Vegan alternatives to traditional meat products are on the rise. One example is Pan’s Mushroom Jerky. Michael Pan created it as a plant-based substitute for beef jerky, pitching it on Shark Tank where he landed a deal with Mark Cuban. Recent metrics indicate Pan’s Mushroom Jerky is worth $2 million.
Michael Pan’s Background
Although Michael Pan is of Malaysian descent, he grew up in Vancouver, Washington. After graduating from Starkville High School, he attended the University of Illinois Urbana-Champaign to study electrical and electronics engineering.
He completed an engineering internship at Motorola and got his bachelor’s degree in 2001. After college, he worked as an electrical engineer at Raymond Professional Group.
Next, he returned to Motorola and was promoted to Design Team Leader. He held the same position when he transferred to Continental in 2006. For over two years, Pan served as the VP of Product at the IT firm Fancred.
Founding Pan’s Mushroom Jerky
The inspiration came during a trip to Malaysia to visit family. His cousin, a vegetarian Buddhist monk, served him a homemade mushroom jerky recipe that had been passed down through generations.
Michael initially thought he was eating pork. Struck by the taste and texture, he spent years refining the recipe back in the US using shiitake mushrooms.
Mushrooms proved to be a great alternative to beef and contained additional vitamins and antioxidants. In 2018, Pan’s Mushroom Jerky was formally launched under Panco Foods, and by 2019 the startup had generated $755,000 in revenue.
The Sharks Fought Over Mushroom Jerky
In 2020, Michael Pan appeared on season 12 and asked the Sharks for $300,000 in exchange for 10% of the company. Around this time, his product was available in 700 stores in the US, but none of them were major brands. Because of this, the entrepreneur needed help getting into the bigger stores.
To get an investment, Michael convinced the Sharks about how his mushroom jerky had a low production cost. He also revealed that his problem was the product’s 10% profit margin. Fortunately, this didn’t seem to bother the Sharks.
Guest Shark Blake Mycoskie joined forces with Lori Greiner to offer $300,000 for 30%. However, Mark Cuban is actually a vegetarian and was willing to offer a better deal. Cuban agreed to Michael’s counteroffer of $300,000 for 18% equity.
Where Is Pan’s Mushroom Jerky Now?
Within 24 hours of the episode airing, Pan’s Mushroom Jerky made $650,000 in sales. Within four days, online sales surpassed $1 million, with orders coming in at a rate of 375 per minute and a total of 33,000 orders attributed directly to the Shark Tank appearance.
The team went out of stock on Amazon and their official website, MushroomJerky.com. It took nearly four months to fulfil the backlog.
In 2023, they made a series of significant moves. They expanded to a larger manufacturing facility, tripled their staff, moved to 24/7 production to quadruple output, and secured a listing with Costco, along with a new eight-ounce bulk bag format.
The brand has also been featured in Mark Cuban’s Vegan Collection Box and has received coverage from outlets including The Wall Street Journal, Bon Appétit, Food & Wine, and The Food Network.
Today, Pan’s Mushroom Jerky is available in over 3,500 retail locations across the US and ships to international markets including Canada. Available flavours include Original, Zesty Thai, Applewood BBQ, Salt & Pepper, and Teriyaki, with limited-edition varieties released periodically. Annual revenue is estimated at close to $5 million, and the company’s current net worth is estimated at $2 million.
