The sharks were biting on low-ABV on the season premiere of ABC’s Shark Tank.
Dad Strength, the maker of 2.9% ABV IPAs, generated interest from four of the show’s investors.
Founders Ryan Kutscher and Craig Carey offered the sharks 5% of the business for $250,000, putting a $5 million valuation on the brand.
Dad Strength generated $230,000 in sales in 10 ½ months since launching with a self-distribution model, with grocery retailers Trader Joe’s, Whole Foods, Giant and Safeway buying in, Kutscher and Carey shared during their pitch. They expect to finish the year with $500,000 in revenue.
“Shark” Kevin O’Leary was willing to offer the duo the $250,000 they were seeking, but he wanted a 33.3% of the business. Carey immediately rejected the deal.
Rashaun Williams, who co-founded capital fund Queensbridge Venture Partners, and Robert Herjavec, offered to split the $250,000 for a 10% of the company (5% each). However, QVC star Lori Greiner jumped in, suggesting they split $300,000 for 15% of the business (5% each).
Carey countered with $300,000 for 12% of Dad Strength, which the investors bit on.
The show closed with a disclaimer noting that on-camera deals are “contingent upon due diligence and the signing of a binding written agreement between the entrepreneur and the Shark(s).”
Kutscher told Brewbound that he and Carey “have a signed term sheet and are feeling good!”
In other Shark Tank beverage-alcohol news:
- Uncle Nearest Premium Whiskey co-founder Fawn Weaver will serve as a “guest Shark” during this season of the show. A receiver was appointed to take control of the company amid a lawsuit brought by its lender, Farm Credit Mid-America, alleging the whiskey company failed to meet its financial obligations for more than a year, resulting in debts of around $108 million.
- And Robert Herjavec will be a featured speaker at the National Beer Wholesalers Association’s 88th annual convention in Las Vegas October 12-15.