Daisy Cakes: Here's What Happened After Shark Tank
In 2011, Kim Nelson was featured on season 2, episode 6 of "Shark Tank" promoting her business, Daisy Cakes, and seeking $50,000 from the Sharks to help grow her cake-baking venture. In return, Nelson was willing to give her investor a 25% stake in the company. She learned to bake while growing up in South Carolina from her mother and other relatives who used family recipes passed down through the generations. In a YouTube video, Nelson remembers that she and her mother sold their first cake when Nelson was 10 years old. Now, each cake is made from scratch with the freshest ingredients from the farm, like eggs, carrots, and fresh butter. The cakes are not sold in a bakery but rather are ordered online and shipped directly to consumers.
Upon appearing on the show, Nelson and her mother were the sole bakers at Daisy Cakes, making up to $5,000 per month and introducing the cakes to consumers at trade shows and other events throughout the Southern region of the country. Nelson acknowledged that her business was small, but she wanted it to be big and that's where she needed a Shark's help. With an impending deal with Whole Foods who wanted to carry her homemade lemon curd, Nelson realized that she'll need much more manpower than what she and her mom could provide.
What happened to Daisy Cakes on Shark Tank?
The Sharks were eager to taste Nelson's Daisy Cakes as she passed out samples of cake. Three Sharks stated that the cake was the best they'd ever had, which is a big statement coming from these investors. When asked about the company's sales, Nelson said that it's sold $27,000 worth of cakes in three months, a pretty impressive feat, according to the Sharks. Despite this, four Sharks — Kevin O'Leary, Kevin Harrington, Daymond John, and Robert Herjavec — felt Daisy Cakes was just too small of a business to invest in, and they bowed out of negotiations.
This left Barbara Corcoran as the lone Shark left to make a decision. At first, Corcoran to thinks Nelson's business has a long way to go, growth-wise. Just when it sounded like Corcoran would not make a deal, she told Nelson, "I like your cakes very much, and I like you very much." Corcoran points out that after her fellow Sharks declined to offer a deal, they each continued to gobble up the cake they'd been given, showing her that these cakes were really something special.
Corcoran then offered Nelson what she was asking for — $50,000 — if Nelson could pay her back one dollar for every cake she sells, essentially, asking for royalties. Nelson looked thrilled and excitedly agreed to the offer.
What happened to Daisy Cakes after Shark Tank?
With the sudden and large-scale exposure Daisy Cakes experienced going on "Shark Tank," both good and not-so-good things happened. Due to the influx of orders, the business website crashed as did the company phone lines. The "Shark Tank" episode ultimately also led to more television publicity; Nelson and Daisy Cakes were featured on the "Rachael Ray Show," Food Network, "The Chew," "Good Morning America," the "Today Show," and more.
A year after the Daisy Cakes episode of "Shark Tank" aired, Nelson was invited back onto the show to give an update. Nelson happily stated that she was now bringing in an average of $100,000 in monthly sales and had to move into a larger bakery as a result. Nelson was featured on the show a third time during season five. In the meantime, Daisy Cakes steadily grew so much that she had to open a second bakery in Las Vegas so that orders coming from the Western part of the United States could be completed more efficiently.
In 2020, Nelson again visited "Shark Tank" and disclosed that Daisy Cakes had a lifetime sales of $8.5 million up to that point in time and remained one of Corcoran's favorite businesses and investments.
Is Daisy Cakes still in business?
Daisy Cakes continues to thrive, offering more flavors than ever. When she first appeared on "Shark Tank," Nelson had only four multi-layer cake flavors to choose from — lemon, carrot, red velvet, and chocolate. Today, these are all still available along with coconut, birthday cake, a rotating monthly cake, and gluten-free and vegan versions of carrot cake. Nelson has also debuted Minikins, which are individual portions of cake and frosting in jars.
Although the success of Daisy Cakes is undeniable, there was a bump in the road on Nelson's journey. After initially expanding, the company lost nearly 7,000 cakes to the tune of $165,000 (which would have equated to $300,000 in revenue). Daisy Cakes ditched that supplier and moved closer to home again where Nelson could have more direct oversight, and the company has since recovered to even greater success. Daisy Cakes now asks for a week between order and shipping, noting to customers that they need to get their orders in as soon as possible to ensure timely delivery. This way, Nelson can manage cake creation herself, preventing any further potential catastrophe.
What's next for Daisy Cakes?
Due to the success of Daisy Cakes, Nelson wrote and published her first cookbook in 2014 and followed it up with another in 2018. While all her products are available on the Daisy Cakes website, you can now also find them on Goldbelly, a website that sells some of the best and most famous foods in the country, often from small businesses. The cakes and desserts are shipped to all 50 states frozen, on dry ice. The cakes just need to be thawed at room temperature for six hours before being enjoyed.
As of Spring, 2023, Daisy Cakes Minikins are being sold in a Daisy Cakes vending machine at the Harry Reid Las Vegas International Airport, so it's likely that there are plans to expand these into more travel hubs. If you're a cake fan, it might be worth ordering a Daisy Cake and seeing why the Shark billionaires called them the greatest.