It is almost impossible to predict which one of the Shark Tank’s brands and products will become a mainstream retail success. Yet Brazi Bites, a Brazilian-style cheese-based bread snack, has now landed in the frozen food section of Costco.
Costco is one of the biggest retailers in the United States, operating hundreds of stores across the country.
Let’s have a closer look at how Brazi Bites evolved with time, and why it still continues to attract customers nationwide.
From Family Recipe to Shark Tank Spotlight
Cameron MacMullin and Junea Rocha, who lived in Portland, craved their favorite Brazilian snack. One day, Junea called her mother and asked for the recipe for authentic gluten-free cheese bread from Brazil. Additionally, the duo of husband and wife worked on perfecting the comforting staple food recipe. Later in 2010, they commenced Brazi Bites in Portland, Oregon.
The Brazilian frozen snack was traditionally made with a tapioca flour base, and features real cheese, which is naturally free from gluten.
Unlike frozen carb-heavy food and snacks, Brazi Bites was different and secured a position in the frozen food aisle. The snack is perfectly suited to health and convenience-focused customers or anyone seeking a light party appetizer.
Brazi Bites Shark Tank Moment
In the year 2015, Brazi Bites appeared on ABC’s Shark Tank Season 7 Episode 11. Cameron and Junea came to the Tank seeking $200,000 in exchange for a 10% equity stake in the brand. Though the brand got visibility long before they received television fame, Cameron wanted a Shark that could help them receive huge purchase orders from the largest retailers nationwide.
During their presentation, they handed samples to the Sharks, including Robert Herjavec and Lori Greiner, who loved the product. Furthermore, other Sharks also saw market potential, particularly for the section of frozen appetizers.
Also, the founders shared with the investors that 3 pieces of their cheese bread consist of 120 calories. At the time of pitching, the frozen appetizer was present in 700 stores across the nation, earning a revenue of $600K in 2014. They explicitly stated that the bread can be better cooked in the oven, and not in the microwave.
Initially, the Sharks were so perked up by the product that all five of them offered different deals to the owners. However, after knowing that the business is currently in debt of $200K, Robert and Mark Cuban backed out. Yet, they had offers from Daymond John, Kevin O’Leary and the Queen of QVC, Lori Greiner.
Out of all the deals, they asked Lori to take a 15% stake because a partnership with her matched their requirements, due to Lori’s wide network of retailers. Hence, the deal was secured at $200,000 in exchange for a 16.5% stake with Lori Greiner.
Subsequently, as is the case with many Shark Tank deals that close on-air, Brazi Bites was one of those that never fully closed. This happens at times due to the due diligence process, when the Sharks are not satisfied with the financials.
Post Shark Tank Effect and Rapid Retail Expansion
Co-founder Junea Rocha shared with CNBC that within three days of the episode’s airing, Brazi Bites were sold out. Even though the deal never materialized, the brand benefited from the enormous amount of visibility they received after the show.
Food enthusiasts and health-conscious consumers wiped out the shelves of all the retail stores. This is how they reached a revenue of $10 million within six months of airing on national television. After multiplying their revenue 10 times in 2016, they closed deals with Whole Foods, Harris Teeter, HEB, and Costco.
In 2017, Brazi Bites showcased a growth rate of 4,554% and was among the fastest-growing women-led food brands in the entire country. However, they wanted to expand the product line to new categories and bring more delights from Latin America. Hence, in June 2018, Junea and Cameron sold the majority stake to San Francisco Equity Partners.
As of today, Brazi Bites can be found not only in retail stores within America, but also in Canada. Moreover, their revenue has crossed over millions of dollars after introducing pizza bites, savory waffles, and empanadas.
Why Does Costco Matter?
Landing on the Freezer aisle of Costco is one of the Wow moments in the history of Brazi Bites. The buyers of this store are very selective and they only allow products of value, quality, and a broad market appeal. Consequently, it can be served like a party appetizer, food, or even a side dish.
In Costco’s frozen products shelves, customers can often purchase 36 ounces of Brazi Bites with cheese bread balls for less than $15. Furthermore, it has become one of the regular recommendations in Costco. Repeat purchases have increased due to its novelty, flavor, and affordable price.
Takeaway
Brazi Bites’ success story is a reminder that a quality, along with strategic visibility, can transform businesses into a mainstream success. This product was the amalgamation of customers’ flavorful appetite for gluten-free frozen snacks and merchandisers’ interest. It turned this Brazilian snack into a must-try.
