‘Shark Tank’ investors Lori Greiner and Rashaun Williams bet big on Y’all, but founders wanted more
The flavor of sweet tea can instantly transport someone to their childhood, recalling the first time they tasted it, made with a beloved family recipe. Its strong caffeine blast and complex taste combination can also bring users back to the present.
The founders of the popular Alabama-based Y'all Sweet Tea brand have sold their goods to some of the industry's most renowned companies. Owners Darien Craig and Brandon Nichols, who came from humble beginnings in Hayden, sought to expand even further after appearing on 'Shark Tank'.
Y'all sweetened the Sharks with a sugary pitch
The goal of Y'all Sweet Tea creators Darien and Brandon was to share their journeys with their beverage company. In Season 16, Episode 5 of ABC's 'Shark Tank', the duo took the stage and made a compelling offer to the panel of investors. Y'all Sweet Tea, which was established in July 2015 by Darien and Brandon, specializes in sweet teas and offers ready-to-make drinks. Additionally, they now sell cookware, ground coffee, and spice.
One of Y'all Sweet Tea's most successful influencer collaborations was with Brenda Gantt, whose popular Facebook cooking channel, with 4 million followers, helped drive sales through her enthusiastic support. Before their debut on 'Shark Tank', Hayden, Alabama-based Y'all Sweet Tea had not raised any money. Last year, the company achieved $4 million in sales, with 20% of that amount being profit. The founders swore they put almost all the money back into the business, especially in marketing.
Y'all score a 2-Shark deal without losing much
Mark Cuban believed that with those impressive sales, Y'all Sweet Tea wasn't just in need of Walmart; Walmart needed Y'all. While he felt he wasn't the right fit for the business, he allowed the other Sharks to make a deal. Rashaun Williams quickly made an offer of $500K for 10%. Barbara Corcoran wanted the Rashaun deal to happen swiftly, so she backed out from making an offer.
Kevin O'Leary, who claimed to have fallen in love with Y'all's social media game, was willing to make an offer alongside Rashaun for 20%. Lori Greiner saw the opportunity to partner up with Rashaun separately for 15%. Kevin tried to lower his ask to 15% in an attempt to align his offer with those of Lori and Rashaun. Y'all tried to sneak in a higher ask of $750K, but after the Sharks refused to budge, they ultimately accepted Lori and Rashaun's offer of $500K for 15%.
Y'all could sour Sharks' image over false advertising
Did the Sharks act prematurely? How does this product sell so well? It's just tea packets in a nice wrapper—not sweetened or powdered, just standard brew bags! They are adept at social media, which is important. These guys are remarkable, we have to give it to them. If there is no sweetness in the tea bags, how is this product not simply iced tea? And if that's all it is, isn't this already available?
It's just plain black tea in tea bags. Honestly, this product is driving us crazy. Referring to it as sweet tea feels like misleading advertising and could also be a marketing liability. Many people in the United States do not enjoy sweet tea and would be put off by the term before ever tasting it.
Will this be a fruitful offer, as the Sharks are hoping? Lori could get this into a major distribution channel and follow in on Scrub Daddy's sales, and Rashaun could help with their future investment ideas and further fundraising. Or has this company already reached its potential and failed to scale under the burden of 2 new sharks? Hope this doesn't affect our Sharks' track.
'Shark Tank' Season 16 airs on Fridays on ABC at 8 PM ET.
For those who miss the episode, it will be available on demand the following day and on Hulu. Additionally, viewers can explore past seasons and episodes on Amazon Prime Video and iTunes.
