Gatsby Chocolate Net Worth Shark Tank Update

We all love a sweet treat on every other day irrespective of any specific occasion, especially chocolate. They are perfect to satisfy our tongue palates and to trigger our sweet tooth. However, they are not a healthy option as they contain high amounts of fat and sugar.  

Ryan Bouton and Doug Bouton, the owners of Gatsby Chocolate, have the perfect treat for us. They have introduced a chocolate that is half the calories of a normal chocolate and it has 75% less sugar content as well.

The owners came on Shark Tank to request $500K in exchange for 5% of their company. They also brought their different flavors of chocolate to impress the judges with their taste buds. Let’s see if they got the deal or not.

Gatsby Chocolate Net Worth Shark Tank Update

Doug and Ryan were looking for an investment of $500k in exchange for 5% equity in the company. At the time of the episode, they valued their company at $10 million. Doug and Ryan successfully secured a deal with Mark and Lori for an investment of $250k for 20% equity, plus an additional $250k as a loan with terms tied to sales milestones. The investment adjusted the company’s net worth to around $1.25 million. After the show was aired, the company experienced a good boost in exposure. As per my rough estimate, the current net worth of Gatsby Chocolate in 2024 is around $15 million.

Shark(s) name	Offer & Demand	Counteroffer	Accepted?
Kevin O’Leary	$500K in exchange for 5% equity	$500K as venture debt for 12% equity	No
Mark Cuban + Lori Greiner	$500K in exchange for 5% equity	$250K for 20% equity, plus $250K as a loan for 6% interest. Stake increases to 30% at $10M in sales, and again to 40% at $50M in sales	Yes
John Daymond	Out	N\A	N\A
Candace Nelson	Out	N\A	N\A

The Owners’ Backstory

After being successful with the Halo Top ice cream, the Bouton brothers decided to work on a chocolate business. The two brothers came up with the name Gatsby for the chocolate because of the hype of the book The Great Gatsby by F. Scott Fitzgerald.

Their chocolate is not only tasty but also a healthy alternative to the other chocolates with 75% less sugar content.

Initial Pitch

The brothers came on the show to seek $500K in exchange for 5% equity. They also highlighted that they are the owners of Halo Top Ice-cream as well, which guarantees the chocolate to be delicious.

Queries about the Product

Candace asked the first question about their best-selling chocolate so far. Doug pointed out that it is the peanut butter madness that is the best so far.

Kevin asked about the use of artificial sweeteners in their chocolate. He replied that they use Allulose instead of normal sugar.

Kevin was also curious to know about their medium for selling the chocolates. He highlighted that the chocolates are being sold at Walmart, Albertson, and Sprouts. They are in more than 6K distributions currently.

Candace then inquired about their sales for the last 12 months. Doug replied that last year their sales were just above $2.5M.

Cuban wanted to know the cost to make one bar and its selling rate. He highlighted that it is for $3.99 in retails and $2.70 in distribution. Moreover, it costs them $1.90 to make, thus the margins are too low.

Candace was curious to know why they need a shark if they are already successful with their business. Doug replied that although they are good by their own self but they want to have a national awareness which can be fulfilled through sharks.

Kevin then asked about the loss in their business. Doug answered that they have lost $3.5M last year.

Shark’s Response and Final Decision

Daymond was the first shark out of the deal as he considers the business to be already successful.

Lori offered them $250K and the other $250K as a loan at 6% interest for a 20% in their company. She also added that she would help create awareness among the masses by redesigning the packaging of the product.

Kevin also offered them a deal of $500K as venture debt for a 12% equity stake.

Candace although loved the chocolate but was not a fan of the packaging. She left the deal after advising the brothers to take Lori’s offer.

Doug highlighted that if they would accept Lori’s offer, they would definitely need a face of the brand type partnership, as they clearly want a creator led brand. After hearing this, Lori revised her offer to $250K and the other $250K as a loan at 6% interest for a 25% equity.

However, Lori then changed the offer to the original $250K and the other $250K as a loan at 6% interest for a 20% equity stake.

Lori then partnered with Cuban and made a different offer to them. They pitched a deal of $250K for a 20% equity and the other $250K as a loan which increases to 30% at $10M in sales and 40% at $20M.

Doug then counter-offered them $250K for a 20% equity and the other $250K as a loan which increased to 30% at $10M in sales and 40% at $50M.

Lori and Cuban finally accepted their counteroffer.

Product’s Availability

After getting two sharks on their side the Bouton brothers are even more successful in their chocolate line. Initially the deal with the sharks was not taking any practical turn but then Doug highlighted that “We’ve had weekly conversations with Mark and Lori and the deal is almost done now,”.

Gatsby Chocolate is now stocked at Walmart stores across the country and can also be found in some Sprouts locations. Plus, if you buy two bars from Walmart, you can get a third one free! By just texting a photo of the receipt to the company the cost of one bar will be refunded.

Conclusion

The Bouton Brothers proved their sweet treats business to be a successful one with their Halo Top Ice cream and two sharks on their side for their chocolate business. Their ice-cream line was already successful and now they have made another mark through their chocolates with less sugar and calorie quantity compared to the traditional chocolates found in the market.