We have always used butter sticks to apply delicious butter to our bread. But it’s really daunting to melt the hardened butter stick and then apply it to foods. It is a genuine problem worldwide and Doug Foreman came up with quite an innovative solution.
Doug had appeared on Shark Tank in 2016. He introduced Biem Butter Sprayer and asked for a $500,000 investment for a 5% stake in the firm. He had a genuine product and all sharks believed it would nail it in the market. Doug had received four offers and he eventually chose Lori’s deal.
So, how Biem is doing after securing an amazing deal on Shark Tank? Did Lori’s investment help this firm gain more sales or not? Continue reading to reveal what happened to Biem after Shark Tank.
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What is Biem?
Biem is the company behind the Biem Butter Sprayer. It is a modern-day kitchen gadget that instantly melts a solid stick of butter and transforms it into liquid form. You can use it to spray butter on foods for the perfect seasoning.
This product is unique because it does not rely on chemicals or artificial propellants to produce melted butter. It only uses heat and air to quickly melt and spray butter. Users can store this gadget anywhere they like and use it 24-7.
What really impressed Sharks is the usability of this gadget. It eliminates the need for a knife and heat to melt butter chunks. It allows users to spread butter on the food faster without using any tool. There is no risk of overheating and Doug had demonstrated the efficiency of the product on the show.
The Biem butter sprayer turns on automatically when you pick it up and offers instantly melted butter. Put it down and this gadget will turn off on its own.
It is extremely user-friendly and designed for an effortless operation. Therefore, all four investors tried to get a slice of the pie i.e. the Biem butter spray.
Doug has filed a patent for the entire gadget and it is still pending. The nozzle design is unique because it prevents clogging due to hardened butter. This gadget can help users prevent butter wastage and make every cuisine healthy and delicious with melted butter.
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Who is the founder of Biem?
Biem is the brainchild of Doug Foreman, who is a serial entrepreneur. He has invented the gadget and he has also founded brands, such as Beanitos and Guiltless Gourmet.
He had reportedly sold his successful brand Guiltless Gourmet for approx $500 million! It impressed most investors sitting on that Shark Tank episode.
Doug’s Biem Butter Sprayer had shown great prospects, but this product didn’t really take off! You can still visit the official website of this product, but it does not offer new products. In fact, Doug now serves as the CEO of Austin Automation.
As per available information on various online platforms, Doug has dedicated his career to developing new gadgets and solutions for the food industry. He has always tried to create healthier food alternatives and thus he came up with the idea of Biem Butter Sprayer.
Doug Foreman has been in the food industry for more than 40 years. He has introduced multiple kitchen gadgets and consumer packaged goods.
This entrepreneur is mainly known for establishing Beanitos, which was the leading bean-based snack chip. The first baked tortilla chip “Guiltless Gourmet” brand was also introduced by Doug back in 1989.
Foreman has been passionate about introducing cost-effective and user-friendly products in the food industry. The official website of Austin Automation reveals that Doug will introduce more innovative products for the kitchen and the food industry.
Even after some minor failures, he is still quite committed and dedicated to his long-term vision for the kitchen industry!
Biem before Shark Tank
Doug was a successful entrepreneur before appearing in Shark Tank. We have already talked about Doug’s earlier business ventures in the previous section of this post. Being in the food industry, Doug had noticed that people were always misusing butter (and overconsuming at the cost of their health!)
Being an excellent cooking oil, he thought, butter should be available in a more user-friendly form. This thought encouraged Biem founder to invent a user-friendly butter sprayer and prevent its wastage.
Once the gadget was ready, Doug found that it can improve food’s taste and prevent excess intake of butter. The nozzle was unique and therefore Doug sought patents for this part of the sprayer.
Doug had decided to crowdsource funds for Biem Butter Sprayer before appearing on Shark Tank. Since the product was pretty useful, several investors funded this project and helped jumpstart the production.
Doug had crowdsourced $235,000 for his Biem startup before appearing on the reality TV show. This sort of investment had impressed all the Sharks and thus they took Doug pretty seriously while negotiating a deal.
Lori had thought that this deal would add another useful and successful product to her portfolio, but things didn’t work out as planned!
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How was Doug’s pitch for Biem on the Shark Tank show?
Doug appears on Shark Tank seeking a $500,000 investment for a 5% stake in his newly founded company. He did not demonstrate how the gadget operates live on the show. He instead used a video to explain how Biem Butter Sprayer works.
Doug offers a bowl of popcorn along with his gadgets to all the five Sharks. The product gets activated as soon as the user lifts it and it melts only the required amount of butter. The pitch was smooth and Doug was as confident as he could be in his product.
When the discussion began, Doug revealed that each unit costs $466 and he could further reduce the cost as the volume increases. Doug was selling his product for a mere $137 and it wasn’t profitable for his company.
Doug revealed that there were no competitors in the market and he had two pending patents for his new gadget. The inventor was confident that Biem would sell at least 100,000 units during its initial year and generate $10 million in revenue!
Daymond was the first Shark to offer a deal for the full amount, but he wanted 17.5% of the company. Kevin also offered a deal for the full amount, but he wanted 15% of the company. While Lori was negotiating her deal, Robert cuts her and offers $500,000 for 10% equity in the firm.
Doug wanted to have a deal with Mark, but he wasn’t interested in the product. Therefore, Doug asks Lori if she could match Kevin’s deal and she agrees to have 14% of this new firm to secure the deal. Doug accepts Lori’s offer and walks out of the room with the money he wanted to grow his new firm.
What Happened to Biem Butter Sprayer after Shark Tank?
Biem Butter Sprayer might have excited many viewers. This product was perfect for butter fans, but things didn’t work as everyone was expecting.
The deal with Lori didn’t work because Doug failed to offer a working prototype during due diligence. Lori is no longer affiliated with this company anymore.
Many companies have succeeded when Sharks refused to invest in business ideas presented by Entrepreneurs. Biem is certainly not one of those lucky startups! Doug’s product had disappointed many bakers who bought his gadget.
The initial model was problematic and therefore the company introduced Biem 2.0. This new model also failed to impress buyers and many customers filed complaints against this product. Now, Biem is selling its butter sprayer through the official website.
The company’s social media handles are inactive since 2019. The official website also provides very little information on the future plans and vision of the company. It seems like Biem is not out of business, but it is also not doing as expected.
One can say that Doug is more interested in growing Austin Automation instead of Biem.
Why did Biem not succeed after securing a deal with one of the most successful Sharks?
Lori has always been a pretty active investor. Scrub Daddy is the most popular product, but Squatty Potty, Bantam Bagels/Bagel Stuffins, AIRA, EverlyWell, The Pizza Cupcake, and Spark Charge are several other companies in which Lori has invested through Shark Tank.
She has provided everything a new business needs to grow and generate huge profits. But sadly, this did not happen to Biem because they failed to deliver a working prototype within a reasonable amount of time.
Doug claimed that his new firm would sell 100,000 Biem Butter Sprayers in 2016, but he could not even provide a flawless prototype of the gadget.
Failure to save a deal with a successful investor and failure to meet buyers’ demands are the two major reasons behind Biem’s downfall.
Not every entrepreneur succeeds in convincing Sharks to invest in their ideas. However, most of them work hard and succeed without getting associated with a popular investor. Biem could not do that and therefore it is almost out of business now.
Biem is one of those brands, which have succeeded in gathering interest from the Sharks.
Unfortunately, the founder failed in the execution phase and things didn’t go as expected. A perfect pitch can help you gain funding on Shark Tank, but it won’t work if you don’t keep up with your own promises.