Tuesday, January 26, 2016

The Profit - 240sweet Update

Tonight on The Profit Marcus Lemonis is in Columbus, Indiana with hopes of making a deal with 240sweet.  240sweet is a gourmet marshmallow company that makes their marshmallows by hand and with all natural ingredients.  While there, Marcus finds a business arrangement that has gone bad involving the father of one of the owners which could jeopardize their production process.  Also an accountant quits, and owners Sam and Alexa don't see eye-to-eye with Marcus.

Let's take a look at some information related to 240sweet as well as what kind of deal was made on the show.

News and Links Related To The Company:
  • Here are some preview videos of the episode from the CNBC website - Video 1, Video 2, Video 3, Video 4, Video 5,
  • Here is the 240sweet website, and their marshmallows are available for sale on the site for $10 per 10 count bag.  
  • The business began after Chef Alexa and Sam began making marshmallows and attaching them to menus to promote the catering business.  People kept asking about the marshmallows and how they could get them.
  • Here is the 240sweet Facebook Page, and it seems they travel around the country visiting different markets, trade shows, etc. to sell their product.
  • Marcus visited 240sweet in April 2015 and the episode was supposed to air during season 3 of The Profit, but for some reason it was pushed back to this season.
  • An April 2015 Indystar article interviewed Marcus Lemonis while he was in town to look at 240sweet.  A few things from the article:
    • Marcus felt no one has mass marketed marshmallows online effectively, and they don't fit too well in a retail concept. But with the proper packaging and the right products, they could do $2.5 million in marshmallow sales.
    • Marcus also wondered if this business could mesh with Sweet Pete's (season 2) and if he could make 240sweets a tourist destination in Indianapolis such as he has done with Sweet Pete's in Jacksonville.
  • 240sweet has a 4.5 star (out of 5) average on Yelp and there are a lot of rave reviews about them. (Link
  • In May 2015, the Columbus Redevelopment Commission accepted a proposal from 240sweet to lease a former restaurant site.  The article also says Marcus Lemonis "may invest as much as $200,000 in 240sweet, which could include adding a hot chocolate bar and craft cocktails for night guests to the current menu of flavored artisan marshmallows the company produces." (Link)
  • It does not appear the location above ever materialized or opened.

The Deal From The Episode Plus Post-Show Updates (this will be updated continually):
  • The Deal:  $100,000 for 51% of the business to be put toward the right equipment and to improve the building.  Marcus and Sam/Alexa put in 5% each for DeDe making her a 10% partner.  Final percentage - Marcus 46%, Sam/Alexa 44%, Dede 10%.
  • Marcus Lemonis actually owns the domain name www.marshmallows.com, which redirects to Sweet Pete's (season 2) website and lists their marshmallows for sale. (Link)
  • A month after his initial visit (April 2015), Marcus tweeted, "who ordered @240sweet to enjoy tonight. New flavors from great people. #TheProfit #ShareTheProfit" (Link).  So it appears the deal went south some time after that.
    • Also, the marshmallow cutter purchased by Marcus was purchased at the end of September 2015, so it appears they got along for some months after the initial visit. (Link)
  • The deal fell through when Marcus realized he was used by Sam and Alexa to get Max out of their production warehouse.
  • A local article interviewed Sam who said they obtained a loan through a local bank and they are now producing chocolate bars, dipping sauces, and graham crackers.  They also have a S'more-mobile that offers frozen hot chocolate, gourmet smores and other marshmallow treats
    • Sam also said good things came out of filming with Marcus and is quoted as saying, "Working with Marcus, we learned who we are and what our values are. Knowing we are entrepreneurial and creative, that is the way we choose to live and operate. We are happy with the direction our company is going."
  • After the show, fans of The Profit have bombarded the 240sweet Facebook page with tons of negative comments.  Also their ratings on review sites has plummeted after hundreds of 1-star reviews.
  • UPDATE - Marcus said the $100,000 he invested in the business is gone. (Link) He also hinted that he will try to get it back(Link), but suing for breach of contract is not worth it (Link). 
  • 240sweet posted the following message on their Facebook page a day after the episode aired:
"We appreciate the opportunity given to 240sweet to be featured on television. We understand that everyone is entitled to his or her own opinion, however, we would like to remind everyone that television is meant to entertain first and foremost. In order to gratify viewers and increase ratings, portrayals of those featured can be misleading. We truly value our co-workers and are grateful for the work they do. Our customers are our livelihood and we appreciate those that have shown loyalty since the show aired. We look forward to the opportunities that we currently have and coming up.

-240sweet Owners"
UPDATE 2/2/2016 - They have taken down their Facebook page at the moment.

*To see how all of the businesses from The Profit are doing, go to the The Profit Updates page, and also Like us on Facebook or Follow Us on Twitter  to stay up to date with all things involving The Profit.   

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