Episode 10 Conflict Shark Tank Season 14 saw Barbara Corcoran and Kevin O’Leary feuding over their investment in Jica Foods. Mexican Carrot Foods, led by Xin and Melissa Wang, asked for $300,000 for a 3% stake. Barbara offered $300,000 for a prorated share of 10%, and Kevin countered with a 9% share.

Barbara emphasized her expertise in the food industry, prompting Kevin to defend his position.

“I know what I’m good at. I do sales and marketing. That’s how I got rich in the first place. I know that better than anyone. I can certainly deliver the same marketing as Mr. Wonderful, who thinks he’s more wonderful than he actually is It’s more the case because he’s an exaggerator,” Barbara said firmly.

this Shark Tank At the conclusion of the negotiations, Barbara received 6% equity and 3% advisory shares for her $300,000 investment. The deal helps Jica Foods expand to 1,600 retail locations in the western United States by 2024.

Jica Foods deal becomes battleground for Barbara and Kevin Shark Tank

Xin and Melissa Wang introduced Jica Foods to the market in 2015, first launching jicama chips in the snack category. The initial period brought huge financial stress, with credit card debt reaching $70,000 and a bank balance down to $300. In 2019, a shift in their strategy shifted the company toward fresh-cut jicama products, launching jicama wraps, chips, and specialty salsas.

this Shark Tank After the product transformation, company metrics showed substantial growth. Sales increased from $1 million in 2019 to $4 million in 2020. This momentum continues, with 2021 sales of $5 million and 2022 sales expected to be $6 million. Their marketing strategy includes pricing such that the production cost is $1.85 per unit, the wholesale price is $2.99, and the retail price is $4.99.

Barbara Corcoran purchased 10% of the stock for $300,000 and added a pro-rata requirement. Kevin O’Leary responds Positioning is lower than Barbara’s equity requirement by offering the same investment fund while requiring 9% equity. Wang Xin proposed to reduce Barbara’s shares to 5%, but Barbara insisted on the original equity requirement.

The discussion highlighted the market value of Jica Foods, with Kevin mentioning 25x profits. Guest shark Gwyneth Paltrow recognized the product’s potential and included a jicama recipe in her published cookbook. Mark Cuban and Lori Greiner praised the product and chose not to offer it.

Xin made a revised 7% equity offer to the two Sharks. Kevin and Barbara both rejected the offer. Negotiations took a turn when Sheen emphasized their need for marketing and sales expertise. Kevin said he has the ability to expand retail connections. Barbara matched this statement by emphasizing her previous food industry networking and marketing experience. Shark Tank invest.

Xin brings packaging and branding expertise, while Melissa contributes quality control experience in the pharmaceutical industry. Their participation in AccelFoods, a startup accelerator program for healthy food businesses, demonstrates their commitment to market growth.

Melissa intervened in the negotiations and presented Barbara with a well-organized counteroffer. Shark Tank The guest investor proposed a 6% equity stake and a 2% advisory stake. Barbara adjusted the terms to require a 3% advisory stake while maintaining the basic equity at 6%. This modification creates a total ownership of 9% of Barbara’s $300,000 investment.

The agreement includes Barbara’s marketing support and industry contacts. The deal values ​​Jica Foods at significantly less than its original $10 million valuation request. Both Kevin and Barbara Barbara’s track record in the food industry proved decisive until the final decision was made.

Consequences of Transaction

According to Shark Tank Blog , even six months after the episode aired, the closing status of the deal has still not been confirmed. Still, Jica Foods expanded its retail footprint to 1,600 locations. The company secured shelf space in Whole Foods, Sprouts, Vons, Pavillions and Albertsons across the western United States.

Financial indicators point to continued growth through 2024, the outlet reported. As of January 2024, the company’s net worth reached $5.1 million. Their product line goes beyond basic jicama options to include a variety of flavors and formats. The retail presence has grown from 700 stores during filming to more than 1,600 locations in early 2024, marking significant expansion of the market.

Shark Tank Season 16 Now airing on the ABC network.