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The founder of South Jersey-born Filipino American food brand Fila Manila won over tastebuds and wallets to land a $250,000 deal on “Shark Tank” Friday night.
Jake Deleon struck a handshake deal with Daniel Lubetzky, CEO of snack brand Kind LLC on the hit ABC show.
Lubetzky agreed to invest the $250,000 Deleon went on “Shark Tank” seeking, although for a much larger stake in the company than the entrepreneur had hoped for. Deleon valued Fila Manila at $5 million and was offering a 5% stake in the company when he appeared on the show.
That was a figure none of the celebrity investors – which consisted of former Dallas Mavericks owner Mark Cuban; FUBU CEO Daymond John; software mogul Kevin O’Leary; “Queen of QVC” Lori Greiner; and guest judge Lubetzky – could get behind. However, with an adjusted valuation of $1.25 million, Lubetzky was willing to strike a deal.
After a good deal of back and forth, Lubetzky ultimately agreed to a $250,000 investment for a 20% stake in Fila Manila, with a chance for Deleon to reclaim 5% of that stake if the company met certain sales benchmark.
Part of the reason for the change in valuation was due to a drop off in Fila Manila revenue in the first half of 2023, something that troubled the potential investors. Deleon said until last year revenue for the South Jersey-born brand had steadily climbed since its launch in November 2020. In the two months it was in business in 2020, the brand had $6,000 in revenue, a figure that jumped to $50,000 in 2021. In 2022, sales soared 700% to $400,000, he said.
However, revenue plummeted to just $150,000 for the first half of 2023, at the time Friday’s episode was filmed. Deleon said the reason for the decrease was due to a change in product packaging which he told the Business Journal he expected to eventually increase the company’s direct-to-consumer business since the shift lowered both product and shipping costs.
Deleon said e-commerce sales have been steadily growing and made up about 15% to 17% of business in 2023, roughly double the 2022 figures. The brand – known for its adobo, caldereta, kare-kare and Isla Pineapple Rum sauces, Coconut and Ube Spread as well as its Banana Ketchup – has already gained a substantial retail footprint and can be found in about 2,000 stores across roughly 25 states.
Its products are stocked in select locations of retail giants like Target, Whole Foods Market, Fresh Thyme Market, Stop and Shop, and Meijer, in addition to online retailers like Amazon, Umami Cart and Asian market Weee!
While the judges agreed that Deleon had a solid product lineup, low 2023 revenue paired with the need to introduce a largely unknown segment of cuisine to most Americans was too big a risk for most.
But not Lubetzky.
“I think as an entrepreneur you’re extraordinarily credible,” Lubetzky said. “I want to work with you.”
Deleon wanted to work with Lubetzky too and agreed to lower his valuation to strike a deal.
“I’m super psyched I got a deal with Daniel. He was the shark I was targeting and I think Daniel’s experience building Kind is going to bring Fila Manila where I want it to be,” Deleon said on the show. “I can’t do it myself. Daniel is just unbelievable, the perfect partner to make it happen.”
Deleon is now looking to expand Fila Manila to more stores and states across the U.S., including wholesale clubs, and ramp up e-commerce.
A Drexel University alum, Deleon is no stranger to the consumer goods industry, having previously worked for both Procter & Gamble and Starbucks. He launched Fila Manila in 2020 with his Covid-19 stimulus check. The company was based in Laurel Springs, New Jersey, until late 2022, when he relocated it to Washington, D.C. It maintains production facilities in Lancaster, among other locations.
Deleon created the brand, which is rooted in traditional Filipino flavors, with a goal of introducing the cuisine to Americans. Born in the Southeast Asian country, he and his parents immigrated to South Jersey when he was young and he called the region home until recently.
To date, Fila Manila has raised about $900,000 from institutional and angel investors, including backing from Kraft Heinz Co. and Whole Foods. Deleon has a goal of raising another $500,000 this year to further fuel growth and is considering existing investors or even crowdfunding through platform Wefunder.
Deleon was the latest entrepreneur with local ties to score a deal on "Shark Tank." In December, Black Paper Party, an inclusive holiday décor and paper products brand whose CEO is based in Philadelphia, landed a $250,000 deal on the show. Other successful local businesses have included KIN Apparel, Spergo, Bleni Blends, Simply Good Jars and Dino Don.
