Husband and wife, Cole and Emily Williams came to the Shark Tank to showcase their innovative way to add flavor to sandwiches.
Key Takeaways: Slice of Sauce on Shark Tank
- Product Innovation:
- Mess-free condiment slices that do not require refrigeration.
- Secured licensing agreements with major brands.
- Shark Tank Pitch:
- Sought $200,000 for 10% equity.
- Accepted Alex Rodriguez’s offer: $200,000 as a convertible note for 15% equity.
- Market Potential:
- Targeting premium product segments for activities like tailgating and camping.
- Aim to secure a co-packer and expand production.
Slice of Sauce: A Quick Company Overview
Slice of Sauce transforms traditional bottle condiments into mess-free condiment slices.
Using only the finest ingredients, these condiment slices add bold flavor to ensure an even amount of flavor in every bite. By refining their flavor profiles, making the product shelf-stable and since refrigeration is not required, Slice of Sauce has managed to secure licensing agreements with several major brands.
To scale their production to keep up with demand and to expand their reach, Cole and Emily are looking for a Shark that can help them obtain a co-packer, invest in machinery, and is willing to invest $200,000 in exchange for 10% equity.
Would you take a slice of this sauce alternative business? #SharkTank
— Shark Tank (@ABCSharkTank) January 16, 2021
The Sharks React to Slice of Sauce’s Pitch
The Sharks like the flavor of the product, but are concerned about the premium price tag in comparison with bottled condiments.
They are also concerned that Slice of Sauce is still a pre-revenue company that has raised significant funds from other investors, making an investment in the company a risky proposition. Cole and Emily feel certain that if they can find a co-packer that can accommodate their process and demand, that they will be able to increase revenue and ensure that a Shark would have a return on their investment.
Although the other Sharks are concerned, Alex Rodriguez is interested in investing in Slice of Sauce as he can see this as being marketed as a mess-free alternative to traditional condiments. He also thinks that they could really capitalize on the fact that it does not need to be refrigerated which would make it an ideal product for activities such as tailgates and camping.
Alex offers to invest $200,000 as a convertible note (which will convert when they hit $1.8 million in sales) in exchange for 15% equity. He would also consider lines of credit for financing and purchase orders as well.
They accepted Alex Rodriguez’s offer.
I was surprised…I really liked the Spicy Sriracha!! #SharkTank @ABCSharkTank
— Lori Greiner (@LoriGreiner) January 16, 2021
Would you try @SliceofSauce on your sandwich? #SharkTank
— Barbara Corcoran (@BarbaraCorcoran) January 16, 2021
This product is unique, I like innovation & it's a step above regular condiments. @SliceofSauce #SharkTank @ABCSharkTank
— Lori Greiner (@LoriGreiner) January 16, 2021
Closing Thoughts
If you were a Shark, would you have invested in Slice of Sauce? Do you think this was a wise investment for Alex? Will you be a consumer of this product? Start the conversation in the comments below!