Gatsby Chocolate Fades After Shark Tank Deal

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Gatsby Chocolate, a startup that pitched its low-calorie, low-sugar chocolate bars on Shark Tank, initially found success after landing a $500,000 deal with Sharks Lori Greiner and Mark Cuban. However, the company was unable to maintain momentum and ultimately went out of business within a year of its Shark Tank episode airing. The co-founders, brothers Ryan and Doug Bouton, went their separate ways, with Ryan moving on to a new role at a pet food company while Doug remained CEO of the international arm of the Halo Top ice cream brand.

Why it matters

Gatsby Chocolate's demise after a Shark Tank deal highlights the challenges even successful startups can face in capitalizing on the exposure and investment from the show. The company had significant distribution and sales prior to appearing on Shark Tank, but struggled with profitability and operations, ultimately failing to translate the Shark Tank boost into long-term success.

The details

Gatsby Chocolate pitched its low-calorie, low-sugar chocolate bars on Shark Tank, seeking a $500,000 investment for 5% equity. The Sharks were impressed with the product's taste, but felt the packaging and branding needed work. Despite the company's $2.5 million in sales the prior year, it was losing money due to high production costs. Lori Greiner and Mark Cuban ultimately offered $500,000, half as a loan and half as equity for 20%, plus additional equity if the company hit sales milestones. However, the deal never closed, and Gatsby Chocolate went out of business within a year of its Shark Tank episode airing.

• Gatsby Chocolate appeared on Shark Tank in September 2023.
• The company announced it had restocked its products at Walmart in October 2023.
• Gatsby Chocolate went out of business sometime in 2024 or 2025.

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