Katie Sanches and Melissa Elims appeared on the shark tank in 2016, with their product Bee Free Honee, they introduced it as a substitute for honey. They went on the show asking for the investment of $100,000 for 10% of the company stakes.
According to the founder, Katie Sanches Bee Free Honey “lets the bee rest for once.” Bee Free Honey is a vegan substitute for honey made from Michigan apples. The product is available in five flavors original, Ancho Chili, Mint, Chocolate, Slippery Elm. The team walked home with an investment of $210,000 for 30% of the stakes.
Bee Free Honee at a glance:
- Completely vegan substitute for honey.
- Founder: Katie Sanches and Mellissa Elms.
- Asked For $100,000 for 10% at $1million valuation on Shark Tank.
- Received $210,000 for 30% from Mark Cuban, Barbara Corcoran, Chris Sacca.
- Currently out of business.
Index:
Who is the Founder of Bee Free Honee?
Katie Sanches has had years of experience as a pastry chef, In 1999 while making her apple jelly at home Katie realized that she had made a mistake and it didn’t turn out the way she wanted it to be, she left the jelly in the container overnight and next day that had turned into a honey-like liquid substance.
Katie Sanches spent the next four years repeating the same mistake. She was finally able to make it. The primary motive of Bee Free Honey was to keep bees safe. Katie states the bees are fed corn syrup and sugar which creates an environment they aren’t naturally made for.
Even after inventing such a product and trying to market the product Katie was still struggling with building a proper business. Sanches met Elms in 2013 at a food industry trade where Elms were representing a California juice product. Elms later became 49% of the stake owner of the company.
Melissa elms helped market the company and helped get the product on store shelves and website sales grow. In 2016, the owners came to the sharks for a bigger investment for the expansion of the business.
How was the Bee Free Honee Shark Tank pitch?
Katie and Mellissa approached the sharks for the investment of $100,000 for 10% equity. They told the investors that it takes 60000 bees to make a pound of honey and that Bee Free Honee is the only substitute available in the market.
As they hand out the sample Sanches explains they use apples, lemons as the preservative, and cane sugar to give it a honey-like texture and the investors seem impressed with the product.
Investors further ask them why anyone would want a substitute for honey to which Katie replies. It helps reduce the declining population of bees and is a good alternative for people who have a vegan diet.
Daymon John says he understands the business as he has invested in bee-related business before, he asks the owners about the cost of Bee Free Honey compared to honey available in the market, to which Katie and Melissa explain that one bottle of Bee Free Honey costs $1.62 and retails for $5.99 which is much less than the honey available in the market.
Further, Barbara Corcoran wants to know about the sales of the product to date, Melissa explains that Bee Free Honey is sold at nine out of eleven regions of whole foods stores and has made sales of $780,000 last year. The investors ask the duo why they think the company is worth $100,000.
Melissa explains that they have been in contact with Costco and they are preparing for a massive supply of products throughout the United States. This investment could help them get a larger kitchen which in turn will help them produce the product in large quantities.
Barbara and mark both like the product and suggest they could advertise “saving bees” through this. Daymond john further states that if the company could state how many bees were saved with the product and donate to any bee organization he would be interested in investing $100, 00 for 25% of the investment.
Guest shark Chris Sacca also seems interested and thinks $100,000 won’t be enough so he offers $200,000 for 30% of the stakes. Barbara and mark after having a conversation with themselves they came to the conclusion that they both and Chris Sacca could make a great team for Bee Free Honey.
Mark offers $210,000 for 30% of the stakes which means each of them will invest $70,000 for 10% of the stakes. Both Katie and Melissa say the offer is too good to refuse and they both agree with the deal.
How Bee Free Honee make money?
During the pitch, Melisa revealed that the product is sold at 9 out of 11 regions of whole food stores and was about to supply their product at Costco. The production of the product costs $1.56 and retails for $5.99 across the nation.
The company had made a profit of $750,000 in 2015. In 2018, the Bee Free Honee was sold at 3000 stores nationwide including whole foods. 60% of the sales were from retails and 40% were through the website. They made an annual gross revenue of $1 million last year.
What happened TO Bee Free Honee after Shark Tank?
With the investment from shark tank, the company was able to relocate their production to Texas which provided them with facilities to produce more.
In 2019, the company announced they are shutting down the production of Bee Free Honey. Katie Sanches continues to share her experience and her journey to spread awareness to save the bees.
Bee Free Honee net worth:
The founder of the Bee Free Honee went on the shark tank to ask for an investment of $100,000 for 10% of the investment. Bee Free Honee was valued at $ 1 million at the time of the Shark tank pitch.
They received $210,000 for 30% of the company stakes as the trio Barbara’s Corcoran, Mark Cuban, and Chris Sacca offered $70,000 for 10% of equity for each.
Do Share Your Thoughts:
Do tell us all your thoughts in the comments section below, we look forward to reading all the comments in the section below.
Also, do check useful Startup Resources and Tools below and do join our newsletter 📰 for free for more interesting Business Case Studies 💰, Startup knowledge 🚀, and Startup founders podcast 🎙️ delivered to your inbox every Sunday morning.
Do follow us:
Related Articles:
- Cereal Killerz Kitchen-Cereal Bar: What Happened After Shark Tank?
- Elephant Chat: What Happened After Shark Tank?
- Minus Cal: What Happened After Shark Tank?
- Toygaroo: What Happened After Shark Tank?
- Beer Blizzard: What Happened After Shark Tank?
- Grill Charms: What Happened After Shark Tank?
FAQs:
What is Bee Free Honee?
Bee Free Honey is a vegan substitute for honey made from Michigan apples. The product is available in five flavors original, Ancho Chili, Mint, Chocolate, Slippery Elm.
Who founded Bee Free Honee?
Katie Sanches and Melissa Elims appeared on the shark tank in 2016, with their product Bee Free Honee; they introduced it as a substitute for honey. They went on the show asking for the investment of $100,000 for 10% of the company stakes.
