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David Scharfman presented Just the Cheese on Shark Tank seeking $500,000 for 5% of his Wisconsin-based cheese snack business. The company reported $3.7 million in sales during filming, with products in 700 retail stores and Amazon. After working as a consultant, Scharfman moved back to Wisconsin in 2017 to restart his father's successful food business.
During negotiations, Kevin O'Leary offered $500,000 for 5% equity plus a $0.20 perpetual royalty. After Scharfman declined, Mark Cuban proposed $500,000 for 15% equity. Scharfman responded:
"It's a reasonable offer but I'm going to politely and respectfully say no."
The negotiations ended without a Shark Tank deal.
Just the Cheese founder turned down multiple Shark Tank offers
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Just the Cheese operated under the umbrella of Specialty Cheese Company, the Scharfman family's established cheese business. Their product range included baked cheese snacks in five distinct varieties. Each two-pack cost $0.95 to produce.
The Shark Tank company began with a substantial self-funded investment of $1 million. Their production methods yielded crispy cheese snacks without additional ingredients, meeting the growing demand for keto-friendly options. The business established multiple revenue streams through strategic retail partnerships and strong Amazon sales performance.
Distribution expanded rapidly, reaching major retailers and securing purchase orders from 7-11. The family leveraged their cheese-making expertise to create a snack that replicated the crispy edges of grilled cheese sandwiches, a feature that attracted customer interest. Their manufacturing facility in Wisconsin handled production while maintaining quality control standards.
Shark Tank investor Kevin O'Leary moved first with an offer of $500,000 for 5% equity plus a $0.20 royalty on every bar sold, structured as a perpetual arrangement. Lori Greiner, revealing her familiarity with the product through previous Amazon purchases, countered with $500,000 for 5% equity and a reduced royalty of $0.15 per bar until reaching $750,000.
Mark Cuban approached with a different strategy, proposing $500,000 for a straight 15% ownership stake. Robert Herjavec praised Scharfman's business acumen but opted out of bidding. Daniel Lubetzky acknowledged the strong brand but cited market saturation as his reason for not participating.
David Scharfman approached each offer methodically. He requested a pen and paper to calculate the financial implications of the royalty structures. After reviewing the numbers, he presented Kevin O'Leary with a counter-offer of $0.05 royalty for ten years. When this did not move forward, he turned to Mark Cuban's equity offer.
Scharfman proposed reducing the equity stake to 7.5%, expressing concerns about long-term ownership dilution. Mark Cuban maintained his position on 15% equity which Scharfman declined.
Aftermath
The decision to walk away from the Shark Tank offers proved strategic for Just the Cheese. As per Shark Tank Blog, the company expanded its retail presence to major chains including Target and Walmart. Sales grew steadily, reaching $4 million in annual revenue by 2022.
The product line maintained its position in the keto-friendly snack market, attracting attention from larger food companies. This growth caught the attention of John B. Sanfilippo & Son Inc., a major food processing and distribution company with $999.7 million in annual sales.
In 2022, John B. Sanfilippo & Son Inc acquired Just the Cheese for an undisclosed amount. Following the acquisition, David Scharfman transitioned to a new role as VP of Growth at Specialty Cheese Company Inc.
The company's products remained available through its website, Amazon, Target, and Walmart. Media coverage expanded to include features in The New York Times, The Boston Globe, Food Network, and Today show.
While the company has a website, it doesn't maintain an active presence on social media. The last post on its official Instagram account @crunchyjtc was from December 31, 2022.
Shark Tank season 16 is airing on ABC network.
