Several Sharks were champing at the bit to get a piece of Wisconsin-based snack company Just the Cheese, but the company left the tank without any cheddar.
Reeseville-based baked cheese snack company Just the Cheese appeared on the most recent episode of Shark Tank last Friday and impressed the Sharks with its early revenue figures. The company did $3.5 million in sales in 2018, its first full year in business, and did $3.7 million during the first eight months of 2019 at the time the episode was filmed. Founder David Scharfman said the company sells between 400 and 700 boxes of its cheese snack on Amazon a day. The low-carb snack is gluten free and only 75 calories per bar.
Scharfman entered the tank looking for a $500,000 investment in exchange for 5% equity. The first offer he received was from Kevin O’Leary, who offered a royalty deal. Mr. Wonderful said he would give Scharfman $500,000 for a 20-cent royalty per bar for the lifetime of the business. Fellow Shark Lori Greiner offered a similar deal, but at 15-cents per bar until she recouped $750,000.
Scharfman balked at the idea of doing a royalty deal. Finally, Mark Cuban offered a $500,000 investment for 15% of the company. "No royalty," Cuban said.
Scharfman decided to “politely and respectfully” decline Cuban's offer, citing the large amount of equity he would be giving up.
Originally developed in the 1990’s during the Atkins diet phase, Just the Cheese was redeveloped in 2017, the company said. It's now the No. 1 cheese snack on Amazon, and it's aiming to get into stores across the U.S. The snacks are produced in the Scharfman’s family cheese factory in Reeseville.
Just the Cheese isn't the only Wisconsin based company to enter the Shark Tank. The Kombucha Shop, a Madison-based home-brew supply company, appeared on the show in 2018, as did Hyde Sportswear, a Milwaukee-based life jacket maker.
