Hello, friends! Today, I want to share with you the inspiring journey of Daisy Cakes, a small Southern bakery that turned into a nationwide sensation thanks to Shark Tank. This story is about more than just cakes; it’s about family traditions, resilience, and the power of believing in your dreams. So grab a cup of coffee (or tea) and let’s dive into this delicious tale.
The Start of Something Sweet
Back in 2009, Kim Nelson founded Daisy Cakes in the small town of Pauline, South Carolina. Inspired by her family’s heirloom recipes passed down through generations, Kim set out to create cakes that were handmade, preservative-free, and bursting with Southern charm. These weren’t just any cakes—they were made from scratch using farm-fresh ingredients like eggs, butter, and carrots sourced locally.
Kim’s love for baking started young. She learned the craft from her mother and great-aunt Daisy (the namesake of the company), who instilled in her the importance of quality and tradition. By 2011, Kim and her mother were running a modest operation, baking cakes in their kitchen and selling them at trade shows and events. But Kim had bigger dreams—she wanted to bring Daisy Cakes to the entire country. That’s when she decided to take a leap of faith and pitch her business on Shark Tank.
The Shark Tank Pitch: A Sweet Gamble
Kim appeared on Season 2, Episode 6 of Shark Tank, which aired on April 22, 2011. Her ask? $50,000 for 25% equity in Daisy Cakes. She walked into the Tank with her signature Southern charm and an assortment of cakes for the Sharks to taste. The flavors—red velvet, carrot, chocolate, and coconut—were an instant hit. The Sharks couldn’t stop eating them!
During her pitch, Kim shared her sales numbers: $27,000 in three months. While impressive for a small operation, it raised concerns among some Sharks about scalability. Kevin O’Leary and Daymond John felt the business was too small to invest in. Robert Herjavec suggested focusing on regional growth rather than national expansion.
But one Shark saw potential: Barbara Corcoran. Despite acknowledging the challenges ahead, Barbara was captivated by Kim’s passion and the undeniable quality of her cakes. She offered $50,000 for 25% equity, with a $1 royalty per cake until her investment was recouped. Kim eagerly accepted the deal.
Breaking Down the Details
Here’s a quick snapshot of Daisy Cakes’ journey on Shark Tank:
| Category | Details |
|---|---|
| Product Name | Daisy Cakes |
| Founders | Kim Nelson |
| Season & Episode | Season 2, Episode 6 (April 22, 2011) |
| Ask (Investment & Equity) | $50,000 for 25% equity |
| Final Deal | $50,000 for 25% equity + $1 per cake royalty until investment recouped |
| Shark(s) Involved | Barbara Corcoran |
| Memorable Episode Moments | Sharks devoured the cake; Barbara noticed their enthusiasm despite doubts |
| Current Net Worth | Estimated at over $4 million annual revenue |
| Current Business Status | Active |
| Revenue Since Shark Tank | Over $11 million in lifetime sales |
| Social Media Presence | Active on Instagram and Facebook; strong engagement |
| Key Achievements | Expansion to Las Vegas bakery; new product lines like Minikins |
The Post-Shark Tank Boom
The exposure from Shark Tank was nothing short of transformative for Daisy Cakes. Within two days of the episode airing—just before Mother’s Day—the company received over 2,000 orders, crashing its website and phone lines. It was both a blessing and a logistical nightmare.
Revenue Explosion
Within a year of appearing on Shark Tank, Daisy Cakes was generating an average of $100,000 per month in sales. This rapid growth required significant changes. Kim moved production from her home kitchen to a larger commercial facility capable of producing up to 160 cakes at a time.
Expanding the Menu
Initially offering just four flavors (red velvet, carrot, chocolate, and coconut), Daisy Cakes expanded its lineup to include lemon cake, birthday cake, gluten-free options, and even vegan carrot cake. One particularly innovative addition was “Minikins”—individual portions of cake served in jars.
Celebrity Endorsements
The Shark Tank appearance also led to features on shows like Rachael Ray, Good Morning America, and The Chew. These appearances helped solidify Daisy Cakes as a household name.
Challenges Along the Way
Success didn’t come without its hurdles. In one instance, outsourcing production led to quality control issues that resulted in a loss of nearly 7,000 cakes, costing the company $165,000 (equivalent to $300,000 in revenue). Determined not to compromise on quality again, Kim brought production back closer to home.
Shipping costs also posed challenges—particularly for West Coast customers—which led to the opening of a second bakery in Las Vegas in 2019.
Where Are They Now?
As of January 2025:
- Daisy Cakes generates approximately $4 million annually.
- The company has sold over $11 million worth of cakes since its inception.
- Products are available nationwide via their website and platforms like Goldbelly.
- Social media remains an integral part of their marketing strategy, with active engagement on Instagram and Facebook.
Kim has also authored two cookbooks featuring family recipes and continues to innovate with new products.
Lessons from Daisy Cakes’ Success
Kim Nelson’s journey offers valuable insights for aspiring entrepreneurs:
- Authenticity Matters: Staying true to her family recipes and Southern roots helped Kim stand out in a crowded market.
- Leverage Exposure: The Shark Tank effect gave Daisy Cakes unparalleled visibility—but Kim capitalized on it by delivering quality products.
- Adaptability Is Key: From scaling production to overcoming setbacks like shipping challenges and quality control issues, Kim demonstrated resilience at every turn.
A Sweet Future Ahead
Looking ahead, Daisy Cakes shows no signs of slowing down. With steady revenue growth and continued innovation (who doesn’t love Minikins?), this small-town bakery has become a national treasure. For Kim Nelson—and for all those who’ve tasted her cakes—the future looks as sweet as ever.
So what’s my takeaway from this story? It’s simple: Never underestimate the power of passion paired with hard work. Whether you’re baking cakes or building businesses, success often comes down to staying true to your values while embracing opportunities for growth.
And now I’m curious—have you ever tried Daisy Cakes? If not, I highly recommend giving them a taste! Trust me; they’re worth every bite!