Overview
Pan’s Mushroom Jerky is a vegan alternative to traditional beef jerky. It was created by Michael Pan, a Malaysian-American electrical engineer who was inspired by his family’s mushroom jerky recipe.
The product was launched in 2018 under Panco Foods, and as of 2024, it’s worth $1.7 million.
Shark Tank Appearance
Pans Mushroom Jerky was presented to the Sharks as a healthier version of the popular snack, jerky. The founder, Michael Pan, emphasized the convenience, taste, and nutrition of jerky as a snack that people have enjoyed for centuries.
Pans Mushroom Jerky is high in fiber and vitamin D, paleo, soy-free, and gluten-free. The original recipe has only six simple ingredients, and all flavors have their unique umami taste.
During the tasting session, the Sharks were impressed with the meaty, chewy, and delicious texture of the mushroom jerky. Michael Pan revealed that the texture was due to the mushrooms, and not meat, which surprised the Sharks.
The four flavors of Pans Mushroom Jerky are Original, Zesty Thai, Salt and Pepper, and Applewood Barbecue. All flavors have a satisfying texture and a delicious taste that jerky fans love.
Pans Mushroom Jerky is currently sold in over 700 stores, with 60% of sales in retail and 40% online. The company’s biggest chain is Whole Foods, and it is also sold in other stores such as Office Depot.
In 2018, the company made $300,000 in sales, which more than doubled to $755,000 in 2019. As of 2020, the company has made $620,000 in sales and is on track to make $1.5 million the following year.
When asked about the cost of production and retail price, Michael Pan revealed that they make Pan’s mushroom jerky for $1.67 and sell it for an MSRP between $7.99 and $8.99. The company has a margin of around 77% across all channels and is currently netting $61,000 in profit in 2020.
The Sharks were impressed with the taste and health benefits of Pans Mushroom Jerky. Lori and Blake made an offer to invest $300,000 for 30% equity, while Mark made an offer to invest $300,000 for 20% equity.
Michael countered with 15% and tried to convince the Sharks that his mushroom jerky had a low production cost. Mark Cuban, a vegan, offered a better deal of $300,000 for 18% of the company, which Michael accepted.
After Shark Tank
After appearing on Shark Tank, Pan’s Mushroom Jerky experienced a massive boost in sales. Less than a day after the show aired, the company made about $650,000 in sales.
After a week, the figure rose to $1 million.
They went out of stock on Amazon and their official website, MushroomJerky.com. However, they experienced shipping problems, which slowed down their growth.
To resolve this, the business hired more staff and signed partnership deals with retail stores like Walmart, Whole Foods, and Krogers. Now, Pan’s Mushroom Jerky is sold in over 3,500 retail locations in the country, helping them make close to $5 million in annual sales.
Michael Pan’s Background
Michael Pan grew up in Vancouver, Washington, and attended the University of Illinois Urbana-Champaign to study electrical and electronics engineering.
After college, he worked as an electrical engineer at Raymond Professional Group, Motorola, and Continental. Pan also served as the VP of Product at the IT firm Fancred for over two years.
Founding Pan’s Mushroom Jerky
Pans mushroom jerky was born out of a family recipe that Michael Pan discovered during a trip to Malaysia, where his vegetarian cousin served him a meaty and satisfying snack made from mushrooms. Michael was impressed by the taste and texture of the snack, and he knew that it had to be shared with the rest of the world.
Michael decided to launch Pans mushroom jerky, which is a healthier version of the traditional jerky snack. It is made from shiitake mushrooms and contains six simple ingredients, making it paleo, soy-free, and gluten-free. Pans mushroom jerky is high in fiber and vitamin D, making it a convenient, tasty, and nutritious snack for people on the go.
Lessons from Pan’s Mushroom Jerky
Here are three practical tips for aspiring young entrepreneurs:
1. Identify a Unique Selling Proposition (USP)
Michael Pan differentiated his product by creating a mushroom-based jerky that is high in fiber, vitamin D, paleo, soy-free, gluten-free, and made with simple ingredients.
Highlighting these unique qualities helps to stand out in the market and attract health-conscious consumers.
2. Bootstrap and manage finances wisely
Michael Pan differentiated his product by creating a mushroom-based jerky that is high in fiber, vitamin D, paleo, soy-free, gluten-free, and made with simple ingredients.
Highlighting these unique qualities helps to stand out in the market and attract health-conscious consumers.
3. Leverage personal stories and authenticity
Pan’s story about discovering mushroom jerky in Malaysia and being inspired by his vegetarian cousin adds a personal and authentic touch to his brand.
Sharing genuine stories can build a stronger connection with customers and investors, making the business more relatable and trustworthy.
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