Jackson’s Honest is a company from Crested Butte, CO, founded by a husband and wife couple that were inspired by their son’s health issues to create a healthy set of snack foods.
The company manufactures chips and other snack foods that utilize coconut oil rather than peanut or canola oil. Their primary product and best seller is a line of snack chips chips.
Before starting Jackson's Honest, neither founder had a background in food.
Jackson's Honest grossed $10,100,000 in sales in the previous year, representing substantial growth from the $5,400,000 in gross revenue the year before. In their first year of business, the company grossed $1,400,000. Despite this growth, the company is not yet profitable and lost $1,700,000 the previous year. The founders predict reaching profitability in the next year with gross revenues projected to be between $13-14,000,000.
The single biggest customer is Whole Foods, representing almost 13% of total sales.
Jackson's Honest has previously raised $3,000,000 in a friends and family round. However, the founders still retain 66% of the equity in the company.
This deal aired on Episode 9.02.
Making A Deal
Jackson's Honest made a straight equity deal with Rohan for 15% of equity instead of the 5% the founders offered originally. This represents a bite of $16,666,666 from the original valuation of $25,000,000 but, presumably in the founder's minds, this represents a temporary dip as his value will increase the overall worth of the business.