This week, Tilman Fertitta meets with Bob McClaren, James Burks and BJ McElroy of 44 Farms.
44 Farms offers all-natural quality beef. Their Angus Strong program provides “relevant genetics to cattle producers to assist them to be successful. We know our genetics work. We know they produce premiums and profits for producers. These genetics can help to build a strong foundation for prosperous businesses for our customers.” They also offer a Feeder Calf Buyback program and sell steak, ground beef and beef jerky through their online store.
Fertitta is impressed with their all-natural process but wonders whether they’re ready for big-scale restaurants. He really likes the flavor of the various cuts and says their products are very unique. He is concerned, however, that they sell the whole cattle for sustainability and not just the necessary cuts. They could provide only the needed cuts (ribeye, strip and filet), but they would be much more expensive. He challenges them to do a taste test at Morton’s with the cuts that he’s not necessarily looking to buy.
The team likes the taste of most of the cuts, but are immediately turned off by the beef belly cut. Fertitta likes the products overall so decides to serve some of their cuts at his restaurants. He also encourages his team to think outside of the box regarding different cuts.
If you weren't hungry before, you are now. #BillionDollarBuyer pic.twitter.com/piZ5sfGDD6
— Billion Dollar Buyer (@BillionDollarTV) February 8, 2017
At the second test, certain cuts perform better than others, but not enough are given a thumbs up, which is discouraging to Fertitta. In the boardroom, Fertitta says his customers liked the cuts and they propose 100 head per week at $7 million, which he immediately declines given that not every cut can be used. Their proposed solution is to sell 25 head per week, selling the remaining parts to other buyers, at $2 million over a year. Fertitta accepts.
Social Media Reacts to 44 Farms’ Appearance on “Billion Dollar Buyer”
#BillionDollarBuyer @TilmanJFertitta Happy cattle, better beef
— ️️Mario Valdes Jr. (@MarioValdesJr) February 8, 2017
Digging this futuristic farming. BLOWING MY MIND. #billiondollarbuyer pic.twitter.com/HTsHABJgOm
— Cristina321 Gaming (@Cristina321Game) February 8, 2017
That's a beautiful farm. @BillionDollarTV @TilmanJFertitta #BillionDollarBuyer
— Dog Lover ❤️ (@doglovinglawyer) February 8, 2017
There is a lot going on with technology in the industry 44Farms. #Marbling #Genetics The consumer needs to taste fat! #BillionDollarBuyer
— Tammy Motola ❤️ (@tmotola) February 8, 2017
Definitely go with @44Farms, @TilmanJFertitta #BillionDollarBuyer
— Mik † (@mikhaele_ible) February 8, 2017
According to CNBC, the reality television show “introduces promising companies across the country to one of America’s most successful businessmen: billionaire hospitality mogul Tilman Fertitta, Chairman, CEO, and sole shareholder of Landry’s, Inc.” Featured entrepreneurs present their small business to Fertitta in the hopes that he will place a large purchase order. But before they make their pitch, they must prove to the hospitality mogul that their product is worth it through challenges and customer feedback.
What are your thoughts on 44 Farms? Did you like Fertitta’s offer? Sound off in the comments section below!
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