Daisy Cakes are introduced as a hand-sifted cake made from scratch cakes, no-preservatives are added, no artificial colors are added, having 4 layers in them just as the owner’s “Grandmother’s” and “Grandaunts” made. Daisy Cakes are coming mainly in three flavors that are:
- Carrot Cake – No 1 seller of all time.
- Red-Velvet Cake – Sothern holiday tradition.
- Lemon-First – Newly Launched.
They offer “Jar cakes”. Manikins and various gluten-free options now. The founders of Daisy Cakes Miss. Kim Nelson started his business in the year 2009 by making a few cakes with her Mom in their Spartanburg South Carolina-based bakery. But nowadays it becomes a multimillion-dollar company and shipped its products nationwide.
Daisy Cakes at a glance:
|Episode No.||Season-2, Episode-6|
|Business Idea||Hand Sifted, Refrigerated-cakes-Business.|
|Founder||Miss. Kim Nelson|
|Asked For||$50,000 for 25% of equity.|
|Accepted Deal||$50,000 for 25% of equity and royalty of $1 on each cake until they take their money back.|
|Business Status||In Business.|
Daisy Cakes are formed and invented by “Miss Kim Nelson” with their Mom in their South-Carolina-based bakery in 2009. She has a bachelor’s degree in history from Wofford College. In his college days, she was an active member of their charitable and food distribution part and believes in making people happier.
She wants to spread his traditional family recipe of making a rich dessert for people with a there a native family generational history of cooking and baking cakes. The popularity of his cakes recipe forced him to open his company.
Did Daisy Cakes get a deal on Shark-Tank?
Kim presented his pitch to sharks and asked for an investment of $50,000 for equity of 25% in their company, for that she presented her famous USP cakes flavors to sharks like :
- Carrot cake.
- Red-Velvet cake, etc.
She explains about its methods and the story about their company as all of the cakes are hand-shifted from scratch cakes, there is no any preservatives are used, no artificial colors are used, the cakes are made as to their “Grandmother” and her “Grandaunt” made. Sharks found it so delicious and asked for his sales and revenue.
- She explains that She sells over 2,000 units of cakes every year before the show. Also, they shipped it nationwide.
- She takes her order by their website or by the in-call facility.
- She packed them with dry ice, so they’re frozen till they reach their customers.
- Cost of manufacturing a cake is $18 and they sold it at $44 each.
- She sold approx. $27,000 of cakes in just 3 months before reaching the show.
- She has the potential of making approx. 5,000 cakes in a month.
Sharks didn’t show any interest in investing in Kim’s business as they all are hand-made cakes which can be good for small scale but at a large level, they can’t produce according to the demand of the market. Therefore all Sharks backed himself except Barbara Corcoran who shows interest in Kim’s business they offer him $25,000 for 25% and a royalty of $1 on every cake they sold till they get their money back. Kim accepted her offer and got a deal on Shark-Tank.
What happened to Daisy Cakes after Shark-Tank?
Daisy cakes become popular after Shark-Tank and its sales goes up to 2,000 units in just a weekend (which is sold in a year), they started small-sized cakes and partnered with Palmetto Distillery and Anderson. She started selling and distributing it in all parts of the USA and was able to generate over $100,000 of sales in a month.
She also suffers a loss of $165,000 due to a wrong bakery contract. After which, they shifted their cakes business to their home and started their operations from there. In 2019, they opened another branch of Daisy Cakes in Las Vegas to reduce its shipping cost. In 2020, they sold over 20,000 cakes per year during the Covid-19 situation. Now in November-21, she makes a revenue of approx. $4 Million. And still loved with their customers.
Competitors of Daisy Cakes:
Competitors of Daisy cakes are as follows:
- Baked by Mellissa:- It is a small miniature dessert company founded in 2008, its headquarters are located in New York USA. It is specialized in bite-sized stuffed cupcakes.
- Nothing Bundt Cakes:- It is specialized in hand-decorated cakes for weddings, birthdays, and other occasions. It is founded in the year 1997 and its headquarters are located in Addison, Texas USA.
The following chart represents the revenue and employees of different companies:
|Daisy Cakes||5-25||Approx. $5 Million|
|Baked by Mellissa||100-250||Approx. $5 Million|
|Nothing Bundt Cakes||10k-50k||Approx. $500 Million|
Net Worth of Daisy Cakes:
At the time of the shark tank appearance, Daisy Cakes was valued at around $200,000. Daisy Cakes makes over $4 Million of sales in a year. The net worth of the company is increased up to 20 times from Shark-Tank.
Is Daisy Cakes is still in business?
Daisy Cakes is still in business and doing great in the cake industry. It’s a well-known brand in frozen hand-made cakes area and delivering a legacy to its customers day-by-day.
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