Kodiak Cakes Entrepreneurs Present Their Pitch On Shark Tank
Highlights
- Cameron Smith and Joel Clark presented Kodiak Cakes in Shark Tank Season 5.
- The entrepreneur duo exited without a Shark Tank deal.
- Kodiak Cakes has become a health food favorite and a dominant business with $200 million in sales.
The list of Shark Tank businesses that grew over the years without a deal is huge. One of these is Kodiak Cakes, which has become a hit health food product. With its appearance in the fifth Shark Tank season, the product has been setting new examples with its successes in every passing year.
Brought to the Shark investors by the entrepreneur duo of Cameron Smith and Joel Clark, Kodiak Cakes could not bag a deal. The founders of the waffle and flapjack mix product presented a well-prepared pitch, but the result was not favorable. Despite this, Kodiak Cakes has become a soaring hit.
Here are complete details of its successful journey after Shark Tank, with a special emphasis on how Kodiak Cakes has become a health food favorite. Along with it, there is a quick recap of its pitch and negotiations with the panelists on Shark Tank.
The Rise Of Kodiak Cakes After Shark Tank
Aspiring entrepreneurs Cameron Smith and Joel Clark had to leave without a deal. However, this did not stop them from following their entrepreneurial goals for Kodiak Cakes. Have a look at how the food product managed to make its mark and became a Shark Tank success story:
After its appearance on the show in 2014, the sales of Joel and Cameron’s company reached $6.7 million (which was $3.6 million in 2013). Energized by the success, the Kodiak Cakes entrepreneurs started innovating the product range and introduced pancakes, oatmeals, waffles, granola bars, and graham bites.
The additional revenue and the ‘Shark Tank Effect’ also allowed Cameron and Smith to expand their customer base and connect with major retailers. Kodiak Cakes’ drive towards introducing healthy food items made the brand an ‘official food’ for diabetic living, shape magazines, and Weight Watchers.
The strong demand for Joel and Cameron’s healthy food product allowed it to make $16 million in sales by 2016. Realizing their winning qualities, the two of them maintained their consistent run and soon allowed the business to make $200 million in sales with a reach of 26,000 plus stores.
In 2021, seeing its commendable growth, L Catterton acquired a majority stake in the entrepreneurs’ company. Both the entrepreneurs still work for the company, though. While Cameron is its President, Joel is the CEO.
As of 2024, the latest update about Kodiak Cakes is that Zac Efron has become its brand ambassador.
Kodiak Cakes: Shark Tank Pitch Recap
The entrepreneur duo of Cameron Smith and Joel Clark approached the Shark panelists with Kodiak Cakes. Seeking $500K for 10% equity, the duo explained that their healthy food company offered a line of waffle and flapjack mixes. They had prepared the food mixes using Joel’s grandfather’s recipes.
Cameron and Joel had started their food venture in 1994. By the time of its Shark Tank appearance, the Kodiak Cakes was selling its products in some Walmart stores and on Amazon. Its presence was also found in The Fresh Market, Albertson’s, and Safeway.
The entrepreneur duo then offered samples of their fruit-flavored syrups to the Sharks and said that they were also present in Target. Cameron and Joel’s first order was for $260K, and they were estimating a $1 million sales in 2014. They had appeared on Shark Tank for market expansion and help with retail.
Why Kodiak Cakes Left Without A Shark Tank Deal?
Although the Kodiak Cakes’ founders presented a strong pitch, the Shark investors raised many apprehensions regarding its viability. However, after some discussions, Robert Herjavec proposed $500K for 35% equity. Cameron and Joel were not convinced of the proposed deal.
Kevin O’Leary felt the valuation presented by the entrepreneurs was not right. Despite this, he hinted at a potential offer. While the negotiations were on, Barbara Corcoran made a partial offer of $250K for 25% equity on the condition that some other Shark joined her.
Kevin then agreed to be a part of the deal. Barbara and Kevin together offered $500K for 50% equity.
Cameron and Joel did not seem pleased with any of the two deals, as both of them required the entrepreneurs to give away a higher equity share than what they had proposed. So, they exited without accepting a Shark Tank deal.
Conclusion
Kodiak Cakes has emerged as a sensation in the health food industry with its amazing success after Shark Tank. Despite some offers on the show, Cameron Smith and Joel Clark refused to accept any and continued with their vision. With continuous innovations and product expansions, Kodiak Cakes boasts $200 million in sales.
Cameron and Joel’s venture is the perfect example of how perseverance coupled ‘Shark Tank Effect’ can allow budding companies to become gigantic businesses.
References
- Kodiak Cakes, Wikipedia
Entrepreneur, auteur, raconteur. Rob Merlino is a blogger and writer who enjoys the Shark Tank TV show and Hot Dogs. A father of five who freelances in a variety of publications, Rob has a stable of websites including Shark Tank Blog, Hot Dog Stories, Rob Merlino.com and more.
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