Recently, in an episode of Shark Tank. The appearance of Ms. Van Anh – Founder of Tri Viet Phat company provided interesting information. As someone who regularly comes into contact with startup businesses. This raises an important question for investors: does the spice industry and business have great potential?
Join us at Hoa Sen Foods to find out the answer through the following article!
At the beginning of the program, she invited the Sharks to try different sauces and spices produced by her company and proposed an investment deal of 22 billion VND in exchange for 5% of the company’s shares.
Spiced Foods: Being “Delicious” and Potentially Attractive
With an estimated revenue of over 100 billion VND in 2023 and meeting food safety standards (FSSC), the spice food industry has significant development space.
“Even though in the past 4 years the economic situation has been very difficult, we still grew steadily at 40% – 46%” Ms. Van Anh confided in sharing.
Profits in this industry usually range from 10-15%. According to Shark Binh’s opinion, the company’s valuation of 2 times revenue is quite high. And what’s important is that it’s sustainable and unaffected by market trends.
The capital deal “war” has begun.
The “sharks” at the show quickly began to get involved in the deal. Shark Hung Anh, Shark Hung, and Shark Binh all made sizable investment offers, with stake conditions ranging from 15% to 20%. However, Ms. Van Anh decided to significantly reduce the price to maintain control of the company.
Ms. Van Anh stuck to the initial proposal of 22 billion VND for 5% of shares, having difficulty convincing the Sharks of the company’s true value.
However, she revised the deal and reached Shark Hung Anh’s agreement with a price of 24 billion VND for 15% of shares after committing to achieve revenue of 260 billion VND next year and 500 billion VND in 3 years.
Great Potential of the Spice Industry
We see great potential in this industry, especially with the development of the culinary market and the increasing demand for diverse spice products.
A spice startup needs to identify its key product and focus on developing the market and brand awareness. Spice business is a good solution for the early stages, helping to save resources and Focus on product and market development. Once you have overcome the initial difficulties and have investment resources, you can build your own factory.
The case of Tri Viet Phat on the show Shark Tank is a clear example of great potential and sustainability in the food and spice industry. Although initially difficult, through smart adjustments, Ms. Van Anh found a suitable investment partner. The important lesson from this case is to understand the market and know how to take advantage of opportunities for growth.
With creativity and patience, the spice industry becomes a potential field for start-up entrepreneurs. Lessons about choosing the right Shark and smart negotiation ability can change the future of a startup company. At the same time, the spice industry is growing strongly and has great potential, with many opportunities for talented entrepreneurs. Ms. Van Anh has proven that the right vision and patience can turn opportunities into ultimate success.
Thank you for reading this article. Above are our shares – Hoa Sen Foods about the current spice market through the Shark Tank program. If you have any questions or suggestions, please comment below!
