Honey Bunchies – All-Natural Energy Bar
NO DEAL
EPISODE SUMMARY
🕓 Air Date: April 14, 2023
Asking For:
$200,000 for 10%
Investor:
No Deal
Deal:
No Deal
PRODUCT SUMMARY
Honey Bunchies offers honey-based gourmet energy bars made with 42% pure honey, crunchy nuts, and roasted sunflower kernels, providing a unique and healthy energy snack option.
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Background Story
Honey Bunchies is a family business founded by Kendra Bennett’s parents. Kendra’s father was a fighter pilot in Vietnam who struggled with his health due to a lack of nutritious snacks. Kendra’s mother created a honey-based snack to provide him with a healthier source of energy. Years later, Kendra’s father attempted to recreate the recipe and ended up developing a unique honey bar, which they eventually launched as Honey Bunchies.
The company started in 2010, and they began retailing in 2013. They secured their first major retailer, Whole Foods, and expanded to 1,200 stores. Honey Bunchies products have gained popularity in various states and even non-grocery stores. They faced challenges and financial setbacks, especially during the COVID-19 pandemic, but their determination and hard work helped them persevere.
The Product
Honey Bunchies energy bars are made with 42% pure honey, mixed with crunchy nuts, and covered in lightly salted and roasted sunflower kernels. The bars are gluten-free, grain-free, and soy-free, with the coconut almond variant being peanut-free and dairy-free.
They offer a healthier alternative to traditional energy bars and snacks. The bars are sold at a retail price of $2.99, with a production cost of 81 cents per bar. The company is currently experiencing year-to-date sales of $300,000, with a projection to reach $519,000 by the end of the year.
For the following year, they anticipate a significant jump in sales, estimating between $2.2 to $4.2 million. This projection is based on several factors, including a partnership with 7-Eleven, three nationwide distributors, an expected increase in online sales due to the additional exposure, and a private-label client affiliated with world-famous athletes.
How It Went
The company’s position before Shark Tank
Honey Bunchies is already available in 14 7-Eleven stores and has a proof of concept showing that the product sells well. They have expanded to 1,200 stores, including national retailers like Whole Foods, Kroger banners, King Soopers, City Market, and Natural Grocers, across 19 different states. They also have a presence in independent shops nationwide. The company has shown the ability to scale, and they have ambitious growth plans.
The Negotiations:
Despite Kendra’s optimistic projection of sales and the company’s achievements, none of the Sharks made an offer. Mark Cuban, Lori Greiner, Daymond John, Kevin O’Leary, and Barbara Corcoran all expressed concerns about the highly competitive nature of the energy bar market and the uncertainty surrounding the sales projections.
While they praised the product, they ultimately didn’t see a clear path to significant returns on their investment, given the valuation and the risks involved. Kendra made an emotional plea for an investment, emphasizing her family’s dedication and hard work. However, the Sharks remained cautious, and no deal was struck. Despite the outcome, Kendra remained optimistic and determined to continue building her business.
