A Cincinnati couple went on "Shark Tank" hoping to land a $500,000 investment, but instead were eaten by the sharks.
William and Kristen Schumacher, of Uprising Food, appeared on the season premiere of ABC's hit show "Shark Tank" Oct. 8 to pitch the company's low-carb, superfood-packed keto chips and keto bread. The duo co-founded the company with Blue Oven Bakery founders Mark and Sara Frommeyer in March 2019, with its headquarters based in Cincinnati.
The couple, who were asking for $500,000 for a 3% equity stake, faced almost immediate pushback from the sharks, with those complaints centered on the company's financials rather than its product.
For instance, the sharks were unimpressed that William Schumacher, a former brand manager for Procter & Gamble, said the company spends roughly $50 per person in new customer acquisition via digital marketing. Likewise, the company's margin on its product post shipping — roughly $3.60 per box of bread — was not enough to attract a bid.
Emma Grede, CEO of denim brand Good American and a guest shark for the episode, said the couple failed to demonstrate how they would become profit despite touting they are projected to hit $5 million in 2021 sales. Famed investor Mark Cuban, meanwhile, warned the couple of "overselling with all the jargon when you have an authentically good product."
"I think if I were to put any money into your business, I would not sleep a wink tonight. It’s not even a business; it’s a cause – the uprising, the battle has begun. The bottom line here is I don’t trust you to protect my money," Barbara Corcoran told the couple as she announced she would not offer a deal.
Despite leaving without a deal, the Schumachers said in a statement the experience provided valuable feedback for the company.
"We appreciated the sharks comments and insights, and we know what we need to focus on from the business side," William Schumacher said. "But most importantly the taste came through and that's the most important. And not surprisingly, the consumer response after the show has further validated how our products are healthy, taste great, and are what more consumers are looking for."
Cincinnati companies have seen success on "Shark Tank" over the years. Last year, Liberty Township teen Carson Grill landed a $175,000 investment for his paint-saving product Touch Up Cup, and two Miami University alums landed a $500,000 investment from Cuban for their tattoo aftercare balm.
