Pitch Introduction
Burlap and Barrel Shark Tank pitch introduced the world to a revolutionary way to experience spices. The company aims to disrupt the centuries-old spice trade that often disconnects farmers from consumers. By sourcing directly from smallholder farmers, they provide home cooks with fresher, higher quality ingredients while ensuring producers receive fair compensation.
Business Overview
Burlap & Barrel operates as a single origin spice company and social enterprise. They partner directly with the best spice farmers globally to bypass traditional layers of middlemen. This direct-to-consumer model allows them to offer heirloom varieties like Royal Cinnamon from Vietnam and Zanzibar black peppercorns that are typically unavailable in US supermarkets. The company focuses on transparency, traceability, and flavor intensity that industrial spice brands cannot match.
| Company Detail | Information |
|---|---|
| Company Name | Burlap & Barrel |
| Founders | Ethan Frisch and Ori Zohar |
| Industry | Food and Beverage |
| Product | Single Origin Spices |
| Headquarters | New York, USA |
About Founder’s
The founders are Ethan Frisch, a chef turned aid worker, and Ori Zohar, a marketing executive turned entrepreneur. Their journey began over a 15 year friendship built on a shared love for food. Ethan spent time in Afghanistan building schools and working for Doctors Without Borders, where he discovered the incredible flavor of wild cumin. This discovery sparked the idea to connect these amazing global flavors with American cooks.
- Ethan is a chef and former aid worker who worked in Afghanistan.
- Ori is a marketing executive from Baltimore.
- They started the business from a living room in New York.
- Ethan carried the initial spices back in a duffel bag from Afghanistan.
Shark’s and Founder’s QnA
How many spices in your portfolio?
We have about 75 individual spices.
Are you online only?
We are 85 percent direct to Consumer and the other 15 is split is a wholesale between bulk restaurant and grocery.
Tell us about you. I mean what got you to be the spice men?
We’ve been friends for over 15 years. With Ethan’s culinary background, I was the eating side of the relationship whenever he was cooking I wanted to be hanging out there and eating. I left kitchens to go to graduate school. I got a master’s degree in International Development moved to Afghanistan where I worked for one of the biggest non-profits in the world.
What were you doing in Afghanistan?
I was building over 200 schools and very remote rural areas. I did logistics for Doctors Without Borders but I tasted that cumin that you have on the table in front of you.
Ethan you were in Afghanistan take me through what happened next.
I started carrying it home truly. I was just sharing it with friends in the restaurant industry and the response was overwhelming and so I just started trying to put the pieces together out of your apartment in New York. We ran the business out of my living room.
Tell us about the business and the numbers give us a range of costs and what your margins are and your total sales.
Our spices typically they retail for 9.99. The landed cost is two dollars and fifty cents so we have on average a 75 margin on it. Lifetime we’ve done 12 million dollars worth of Revenue.
Can you walk us through those six years so we can see the sales ramp?
Our first year we did a hundred thousand dollars in Revenue. 2019 we did 600,000 in sales. 2020 in the pandemic we ended up closing the year at three million dollars worth of sales. 2021 we closed the yard 5.1 million dollars in sales.
What about this year what are you on this year?
We’re on track to do between six and seven million dollars worth.
How much are you going to make on that bottom line?
It is around 10 percent. Our net is around 690,000.
Listen guys it tastes great I think it does taste stronger I also think it’s a really crowded space there are so many spices out there I like so much to be involved with things they’re a little bit more unique.
Got it thank you we really appreciate it.
You should have come in and asked for 250,000 we could have negotiated you up a little bit but the valuation is crazy I’m out.
Thank you.
I’m a little surprised that I’ve never heard of the brand before which gives me a bit of pause because I’m very active in in the space which makes me wonder if you’re really going to be able to proliferate the the market.
Okay.
I don’t know if it can grow at the speed that I would like it to I think you know for those Reasons I’m out.
Okay.
What are you thinking Mr Wonderful?
We came here with an idea for you. We do royalty deals on a regular basis when we do a collaboration blend with a chef or an artist or an influencer. We found that to be a very effective customer request. We give a standard 20 percent on an 11.99 retail product so that’s 2.39 per unit sold. I’ll tell you I’ll make you an offer. I’ll give you five hundred thousand dollars for a 2.30 royalty on an order.
