Entrepreneurs Ryan Bouton and Doug Bouton pitched their low-calorie, 75% less sugar chocolate business on Shark Tank Season 15. Gatsby Chocolate is a plant-based, low-calorie chocolate bar that is also gluten-free and dairy-free.
These two business partners are also brothers, and Doug is the co-founder of the popular ice cream brand Halo Top. They need the Sharks’ investment to help grow their chocolate company, Gatsby Chocolate, to the same level as Halo Top.
So, did any of the Sharks agree to invest in their company? Let’s find out what happened and how the business is doing now.
| Company Name | Gatsby Chocolate | |
| Founder/Co-Founder | Ryan Bouton and Doug Bouton | |
| Founded | Jan 2021 | |
| Product | Low calories in chocolate | |
| Asked For | $500k for 5% equity | |
| Final Deal | $250k cash + $250k loan for 20% equity; increases to 30% at $10M sales, 40% at $50M. | |
| Shark | Mark Cuban and Lori Greiner | |
| Episode | S15 E1 | |
| Air Date | Sep 29th, 2023 | |
| Business Status | In Business | |
| Website | Visit Website | |
| Headquarters | Chicago, Illinois, United States | |
| Lifetime Worth (Sales) | $4.5M *estimated | |
| Buy and Watch | Buy Now | Amazon Prime |
What Is the Background of The Founder?
Brothers Ryan Bouton and Doug Bouton founded their chocolate company in January 2021. Before starting this venture, both brothers were connected to Halo Top Ice Cream Company. Doug is a co-founder of Halo Top, while Ryan served as the Chief Marketing Officer for Halo Top’s international subsidiary.
Both brothers are already successful in the ice cream industry, and now they plan to make a name for themselves in the chocolate industry.
Business Pitch Episode Recap
Ryan and Doug presented their Gatsby Chocolate to the Sharks, highlighting its features—half the calories, less sugar, vegan, dairy-free, gluten-free, and made with all-natural ingredients. They explained that they refer to it as the “Halo Top of chocolates” since Doug is the co-founder of Halo Top ice cream.
Their goal is to build their chocolate company into a big brand, just like their ice cream company. To achieve this, they asked the Sharks for $500,000 in exchange for 5% equity, valuing the company at $10 million.
Lori Greiner liked the chocolate bar because it has only 190 calories per bar, which is significantly lower compared to other chocolates.
To sweeten the chocolate, they use Allulose as a sugar alternative. When Kevin O’Leary asked where and how they sell their product, Doug explained that it is available in 6,000 stores nationwide, including Walmart, Safeway, and Sprouts.
Candace Nelson asked about the sales in the last 12 months. Doug responded that the sales for the previous year were $2.5 million, with most of the sales occurring in Q4 (Quarter 4). Each bar costs $1.90 to make, wholesales for $2.70 and retails for $3.99. Currently, they have a 40% margin, and they are working to increase it to 50%.
Lori said that the packaging and brand name are not effectively related to the product.
Doug mentioned that the business’s cash flow is negative. In 2022, they incurred a loss of $3.5 million, and their projected sales for 2023 are $2 million. Daymond John said he has no issue with the company’s valuation but cannot add any value to it, so he is out.
Lori made a surprising offer: $250,000 in cash plus $250,000 as a loan at a 6% interest rate, but she wanted 20% equity in the company. She also mentioned that she would redesign the product’s packaging.
Kevin offered $500,000 as venture debt for 12% equity in the company.
Candace said she really liked the taste of the chocolate and felt the business needs rebranding, for which Lori would be the perfect partner. Therefore, she is out.
Doug said he needs someone who can be the face of the brand. Lori responded that she needs 25% equity for that role. When Doug started asking Mark if he could help find the brand’s face, Lori reverted to her original offer of 20% equity.
Lori and Mark teamed up to offer $250,000 in cash plus a $250,000 loan at a 6% interest rate for 20% equity, with the equity increasing to 30% if sales reach $10 million and 40% if sales reach $20 million. Doug countered with a proposal of $250,000 in cash plus a $250,000 loan at a 6% interest rate for 20% equity, which would increase to 30% at $10 million in sales and 40% at $50 million in sales.
Mark and Lori accepted Doug’s counteroffer.
Sharks Offers list!
| Sharks | Offers |
|---|---|
| Candace Nelson | No Offer |
| Kevin O’Leary | $500,000 as venture debt for 12% equity |
| Mark Cuban | $125k cash + $125k loan for 10% equity; increases to 15% at $5M sales, 20% at $10M. (lori) |
| Daymond John | No Offer |
| Lori Greiner | $125k cash + $125k loan for 10% equity; increases to 15% at $5M sales, 20% at $10M. (Mark) |
| Founder’s (Countered) | $250k cash + $250k loan for 20% equity; increases to 30% at $10M sales, 40% at $50M. (Lori & Mark) |
| Final Deals | $250k cash + $250k loan for 20% equity; increases to 30% at $10M sales, 40% at $50M. |
Gatsby Chocolate Shark Tank Update
After the episode aired, Gatsby Chocolate announced a new NIL deal with American social media personalities and college basketball players, the Cavinder Twins.
As of August 2024, research on Gatsby Chocolate revealed that the product is available in over 1,518 Walmart stores nationwide. The business is currently generating millions of dollars in annual sales.
Check out Shark Tank Season 15 Business Update.
You can see some businesses from Season 15 here.
