtley expresses plans to create the “Victory Army,” an all-veteran sales force, indicating potential strategies for scaling the business.
The financial health of the company, including profits and losses, is not detailed in the provided. Nevertheless, the year-to-date sales figure of $30,000 provides a glimpse into the company’s revenue generation within its initial months of operation. The absence of advertising costs in achieving these sales underscores a cost-effective approach. The company’s current structure is not explicitly outlined, but Courtley’s role as the founder and spokesperson for Victory Coffees suggests a founder-driven organizational model. The strategic pivot from business-to-consumer to business-to-business indicates a dynamic and adaptable business strategy.
The Negotiations:
The negotiations in the “Shark Tank” episode for Victory Coffees did not culminate in a deal, as all the Sharks decided to opt out. The primary concerns raised during the negotiation revolved around the early stage of the business and the perceived lack of a clear differentiator beyond the patriotic branding. While the Sharks acknowledged Cade Courtley’s military background and dedication, they pointed out the need for a more focused approach in the business.
Mark Cuban and other Sharks cautioned against relying too heavily on market size and urged Courtley to concentrate on the execution of his business. Kevin O’Leary expressed reservations about Victory Coffees being primarily a marketing company rather than directly sourcing coffee. The Sharks appreciated Courtley’s sales skills and the patriotic appeal but unanimously felt that the venture was too early and not investable at this stage.
Despite Courtley’s determination and commitment, the Sharks emphasized that the rejection was not a reflection of his character but rather a result of the business being in an early and uninvestable stage. They encouraged him to focus on his sales abilities, patriotism, and commitment to quality coffee, suggesting that everything else was a complication at this point. While the rejection was firm, the Sharks acknowledged Courtley’s resilience and encouraged him to take the rejection as a learning experience and to persevere in his entrepreneurial journey.
