The Sharks Call “BULL” On Deliciou’s $1.2 Million Valuation | Shark Tank AUS | Shark Tank Global

First into the tank is someone who's Created a flavor that he believes is Irresistible to sharks [Music] Hi sharks my name is Kettle and I am the Founder of delicio I'm here to seek three hundred thousand Dollars 25 equity in my company I recently introduced a unique and Amazing spice mix to Australia i Invented bacon seasoning and it makes Anything taste like bacon Pasta Burgers popcorn roasted veggies Green beans and even steak [Music] And just when you thought it couldn't be Good enough it is even low in calories Low fat low sodium and vegetarian People are going nuts for my seasoning Customers are purchasing repeat orders Restaurants are using it in their food And retailers are selling out Since I started this business less than One year ago I have generated more than Sixty thousand dollars in sales But what's even more exciting is that Almost half of that Revenue was created This month [Music] But what I've learned from my customers Is that there is a need in the market For more exciting seasonings so with an Investment from you I will expand my

Range of products And provide people all around the world With the most exciting cooking Experiences they have ever had So sharks who wants to join me in Revolutionizing the seasoning industry And make everything taste delicious [Music] Kettle thank you very much so 300 000 For 25 value in the business at 1.2 Million that's pretty interesting Evaluation for sixty thousand dollars Worth of sales no doubt you'll convince This give it a try you have a bacon Flavored popcorn in front of you So before I eat it Kettle always want to convert is it Gluten-free there might be a traces of Gluten is there nut-free uh there might Be traces enough is there dairy free uh No it contains Dairy okay the vegan Paleo organic uh no Okay I'll eat it [Music] Should be fingers We're talking about the product How do you get Stuff that tastes like bacon without Using bacon so if you think about bacon It's really just a smoky Savory mix and All of those flavors can be replicated Through vegetables and a small flavor Well it says suitable for vegetarians Here so you're going to have to support

That with with science that's good Kettle it's an unusual name and you have An accent tell us about your background Where are you from uh I'm originally From Norway actually from Norway yeah I I can snuck a lit North yeah yeah yeah So whereabouts in Norway I'm from the Southern Parts Christian Sanders Christian said yeah sounds great what Brought you to Australia so I decided to Move to Melbourne started a master's Degree in Business there but honestly I Spent too much time watching Shark Tank When I shoot up into lectures yeah um That and it has inspired me so much to Start my next business oh great well We've achieved something then that's Good You just said you did thirty thousand Dollars in the last month of sales is That correct yeah it's about twenty nine Thousand dollars so let's go through the Dynamics and the economics one bottle Costs twenty dollars if you buy it Individually more than ninety percent of My sales are selling a four pack so if You buy a four pack you get it for 39.95 And I pay for shipping Total costs after shipping from me to The customer is about fourteen dollars And uh 76 cents fifteen bucks on on a 40 Bucks sale yeah 39.95 Kettle you said earlier on that you uh You enjoyed watching the Shark Tank TV

Show Um something makes me think it didn't Didn't comprehend with you mate You've actually come with a very Impossible last of fun because of the 300 000 bucks is what you need right You've asked for 25 pretty sure it's 1.2 Million evaluation right It can't be done It's 300 000 bucks what would you value This business at Yeah so I value it at 1.2 I know you Value to that but you can sit in my Chair here we can swap if you want and You can give it a go Do you want to sit in here and I'll Pitch you a business doing 60 000 bucks And see what you say Kettle I'll get this great business for You mate bacon flavored sprinkles make Anything taste like bacon 60 000 bucks Worth of sales in the last six months I Reckon it's worth 1.25 million what do You think [Music] That sounds fantastic See you're in you have uh repeat Customers half your Revenue was created This month You have scalability okay so how about How about this it's been raining thanks For coming thanks for coming Steve Thanks for coming Steve you're out Good

Response well done you call this robot Body ridiculous one day I'll be here So Kettle is your 30 second Pitch to Justify that huge valuation 1.2 million Let's go for it I have generated 30 Almost 30 000 of Revenue through only Facebook ads we still have multiple Channels that we haven't activated yet [Music] You've got about 10 seconds left I'd Start talking numbers we are estimating To have at least six hundred thousand Dollars this year without an investment 5.8 million dollars next financial year Without an investment but if I can get Three hundred thousand dollars I'll do More than 25 million dollars next Financial year 25 mil Be careful don't don't throw numbers out Like that when you when it's actually Just really fanciful When you're talking to investors you Lose all credibility Because there's not a hope in hell that You'll be able to achieve what you're Talking about achieving in that time Frame Is this product your creation you've got The recipe is it yeah so the final Recipe is with my contract manufacturer Right so they own the final recipe for This product So you don't own the IP on this one uh

No And one of the reasons why I'm here Today is not to focus so much on these Particular bacon seasoning it's more About all the new flavors sorry that's a Really cool question red red light red Light You are tied to a manufacturer because He owns the IP If he wants to double the price of the Product because you've become really Successful and you've done a great job Then you can't take that product away From him and give it to another Manufacturer to create correct Uh I don't have access to recipes I Couldn't do that that's correct I pay your supplier has you by the balls They're bacon flavor Bulls though so It's not too bad [Music] I'm out Mike I think that the IP issues that We're hearing about here which is Exceptionally real and the fact you Threw a red flag at us and said well That's okay I've got other products Tells me how bad that issue is You've been to Business School You actually know that this is an Impossible business valuation I cannot fund 300 000 bucks on any Percentage in this business I love it I'm gonna enjoy it thank you very much

I'm out an awesome pitch okay thank you So much for your feedback [Music] The evaluation is smoking hot Way too hot for me I can tell you and And unfortunately I've got to burn you I'm out Thank you for your feedback appreciate It thank you Congratulations on what you've done I Don't think this is going to be your Thing you will find your thing and I Look forward to seeing it biggest deal I'm out thank you So then there was one Kettle you are one cool Norwegian dude I'm going to make you an offer oh But it's subject to a couple of Conditions so the first condition is That you and I are going to sit down With your contract manufacturer and We're going to own the IP because the Horse hasn't bolted yet The second thing I need to be sure that This is suitable for vegetarian Ingredients and this will be eligible to Work under that heading in the U.S Market because I see a big market for This pizza chains fast food chains and a Whole bunch of other companies that want The bacon taste without the bacon Ingredients that I think is a big Market [Music] Three hundred thousand dollars I'm gonna

Take a big risk 45 oh bite his hand off you grab that You you need me to bail you out of this Hole Might you only get someone along every Now and again I thought he was going to take 90 so You can have you can have control but It's subject to those two things he's Having a geriatric moment let him go Then we get to the U.S market get him Before he wakes up that's an executive Dream state Yeah Thank you so much Leo for I'm really Honored [Music] It's hard for me to go from 25 to 45 Percent In business I've learned that you have To set limits uh that's at some point Um My body's hand off In business I've learned that you have To set limits uh that's at some point So would you be able to come down Foreign Can I take 20 seconds I think sure [Music] Okay we have a deal Let's go Get up to see it Is a very smart decision yeah and to be Fair he gave you better advice than the

Rest of us let's go back and renegotiate It yeah we're on kettle Yes oh my God I completely misread that I thought we were all going out

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