Brothers and cofounders Ryan Bouton and Doug Bouton pitched their chocolate company during the season premiere of
If you’re short on time, here’s a quick overview of what happened to Gatsby Chocolate after
Ryan Bouton and Doug Bouton appeared on
|Mark Cuban and Lori Greiner||Accepted deal of $250,000 for 20% stake, plus $250,000 loan for 6% interest. The stake will increase to 30% when sales hit $10 million and will increase again to 40% when sales hit $50 million|
|Kevin O’Leary||$500,000 as venture debt for 12% equity|
|Candace Nelson||No offer|
|Daymond John||No offer|
Shark Tank Gatsby Chocolate Update
- Entrepreneurs: Ryan Bouton and Doug Bouton
- Business: Chocolate brand with less sugar and calories
- Ask: $500,000 for 5% equity
- Result: $250,000 for 20% equity, plus $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
- Shark: Mark Cuban and Lori Greiner
Brothers Ryan and Doug are all smiles as they enter the
The brothers call it the “Halo Top” of chocolate, and they can say that because Doug just so happens to be the co-founder of Halo Top! They’re hoping to make Gatsby Chocolate an industry leader in the same way as Halo Top.
At the time of filming, Gatsby Chocolate is sold nationally in Walmart, and at Albertsons, Safeway, and Sprouts. Further, they have more than 6,000 points of distribution.
In the previous year, sales were just over $2.5 million, most of which came in the fourth quarter. Gatsby Chocolate bars retail for $3.99, and wholesale for $2.70.
As far as manufacturing goes, it costs about $1.90 to make each bar. This also means that their margins are right around 35%-40%, however, Doug says they have a clear path forward to 50% margins.
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Unfortunately, there still isn’t any cash flow yet, plus the company lost $3.5 million in the previous year.
Daymond John chimes in, and while he loves the product, he doesn’t feel he can add any value. He thinks he’d be calling Doug for advice, instead of the other way around, so he is out.
Lori is interested and offers $250,000 for 20% equity, plus another $250,000 as a loan at 6% interest. She says she is in it to win it, and will also help them redesign the packaging.
Kevin O’Leary offers $500,000 as venture debt for 12% equity in Gatsby Chocolate.
Guest shark and founder of Sprinkles Cupcakes, Candace Nelson, loves the chocolate, but she isn’t a fan of the branding. She goes out, but not before putting in a vote for the guys to team up with Lori.
Eventually, Mark Cuban and Lori team up to offer $500,000, with half as a loan, and half as equity for 20%. Additionally, when they hit the first $10 million in sales, the equity jumps up to 30%, and 40% at $20 million in sales.
Worried that they won’t be able to sell the company under those terms, Doug counters with the same deal that they offered but says that the 40% equity doesn’t hit until they reach $50 million in sales.
With that, Mark and Lori agree, and the brothers leave
In terms of a Gatsby Chocolate update, we got the chance to interview Ryan to see how things have gone since
We asked Ryan what the best part of
In terms of sales, Ryan shared that they had a bit of a different experience compared to some other
“We are available nationwide at Walmart, but not online,” Ryan told us. “So we don’t have direct sales numbers yet, but we did get a large surge in web and social media traffic that lasted for about 3 days.”
As for the deal with Mark and Lori, Ryan told us that it hasn’t been finalized yet, but things are looking good. “We’ve had weekly conversations with Mark and Lori and the deal is almost done now,” said Ryan.
“Mark has mentioned us on TV and his social channels a few times already and both have offered more ideas on branding and messaging.”
Gatsby Chocholate is available in Walmarts nationwide and in some Sprouts locations. You can use the store locator on the Gatsby website to find a retail location near you.
Oh, and they offer a buy 2 get 1 free incentive when purchasing from Walmart. You just need to text them a copy of your receipt and they’ll refund you for the price of one bar.
We’d like to thank Ryan for giving us a Gatsby update and can’t wait to see what happens next!
In the meantime, check our other Season 15 Episode 1 updates here:
For even more on companies and products, be sure to stop by our Season 15 Products Page!
Jennifer is an avid Shark Tank fan that has been watching the show for years. She serves as Senior Editor at Shark Tank Recap and ensures that all our information is accurate and that our posts are up to date. Her favorite Shark Tank products are Le-Glue and Ring!