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Potato Parcel appeared in episode 6 of Shark Tank Season 8, which aired in 2017. Entrepreneurs Alex Craig and Riad Bekhit presented a one-of-a-kind solution to revolutionize gifting.
Their business allowed people to send personalized messages written on potatoes. It made for a creative and memorable present and let people connect innovatively.
Potato Parcel's Alex and Riad sought a $50,000 investment for 10% equity. Although initially, the sharks hesitated to show interest in their business, they were forced to reconsider after hearing about their sales. After some deliberation, Alex and Riad shook hands with Kevin O'Leary for $50,000 for 10% equity and $1 royalty until Kevin recouped $150,000.
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Since its appearance on Shark Tank, Potato Parcel's sales have increased with a noteworthy profit margin. By 2018, the company introduced new products like birthday bundles, glitter bombs, and more. In 2020, they were also featured in The Shark Tank Greatest of All Time Special. As of 2024, Food Republic reported that the company is going strong, doing $600,000 to $700,000 in sales annually.
Shark Tank: Riad bought Potato Parcel from Alex for $42,000
In 2015, Alex Craig drew inspiration to start Potato Parcel after seeing an image of stamped potatoes. Once he saw the picture, he purchased potatoes and created a website to sell them with handwritten messages. Potato Parcel's website allows customers to leave a 140-character message online, which will then be written on potatoes and delivered to the gift's recipient.
Depending on the customer's requirement, the messages may or may not be sent anonymously. The company accepts all kinds of messages except those with malicious or hateful content. They ship and deliver the present within a day. Potato Parcel covers birthdays, Valentine's Day, Mother's Day, anniversaries, and more.
Standard written messages are priced at $9.99, whereas printed photos and postcards on potatoes sell for $14.99 and $12.99 respectively. The company also charges an additional $4.99 to ship the product. In addition, the Shark Tank company donates potatoes to those in need.
When Potato Parcel appeared on Shark Tank season 8, the sharks initially focused more on the hilarity of their concept than on its potential as a profit-making business idea. However, the investors were compelled to take an interest in the company once Alex and Riad revealed their sales.
The entrepreneurs disclosed that Potato Parcel generated a whopping $215,000 in sales by selling over 12,000 potatoes since the website launched in 2015. Riad also mentioned that he became the business's sole owner after purchasing it from Alex for $42,000. He agreed to give Alex a $1 royalty for every potato sold, starting a month after their Shark Tank appearance.
At that time, on average Potato Parcel made $10,000 in monthly sales. The numbers sparked an interest among the sharks, as many considered presenting the entrepreneurs with an offer. However, they struggled to overlook the concept of the product.
Lori Greiner and Daymond John decided not to invest, citing the product's unconventional idea as their reason. Mark Cuban opted out of making a deal, stating his disinterest in the product's market space. Since Robert Herjavec found the valuation too high, he asked for a 25% stake in their company for $50,000.
Meanwhile, Kevin O'Leary offered $50,000 for 10% equity but asked for a $1 royalty for every potato sold until he recouped $150,000. The entrepreneurs requested that Robert lower his equity ask to 17.5%, but the investor did not budge. Consequently, Riad and Alex finalized the deal with Kevin. After doing business with Mr. Wonderful, their deal successfully closed.
After their segment aired, Potato Parcel headlined in early 2017 when NBA star Dirk Nowitzki received anonymous potatoes congratulating him on his 30,000 career points, as reported by USA Today.
According to the Potato Parcel's website, the company expanded its product line by 2018, including new items like birthday bundles, glitter bombs, and the 'big head' cutouts. It amplified the company's growth, generating over $700,000 in revenue, reportedly earning Riad a seven-figure salary.
The business was also featured in a special segment of The Shark Tank Greatest of All Time Special in February 2020, where they were celebrated as one of the show's "greatest pitch success."
As of October 2024, the company is still growing, drawing $600,000 to $700,000 in annual revenues. Interested customers can visit their official website, potatoparcel.com, to place their orders. They are currently offering a sitewide 20% discount for a special Black Friday Sale, valid till November 30, 2024.
Shark Tank airs new episodes every Friday at 8 pm ET on ABC.
