Darien Craig had just $7 left to his name, as shared on you-all Sweet Tea's “About Us” page. Fired from his job and unsure of what came next, he could have called it quits. Instead, he saw a chance to turn things around. With $300 from his final paycheck, he bought tea, sugar and jars.
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His childhood friend Brandon Echols, whom he had known since the age of six, joined him and together they began brewing batches that would later become you-all Sweet Tea. The duo didn't just create a product – they launched a brand that would capture the heart of the South.
Their journey started humbly. According to the company's website, they began sharing their sweet tea recipe at festivals and markets in 2015. However, after two years, they realized events weren't ideal for reaching a broader audience despite the tea's popularity.
Fast-forward to 2024 and their persistence had paid off. As reported by CNBC’s Make It, you-all Sweet Tea was being sold in nearly 600 grocery stores, generating $4 million in revenue the previous year, including $800,000 in profit.
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And that's just the beginning – according to Shark Tank's blog, sales for 2024 had already hit $3 million by October, with projections for $5 million by year's end.
Their secret weapon? Social media. Southern icons like Brenda Gantt and "Mama Sue" helped introduce the brand to millions. Gantt's endorsement reached over four million followers, dramatically boosting visibility and sales.
During their Shark Tank appearance, Craig and Echols showcased the incredible demand for their product. Their Georgia Peach flavor sold 10,000 units in just 35 minutes, pulling in $100,000 within the first eight minutes.
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Investor Kevin O'Leary called their growth "rare," while Barbara Corcoran and Mark Cuban praised their sharp instincts. After a spirited negotiation, the pair accepted an offer from Rashaun Williams and Lori Greiner: $500,000 for a combined 15% equity.
Efficiency has been a critical factor in their success. Each product costs $2.67 to make, wholesales for $4.34 and retails at $7.25 on their website. With 85% of its sales coming through direct-to-consumer channels, the company had a 20% profit margin in 2023.
Their product line continues to evolve. New flavors like Watermelon Whirl and Strawberry Splash Bash were added in 2024, along with coffee, seasonings and cookware to meet diverse customer needs. Partnerships with Southern staples like Golden Rule BBQ & Grill have expanded their reach.
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© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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