Kodiak Cakes was started in 1982 as a brand of pancake and waffle mix. They also sell individual items such as oatmeal, frozen prepacked waffles, frozen pancakes, protein bars, brownies, and food syrups.
Kodiak Cakes uses 100% whole grain wheat flour, 100% whole grain oat flour, sugar cane, pea protein concentrate, brown rice protein concentrate, which is very healthy for the consumers. It also serves fruit-flavored syrup on its cakes.
Kodiak Cakes at a glance:
| EPISODE NO. | Season 5 Episode 22 |
| BUSINESS IDEA | A brand of pancake and waffle mix |
| FOUNDER | Joel Clark And Cameron Smith |
| ASKED FOR | $500,000 For 10% |
| ACCEPTED OFFER | No Deal |
| SHARK | No Shark |
| BUSINESS STATUS | In Business |
| WEBSITE | Kodiak Cakes |
Index:
Founder Story:
Joel Clark and Cameron Smith are the founders of Kodiak Cakes. It all started with a simple family recipe and a red wagon. Joel’s mother Penny had learned a few recipes from her dad to make healthy and nutritious pancakes, which were really loved by her own family.
When Joel was 8, she sent him a few samples of pancakes along with the recipe written on them. When Joel came back, he was empty-handed which meant he had sold all the packets. From there, Joel slowly came into this business and then he teamed up with Cameron Smith. They both worked very hard and made Kodiak Cakes a popular brand of pancake and other healthy eatables.
Did Kodiak Cakes get a deal on Shark Tank?
Cameron and Joel came into Shark Tank with not only requirements of investment but also seeking shark expertise, marketing strategies, and for their business growth and expansion. They came up with the required investment of $500,000 for 10% of the equity in their business. They served a few samples in front of the sharks during the pitch, after which the sharks asked a few questions related to the sales, margin, and need for investment.
Joel replied that they needed investment so that they can grow their business and its profitability. Kevin O’Leary was the first to give an offer of $500,000 for 50% of their business, but he withdrew the offer by himself as he already knew that the pair would reject it. Robert gave an offer of $500,000 for 35% of equity to which they requested Barbara for an offer and she gave an offer of $250,000 for 25% and wanted any other shark to join, to which Kevin joined her with the same offer of $250,000 for 25%, which made the offer $500,000 for 50%.
Mark Cuban found the business in a bit of trouble and moved out. Lori Greiner didn’t find this business of her type and turned out. Three offers were on the table but the pair didn’t choose any, as all the offers were lowering down their valuation and they moved out with no deal in hand.
What happened to Kodiak Cakes after Shark Tank?
As in the show, the pair didn’t take any deal, even then they still didn’t lose their business; they worked and enjoyed enormous success in it. They slowly increased their relations with retailers and have become official foods for diabetic living, Shape magazine, weight watchers, and a few others. Even though they didn’t receive the deal as per their expectation, they gained popularity from the show which made the product’s movement into motion. Before it had a valuation of $6.7million and after a few years, it came to $160 million in 2019.
They were forecasting and working to make their sales around $20million in the upcoming four years. In 2016, they had $16 million in sales but by 2020, they had a valuation worth $200million. It included a few new products, which include Oatmeals, protein snacks, and different flavors of waffles.
In the year 2021, it was acquired by a Private Equity Group for an undisclosed amount and the records say that Joel and Cameron are still working for it. When they started, their initial target was $260,000 to which they forecasted the revenue of $1million in future sales.
Kodiak Cakes net worth:
At the time of the shark tank appearance, Kodiak Cakes was valued at around $5 million as per the founders, and currently, they got acquired. They gained popularity from the Shark Tank show which increased their sales. They are available on various official online platforms along with their own website. They have their products in around 26000 retail stores, which smoothly fills the pocket of the business to run effectively and efficiently.
They have different flavors and variations in their hands, they sold the products individually, which increased their own market and turned them more competitive in front of others.
Competitor analysis:
Yet Kodiak Cakes has few competitive products in its hands, its sales can be affected by its few competitors in the market which are:-
- The Prepaid Pantry
- Simple mills
- Birch Benders
- Lehi Roller mills
- Hillside lane farm
Is Kodiak Cakes still in business?
Kodiak Cakes walked out of Shark Tank without any deal but the popularity it gained through the show, certainly proved beneficial. It has grown even more and expanded the business to more retailers. It has become very important food for many different markets like Weight Watchers, Diabetic Living, and Shape Magazine.
In 2016, the company made $16 million and by 2020, they were spread over 26,000 stores and earned $200 million. In May 2021, they were acquired by an anonymous amount by a private group of equity- L Catterton and in November 2021, both the founders have been working for the company. It is completely safe to say that the company will do great in the near future.
Interesting facts:
Few interesting facts about it:-
- It serves flavored fruit syrup
- It got its name Kodiak from the Island of Alaska
- It follows an undivided family business model as Joel is following her mother’s business
- It is completely healthy to eat.
- It is free from unwanted preservatives.
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What is Kodiak Cakes?
Kodiak Cakes is a brand of pancake and waffle mix, started in Utah. It also sells individual items such as oatmeal, frozen prepacked waffles, frozen pancakes, protein bars, brownies, and food syrups.
Who founded Kodiak Cakes?
Joel Clark and Cameron Smith are the founders of Kodiak Cakes. It all started with a simple family recipe and a red wagon. Joel’s mother Penny had learned a few recipes from her dad to make healthy and nutritious pancakes, which were really loved by her own family.