Wild Squirrel Nut Butter
DEAL
EPISODE SUMMARY
🕓 Air Date: May 11, 2012
Asking For:
$50,000 for 10%
Investor:
Barbara Corcoran
Deal:
$50,000 for 40%
PRODUCT SUMMARY
Wild Squirrel Nut Butter offers artisanal peanut butter in four unique flavors, crafted by college students Erika Welsh and Keeley Tillotson.
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Background Story
Erika and Keeley, both college students at the University of Oregon, stumbled upon the idea for Wild Squirrel Nut Butter during a rainy Friday afternoon in their dorm room when they decided to make homemade peanut butter using a food processor and a bag of peanuts. Their passion for experimenting with recipes led them to create four flavors: Sneaky Cinnamon, Bright Eyed & Bushy Tailed, Curious Cocoa-Nut, and Pretzel Pizazz.
They began distributing samples to friends on campus, which eventually evolved into selling thousands of jars through their website, farmers’ markets, and campus street fairs. With a vision to expand nationally, they sought investment in Shark Tank to fuel their growth.
The Product
Wild Squirrel Nut Butter’s artisanal peanut butter is handcrafted with high-quality ingredients, including peanuts and various flavorings, to create unique and delicious spreads.
Their flavors cater to different tastes, such as the warmth of cinnamon in Sneaky Cinnamon, the richness of chocolate and espresso in Bright Eyed & Bushy Tailed, the tropical notes of coconut in Curious Cocoa-Nut, and the savory crunch of honey pretzels in Pretzel Pizazz.
Each jar is priced at $5.99 retail, with a production cost of $3 per jar, resulting in a $1 profit margin. Customers can purchase Wild Squirrel Nut Butter through their website, at farmers’ markets, and soon at grocery stores across Oregon.
The company emphasizes its commitment to quality and sustainability, sourcing ingredients responsibly and focusing on environmentally friendly packaging.
How It Went
The company’s position before Shark Tank
Wild Squirrel Nut Butter has shown promising growth since its inception, selling thousands of jars and generating $14,000 in gross revenue, with a $7,000 profit. The founders, Erika and Keeley, currently own 100% of the company, with initial funding provided by Keeley’s parents, who contributed $50,000. The company’s expansion plans include securing shelf space in grocery stores across Oregon, with ambitions to become a national brand.
However, they face challenges in scaling production while maintaining profitability, as their current production cost limits their profit margin to $1 per jar. They aim to optimize production processes and sourcing to reduce costs and increase profitability. Wild Squirrel Nut Butter has built partnerships with local retailers and wholesalers to distribute their products, leveraging their strong brand presence on social media and at community events. Despite their success, the founders recognize the need for additional funding and expertise to accelerate growth and compete in the competitive food industry.
The Negotiations:
Erika and Keeley entered the tank seeking $50,000 for 10% equity, valuing their company at $500,000. However, concerns were raised about their profitability and ability to compete in the market. Barbara offered $50,000 for 40% equity, emphasizing the need for strategic guidance and access to resources for long-term success.
Despite initial reluctance, Erika and Keeley accepted Barbara’s offer, recognizing the value of her expertise and network in scaling their business. The negotiation highlighted the importance of mentorship and strategic partnerships in navigating the challenges of entrepreneurship, ultimately leading to a successful deal.
