Brooklyn native, Phil Wong, recognizes that many Americans are making the shift to diets that are rich in plant-based foods. To help cater to this rapidly expanding market, Phil has created a variety of sausage recipes that are a blend of meat and vegetables. His better-for-you line of sausages, Misfit Food, are lower in sodium and cholesterol as compared to traditional sausages and are a healthier alternative to traditional meat products. Seeking $250,000 in exchange for 5% equity, Phil is hoping to partner with a Shark to help him to expand and grow his product reach.
Are you diggin’ this alternative dog? #SharkTank
— Shark Tank (@ABCSharkTank) March 13, 2021
Initially, the Sharks were not convinced that a blended meat and vegetable product was needed in the market, however, after seeing Misfit Food’s initial sales, they changed their view. During their first year on the market (2020), Misfit Food was on track to hit $1.2 million in sales at the time of filming. These sales are predominantly from their website, however, 20% did come from selling through Whole Foods. Although Phil only has a marketing spend of about 5%, great margins, and surprisingly good sales, the Sharks know how brutal the food space can be. They are also concerned that Phil has already raised $2 million to get Misfit Food off the ground.
Although the Sharks do have reservations about the business, they are impressed by the products and their sales. Lori Greiner, aware that they can easily be knocked off, thinks that Phil should race to corner this market with his recipe. She offers to invest $250,000 in exchange for 18% equity. Mark Cuban and Daniel Lubetzky decide to partner together and agree to invest $300,000 in exchange for a shared 15% equity. Although Phil is flattered to receive two offers, he ultimately decides to accept Mark and Daniel’s offer.
It doesn't fully come across after editing, but Phil demonstrated SO much integrity in the way he discussed managing his business. A big reason why I was motivated to work with him is because I could tell that he genuinely strives to do the right thing. @misfitfoods_ #SharkTank pic.twitter.com/fNpXzBbQ2H
— Daniel Lubetzky (@DanielLubetzky) March 13, 2021
Have you have started incorporating more plant based foods and meat alternatives into your diet in the past couple years? #sharktank
— Kevin O'Leary aka Mr. Wonderful (@kevinolearytv) March 13, 2021
It's a good sign that Phil doesn't need to pay up to get people to buy his product – it speaks to the quality of what he's making and the authentic consumer demand. @misfitfoods_ #SharkTank
— Daniel Lubetzky (@DanielLubetzky) March 13, 2021
Quitting anything cold turkey is tough – see what I did there . @misfitfoods_ is that perfect way to MEAT in the middle ! Half meat – half veggies – cool concept !
— Robert Herjavec (@robertherjavec) March 13, 2021
I love how Phil is thinking with the AND philosophy, which is the mindset we champion at @KINDsnacks – it's all about countering false assumptions and coming up with new ways of doing things. @misfitfoods_ #SharkTank pic.twitter.com/MyB24hP4HX
— Daniel Lubetzky (@DanielLubetzky) March 13, 2021
If you were in the Shark Tank, would you have invested in Misfit Food? Do you think that Phil made a good decision by choosing Daniel Lubetzky and Mark Cuban over Lori Greiner? Start the conversation in the comments below!
Read more: Shark Tank: Delighted by Hummus Accepts $600,000 Offer from Mark Cuban