GoodLove Foods Shark Tank Review Update – Networth, Evaluation, Offer S16EP12

Didn’t I tell you that I love those pitches when powerful women, like Chennelle take the stage to prove themselves? Well, you know now! In episode 12, season 16, Chennelle is solving a problem that not many pay heed to. Read on to find out more:

Major Points

• Chennelle Diong runs a company, named “GoodLove Foods” that specializes in creating gluten-free products.
• She asked for $150K for a 5% share in her company, at a valuation of $3M.
• Sharks loved her baked items, and to know more about them, read our product review here.

A Little Introduction

Chennelle Diong, a powerful, and eloquent woman (you’ll know why I said this) appeared to get $150K and give 5% of her company; GoodLove Foods shares in return.

Not going to lie, before the pitch started, I thought her company’s name was “Biscuitologist” as this was written on her T-shirt. However, I realized quickly that she was truly a “Biscuitologist” as she has created a marvel; Healthy and delicious gluten-free food, especially for people fighting against celiac.

Having a Filipino-American background, Chennelle truly knew the value of good food. And since she suffered from celiac as well; a disease in which the body reacts with gluten, she decided to embark on this journey to create gluten-free food.

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What Makes the Product So Special?

Unlike most gluten-free foods, which may have little traces of gluten, her items are 99.9% free from gluten. And not only this, she has mastered the art of offering finger-licking gluten-free items, and truly deserves the title of “Biscuitologist”.

Following the tradition, she invited all the sharks to taste her product. While no one could find any flaw in her baked items, Lori said,

“This is amazing, like blow-my-mind amazing”.

And, Daniel said,

“This biscuit is, Oh My God!”

Barbara on the other hand couldn’t believe a gluten-free product could be this tasty. Hence, she said,

“Can’t believe the food items are actually gluten-free”.

Now, you may understand how yummy her baked, gluten-free food items would’ve tasted. And, all this food testing session was complemented by a short cameo of guys on roller skates dancing to the song “GoodLove Foods”.

GoodLove Foods Networth and Performance

To be honest, I did feel that Chennelle was very high in her valuation. She exclaimed that her company’s net worth was $3M, which, all other sharks also believed.

Upon little scratching by the sharks, Chennelle revealed that 85% of the sales come from D2C. In the last 12 months, she generated sales of over $360K and she is well on her way to closing the financial books with sales of about $500K.

And, in the next year, she seemed confident that her company would make it to $1.5M in sales. All this with a profit margin on every product of around 75%.

Hold your horses, 75% is the profit margin when she doesn’t have to send the frozen items packed with dry ice. If she does so, her profit margin drops to 25% – low, isn’t it?

Furthermore, she explained that the sell it to retailers for a price of $11.99, while nothing was discussed about the production cost. However, she did mention that her returning customer rate hovered around 30% to 35%, which is quite impressive.

So, What Seems to be the Problem?

So… the problem lies with her production, as she is capped with it. She is doing all she can, and still can’t manage to meet the demand. That is the problem she is facing. Not only this, but she also wants to launch her product at the major retailers, which she is failing to do so.

However, most sharks quickly realized the intensity of this problem, as frozen and baked items are quite different than unbaked items.

So, let’s start with Kevin.

Firstly, Kevin questioned her $3M valuation, as he couldn’t understand the logic behind it. For him, the sales did not justify this number and neither did her unresolved production and retail problem. So, for him, it was a quick decision not to invest in GoodLove Foods.

Then comes Daniel, who also thought that there were too many great problems that first needed to be addressed, and not by him. So, he also wished Chennelle good luck while refraining from making an investment.

For Barbara, frozen items were always a bad experience, and just like a wise man stays away from mysterious, Barbara decided to part ways with GoodLove Foods.

Then came Mark who simply said that frozen items are quite difficult for him to understand, and offered this as a reason for not to make an investment.

In the last, it was Lori who before asked why Chennelle was seeking a shark. Upon this, she said the same “Production problems and retailers”

Now, Lori understood the gravity of matter and offered a not-so-generous deal, for 20% of the said amount. Upon a little thought, Chennelle asked her to come down to 18% to which, Lori gladly agreed.

And that is how GoodLove Foods secured a deal worth $150K for 18% of the company’s shares.

What Am I Thinking?

Based on the financials above, here is a little breakdown of how well the company could perform in the future. Yes, this evaluation is far from right as it’s my calculated guess, but you never know, right?

And, as far as the product matters, I love the idea of gluten-free ready-to-bake items. However, I stand with Kevin that the valuation wasn’t fair, for she had a lot to sort out before valuing her company so high.

Nevertheless, I loved the overall pitch and wish her good luck!