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A Convertible Note is debt that converts to equity. If you invest, you're betting Sprinkle Pop will be worth more than $4.5M in the future.
After 15 years of making cakes as a hobby business, Liz found herself unable to find a specific color of sprinkles while designing a baby shower cake. Recognizing this gap in the market, she launched Sprinkle Pop in March of 2017, offering fully customizable and uniquely colored sprinkles. Within the first year, Sprinkle Pop went viral, accumulating millions of video views and catching the attention of NPR. By the following year, the company had expanded out of Liz's home kitchen, launched on Amazon, and was featured on Good Morning America.
Today, Sprinkle Pop has become one of the largest destinations for sprinkles online, boasting the largest collection of colors and unique products on the market. The website's unlimited shelf space allows the company to offer over 100 different sprinkle varieties at any given time, cementing its reputation as a trendsetter in the baking industry. This winter, for the first time ever, Sprinkle Pop's products will be available in a major craft store retailer with over 1600 stores nationwide!
Inventors of Sprinkle Inclusions: In 2017, Sprinkle Pop revolutionized the baking industry by offering sprinkle inclusions. Our first viral hit, Monster Mashup sprinkle mix, featured intricately hand-piped royal icing mummies, ghosts, pumpkins, and eyes. This innovative approach has become the hallmark of our brand, setting us apart in a confectionery market.
Diverse Specialty Inclusions: We pride ourselves on offering an unparalleled range of specialty inclusions, all of which are edible:
A Spectrum of Unique Colors: In 2017, our founder Liz developed a groundbreaking method to color sprinkles right in her kitchen. Today, this method has been scaled up and integrated into our manufacturing processes, allowing us to produce an impressive 40 colors, far surpassing the industry standard of 10-12 colors offered by major manufacturers. Our turnkey processes enable us to produce these colors on both small and large scales, ensuring consistency and quality.
Unmatched Variety and Customization: Our combination of custom colors and specialty inclusions allows us to offer more variety than anyone else in the market. With over 100 unique sprinkle blends available on our website at any given time, we cater to every imaginable baking need and occasion.
Sprinkle Pop’s knack for customizing colors and inclusions makes it a prime candidate for exciting licensing opportunities. They've already sprinkled magic on beloved brands like Care Bears and Strawberry Shortcake, transforming these iconic themes into best-selling sprinkle mixes. Imagine your favorite TV shows and kids' themes brought to life in a cascade of colorful, edible joy—Sprinkle Pop makes it happen!
Now, let’s talk sports. Sprinkle Pop sees a slam dunk opportunity in sports licensing. Picture sprinkles in your team’s colors, ready to jazz up your game day snacks. This isn’t just about sprinkles; it’s about creating a whole new fan experience. Whether it's Super Bowl parties, March Madness, or local high school championships, Sprinkle Pop’s sports-themed sprinkles can turn any event into a celebration.
And here’s the kicker: these unique licensing deals are key to securing prime retail placements. Retailers love products that stand out and resonate with customers. By partnering with popular brands and sports teams, Sprinkle Pop positions itself as a must-have product on store shelves. This winter’s exclusive deal with Michael’s is just the beginning. Imagine walking into your favorite store and finding a sprinkle mix that’s perfect for every occasion, every fandom, and every celebration.
In a nutshell, Sprinkle Pop is not just following trends; they’re setting them, one sprinkle at a time. So, whether it’s through enchanting kids with character-themed mixes or rallying sports fans with team colors, the future looks deliciously bright for Sprinkle Pop.
Since our inception, we’ve generated over $13 million in revenue. We’ve relied heavily on our direct-to-consumer marketing to grow the business and build substantial brand awareness in the marketplace. Today, Sprinkle Pop is a well-known name with a reputation for innovation and creativity. Our current manufacturing facilities and production capacity can support over $10 million in annual revenue. This allows us to meet growing demand while maintaining our high standards of quality and creativity.
In the coming years, we intend to leverage our brand recognition and core competencies to expand our reach in all areas of the business. Our goal is to continue setting trends and delighting customers with our unique, customizable sprinkle blends. We’re excited about the future and the endless possibilities for growth and innovation.
*The below chart contains forward-looking revenue projections, which are not guaranteed.
Equipment Purchasing and Efficiencies:
We are committed to continually honing our efficiencies to drive down production costs and increase capacity. By reinvesting profits into minor equipment purchases, we aim to enhance our production processes significantly. Our planned total equipment investment is less than $250,000, a strategic move that will yield substantial long-term benefits and open up additional capacity.
Key Revenue Drivers:
By focusing on these areas and strategically reinvesting our profits, we are confident in our ability to continue growing and innovating, solidifying Sprinkle Pop’s position as a leader in the sprinkle industry.
Sprinkle Pop’s Commitment to American Manufacturing
Unlike most competitors who source their products from overseas, including China and Brazil, Sprinkle Pop proudly keeps production as American-made as possible. This commitment ensures the highest quality and safety standards while supporting local economies. By producing domestically, we maintain tighter control over our processes, guaranteeing that every batch of sprinkles meets our rigorous standards.
