ANCHORAGE, ALASKA – Heather Kelly, the founder of Anchorage-based company Heather’s Choice, faced a setback on a recent episode of ABC’s “Shark Tank.” Despite her success in raising $1.3 million in fundraising and achieving a million-dollar revenue year in 2022, Kelly struggled to secure a deal on the show. The high costs of manufacturing in Alaska and shipping to the rest of the U.S. left Heather’s Choice $1 million in debt. Kelly sought a $250,000 investment from the show’s investors to scale her company’s snacks, but the judges advised her to focus on marketing her meals to a wider audience instead. Although she left the show without an investment, Kelly has taken their advice to heart and plans to broaden her consumer base and relocate the company to Ashland, Oregon.
Heather Kelly, an adventurer herself, established Heather’s Choice in 2014 with the aim of providing lightweight, packable meals and snacks for outdoor adventurers. Despite her company’s upward trajectory, Kelly struggled to make it profitable due to the high costs of manufacturing in Alaska and shipping to the rest of the U.S. As a result, Heather’s Choice accumulated $1 million in debt.
During her appearance on “Shark Tank,” Kelly asked for a $250,000 investment in exchange for 10% of her company. She intended to use the funds to scale her company’s snacks, called “packaroons,” using a co-packaging model. However, the judges on the show urged Kelly to shift her focus to marketing her meals to a wider audience, such as students and working professionals. They believed that her meals were the standout product, describing them as “tasting fantastic.”
Kelly expressed her hesitation in pursuing the co-packing route for her meals, citing concerns about maintaining product quality. After some deliberation, all five judges declined to invest in her company, citing her reluctance to expand her consumer base as a hindrance to growth. Mark Cuban advised Kelly to overcome her perfectionism and broaden her opportunities by reaching out to a wider customer base.
Reflecting on the investors’ advice, Kelly realized that her perfectionism had held her back. Like many people, she had struggled with the desire for perfection which can negatively impact mental health. However, Kelly has decided to take the judges’ feedback to heart. Heather’s Choice plans to relocate to Ashland, Oregon and broaden its consumer base. The company aims to manufacture its products in a 15,000 square foot food production facility, an expansion made possible by the national exposure gained from appearing on “Shark Tank.”
Although Heather Kelly did not secure a deal on the show, she is determined to use the experience as a springboard for growth. She recognizes the need to compromise on certain aspects, while maintaining the quality that is integral to her brand. Heather’s Choice plans to make creative solutions to overcome the challenges of manufacturing and distribution, while keeping up with the growing demand for her meals and snacks.
The story of Heather Kelly’s journey on “Shark Tank” resonates with many entrepreneurs who find themselves grappling with the balance between perfectionism and growth. Kelly’s determination to adapt and expand her business serves as an inspiration to others facing similar challenges. It is a reminder that success often requires thinking outside of one’s comfort zone and seizing opportunities beyond one’s initial target market.