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Joe and Maranda Dowell brought their fish breading mix on Shark Tank season 9, episode 16, seeking $150,000 for 15% equity. The Atlanta-based couple presented their signature product, which had reached lifetime sales of $409,000 with $270,000 generated in 2017.
When Kevin O'Leary questioned valuation, entrepreneurs suggested that he was missing the consumer perspective. Responding firmly, the Shark said:
"Well, I'm not missing them…Joe Jr., you're not worth a million bucks buddy, I'm sorry. To give you $150,000, I'd have to get about 50% of your business. That's what it's worth today. I'm not saying you won't grow it, but I'm out."
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In the end, Joe and Maranda left the Shark Tank with Daymond John's offer. However, the deal never materialized.
Kevin O'Leary rejects Joe's Gourmet Fish Fry's million-dollar valuation on Shark Tank
Joe's Gourmet Fish Fry entered the Shark Tank with strong operational data. Manufacturing costs stood at $1.75 per bag, while wholesale prices ranged between $2.25 and $2.50. Retailers offered the product at $5, creating solid profit margins at each distribution level.
As per Shark Tank Blog, seven weeks before their television appearance, the company secured a significant milestone by placing their products in Walmart stores. The breading mix stood out in the market due to its special blend of seven ingredients: celery seed, turmeric, orange peel, onion, garlic, parsley, and paprika. This formula created a distinctive taste profile without excess salt content.
O'Leary determined that the requested $150,000 investment aligned with a 50% equity stake based on their current revenue and market position. The company's proposed $1 million valuation showed a significant gap from O'Leary's market assessment.
While examining the numbers, the investor said that their current sales figures and market presence didn't support such a high valuation. This gap between his valuation and their asking price led him to step away from the investment opportunity.
The remaining Sharks shared mixed reactions to the fish fry business. Lori Greiner sampled the product and praised its taste quality. However, she expressed concerns about its investment potential in the retail market space. Mark Cuban followed a similar path and quickly withdrew from consideration. Robert Herjavec also acknowledged the product's strengths but decided against making an offer.
Daymond John saw potential in the business and stepped forward with a proposal. He offered the requested $150,000 but asked for 25% equity. The Dowells attempted to negotiate for 18%, but John maintained his original offer. After careful consideration, they accepted his terms.
Post-Shark Tank journey
Despite accepting Daymond John's offer during the episode, the final deal never materialized after the show, per Shark Tank Blog. However, the business continued its expansion trajectory. In 2018, Stop & Shop incorporated Joe's Gourmet Fish Fry into their seafood department fry program, as per Shark Tank Recap.
By year-end, the product reached 2,500 grocery stores. The company expanded its market presence in 2019 by launching frozen Southern fried shrimp through QVC. This product line later became available in grocery stores across the Midwest, South, and Southeast regions.
The business took a significant step in 2019 by opening Joe's Gourmet Fish and Chicken restaurant in Lithia Springs, Georgia. They added a second location in College Park in 2021.
The company formed a partnership with Walmart in 2021 to establish restaurant franchises within their store locations. While the second restaurant location closed, the original Lithia Springs establishment maintained operations. Recent market indicators show changes in product availability.
While customers can still purchase products through the company website, the items currently show as unavailable on Amazon and Walmart platforms.
Shark Tank season 16, episode 10, will air on ABC Network on January 31, 2025.
