When mother-son duo Liz Appeal and Jordan Lengthy stepped into the “Shark Tank” on season 12, they introduced with them an modern twist on a timeless celebration centerpiece: the birthday cake.
Their firm, Shock Cake, featured a patented popping stand that permits items to be hidden inside desserts, making a magical second when the present cylinder dramatically pops up throughout celebrations. Regardless of their enthusiasm (which included them coming out of a large-model cake) and spectacular gross sales figures, the Sharks in the end handed on the chance to spend money on what would turn into a multimillion-dollar success story.
The thought for Shock Cake was born from a mom’s creativity.
Appeal had a dream about hiding her daughter’s birthday current inside a cake the evening earlier than her twelfth birthday. She made it a actuality the subsequent day, concealing a brand new cellphone in her daughter’s birthday cake and calling it whereas her daughter was blowing out the candles. The ensuing shock delighted everybody on the get together, and Appeal instantly acknowledged its enterprise potential.
“Revolutionary product has reinvented the final word get together traditions, taking cake and present giving to the subsequent degree,” proclaimed Jordan as he pitched to the sharks.
This innovation wasn’t with out challenges, nevertheless.
American meals security rules (what Appeal known as the “Kinder Egg legislation“) prohibit putting non-edible objects inside edible confections. Relatively than abandon the idea, Appeal partnered together with her son Jordan, an industrial engineer, to design a cake stand with a hidden compartment that creates the phantasm of a present popping straight out of the cake.
After they appeared on “Shark Tank” in 2020, the entrepreneurs had been searching for $200,000 for 8 % fairness of their firm.
At the moment, they’d already achieved spectacular gross sales numbers: $10,000 of their first 5 months, $280,000 in 2019, and had been on monitor for $900,000 in annual income. Their income had been dismal at solely $50,000.
Upon listening to the numbers, the Sharks expressed issues concerning the entrepreneurs’ skill to generate revenue and their plans to broaden past merely promoting popping stands to incorporate pre-made desserts and curated present packages.
Kevin O’Leary, who had expertise within the cake enterprise with Depraved Good Cupcakes, warned them concerning the logistical challenges of transport perishable gadgets.
Mark Cuban was notably crucial of their enlargement technique, telling the duo, “You’re chasing income and never chasing income. And so for these causes, I’m out.”
One after the other, the opposite Sharks adopted go well with, leaving the entrepreneurs with no deal.
Undeterred by the Sharks’ rejection, Appeal and Lengthy continued constructing their enterprise.
As we speak, Shock Cake is prospering with annual income between $1 million to $2 million and an estimated firm valuation of $3.5 million as of 2024, in accordance to SharkTankBlog.com.
The essential popping cake stand that when offered for $36.99 now instructions $59.99, reflecting elevated demand and client willingness to pay premium costs for his or her distinctive product, FoodRepublic.com stories.
The corporate has considerably expanded its product line past the unique popping stand.
They now provide a two-in-one popping cupcake stand with three tiers that may maintain 18 cupcakes and a hidden current, music field triggers that play tunes when the surprises come out, and specialised cake carriers for straightforward transport.
Shock Cake has additionally efficiently carried out the very enlargement technique the Sharks doubted. They now promote pre-made 4-inch desserts in a dozen completely different flavors that are available in bins designed to shoot confetti when opened.
Clients can customise these desserts with images, handwritten phrases, present playing cards, champagne, stuffed animals, and extra, with costs beginning at $54.99.
Their digital presence has flourished as properly, boasting 123,000 followers on Instagram.
Whereas social media is nice, it’s the merchandise which can be the celebrities. Their musical cake stand maintains a stellar 4.4 out of 5 ranking from practically a thousand evaluations on Amazon and sells for $84.99.
Their merchandise have been featured on main platforms, together with “As we speak,” “Good Morning America,” and Unilad, with “As we speak” even together with them on their listing of “Insta-famous devices price trying out.”
In reflecting on their Shark Tank expertise, Lengthy informed his alma mater USC Viterbi Faculty of Engineering that regardless of not securing a deal merely showing on the present was priceless.
“So far as advertising, 10 minutes of prime-time tv is each enterprise’s dream,” the son mentioned.
The nationwide publicity helped introduce thousands and thousands of viewers to their distinctive product and undoubtedly contributed to their subsequent development.
The story of Shock Cake demonstrates that generally the most effective enterprise choices contain trusting your instincts even when skilled buyers doubt your imaginative and prescient. That is one thing the founders of the Lip Bar, additionally rejected on the present, can attest to.
By staying true to their authentic idea whereas strategically increasing their product line, Appeal and Lengthy constructed a thriving enterprise that continues to carry pleasure to celebrations nationwide, proving that the sweetest success usually involves those that persist within the face of rejection.