Joy Serves The Best Pie In The Show's History? | Shark Tank US | Shark Tank Global
Joy B. Moore's Pitch for Joy Bells
Introduction to Joy Bells
- Joy B. Moore introduces herself as the founder and CEO of Joy Bells, seeking $600,000 for a 10% equity stake in her company.
- She emphasizes the uniqueness of her product, stating that during holidays, people should enjoy Joy Bells' offerings instead of typical party foods.
Heritage and Product Offerings
- The pies offered by Joy Bells include award-winning peach, pumpkin, and sweet potato varieties, based on legacy recipes from her third great-grandmother.
- Moore highlights that she is part of the sixth generation to make these family recipes and the first to commercialize them into a business.
Business Growth and Mission
- The company has achieved significant milestones including being recognized as having the "Best Pie in the Nation" by the American Pie Council.
- Their mission focuses on spreading love and joy through comfort food that evokes nostalgia associated with family cooking traditions.
Challenges Faced by Joy Bells
Personal Background
- Moore shares her personal story of overcoming adversity as a survivor of homelessness due to an untreated mentally ill mother.
- She credits support from programs like YMCA for helping her graduate high school with a 3.79 GPA despite her challenges.
Financial Overview
- When questioned about valuation, Moore states lifetime sales are at $16.1 million with projected revenue for 2023 at $4.3 million down from $7.7 million last year.
- She explains this decrease is due to adjustments in cost structures related to their products becoming shelf-stable (ambient).
Product Viability Concerns
Cost Structure Issues
- Discussion reveals concerns over profit margins; last year's gross margin was only 8.85%, with net profit at 1.38%.
- Moore discusses pricing strategies: costs per pie are $5.23 while selling price is $7.84 leading to a markup of 35%.
Investor Feedback
- Investors express skepticism regarding profitability; they highlight that current cost structures need improvement for sustainable growth.
- One investor notes that while the product is excellent, they cannot assist unless there’s clarity on increasing prices or reducing costs effectively.
Conclusion: Investor Reactions
Final Thoughts from Investors
- Despite acknowledging Moore's impressive journey and product quality, investors ultimately decide not to invest due to financial concerns surrounding high valuation requests.
- They encourage her to learn from successful peers who adjusted their pricing strategies effectively in similar markets before concluding their pitches with supportive remarks about perseverance regardless of outcomes.