At age 8, Joel Clark was selling his mother’s pancake and waffle mixes in the neighborhood. The products were a hit! Joel later took over his mother’s business and partnered with Cameron Smith. They pitched the product on Shark Tank but turned down a deal. The Sharks missed out on a big opportunity! As of 2024, Kodiak Cakes has a market cap of $160 million.
Founder Profile
Joel Clark grew up in a health-conscious family in Salt Lake City, Utah. His mother prepared only whole foods and baked goods for him and his four older siblings. There was no junk food in the house.
It is certain that Cameron Smith had a different upbringing than the others. He is from Park City, but not much is known about his family background. Cameron and Joel first met after graduating from college.
The Birth of Kodiak Cake
Kodiak Cakes was born in 1982 when Joel Clark was eight years old. His family decided to sell their whole-wheat pancake mix recipe. In 1994, his brother Jon started the company with the goal of making a healthy product that tasted great. They made nearly $60,000 in the first two years, but the profit was slim.
After securing a $35,000 investment from a local businessman, the company expanded to local grocery stores and larger retailers like Target. In 2009, Joel hired Cameron to lead sales and marketing strategy. Together, they helped the startup achieve $3.5 million in sales in 2013.
Shark Tank Trading
Joel and Cameron wanted to raise money to support the growth of their company. They appeared on Season 5 of Shark Tank and asked for $500,000 for a 10% stake. The $5 million valuation was ambitious, but they were already listed at Target and expected to do $5 million in sales that year.
Unfortunately, the entrepreneurs did not get the feedback they wanted. The Sharks seemed uninterested in the product and unconvinced of its potential. Kevin was disrespectful and thought the company was worth $2 million. At one point, he told Robert to shut up!
Kevin O’Leary offered $500,000 for 50% and backed out. Barbara offered half that, 20%, and wanted to split the deal, and Kevin was happy to work with it. Robert Herjavec made a better offer of $500,000 for 35%, but that was still too much equity. The founders rejected all offers.
Success after Shark Tank
After the episode aired in April 2014, the company generated an additional $1 million in revenue in six weeks! This success helped them raise funds for a new product, a protein-rich pancake mix called Power Cakes. This product was especially popular with bodybuilders.
All of their products are available at Walmart, Target, Amazon, and KodiakCakes.com. The original pancake mix has over 12,300 reviews on Amazon with an average rating of 4.7 stars.
By 2018, the company was generating over $100 million in annual sales and reached $200 million in 2020. Due to its success, Kodiak Cakes was acquired by a private equity firm called L Catterton in July 2021. Since L Catterton is not a public company, no details on the final selling price were disclosed.
The following year, the executive team hired Zac Efron as chief brand officer. Kodiak Cakes currently has annual revenue of $200 million and a valuation of $160 million.
Categories: Shark Tank
Source: svlsf.edu.vn