Taste the Difference
When we started Sprinkle Pop, we taste-tested virtually every sprinkle manufacturer in the United States and discovered that not all sprinkles are created equal. Our sprinkles have a higher sugar content than those typically found at the grocery store. Lower-quality sprinkles often leave a greasy mouthfeel and are soft and mushy, full of shortening and fillers. Our sprinkles are clean, with a slight crunch and a sweet vanilla flavor.
Stretching Sweetness: How Far Sprinkle Pop Sprinkles Go
Our sprinkles are designed to provide exceptional coverage and visual impact. Thanks to their unique shapes and sizes, they offer excellent distribution, ensuring you get the most out of every bag. A 2 oz bag is enough to decorate over 30 cupcakes, making every creation look stunning and professionally crafted.
Our creative marketing drives consistent demand for our product by capitalizing on cultural trends, keeping our offerings fresh and exciting. By tapping into the zeitgeist, we create products that resonate deeply with our audience, bringing customers back time and time again. This strategy ensures that Sprinkle Pop remains at the forefront of consumers' minds, making every new release a must-have.
In 2022, Disney released the much-anticipated sequel to the cult classic Hocus Pocus. As a beloved Halloween franchise, this release was set to be a major success. Even without a theatrical release, the social traction was undeniable. In anticipation of this, we curated our wildly popular “Spell Bound” sprinkle mix. While not officially licensed, this mix drew inspiration from the Sanderson sisters’ dresses and featured hand-drawn spell books, black flame candles, and black cats. In 2022, Spellbound became our top seller, generating over $30,000 in gross revenue for a single SKU!
In 2023, our Spellbound sprinkle mix was unseated as the number one seller (moving to #2) by our Merry Whatever Sprinkle Mix—a playful homage to Dr. Seuss’s Grinch. As one of the most beloved and universally recognized Christmas characters, the Grinch has a timeless appeal. Our Merry Whatever Sprinkle Mix captures this theme with lime green sprinkles, pops of aqua, and little crooked Santa hats, delighting fans and becoming an instant hit.
Taking advantage of cultural moments is something we truly excel at. In 2023, Taylor Swift launched her Eras World Tour, and her relationship with Travis Kelce captivated America. Betting on the power couple, we launched our “Swelce” Sprinkle Mix in January for Valentine’s Day 2024. When the Chiefs made it to the Super Bowl, our stock sold out overnight!
Our direct-to-consumer marketing drives brand awareness by creating strong connections with individual customers, which amplifies our reach and reputation. This heightened visibility establishes Sprinkle Pop as an authority in the sprinkle market, attracting not only enthusiastic consumers but also business partners. As our brand credibility grows, it naturally leads to more B2B sales, with retailers and other businesses seeking to align with our well-recognized and trusted name.
Elizabeth Butts | From Finance to Frosting
Liz Butts graduated from the University of Houston with a BA in Finance and quickly made her mark in the corporate world by working at an oil and gas startup, where she cut her teeth in treasury management. Beyond her professional expertise in finance, Liz brings over 20 years of cake decorating experience, a passion she began as a teenager. Over the years, she has honed her skills, transforming her hobby into a formidable craft. Combining her financial acumen with her creative talents, Liz has become a driving force behind Sprinkle Pop's success.
Sean Piper | From Science to Sprinkles
Sean Piper graduated from the University of Houston with a BS in Biology and from Rice University with a Masters of Bioengineering. Sean has spent the last 10 years working for cutting edge biotech companies helping them commercialize and sell state-of-the-art research tools to help researchers at medical schools and pharmaceutical companies to understand and fight disease. Sean’s biggest passion outside of science is also cooking and food.
His drive for innovation, understanding of food science, and experience bringing new innovative products to market, create a tremendous synergy with Liz’s creative vision.
Large PO Financing: Our opportunity with Michaels will be a game-changer for Sprinkle Pop, but it requires a significant capital investment upfront before we receive payment. Securing financing for these large purchase orders is crucial to ensuring we can meet the demands of this partnership without disrupting our cash flow.
Working Capital: As we push to expand our business and find efficiencies in scale, we need to invest in essential resources. This includes increasing our inventory to meet growing demand, hiring additional labor to support production and operations, and acquiring minor equipment to enhance our manufacturing processes. By strategically using our funds in these areas, we can ensure sustainable growth and capitalize on new opportunities.
We deeply appreciate your interest in Sprinkle Pop and your consideration to invest in our journey. Your support is vital in helping us continue to innovate and bring joy to bakers and sweet lovers everywhere. Together, we can create more sweet moments and build a brand that stands out in the industry. Thank you for believing in our vision and being a part of our growing community. Let's make something incredible together!
Warm regards,
Liz Butts
Founder, Sprinkle Pop
