LaTangela Newsome found a quick and easy solution to dispose of grease. With no sales yet but a brilliant patent and a will to succeed, she decided to take a plunge in the Shark Tank and see if anyone would take her proposal of $75,000 for 25% stake in her company.
LaTangela Newsome is a single mom from Texas who loves to cook. Known for her deep-fried chicken wings, her main problem is how to dispose of the grease once it’s time to clean-up the kitchen! After noticing most people end up pouring the grease down the drain, and then having to spend thousands of dollars on pipeline replacements due to grease build-up, she decided to come up with a solution! Not only is incorrect grease disposal costly, it is also a big environmental hazard.
LaTangela set out to find a new alternative, thus creating the Grease Bags! They are convenient, disposable, and even the packaging is home compostable. And it’s so easy to use! All you have to do is open the bag and pour the grease in! LaTangela also claimed she is the only person with an at-home eco-friendly grease disposal product.
When it came to sample time, LaTangela came prepared, bringing not only the Grease Bag but also some chicken wings for the hungry sharks. She also explained that, once in the bag, there’s a blend of all natural oil-absorbing ingredients, so that the pad inside the bag absorbs the used grease.
After a short demonstration, the sharks asked what the absorbent ingredient was and, although she did not specify, she mentioned it was the same material used in oil spills, so it’s safe for plants, animals, and the environment. LaTangela also mentioned that she holds the patent for the absorbent material and bag combination.
After Barbara asked, LaTangela also mentioned that the oil has to be cooled down before it’s inserted into the bag. The reason why it’s still not heat-resistant is because LaTangela wants to keep the bag compostable. Furthermore, during negotiations, it was also mentioned that the bag can be used to dispose of oil regardless of what the oil is used for. So, it can be used when the changing your car’s oil, when using oil-based paint, etc.
Although she hasn’t started selling yet, LaTangela has found a manufacturer in charge of packaging. The packages sold are supposed to have 3 products, enough to last a month, for a retail price of $12.99, with the production cost being $2.34.
Lori quickly intervened as the first shark to back out of the deal claiming she doesn’t eat fried food and therefore has no knowledge on the matter.
Barbara was the second shark to share her opinion, saying that she makes bacon every single morning and expressed her concerns regarding waiting for the oil to cool down before putting it in the bag, and therefore also decided not to make an offer.
Mark mentioned that there’s an inherent conflict that the people who are very green conscious
are going to be the main users, although those are also typically the people that are more health conscious, and therefore not as likely to fry food. And for that reason, Mark also decided to not make an offer.
One of the last sharks to share their opinion was Kevin. Although his reason for backing out of the deal was quite vague, he seemed to not fully understand the product’s role as a compostable waste product.
Lastly, it was Robert’s turn to share some of his insight. He was quite hesitant to invest on this product due to the lack of sales and ended up not making an offer either.
In an unexpected turn of events, Barbara decided to come back into the deal, and ask if it would be possible to sell the package containing 3 bags for $6.99. Following this contingency, Barbara proposed $75,000 for 50% stake in the company. LaTangela quickly took the deal with Barbara.
Although the bags are not yet being sold, you can pre-order them on the company’s website, or check their social media accounts for updates www.greasebags.com
Original Air Date: January 13, 2017
Entrepreneurs: LaTangela Newsome
Company/Product: Grease Bags
Proposal: $75K for 25% stake
Investor: Barbara Corcoran
Final Deal: $75K for 50% stake
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