“Jerktrepreneurs” Daniel Fogelson and Jordan Barrocas want the Sharks to devour a piece of their business, Three Jerks Beef Jerky, in Shark Tank episode 705. What makes Three Jerks Beef Jerky different from other beef jerky is they use only Filet Mignon, whereas most other beef jerky is made from the round cut (rump) of meat. Filet Mignon, or tenderloin, is the most tender cut of meat, which makes their jerky tender too.
After chewing on some rough beef jerky one night, Barrocas did some research on how to make their own jerky. Shortly thereafter, the two former Emory College roommates started making home-made beef jerky from quality cuts of meat in their apartment with an old dehydrator Barrocas’ mother gave him. Before long, they were sharing their beef jerky with friends and family who wanted MORE!
Like any good entrepreneurs, they realized they were on to something and started making their jerky in a commercial facility. They got all the USDA approvals and went to work. In mid 2013, they ran a Kickstarter campaign and raised over $45,000 successfully to build out their e-commerce site, develop marketing materials and packaging, and produce enough inventory to start selling. A two ounce pack of Three Jerks beef jerky will set you back 12-15 bucks – a small price to pay for the Filet Mignon of Beef Jerky.
Three Jerks Beef Jerky is likely looking to the Sharks for help with distribution and building inventory. Will a Shark take a bite out of these jerks?
Three Jerks Beef Jerky Shark Tank Recap
Daniel and Jordan enter seeking $100K for 15% of Three Jerks Jerky. They tell their story and explain why their jerky is special as they hand out samples. The Sharks LOVE the jerky!
In the past 12 months, Three Jerks Beef Jerky has done $350K in sales at $11.99 per pack. That’s twice the price of standard “gas station beef jerky.” Each pack costs them $3.20 to make, but they don’t want to drop the price. They’re getting killed buying raw product at minimum purchase points and they want the Sharks’ money so they can buy in bulk. One of the things that differentiates them from many other jerkies is theirs is gluten-free; most beef jerky actually has gluten. They feel that in order to expand, they need to get into national chains.
The Sharks want to know who the third jerk is. Apparently, they had a third partner who was a real jerk and they got rid of him. This prompts Mr. Wonderful to say “the third jerk got whacked!” Everyone in the room knows jerky is competitive, but Three Jerks is the only brand using Filet Mignon.
Kevin offers $100K for 33%. He doesn’t think his valuation is bad, because he knows what he’s worth. Mark says he loves the jerky, but the business is too competitive and he’s just not that into the journey; he’s out. Robert bids $100K for 20%. Daymond says he’s a “jerkologist” and offers $100K for 20%. Then Lori offers $100K for 20%.
Four Sharks are in, three with identical offers. Kevin says he still wants in, but he wants a “Mr. Wonderful premium;” Robert says Kevin is just a “bigger jerk.” Kevin counter-offers $125K for 33%. The Jerks ask Kevin if he’ll match Daymond, Lori and Robert’s valuation.
Daymond then offers $100K for 17.5% and the Jerks ask if he’ll stay involved with the business. Robert asks them “how much cash do you want?” They reply, “$200K.” Kevin goes to $150K for 33% and Daymond goes to $100K for 15% with an option to pay another $100K for 15%, but he wants an answer now because he likes decisive partners.
After a break, Robert says he’ll go in with Lori for the same deal as Daymond, but the Jerks say “Daymond, you have a deal.” Daymond replies “I love being a jerk!”
RESULT: DEAL with Daymond for $100K for 15% with an option for another $100K for another 15%
Three Jerks Beef Jerky Shark Tank Update
The Shark Tank Blog constantly provides updates and follow-ups about entrepreneurs who have appeared on the Shark Tank TV show. Three Jerks Beef Jerky gets an update segment in episode 718, just a few months after their original air date. We’ll see how Daymond helped them get their business to the next level.
Since doing the deal with Daymond, Daniel and Jordan have been knee deep in Filet Mignon. They did $250K in sales the night they aired and $1.4 million since airing three months prior to the update. That’s over 150,000 bags of jerky!
Their growth has challenges: their co-packer can’t keep up with demand. Daymond says too many sales is a good problem to have. He introduces them to Rastelli Foods Group, a co-packer that can maintain quality and reduce cost. Now the sky is the limit for Three Jerks.
As of 2018, they were in over 3000 retail locations. They also send their jerky into space on SpaceX flights!
As of August, 2022, the company is still in business, but its founders have stepped away from the day to day operations and they both have jobs. Barrocas is the Chief Executive Officer at Direct Global Partners. Fogelson is in operations at malibu mylk. Annual revenue is $4 million.
The reason they stepped away from the business has a dark explanation. After the show taped, Daymond changed the deal. He said he wouldn’t inject capital into the business but would introduce opportunities to the company in exchange for a 5% royaly. The Rastelli Foods deal involved Rastelli selling Three Jerks their meat and handling all the packaging and accounting. The deal gave John and Rastelli 50% of the business with Barrocas and Fogleson retaining 50%.
Posts About Three Jerks Beef Jerky on Shark Tank Blog
Three Jerks Beef Jerky Company Information
Video
