"I'm kind of on the fence" - When Shark Tank investor Barbara rejected Wellingtons

Ready-to-bake food brand Wellingtons founders Anastasia and Arya Alexander pitched their frozen food company on Shark Tank season 15, seeking $200,000 for 10% equity. The Los Angeles-based company presented their ready-to-bake Beef Wellingtons, priced at $35 retail with $9.41 production costs. After tasting their signature filet mignon wrapped in puff pastry and variations including Cheeseburger Welly and Breakfast Welly, all Sharks praised the taste.

The founders revealed annual sales of $313,000 alongside $260,000 in losses. After detailed financial discussions and learning about their Goldbelly partnership, Barbara Corcoran stated:

"I'm kind of on the fence about it. I'm in a lot of food businesses but I'm not sure I could deliver what you need honestly. I've gone the co-packing route. We've had as many disasters as we've had successes. I feel almost like building a food business is try everything. It's not an accurate business by any means…I think I'm going to pass on this. "

She added,

"I like to feel like I'm making such a difference to my partners and I do but I'm afraid I might disappoint you so I'm going to say I'm out."

In the end, Wellingtons left the Shark Tank without any deal.

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Wellingtons fails to secure Barbara's deal on Shark Tank

The Wellingtons team started their presentation by discussing their commercial kitchen operations in Los Angeles. Their Classic Welly carried a $35 retail price against $9.41 in production costs. The founders detailed their sales channels, including their website where customers paid $140 for a four-pack. On Goldbelly, similar four-packs sold for $169 with shipping included.

The Shark Tank pitch moved to expansion plans when Arya Alexander announced a fresh contract with a hotel chain. This agreement secured orders for 200 Welly Bites monthly across two locations. Kevin O'Leary questioned the profitability model, highlighting his experience selling food products through QVC. Each Shark expressed specific reservations about the business structure.

Wellingtons had generated $240,000 of their revenue through Goldbelly. Their Los Angeles facility produced all varieties, from single servings to party-sized portions. Website pricing ranged from $35 for individual Wellys to $180 for extra-large formats. The Goldbelly platform's $169 four-pack price included substantial shipping fees.

Mark Cuban focused on their limited distribution channels, suggesting they needed connections with event planners. Michael Rubin advised moving away from third-party platforms to improve margins. The $2 million valuation raised questions from the Sharks. Their sales data showed $240,000 came through Goldbelly while direct website orders made up $73,000. The manufacturing facility in Los Angeles maintained production for eight varieties.

Single Classic Wellys cost $35, four-packs sold at $140 on their website, and specialized versions like Buffalo Chicken Welly Bites targeted different price points. The company projected growth through the hotel chain agreement, which guaranteed minimum monthly orders.

During financial discussions, Michael Rubin analyzed their Goldbelly dependence. The platform's fees impacted their margins significantly. Lori Greiner mentioned the production-cost ratio seemed manageable but questioned market size. The company founders explained their commercial kitchen could handle current demand while maintaining quality control.

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Post-show performance

As Shark Tank Recap reported, Wellingtons’ sales reached $600,000 within four days as 5,000 new customers placed orders after the episode aired. The founders implemented changes based on Shark's feedback. The company enhanced its website infrastructure before the air date. This preparation helped manage the surge in traffic and orders after the broadcast.

The Shark Tank company took Michael Rubin's advice about reducing third-party platform reliance. They focused resources on direct website sales to improve profit margins. The hotel chain partnership expanded beyond initial projections. Website analytics showed increased customer retention rates through their new marketing strategy.

The Alexander team mentioned wanting more preparation for their pitch. They specifically noted missing opportunities to connect with Barbara through her previous food business experiences like Cousins Maine Lobster. However, their post-show success proved their ability to adapt and grow without Shark investment.

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Shark Tank season 16 is airing on ABC network.