David Scharfman pitched his cheese snack company during
If you’re short on time, here’s a quick overview of what happened to Just the Cheese after
Entrepreneur David Scharfman appeared on
|$500,000 for a $0.20 royalty per bar in perpetuity
|$500,000 for $0.15 a bar until $750,000 is paid back
|$500,000 at 15% equity
Shark Tank Just the Cheese Update
- Entrepreneur: David Scharfman
- Business: Keto cheese snack bars
- Ask: $500,000 for 5% equity
- Result: No deal
- Shark: None
David Scharfman comes from a family of Wisconsin cheesemakers. After several attempts to bring Wisconsin cheese to market in Asia (and just as many failures), David vowed to try something different and Just the Cheese was born.
It’s true what they say, cheddar gets better with age! This 100% Wisconsin Baked Cheddar will startle your senses with crunchy, cheesy goodness that is not only delicious, but it’s low carb as well! As soon as you take your first bite, each crunch will release an explosion of cheddar flavor in your mouth.
These keto-friendly bars contain only shredded cheese without any rice or fillers. Additionally, they sell in a pack of two and there are several flavors to choose from, including grilled cheese and aged cheddar.
Each bar only has 75 calories, and they’re keto-friendly. Further, Lori Greiner shares that she has bought them from Amazon before.
Still, the sharks have issues with the company from the beginning. It’s simple, but guest shark Daniel Lubetzky assures David that there are companies already doing this. Despite this, Just the Cheese has some great sales numbers.
They’ve done $3.7 million in sales during the year of filming. They are in 700 retail stores, just cleared some POs with 7/11, and sell on their website and Amazon.
Each bar costs them $0.95 to make and they retail for $1.99. As Kevin O’Leary points out, the 17% – 20% profit margin here is bad.
Despite the bad margins, Kevin O’Leary makes an offer of $500,000 for a $0.20 royalty per bar in perpetuity. He can bring a lot of marketing expertise.
Before David can react, Robert Herjavec drops out. He doesn’t like the taste, but he thinks that the entrepreneur has done a great job.
Daniel drops out as well. He thinks that David has superior branding, but there is no space on the market because there are tons of competitors.
Lori follows, saying that the small equity and competition-heavy field aren’t for her.
Mark Cuban is the last to leave the deal, saying that at the proposed valuation, the equity isn’t worth it for him. It’s too much risk, so he drops out.
This leaves Kevin’s offer, and he emphasizes that it’s a no-equity deal. However, this is apparently too much for Lori.
She comes back in, offering $500,000 for $0.15 a bar as a perpetual royalty. Eventually, David asks for a pen and paper so he can do the math, then counters with a $0.05 royalty per bar for ten years.
Lori wants to stay at $0.15 but revises it to be until she recoups $750,000. David argues that this puts too much stress on the business.
In all of the back-and-forth, Mark decides to come back in as well. He offers $500,000 at 15% equity, with no royalty.
Lori drops out after this, and David immediately declines Kevin’s offer.
He counters Mark for 7.5% equity, but Mark refuses. David finally says that he just can’t do it, so he leaves
Could this have been a missed opportunity for the sharks? Keep reading our
Research for our Just the Cheese update revealed that the company is still in business. However, in 2022, it was sold to John B. Sanfilippo & Son, Inc. for an undisclosed amount. However, at the time of sale, it was bringing in an estimated $4 million a year.
The company has been featured by the New York Times, The Boston Globe, Food Network, Today, and a host of other publications. Products are available on the Just the Cheese website, Amazon, Target, and Walmart.
As for David, it looks like he is now the co-owner of Specialty Cheese Company, which develops authentic and innovative cheeses.
While it looks like this will be our final Just the Cheese update, perhaps we will see David back in the tank one day with another cheese-related company!
You can find the other company updates from Season 11 Episode 19 here:
Don’t forget to take a look at our Season 11 products page! We’ve got more company updates from
Andrew Smith is the founder and owner of Shark Tank Recap. He is a longtime Shark Tank fan that has been watching it for years and has seen every episode multiple times. His friends know him as the Shark Tank expert, because he can answer any question about the show! His favorite Shark Tank products are Bertello's pizza oven and Bug Bite Thing!