I’ll offer you five hundred thousand dollars for 10 equity and I want a 20 royalty on everything until I get back a million bucks then it goes away.
Hello listen it’s an offer Mark.
We would do 20 royalty on a Mr Wonderful branded line of spices and and count on you to help promote them. We would do a 10 affiliate cut on everything that you drive to us and we would do five percent equity for five hundred thousand dollars.
There’s no way I’m doing that deal yeah I’m out.
Key Stats & Financials
Burlap & Barrel has demonstrated impressive growth since its inception. The company capitalizes on the direct-to-consumer trend, maintaining high margins by eliminating intermediaries. Their financials show a clear upward trajectory, bolstered by the pandemic cooking trend.
- Sales: $6.5 Million projected revenue for current year.
- Margins: 75 percent gross margin on retail sales.
- Valuation: Requested $10 Million valuation based on ask.
- Investment Request: $500,000 for 5 percent equity.
- Use of Funds: To scale operations and marketing.
| Year | Revenue |
|---|---|
| 2017-18 | $100,000 |
| 2018-19 | $250,000 |
| 2019-20 | $600,000 |
| 2020-21 | $3,000,000 |
| 2021-22 | $5,100,000 |
Business Potential and TAM
The spice market is massive but often overlooked regarding quality differentiation. Burlap & Barrel taps into the growing consumer demand for transparency, ethical sourcing, and culinary exploration. Their Total Addressable Market includes home cooks, professional chefs, and gift buyers looking for premium food experiences.
- High demand for clean label ingredients.
- Growing interest in global cuisines.
- Shift towards premium pantry staples.
- Ethical consumerism trends.
Burlap & Barrel: Ideal Target Audience & Demographics
| Demographic | Details |
|---|---|
| Home Cooks | Enthusiasts seeking better flavor |
| Gift Givers | Buying for holidays and special occasions |
| Chefs | Restaurants requiring high quality bulk spices |
| Health Conscious | Consumers avoiding additives |
Marketing and Distribution Strategy
The company relies heavily on its digital presence to tell the story of its farmers. They use influencer partnerships, social media content, and direct email marketing to engage customers. Their strategy involves educating the consumer on the difference between supermarket spices and single-origin varieties.
- Direct to Consumer e-commerce store.
- Influencer and Chef collaborations.
- Wholesale partnerships with restaurants and grocers.
- Content marketing focused on farmer stories.
Burlap & Barrel Deal Outcome
Burlap & Barrel ultimately did not secure a deal on Shark Tank. The Sharks felt the $10 million valuation was too high for the current stage of the business. While Lori Greiner and Barbara Corcoran liked the product, they bowed out due to market concerns and valuation. Kevin O’Leary made a complex royalty offer which the founders countered, but they could not come to terms on equity and brand ownership.
| Shark | Outcome |
|---|---|
| Mark Cuban | Out (Not knowledgeable about industry) |
| Lori Greiner | Out (Crowded space) |
| Barbara Corcoran | Out (Valuation too high) |
| Kevin O’Leary | Out (No agreement on terms) |
| Daymond John | Out (Not shown in transcript segment) |
Burlap & Barrel Post-Show Update
Despite leaving the tank without a deal, Burlap & Barrel continues to thrive. The Shark Tank exposure provided a significant boost in brand awareness. They continue to expand their product line, including collaborations with the Jane Goodall Institute for Wild Woodland Honey, and maintain a strong direct-to-consumer subscriber base for their Spice Club.
Business Analysis & Lessons
The pitch highlights the importance of valuation alignment between founders and investors. While Burlap & Barrel has impressive financials and a noble mission, the $10 million ask was a hurdle. However, their strong counter-offer to Mr. Wonderful showed they understand their worth and were not desperate for capital at any cost. The business proves that a mission-driven brand can scale profitability without traditional venture capital if margins are managed well.
- Valuation must be grounded in current financials.
- Direct sourcing can create a strong competitive moat.
- Mission-driven narratives resonate with consumers and investors.
- Knowing your bottom line helps in negotiation.
Pitch Conclusion
Burlap & Barrel entered the Shark Tank to spice up the industry and left without a deal but with their integrity intact. Their journey from a living room operation to a multi-million dollar revenue company is a testament to the power of quality and ethics. Have you tried their single-origin spices? Share your thoughts in the comments below.