As an 8-year-old, Joel Clark sold his mother’s homemade pancake mix in the neighborhood. They sold out like hot cakes! Joel later took over the family business and partnered with Cameron Smith. The guys pitched the product on Shark Tank and rejected a deal. That decision paid off. Today, Kodiak Cakes is majority-owned by L Catterton, which acquired a majority stake in 2021 at a reported valuation of around $800 million.
The People Behind the Brand
Joel Clark grew up in Salt Lake City, Utah, the youngest of five children in a health-conscious family. His mother, Penny, baked her own bread, ground her own wheat, and kept junk food out of the house, a backdrop that would later define the brand’s whole-grain identity.
Cameron Smith joined Kodiak Cakes in 2009 to lead sales and marketing, and went on to become co-founder and President. Together, the two transformed a niche family recipe into a national brand.
The Birth of Kodiak Cakes
Kodiak Cakes traces its roots back to 1982 when Joel Clark was eight years old. That summer, his family started selling Penny’s whole wheat pancake mix recipe door-to-door in their neighborhood. In 1994, his older brother Jon started the business with the goal of making a healthy product that tasted great.
After getting a $35,000 investment from a local businessman, the company expanded into local grocery stores and big retailers such as Target. In 2009, Joel hired Cameron to lead the sales and marketing strategy. Together, they helped the startup reach $3.5 million in sales by 2013.
Success After Shark Tank
After their episode aired in April 2014, the company generated $1 million in additional revenue in six weeks! The success helped fund new products and they released a protein-rich pancake mix called Power Cakes. This product, in particular, is hugely popular with bodybuilders. Annual sales jumped from $3.6 million in 2013 to $6.7 million in 2014.
In 2016, Colorado-based Sunrise Strategic Partners took a minority stake in the business and helped scale revenue from around $15 million to over $200 million. By 2020, Kodiak Cakes had hit $200 million in annual sales.
The company’s biggest deal came in May 2021, when private equity firm L Catterton acquired a majority stake, reportedly valuing the business at around $800 million, per Forbes. The founders and management team retained a minority stake.
In November 2022, Joel Clark and Cameron Smith both transitioned to board roles, and Valerie Oswalt, formerly President of Campbell Soup’s Snacks division, was appointed CEO. The following June, actor and producer Zac Efron joined as the company’s first Chief Brand Officer, also taking a board seat and a shareholder position.
Today, Kodiak Cakes products are stocked in over 26,000 retail locations including Walmart, Target, Costco, Amazon, and KodiakCakes.com. The product line has expanded well beyond pancake mix to include frozen waffles, oatmeal, breakfast bars, and trail bars.
Annual revenue surpassed $200 million in 2023 and was reportedly approaching $500 million in the most recent year. This is a long way from a red wagon and a stack of brown paper bags.
Shark Tank Episode Recap
Joel and Cameron wanted to raise capital to fund growth. The guys appeared on season 5 of Shark Tank, asking for $500,000 for 10% equity. A $5 million valuation was ambitious but they were already in Target and were forecasting $5 million in sales for that year.
The Sharks didn’t seem interested in the product or believe in its potential. Kevin was disrespectful and believed the business was worth $2 million. At one stage, he told Robert to shut up!
Kevin O’Leary offered $500,000 but for 50% and then went out. Barbara offered half the money for 20% and wanted to split the deal and Kevin was happy to partner. Robert Herjavec made a better proposal of $500,000 for 35% but the equity was still too high. The founders rejected all offers.
