Gatsby Chocolate Update | Shark Tank Season 15
Gatsby Chocolate founders appeared in the first episode of Shark Tank Season 15, seeking $500,000 for 5% equity.
The company sells delicious chocolate bars that have about half the calorie count and 75% less sugar than most of the other chocolates out there.
Will the Sharks believe in these claims, and will Gatsby Chocolate secure a deal in Shark Tank? Find out what happened to Gatsby’s chocolate on and after the Shark Tank.
| Company Name | Gatsby Chocolate |
|---|---|
| Founders | Ryan Bouton, Doug Bouton |
| Founded | 2021 |
| Product | Low calorie chocolate bars |
| Ask | $500,000 for 5% equity |
| Deal | $250,000 for 20% equity + $250,000 as a loan for 6% interest. Stake increases to 30% at $10 million in sales and again to 40% at $50 million in sales |
| Sharks | Lori Greiner, Mark Cuban |
Gatsby Chocolate Shark Tank Update
Ryan Bouton and Doug Bouton pitched Gatsby Chocolate in the first episode of Shark Tank Season 15 and secured a combined deal from Lori Greiner and Mark Cuban.
Our team follows founders and companies that appear in Shark Tank. Luckily, we got a chance to interview Ryan Bouton about his experience after the Shark Tank.
We asked about their experience on the Shark Tank and whether it was scripted or genuine.
Ryan said the show is “totally unscripted and genuine. The sharks are really supportive and lend their full and undivided attention to you.”
Our next question was about their revenue growth after airing the episode, and Ryan shared his experience with us.
Ryan said, “We had a bit different experience than other companies that appear on the show. Gatsby Chocolate is only available at Walmart’s offline stores, so we didn’t see any major growth in sales because we don’t sell it online. However, our website and social media were flooded with traffic when the episode was aired, and it lasted for 3 days.”
After that, our next question was about the deal with Lori and Mark.
Ryan said, “The deal hasn’t been finalized yet; however, things look good. “We’ve had weekly conversations with Mark and Lori, and the deal is almost done now,” said Ryan.
Mark has already mentioned us on TV and his social media accounts, and both sharks have shared some great ideas on branding and packaging.
As of March 2024, all agreements were done between Gatsby founders and Lori Greiner Mark Cuban. Gatsby Chocholate is available at Walmart nationwide and in some Sprouts locations. You can locate the stores on the company’s website.
Recently, they launched the “Buy 2 Get 1 Free” program when purchased at Walmart. You need to text them a copy of your receipt, and they’ll refund you for the price of one bar.
We’re thankful to the Gatsby founders for providing authentic updates about the company. If we get more details, we come up with a fresh Gatsby update!
More similar company updates from Shark Tank:
About Gatsby Chocolate
Gatsby is a Low-Calorie chocolate brand founded by Dough Bouton & Ryan Bouton. Their products have mind-blowing flavors that will melt and leave a long, delicious taste in your mouth.
All this is done while keeping health in mind, and still, there is no compromise regarding taste.
Interestingly, Doug Bouton is also the co-founder of Halo Top, a popular low-calorie ice cream brand. The founder wants to repeat its success with Gatsby Chocolate.
Gatsby Chocolate Shark Tank Pitch Recap
The founders started their pitch with an ask of $500,000 for a 5% stake in the company.
John: I am out.
Founder: We know you must try to believe in our product, so dig in.
John: And, by the way, I am just joking.
Barbara then asked about the company’s Hero-Product. To which the founder revealed that Peanut Butter Madness is their best-seller.
Shark Lori tried the Gatsby’s Fudge Brownie and really liked its taste.
Founder: Yeah, that is my favorite too. It tastes like brownie batter.
Kevin: Are there any artificial sweeteners in here?
The founder said that they use allulose as their main sugar replacement.
Lori: But here’s something I want to share that I really love. Your fudge brownie is huge and yet has only 190 calories for the whole.
Kevin: Where are you selling your products currently?
The founder said they sell nationally on Walmart, Safeway, Albertsons, and Sprouts. They have more than 6000 points of distribution.
The discussion then moved toward revenues when Barbara asked about their revenue figures for the last 12 months.
Founder: So, sales last year were about just over $2.5 million, most of which was in the fourth quarter.
Mark: Congratulations, that’s amazing. What do you charge for your products? How much does it cost you to make?
The founder said that their top-seller product retails for $3.99, and they sell wholesale for $2.70. At the same time, the manufacturing cost is about $1.90 per bar.
Founder: We are running at about 35-40% margin. However, we have a clear path to about 50% plus, and we had a negative margin last year.
Lori: You can fix that.
Candace: Obviously, you’ve done really well for yourselves, so why do you need a shark?
Founder: Well, the main thing is if you had asked me that a couple of years ago, I probably would have thought that I don’t need you. But I romanticized the early days of startup life way too much.
There’s a missing puzzle piece here where we need help. We actually have a national distribution without national awareness.
The sharks all understood that the founders were here looking for expertise to build brand awareness. So, the discussion has now moved towards brand building.
Lori: Where does your brand name come from? I am so lost on your brand name.
Found: The name is inspired by a book called The Great Gatsby. I thought it would be a great name to play on premium, decadence, and indulgence.
Candace: But it doesn’t fit your product at all. I don’t love it.
Lori: I totally agree with you. When I looked at this, I knew it was a chocolate bar, but beyond that, I had no clue. For a while, I thought it was a liquor-flavored chocolate.
Kevin then asked about current cash flow, to which the founder said they don’t have any free cash flow. And their projected sales for this year are about $2 million.
Kevin: How much did you lose?
Founder: We lost $3.5 million last year.
Kevin: So, you are asking $500,000 for 5% at a valuation of $10 million. And you don’t have any cash flow. Do you see any problem with that?
Founder: No, I don’t. We have credibility.
John: Yes, you guys have done a great job. But I don’t see how I can add any value here. Instead, I would be asking you for advice. So, I am out.
Lori then offered $500,000 for 20%, and she would have them redesign their packaging and rebrand. Kevin then jumped in as well and gave an offer of $500,000 for 12%.
Candace: This product is delicious. But, when I saw your packaging, I knew men were behind it. This does not appeal to me as a woman. You desperately need Lori to rebrand. I am out for now.
Lori and Mark then gave a new offer collectively, which was to give $250,000 for 20% and $250,000 as a loan at 6% interest. When the company hit $10 million in sales, they would get another 5% equity each. And another 5% each for 20 million sales.
Founder: My only issue with the 10 and the 20 is that we can’t exit. We need to be a little higher. The second trigger for 5% equity should be $50 million instead of $20 million.
Mark and Lori accepted it, and Gatbsy Chocolate got a deal on Shark Tank.
Final Words
Gatsby Chocolate gained massive popularity after airing the episode. The brand was featured in many popular news portals. After a few months, they signed the agreement with both sharks. We hope that Ryan, Lori, and Mark will make Gatsby a billion-dollar company in the future.
