Gatsby Chocolate Shark Tank Update

GATSBY Chocolate is a low-calorie vegan chocolate bar company that has had its business up and running since June 2021, according to its founding two brothers Ryan and Doug Bouton. As Founder and CEO of Halo Top International Ice Cream Company, located in Chicago, Illinois, Doug has also utilized the experience in the entrepreneurship aspect of his new company. 

Gatsby Chocolate Overview

Gatsby Chocolates

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Who Is The Founder Of GATSBY Chocolate?

Brothers Ryan and Doug Bouton founded Gatsby Chocolate in June 2021. Doug is also the co-founder and CEO of the popular ice cream brand Halo Top. After acquiring his law degree from the University of Virginia School of Law, he served at Proskauer Rose LLP for some time. The Chief Marketing Officer of Gatsby Chocolate and Halo Top International is Ryan Bouton.

Gatsby Chocolate Before Shark Tank

In 2013, Doug Bouton founded Halo Top Ice Cream from scratch with an investment that would grow into a huge power. As of now, Halo Top has successfully proven innovation in consumer packaged goods and is known for overtaking even traditional brands such as Ben & Jerry’s, whose sales were beaten by this product as early as 2017, when Halo Top became one of the inventions of the year as stated by TIME Magazine. The brand stood out for its low-calorie, high-protein ice cream options targeting health-conscious consumers. Bouton’s transition from law to entrepreneurship was based on his commitment to providing healthier food options. He successfully commanded a significant market share with the Halo Top brand.

Having sold the Halo Top business, Doug Bouton wanted to start a new venture into chocolate-making. He partnered with his brothers, Matt and Ryan, who were already knowledgeable in running Halo Top. Gatsby Chocolate was launched as a medium to innovate new products in the very traditional yet unhealthily consumable chocolate industry. One year after its establishment and intensive product development, Gatsby Chocolate was launched in 2022 with the challenge to compete against brands such as Hershey’s.

Gatsby Chocolate Shark Tank Recap

Ryan and Doug appeared in Shark Tank with the idea of a low-calorie vegan chocolate bar to satisfy health-conscious consumers’ demand. “This product offers half the calories and 75 percent less sugar compared to conventional chocolate bars and its taste is remarkable.”. They called it the “Halo Top of chocolates.” The duo is trying to repeat the success they achieved with Halo Top with their new venture – Gatsby; and were looking for an investment of $500,000 for a 5% stake in their business. However, Daymond quickly turned it down, saying he was out.

Doug came in the Shark Tank with his peanut butter samples. He particularly pointed out that his product is the best seller in its category. The Sharks liked the samples, and Doug told them that they use allulose to replace sugar. At this point, their products can be found in Albertson’s, Wal-Mart, Safeway, and Sprouts, where they have 6,000 stores carrying their items. In 2022, the company recorded sales of $2.5 million, with most of these sales recorded during the fourth quarter.

Their bar is now selling at retail for $3.99 and wholesaling for $2.70, with a production cost of $1.90 per bar. The company wants to get a 50% profit margin but has yet to gain recognition. Candace asks how they need a Shark investor. Doug responds by saying that they have national distribution but no major national awareness. The Sharks are also not satisfied with the name of the bar.

The company in question is estimated to make sales of around $2 million during 2023 but is currently performing poorly, having recently incurred a loss of $3.5 million. According to Kevin, the $10 million valuation of the company cannot be true, but Daymond agrees that this is a fair valuation but can contribute no value to the partnership and hence decided to step out of the opportunity. When Candace asks Doug why he wants to start another company, he simply and candidly attributes it to “stupidity.”

Lori wants to invest $250,000 for 20% equity and also lend the business $250,000 at 6%. Kevin comes back with $500,000 venture debt at an equity stake of 12%. Candace says there are so many calories that might promote a “toxic diet culture” and decides to get out. Mark is interested in the idea and asks if the team is willing to sacrifice 20% equity. Doug counters that the team needs a brand ambassador.

In response to this, Lori increases her offer to 25% equity. However, in response to Mark’s help for Doug in finding a brand ambassador, Lori goes back to her previous proposal. After some negotiations, Mark and Lori got together and presented a joint offer of 500,000 dollars, which comprises $250,000 debt and for 20% equity in the business. They insist they would receive an additional 10% equity at sales of $10 million and then another 5% equity increase once the sales hit $20 million. Doug recommends changing the additional equity trigger amount to $50 million, to which all other Sharks agree.

What Is GATSBY Net Worth?

The estimated net worth is also $3.5 million, as of 2022. The company, having just concluded its deal with Mark Cuban and Lori Greiner, now intends to focus on the aspects of becoming profitable and then choose a brand ambassador that would elevate the presence of the brand.

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Gatsby Products

Gatsby Chocolate made an innovative entrance into the market with nearly ten new-age products beyond the ordinary chocolate bar. Sea Salt Extra Dark Chocolate, Almond Dark Chocolate, and Cookies & Cream were among the flavours to entice chocolate lovers. At 180-210 calories per chocolate bar and just 50 calories in each peanut butter cup, Gatsby satisfies your urge for indulgence while keeping healthy goals in check.

Gatsby Chocolate is now adding more options not only by reducing the calorie content but also by catering to dietary needs. The brand aims to launch a vegan line, following the trend in the market where vegan products are in high demand. The company has already been producing vegan-friendly items such as Sea Salt Extra Dark and Almond Dark chocolate bars as well as Dark Chocolate Peanut Butter Cups that contain plant-based elements.

Gatsby is offering low sugar, mainly relying on natural ingredients and cutting down sugar by 75% in the products as compared to major competitors. They are trying to build a health-conscious customer base with their chocolates and peanut butter cups having 50% fewer calories, 80% less sugar and carbs, and 50% less fat as compared to other brands. Such strategies make Gatsby Chocolate the number-one choice in major stores like Walmart, Safeway, and Albertsons.

Gatsby Chocolate Ingredients

This marked the emergence of Gatsby Chocolate as a very unique low-calorie option that stood out based on its rather unique ingredients. Although the primary ingredients of chocolates are cocoa powder and flavour-specific add-ins, it is in these other carefully chosen ingredients that its low-calorie, low-sugar profile, coupled with its melting-in-your-mouth texture, emanates.

Gatsby Chocolate does contain allulose, EPG (esterified propoxylated glycerol), and MCT (medium-chain triglycerides) oil as novel ingredients. EPG from Canola by Epogee cuts down fat-derived calories by 92% but holds onto the taste and mouthfeel to create much of the fattiness of Gatsby’s candies. Moreover, there are 10% fewer calories in MCT oils like palm kernel oil versus long-chain triglycerides such as olive oil.

Gatsby Chocolate comes in with allulose (D-psicose), a sugar-free sweetener approximating about 70% in sweetness to regular sugar and low in calorie count. Still, people have different judgments. Some critics view these low-calorie chocolates as “creatures of a food scientist’s lab,” warns one Redditor, who defends the highly processed nature of such products.

Is GATSBY Still In Business?

The firm, GATSBY is a company incorporated by brothers; Ryan and Doug Bouton during June 2021; it is up to date and functioning as of November 2023. The firm posted more losses by October 2023 than revenues; the headquarters is located in Chicago, Illinois. As outlined in the linked page, the Company has 11-to-50 staff.

FAQ’s About Gatsby Chocolate

Q: Who started GATSBY?

A: GATSBY was started in June 2021 by Ryan Bouton and Doug Bouton.

Q: What is GATSBY’s net worth?

A: GATSBY’s net worth is about $3.5 million.

Q: Is GATSBY still operating?

A:  As of November 2023, GATSBY is still operating.

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