Gwen and Christine Nguyen, entrepreneurs and sisters from San Jose, gave up their successful careers to take a chance in the culinary world.

Key Takeaways: Maven’s Creamery Shark Tank Update

  • Product: Macaron ice cream sandwiches.
  • Investment Ask: $400,000 for 10% equity.
  • Shark Response: Barbara Corcoran offered $400,000 for 25% equity, which was accepted.
  • Post-Show Success: Maven’s Creamery has expanded production capabilities and continues to grow in the frozen dessert market.

What Is the Story of Maven’s Creamery?

Without formal culinary training, and Google as their guide, the sisters successfully created an all-natural line of macron ice cream sandwiches.

They sandwich their homemade premium ice cream between 2 macarons that are made from scratch. Inspired by their father, who fled from the communist regime in Vietnam in 1975, Gwen and Christine have the passion to work hard and follow their dreams.

Their dream is now at a pivotal point and they are in need of a Shark to invest in their company, Maven’s Creamery, in order to fund purchase orders as well as an automated manufacturing line.

Why Did They Come into the Tank?

Maven’s Creamery came to the Shark Tank seeking $400,000 in exchange for 10% equity in their company.

They need a Shark that can help them scale manufacturing and expand their reach across the country. Currently, they do not have a storefront and are supplying independent retailers and grocery chains with their products. Each store that carries their product also carries its branded freezer. That’s a capital cost as one freezer is $1,400.

Having partnered with the freezer company, Maven’s Creamery pays them a royalty fee of $0.15 per unit sold.

While the Sharks love the taste of the product, they want to understand the full financial picture of the company. Year-to-date, Maven’s Creamery has brought in $1.25 million in sales, with end-of-the-year projections settling in at $2.1 million. The company will be profitable this year with a $167,000 surplus. They are wholesaling their product for $2.24 while it costs $1.08 to manufacture. The product is currently handcrafted in house and it will cost Gwen and Christine approximately $200,000 to install a fully automated manufacturing line.

The Sharks Are Concerned, But Do They End Up Investing?

The Sharks are concerned about the narrow margins as well as the complexities associated with making their product in bulk. They are also concerned that the company’s valuation is too high.

Just when it looks as though Maven’s Creamery will leave the Shark Tank without a deal, Shark Barbara Corcoran makes them an offer. Barbara feels that she can add a lot of value to their company. She offers them $400,000 total with $200,000 in cash that they can apply directly to their business and another $200,000 in a credit line. After the initial investment is gone, she will help to provide them with whatever monies they may need but she would like to be an equal partner with them for a 33.3% share in the company.

Gwen and Christine counter and they agree to a $400,000 investment, as described, in exchange for 25% equity in the company.

Maven’s Creamery is excited to partner with Barbara Corcoran.

Do you think that the other Sharks made a mistake by not extending an offer to Maven’s Creamery? What would you like to see Barbar contribute to their company now that she is financially vested? Start the conversation in the comments below.

For a full summary of this episode, check out this article. Shark Tank airs on Sundays at 10:00 PM EST.