Whatever Happened To Daisy Cakes After Shark Tank?
There are few comforts like biting into a sweet slice of cake. Southern belle entrepreneur Kim Nelson believes hers are the best around. She is the founder of Daisy Cakes, which produces a line of naturally made cakes based on homemade family recipes that can be bought and delivered nationwide.
Prior to starting Daisy Cakes in 2009, Nelson had worked in a variety of food-related fields such as catering, teaching cooking classes, and even opening her own restaurant at one point. While selling her own cake mixes at a Junior League event, Nelson felt there was a need for the kind of homemade readymade desserts she specialized in. As it turns out, her entire family had been into making cakes, as all of Nelson's recipes originated from her grandmothers and aunts, including her Aunt Daisy, who would become the company's namesake.
She and her family began experimenting with ways to mass produce their cakes, which would see them move production to a commercial kitchen and invest upwards of $93,000 into the venture. With so much thrown into the endeavor, Nelson will need to score a sweet deal with the money-hungry investors of "Shark Tank" in order to keep Daisy Cakes alive.
What happened to Daisy Cakes on Shark Tank?
Kim Nelson appears on "Shark Tank" Season 2 seeking a $50,000 investment for 25% of her company Daisy Cakes. After giving her initial pitch, Nelson shares samples of her various cake flavors with the investors. The sharks all love what they're tasting, with Barbara Corcoran, Robert Herjavec, and Kevin O'Leary proclaiming that it's the best cake they've ever had.
Nelson's cakes cost $18 to make and sell for $44.50. Over the past three months, the company has made $27,000. They are bringing in customers by running booths at events throughout the Southern United States and giving out samples. However, Nelson has also developed a lemon curd that she is in the process of getting into Whole Foods. She hopes a shark could help her get on to a shopping network and aid in boosting production, as she and her mom are currently making all the cakes in their commercial kitchen.
While Nelson believes her product can become synonymous with gift-giving, most of the sharks don't see the venture growing far beyond being a small-scale operation. Most of them bow out, though Barbara Corcoran is intrigued. She notes that after each investor went out, they continued eating their cake. She's willing to take a chance on Nelson — offering $50,000 — but wants $1 for every cake sold and to keep Nelson's mom on their team. Nelson agrees to the conditions and the deal is made.
Daisy Cakes after Shark Tank
Daisy Cakes' "Shark Tank" episode aired on April 22, 2011. It couldn't have been a better time to broadcast the business, as Mother's Day was right around the corner. As a result, Daisy Cakes experienced the "Shark Tank" effect almost immediately. Within two days of the episode airing, the company had 2,000 new orders and its website crashed. The team worked tirelessly throughout May to fulfill the new surge of orders.
Kim Nelson would appear on "Shark Tank" numerous times afterward. In the company's first appearance, in Season 3, it was revealed that they are now bringing in $100,000 monthly and also moved into a larger baking facility outside of South Carolina that's able to produce upwards of 160 cakes at a time.
Daisy Cakes appeared twice in "Shark Tank" Season 5. Nelson's second appearance was yet another full-on update segment. Daisy Cakes had been facing some difficulty following some bad hiring decisions that hampered the quality of the cakes. This resulted in the loss of $150,000 worth of product. With finances and customer satisfaction at stake, Nelson brought production back to South Carolina where she could ensure that the cakes met her family's high standards.
This turned things around immediately, with the company projecting $3 million in sales for the next year. "When you're growing a business, it's a series of mistakes that you have to learn to overcome," Barbara said in the segment. "Kim has the magic ingredient of every great entrepreneur. When she gets hit, she pops right back up." In a quick Season 12 check-in shared with Corcoran's Pipsnacks, Nelson reveals that lifetime sales are now around $8.5 million.
Is Daisy Cakes still in business?
As can be imagined for a "Shark Tank" business that aired over a decade ago now, Daisy Cakes has gone through its fair share of growth. Currently, you can find the company's wide assortment of handmade goods on its website, with such flavors as chocolate, velvet, carrot, lemon, coconut, and more. Additionally, Daisy Cakes sells a line of specialty seasonal cakes for each month of the year, from a banana walnut variety for January to a spiced gingerbread and eggnog flavor for December. Founder Kim Nelson has even written a few baking cookbooks, including "Daisy Cakes, Share a Slice of Love" and "Daisy Cakes Bakes," both of which can be ordered from Amazon and Barnes and Noble.
Over the years, Nelson's company has been featured in a number of high-profile TV interviews and segments, including on "Good Morning Columbia," "The Jeffrey Lampkin Show," "Today," "The Queen Latifah Show," and "ABC Columbia." It's easy to keep up with what's happening with Daisy Cakes, as the team remains active on Instagram, Twitter, and Facebook. Daisy Cakes is estimated to bring in $4.6 million in revenue a year with a net worth of $3 million.
What's next for Daisy Cakes?
Barbara Corcoran's risky "Shark Tank" investment has more than paid off. What began as a close-knit family operation has grown into a booming business that has far exceeded expectations. Even during the hardships, Kim Nelson and company have succeeded at rolling with the punches while never losing sight of their wholesome mission to deliver Southern hospitality one bite at a time. And that commitment remains intact as the team moves forward.
In an interview with SUCCESS Magazine, Nelson shared her interest in potentially expanding Daisy Cakes into a full-blown franchise of baking shops. However, following her initial negative experience when scaling production, she wants to ensure that quality is a priority. "The cakes would have to be baked exactly the way we bake them here in Pauline," Nelson explained. "And that takes love, passion, and following a very, very strict set of rules."
However, Nelson's kitchen expertise goes far beyond the realm of sweet treats. In a 2021 interview with "The What Would U Ask Podcast," Nelson described the company's gluten-free and vegan cake varieties, but also revealed a new delicacy in the works. "And soon, we're going to be doing these gluten-free, vegan plant-based meat pies which are savory," Nelson said. "And they are so delicious, I sent them to Barbara and she had no idea they were vegan." These appear to be a hit with customers, as the company's plant-based chicken & beef pies are currently sold out on the website. This, combined with other savory recipes Nelson has recently been sharing on social media, is bound to unlock a new and exciting chapter for Daisy Cakes' future.