Benoit Chaigneau, the founder of Chuben.fishsauce, made an appearance on Shark Tank Vietnam’s seventh season with a pitch to secure $500,000 in funding in exchange for 12.5% of his company’s equity.
Chaigneau identified a gap in the market for a premium fish sauce and created his own unique formula, which he claims has been hailed by chefs as “the best fish sauce they’ve ever tasted.” The startup’s fish sauce product retails at VND 450,000 per bottle and is designed to be sprayed, a unique feature in the market.
According to Chaigneau, the potential market for this product is enormous, with 1.5 to 2 billion people consuming fish sauce daily, amounting to a market value of $17 billion. The premium segment accounts for 2% of this market, approximately $400 million, and the startup aims to capture 0.5% of this market in its first year, equivalent to $2 million.
In addition to their premium fish sauce, Chaigneau intends to introduce other varieties of Vietnamese fish sauces, including those from Cat Ba, Quang Nam, and Phan Thiet.
Benoit Chaigneau, Founder of Chuben.fishsauce, seeks $500,000 in investment for 12.5% of his company’s equity on Shark Tank Vietnam.
Shark Nguyen Hoa Binh expressed concern about the spray format, suggesting that it might be inconvenient and cause a mess. However, Chaigneau stood by his product’s format, arguing that it is not inconvenient and that both he and many chefs believe that the aroma of the fish sauce should reach the diner’s nose first to enhance the dining experience. He also mentioned that their fish sauce can also be poured into a small dish for dipping, although the taste experience might differ from the spray format.
Shark Le My Nga inquired about the company’s operational efficiency and order volume. Chaigneau responded that they have pending orders and that he had met with a distribution company in France. However, their product currently only has food safety certification in Vietnam, and they are working on obtaining the necessary certifications for exporting to Europe and the US.
When asked about the number of products sold so far, Chaigneau admitted that it was a small number, mostly to high-end chefs and restaurants. In July 2024, they sold 100 bottles in France, but he had to hand-deliver them himself as the company is currently a one-man operation. He acknowledged that they are still in the early stages of their journey.
The pitch received praise for its unique product but also sparked strong reactions from the Sharks regarding the investment proposition.
Shark Tillman Schulz, a food industry entrepreneur supplying to Carrefour and E.Leclerc in France, predicted challenges in getting these retailers to stock Chaigneau’s premium-priced fish sauce. He questioned the founder’s rationale for seeking $500,000 in investment for 12.5% equity without providing any business metrics.
In response to Shark Schulz, Chaigneau explained that his valuation was based on the vast potential of the company, its products, and its brand, as well as his extensive network and positive feedback from customers and chefs. When pressed for specific numbers, he provided an example from a shop in Hoi An: “I calculated that there are 4 to 6 million tourists visiting Hoi An each year. Out of those, I estimate that around 2.3 million could potentially purchase this product,” the founder projected.
Chaigneau also shared his perspective: “I came here to meet the Sharks because you know things I don’t. I’m looking for a partner, not just money. I don’t see the Sharks as a wallet but as individuals I can shake hands with, work together, and build the company with.”
Shark Minh Beta advised that to attract investment, the founder should ensure he has a financial plan and future projections to facilitate a meaningful conversation about the company’s valuation, making it easier to reach an agreement.
Shark Tillman Schulz declined to invest, citing too many unanswered questions to make a decision. With an investment amount of $500,000 on the table, he required more information.
“I still don’t like the spray idea, but more importantly, I don’t see a clear strategy for the product’s commercial success,” said Shark Binh, explaining his decision not to invest.
The Sharks offered valuable advice to the startup founder.
Shark Phi Van appreciated the idea of creating a luxurious fish sauce but advised the founder to find a co-founder with a commercial background to support him and reassess the company’s value before approaching investors. Based on these considerations, she declined to invest in this deal.
With five rejections, the startup failed to secure an investment from the Sharks, concluding the pitch without a deal.
