"I do wonder if people will start knocking you off" - When Shark Tank's Lori Greiner gave "sharkier" offer to Misfit Foods

Phil Wong pitched Misfit Foods on Shark Tank season 12 episode 17, seeking $250,000 for 5% equity. The company combined vegetables with humanely raised chicken in sausages, reporting $800,000 in first-year sales with 29% profit margins. Sharks started sharing their thoughts. When it came to Lori Greiner, she stated,

"I think good product speaks for itself right, it's going to sell. I do wonder if people will start knocking you off like crazy. I think it's so smart that I think you kind of have to race to the market. So I'm going to give you an offer, it's going to be a little bit sharkier. I'm going to go $250,000 but I'm going to ask for 18 percent."

While Wong ultimately secured a different deal with Mark Cuban and Daniel Lubetzky that didn't close, the company later rebranded as Phil's Finest and expanded nationwide.

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Misfit Foods left Shark Tank season 12 with Mark and Daniel’s offer

By the time of Shark Tank pitch, Phil Wong achieved $800,000 in sales with minimal marketing costs. Their financial structure showed production costs at $2.91 per unit, wholesale pricing at $4.13, and retail prices between $5.99 and $7.99. Wong explained their distribution through Whole Foods captured 20% of total sales, with the remaining 80% coming from online channels.

The company gained early market credibility by raising $2 million from outside investors before appearing on Shark Tank. Wong mentioned their co-packer partnership with fifth-generation sausage makers enhanced product quality.

Their product line included Kale Chimichurri Sausage and Sweet Potato Andouille Sausage varieties. The company sold these in bundles through their website, offering eight links of each flavor for $29.95.

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Shark’s reactions

Greiner noted the sausages' low sodium content as a significant market advantage. Her analysis centered on the company's market position and growth potential. The Shark expressed clear views about competition threats in the specialty meat category. This assessment led to her "sharkier" offer structure, seeking 18% equity for a $250,000 investment.

Kevin O'Leary stepped away from the deal based on his past experiences in the refrigerated foods category. He mentioned previous unsuccessful investments in similar market segments. Robert Herjavec followed, stating his vegetarian lifestyle made him unsuitable as an investment partner.

Daniel Lubetzky, the guest Shark, presented a competitive offer of $250,000 for 15% equity. Mark Cuban joined forces with Lubetzky, maintaining the same equity percentage. Wong responded to the multiple offers with a counter proposal. He requested $300,000 while accepting the 15% equity structure from Cuban and Lubetzky. The Sharks agreed to these modified terms.

The deal appeared briefly on Daniel Lubetzky's official website. However, during the due diligence process, the agreement did not materialize, per Shark Tank Blog. Wong later shared in a Shark Tank Recap interview that while the deal didn't close, he valued the mentorship from the experience.

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Aftermath

Misfit Foods underwent significant changes after the show. As per Shark Tank Blog, Phil Wong transformed Misfit Foods into Phil's Finest in January 2022. The company announcement focused on a new tagline "putting the 'more' in omnivore." The rebranding came with product line changes. They added Beet Gochujang and Lao Curry Carrot Ground Beef to their offerings.

Their sales surpassed 2 million sausages and 150,000 patties. The rebranded company secured nationwide distribution through Sprouts Farmers Markets, reaching over 370 stores. Their annual revenue grew to $1.5 million.

The product line expanded to include flavored ground beef options alongside new chicken sausage varieties. Local availability increased in Philadelphia through Riverwards Produce and in Brooklyn at Park Slope. The company maintained its core concept of mixing vegetables with meat while broadening market reach through various retail channels.

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