Why did Fila Manila founder reject Kevin O'Leary's deal? Jake Deleon offers $250K in 'royalty' to bag 'Shark Tank's Daniel Lubetzky
LOS ANGELES, CALIFORNIA: Filipino cuisine has a certain charm that differs greatly from typical American cuisine. The unusual and familiar flavors are gaining popularity among the rising Filipino-American community in the United States.
Jake Deleon founded Fila Manila, which discovered a potential niche and struck a deal with Daniel Lubetzky in the most recent episode of 'Shark Tank'. Despite tempting the Sharks with royalty promises, Jake chose to deal with Daniel rather than Kevin O'Leary.
Kevin initially expressed concern over Fila Manila's declining sales instead of an upward trend. He doubted whether the company justified a $5 million valuation and indicated his desire to withdraw from the potential deal.
Daniel offered $250K for 20% as opposed to 5%. In response, Jake immediately presented a counteroffer to Daniel with $250K for 5% and a royalty of 5-8% sales until $250K is paid.
Kevin showed renewed interest when he learned about the royalty opportunity. He proposed a revised deal of $250K for a 10% stake, alongside a royalty of 5-8% of sales until $500k is paid.
Jake remained persistent in pursuing a deal with Daniel, causing him to keep Kevin's offer on hold. Daniel finally offered $250K for a 20% stake with an option to return 5% if sales benchmarks are met.
Jake knew he'd be a fool to not accept. As Daymond John noted, "He showed the royalty thing to everybody but Kevin."
Fila Manila raised $900K before 'Shark Tank' appearance
Since its establishment in 2020, Fila Manila has seen Jake successfully raise a total of $100,000 for his venture. After securing two successful rounds of financing and achieving an annual turnover of approximately $150,000, Fila Manila underwent a significant renovation.
They transitioned from using jars to adopting more sustainable packaging, opting for pouches and squeeze bottles. They showed the package on 'Shark Tank' and wanted $250,000 for a 5% stock investment.
Daniel indicated that the valuation was too high, and Jake disclosed that they had successfully raised around $900,000 at an $8 million valuation.
Fila Manila's sales fail to impress Sharks
Fila Manila inaugurated its inaugural retail store in November 2020. The company's initial revenue amounted to $6,000. In 2021, they increased to $50,000. In the following year, in 2022, their earnings surged to $400K. They expected to close over $800,000 this year.
The pouches they create cost roughly $1.60. They offer it for $3.33, yet it retails for around $5.99.
The previous year, retail sales accounted for 90% of their total sales, with 10% coming online. The majority of that comes from Amazon.
Lori Greiner, like the other Sharks on the panel, was not enthusiastic about the sales figures presented.
Where can you buy Fila Manila?
Individuals can get a taste of this real Pinoy-based meal by purchasing Fila Manila goods both offline and online. It is sold at retailers around the country, including Target, Whole Foods Market, and Sprouts Farmers Market.
If you want to buy their items online, you may go to the brand's official website, where they are presently selling a 'Shark Tank' Pack, or look for Fila Manila products on Amazon. Prices range from $9.50 to $15, with the 'Shark Tank' Pack including four sauces and a gift box priced at $39.
'Shark Tank' Season 15 airs on Fridays on ABC at 8 pm ET.
For those who missed 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.
