Darien Craig and Brandon Echols have been best friends since they were six years old, growing up together in the small town of Hayden, Alabama. Their bond remained strong through high school, and they even dropped out of college together. On a recent episode of ABC’s “Shark Tank,” they shared their journey and celebrated another milestone: securing an investment for their business, Y’all Sweet Tea.
The Genesis of Y’all Sweet Tea
Darien Craig was left with only $7 to his name in 2021 after being let go from one of the jobs he held down. Now hell-bent on changing his fortunes, he spent $300 from his last paycheck to buy jars, sugar and tea. It began with these purchases that would serve as the foundation for Y’all Sweet Tea. With Craig’s natural-born entrepreneurial mindset and encouragement from his longtime friend Brandon Echols, this small investment blossomed into an entire business.
Growth and Success
Y’all Sweet Tea is both a direct-to-consumer and grocery store brand, with around 600 grocery stores carrying the product primarily in the southeastern United States. Last year the company brought in over $4 million in revenue with nearly $800,000 in profit. Apparently, this success impressed some investors on “Shark Tank.”
Simon Harris of Harris Tea noted that one of the business’s biggest successes was its launch of flavored teas. Within 35 minutes they sold out of their first flavor, “Georgia Peach” (the first eight minutes alone accounted for $100,000 in sales), selling 10k units. The show is famed for its investor judges, who in the very latest episode were stunned by this rapid success — Kevin O’Leary and Barbara Corcoran both commented that they rarely see such rapid-fire successes from apples-and-oranges entrepreneurs.
The Investment Offer
Craig and Echols asked for a $500,000 investment for 5% equity in their company on “Shark Tank.” When guest investor Rashaun Williams, a venture capitalist, quickly offered $500,000 in exchange for 10% of the company—cash earnestly accepted up front because they knew their business model inside and out and projected fantastical growth. Williams told Craig and Echols he is open to distributing the film however they’d like and described his offer as “flexible.”
Mark Cuban and Barbara Corcoran passed saying Williams’s style of investment was a better match for Y’all Sweet Tea. Yet Kevin O’Leary still wasn’t ready to tap out. He made a joint offer with Williams, saying they would split $500,000 in exchange for 20% of the company.
Lori Greiner then stepped up to make a joint offer with Williams of $500,000 for 15%. O’Leary was quick to one up this offer. Craig queried whether any of the investors would be inclined to step up with a further $250,000 as well and they each folded, with Williams commenting that Y’all Sweet Tea could always raise more capital later if it needed to.
Craig and Echols agreed to the join offer from Greiner and Williams after a short period of time. Stansel said the camaraderie he saw between Williams’ venture capital resume and Greiner’s retail resume trumped the dollars-and-cents advantage of a solo proposal from Williams.
The Official Deal
Craig later told CNBC Make It that the deal with Greiner and Williams was confirmed on the terms they pitched during taping. Echols told the Dallas Morning News he was pleased about the partnership where Williams brought business skills and Greiner brought retail experience. He was confident that would make Y’all Sweet Tea even more successful.
Lessons from Their Journey
The tale of Darien Craig and the Brandon ‘Echols’ are a prime example, however, of determination, camaraderie and entrepreneurship. They have built a successful business from scratch, overcoming adversities including getting fired and having little funds. The journey teaches a few important lessons for those looking to start their own business:
- Begin with What You Have: Craig started Y’all Sweet Tea with $300 he had left from his last paycheck. This proves you do not need to have a lot of capital to start a business, its all about how you utilize what you have.
- Utilize Support Systems: A friend or partner who offers support can greatly impact. The bond Craig and Echols had forged over their years of collaboration was a critical element in making the gig work.
- Evolve– By offering flavored teas: they were able to greatly increase their sales. Being flexible to new ideas and changing with the tides of what the market needs can help to lead a business down a path of growth.
- Demonstrate Grit — Craig’s Never Quit Mentality in Turning His Situation Around with Getting Fired and Willingness to Take Risks to Make It HAPPEN contributed majorly. Each entrepreneur must cultivate the virtue of being resilient and persevering.
Conclusion
Darien Craig and Brandon Echols story went from college dropouts to Entrepreneurs at 20 years old, spoke how their resilience, their innovational concepts around collaboration and strategic planning. In a short time their business, Y’all Sweet Tea has exploded with sales and gained the attention of big-name investors. This is due to: utilizing their friendship, ability to pivot on market needs and smart investment ideation with a solid base for future success. The story of their hard work and dedication is a beacon to all new entrepreneurs, showing the fight it takes to make something truly work.
FAQs
What is the story behind Y’all Sweet Tea?
After losing his job in 2021, Darien Craig established Y’all Sweet Tea. Those first jars, a bag of sugar and tea came after Nicole used $300 remaining in his paycheck.
Q: How successful is Y’all Sweet Tea?
Revenue from Y’all Sweet Tea was $4 million last year, which had almost $800,000 in profit. The company sells products direct-to-consumer and at roughly 600 grocery stores throughout the Southern U.S.
What sold the “Shark Tank” investors on Y’all Sweet Tea?
Investors were wowed by the numbers, particularly how quickly Y’all Sweet Tea was able to move flavored teas like ‘Georgia Peach’ which sold 10 thousand units in just 35 minutes. Sales topped $100,000 in the first eight minutes.
How much was Craig and Echols’ investment offer on Shark Tank?
Craig and Echols split a $500,000 deal with 15% equity into Y’all Sweet Tea from the “Shark Tank” series by Lori Greiner and Rashaun Williams. They loved Williams history in venture capital and Greiner’s retail experience.
What lessons do entrepreneurs take away from Craig and Echols?
An important lesson learnt:Begin with what you haveBuild a support systemFind ways to pivot and innovateInvest strategicallyBe resilient