Y’all Sweet Tea Founders Present Their Pitch On Shark Tank Season 16
Highlights
- Y’all Sweet Tea is brought to the Shark Tank panelists by Darien Craig and Brandon Echols.
- The sweet tea company was started in 2021.
- The Sharks are impressed with the company’s great sales figures.
Overview
| Category | Details |
| Name | Y’all Sweet Tea |
| Founder | Darien Craig and Brandon Echols |
| Industry | Food and Beverage |
| Product | Sweet Tea |
| Funding | Self-funded |
| Investment Ask | $500K |
| Equity Offered | 5% |
| Valuation | $10 million |
The entrepreneur duo of Darien Craig and Brandon Echols approach the investors in Shark Tank Season 16 Episode 5 with Y’all Sweet Tea. Hailing from Hayden, Alabama, the entrepreneurs describe themselves as childhood best friends who came up with the brand to offer the ‘best sweet tea.’
Y’all Sweet Tea started its journey in 2021. When they started, the entrepreneurs realized that their competitors were not utilizing social media and influencers properly. So, they doubled down on social media and built a team of influencers who understood sweet tea.
Right after this, Darien and Brandon introduced ‘Mama Sue’ on Shark Tank. She has over 1 million followers on social media. Their influencers are all ‘Southern grandmoms.’
Mama Sue claims that Y’all Sweet Tea is the best tea she has ever tasted in 71 years.
Y’all Sweet Tea: What Happened On Shark Tank Season 16
The Y’all Sweet Tea entrepreneurs appear on Shark Tank Season 16 with strawberry, mango, watermelon, raspberry, and the ‘Georgia peach flavored tea, seeking $500K for 5% equity in their company. Mama Sue tells the Shark investors that the ‘boys’ have placed samples, both sweet and unsweet, on their tables.
The Sharks loved the taste. Inside each bag are ten filter packs, each capable of making one gallon of tea. Users can add sugar as they want. The cost of one Y’all Sweet Tea package is $2.67, which is sold wholesale for $4.34. The entrepreneurs retail it on their website for $7.25
Sales since three years of their launch are a whopping $10.3 million, which amazes the Shark investors. The first year of Y’all Sweet Tea saw $1.2 million in sales, followed by $2 million and $4 million in the next two years. Sales in 2024 to date are $3 million. The entrepreneurs are projecting sales of over $5 million till this year ends.
Profits in 2023 were 20%, which means $800K. The entrepreneurs have doubled down on Facebook ads this year. 85% of their sales come directly to their website. Y’all Sweet Tea is available in 600 grocery stores, mainly throughout the Southeast. Their next big plan is to go into big box stores.
The founders reveal that they had discussions with Walmart a few months ago about the 500-store test.
Darien and Brandon own 100% of the company and have no investors or loans. The Sharks applaud them for this.
But Mark Cuban wants to know if they already were making money, why did not they keep on putting money in their pocket as opposed to using it for advertising? The entrepreneurs reply that they did it to become more ‘recognizable.’ Mark did not like the answer.
To justify their spending on advertising, the founders reveal how they were able to sell 10,000 of their newly added flavored tea in just 35 minutes of launch. They came up with the flavored tea after getting suggestions from their customers who came through their ads.
Hearing this, Mark states ‘Walmart needs you. You don’t need Walmart.’
View this post on Instagram
Did Y’all Sweet Tea Get A Deal?
Rashuan Williams says he ‘has heard enough’ and proposes his offer of $500K for 10% equity. He adds that he can give them money, access, and influencers. Barbara Corcoran thinks that is a good offer. Lori wants to know about their vision. The entrepreneurs say that they want to make about $20 million and then find an exit.
Mark interrupts, saying that is something Rashuan does and likes. He steps out of the deal, stating that he is a ‘cash guy’ whereas Rashuan is a ‘growth and sales guy.’ Barbara does the same and does not invest.
Kevin O’Leary expresses his will to join Rashuan by helping with the retail aspect. He offers $500K for 20% equity, with 10% for each of them. While he is making his offer, Lori and Rashuan seem to be cooking a new offer.
Rashuan then says that he had Lori will offer $500K for 15% equity. Lori cites her previous experience in retail, especially her ‘tons of grocery’ products. She feels she can blow up Y’all Sweet Tea. Kevin interrupts saying he has already made an offer with Rashuan unless she is ‘throwing him under the bus.’
Rashuan states that he is okay with either of the two deals, i.e. 500K for 20% equity with Kevin and $500K for 15% equity with Lori. Kevin says he is ready to go down to 15% equity.
The entrepreneurs counter it with $750K for 15%. Kevin stays at $500K for 15% equity as he thinks he brings a lot of ‘value’ with him. Rashuan, too, says he will stick to $500K for 15% equity in both the offers.
In the end, Darien and Brandon take Rashuan and Lori’s deal at $500K for 15% equity.
See what else is new! View other businesses featured in this episode.
