Monday, August 9, 2021

The Profit - Harvest Lane Honey Update

On the season 8 premiere of The Profit, Marcus Lemonis is in Salt Lake City, Utah to make a deal with Harvest Lane Honey.  Harvest Lane Honey is a multi-generational family business that makes bee keeping kits and products that can be sent to your home.  Marcus Lemonis finds that the company is drowning in debt and has efficiency issues with their manufacturing process.  He also thinks they should be generating more sales online and wants them to focus more on that.

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

News and Links Related To The Company:
  • Here is a 10-minute preview video of the episode from the CNBC YouTube page. 
  • Here is the Harvest Lane Honey website and Facebook page
  • Their mission statement on their website is, "To help reverse the declining population of honey bees and ensure that there is a future for our industrious friends that make our planet beautiful and sweeten it with naturally pure honey."
  • Harvest Lane Honey has their products for sale on Amazon.  They also are available at Tractor Supply and Home Depot.
  • The prices of their bee keeping kits on their website are $150 for a small, $200 for a medium, and $270 for a large.  Adding bee keeping accessories adds about $60.
  • Harvest Lane Honey makes no mentions about their upcoming appearance on The Profit, which usually means a deal couldn't be reached or there was other drama.

The Deal From The Episode Plus Post-Show Updates (this will be updated continually):
  • The Deal - Due to the debt of Harvest Lane Honey, Marcus decided to coach them on how to handle their $7.2 million debt. He tried to get the creditors to convert the debt into equity in the company.  Marcus offered $1 million for 33% of the company contingent on getting the debt down to $4 million.  They countered for $1 million for 25%, but the eventually settled on $1 million for 30% of the company.
  • Harvest Lane Honey was able to work with creditors to convert some of the debt, but they were only able to convert $2,648,000, which was short of the amount agreed to on the deal.
  • Final deal - $650,000 and a $400,000 letter of credit for 25% of the business.
  • According to the show, revenue has been up 90% over the last 30 days.

*To see how all of the businesses from The Profit are doing, go to the The Profit Updates page. 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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