COLDEST Shark Tank Pitch: Is It a Chilling Business?
COLDEST Water Bottles braved the Shark Tank waters in Season 15 – but did their ultra-insulating products secure a chillingly good deal?
Coldest – Investment Summary:
- Amount and equity asked: $600,000 for 2% equity
- Amount and equity received: None
- Shark(s) in the deal: None
- Valuation of the deal: None
Table of Contents
Will Coldest be able to step up their game? It will be up to the two founders, Joe and David, as they pitch the sharks to demonstrate how their business model can be a great investment.
COLDEST Shark Tank Pitch
Joe and David’s Shark Tank episode, aired on Friday Feb 23 during Season 15 of Shark Tank. Their pitch started with a literal explosion of coldness, with the twins wearing goggles asking the Sharks:
What’s up sharks I’m Dave, and I’m Joe, and we’re the twins that founded COLDEST. We
Joe and David’s Introduction
started this company in Naples, Florida. And Sharks, it gets so hot out there
we wanted to create the coldest things to help you stay colder longer. How cold Dave? This – Much – Coldeeeeer !!!!
After an explosive surprise painted on the Shark’s face, Joe and David showed them their bottle. The pointed out how it was tested against 50 competitors and can keep beverages cold up to 36 hours longer.
Next, they indicated how they have the COLDEST Everything Store. They highlighted the COLDEST pillow, the COLDEST dog bed and water bowl.
The real explosion was yet to come in the form of valuation. They sought $600,000 for 2% equity in their company, bringing their total valuation to a staggering $30,000,000!!
Dave and Joe, How it Started
Dave is the son of immigrants. His dad is from Jordan and his mom from the Philippines., both engineers. He and Joe kept doing some gigs, but they all failed for one reason or another. Then, in 2015, he paid $14,000 for the first-ever batch of bottles.
COLDEST Sales and Costs
The first order of $14,000 for $1,000 bottles was almost cancelled after buyer’s remorse kicked in. However, it sold out in about five months. Two years later, in 2017, they did $900,000 in revenues. In 2018, it went up to $2.5 M, that became $5.9 in 2019. In 2020, they hit $9.3M, that grew to $12.4M in 2021. Finally, in 2022 they hit $15.1M in sales.
Now, the hard profit question came up, and Dave admitted that last year they had a negative loss of $400,000. The current inventory of COLDEST is around $2.5 million spread across 350 SKUs.
In terms of costs, the Coldest Limitless bottle retails for $55.99 and costs between $10-$12 to make. With this, they are on track to do $22M in 2023.
Advertising was costly too, with $3.3M spent in 2021.
COLDEST Negotiations with the Sharks
Lori is the first one to offer some feedback. She is worried that they are too in love with the sale, expanding inventory and product lines. She is also worried that they need to discount it to break even, and for these reason, Lori is out.
Mark Cuban is next. After asking about the costs of marketing, he believes that they are more of a marketing company. Yet, Mark thinks that they need much more work done on their analytics, and since he hasn’t seen that depth of insights from their marketing, he’s out.
Robert recognized their incredible growth. However, he still wasn’t sure why they were negative $400,000, and for that reason, he is out too.
Daymond John addressed the inventory problem, and for that reason, he’s out too. The main problem with inventory is that everything you have must pay the rent. But it appears that they did not cut out enough of the stuff that didn’t sell to make more space for those that sold well, quoting Joe Pardo.
Kevin O’Leary, as always, was direct. Besides saying how unimpressed he was with the sales, Kevin said that he was worried about the return of capital on this deal. However, he says that he needs to add royalties, suggesting that he was about to make an offer.
Kevin’s offer was $600,000 for 7% equity and $2.25 per order until he makes back $3,000,000. After the $3M, the royalty disappears. Dave’s counter is a 1.5x return in 3 to 5 years, that was rejected in no time by Kevin. He then lowered the equity to 5%. Dave countered with $1.5M for 5% equity with the option of pulling out in three years and getting the equity back. Otherwise, he’d get back 1.5x the investment. Kevin didn’t like it either.
A question remained though: what is going to happen with the $600,000? For that reason, this negotiation was not very focused on the details and lacked potential opportunities to lure the Sharks in.
That said, Dave rejected Kevin’s offer, and no deal was closed.
Mark Cuban left them with a great quote:
One of my favorite sayings it doesn’t matter how many times you fail, you only have to be right one time, then everybody can call you lucky. You both talked about how many times you failed, and you finally got your one time. Don’t screw it!
Mark Cuban
The Origins of COLDEST
COLDEST began as a small startup with a mission to create water bottles that kept drinks exceptionally cold. The founders were motivated by the absence of bottles that met their standards for ice retention and durability.
Their journey started with the design and manufacturing of their flagship product, a water bottle with superior insulation properties. The COLDEST Water was marketed around its ability to keep water cold for an extended period. This was quite attractive for outdoor enthusiasts and everyday consumers alike.
Dave, the COO, was key to scaling the company’s operations. Under his oversight, The COLDEST Water expanded its product line. This expansion eventually earned a place on the Inc 5000 list of the fastest-growing companies in America.
They focused on direct customer feedback to refine and perfect their products. As a consequence, they also created loyal and happy customers. COLDEST worked towards becoming not only a brand, but a community, centered around a lifestyle of adventure, sport, and peak performance.
Co-founder Joe Wayne, taking initiative in operations and growth strategies, stands as a central figure. His LinkedIn post announces their Shark Tank appearance on February 23, 2024, highlighting the team’s anticipation
The COLDEST Team
The team behind COLDEST, is driven mainly by three figures: David, Joe, and Kaira.
David, the CEO, and co-founder of COLDEST, is a leading engineer with a passion for refining and improving processes. David enjoys problem-solving and stepping up to challenges. Besides his demanding work schedule, he enjoys soccer, podcasts, and working on secret projects.
Joe, the co-founder and head of marketing, was previously a civil engineer. Always passionate about business, he worked countless hours on various projects outside his regular job. Despite the failure of 10+ business ventures before The Coldest Water, Joe learned important lessons from each setback.
From 2006-2017, During College, and into my 9-5 engineering job, I would retreat home just to work on my side business. It was a crazy hustle and fire. By 2017, I had started at least 10+ businesses before COLDEST that ALL crashed, burned, and failed. Before 2015 (David had also started 10+ businesses that crashed burned and failed too). From website-based businesses, to a clothing line, to a podcast, to a pet subscription box, you name the business, I likely had something close to it.
Joe bio on coldest.com
Kaira is the warehouse operations manager and oversees all operations at The Coldest Water’s headquarters. She manages shipping and troubleshoots logistical issues involving clients, manufacturers, carriers, and suppliers. Outside work, Kaira leads an active lifestyle and loves spending time with her dog, Chewie.
COLDEST Drinkware
COLDEST Drinkware features a line of high-performance bottles designed for durability and insulation. Each bottle utilizes a unique technology to insulate the drinks, and keep beverages colder than other bottles do.
Materials
The bottles consist of stainless steel, with a powder-coated exterior. This construction prevents condensation and maintains the temperature inside.
- Insulation: They use a proprietary technology, ensuring that cold drinks remain cold for extended periods.
- Lids: Their airtight lids further enhance temperature retention.
Design
- Ergonomics: Designed with grip in mind, the bottles fit comfortably in hand.
- Capacity: They come in various sizes to cater to different hydration needs.
- Colors: Customers can choose from a wide range of colors.
Features
- Durable: These bottles are built to withstand drops and impacts.
- Eco-Friendly: Reusable nature supports sustainability efforts.
- Versatile: They suit indoor and outdoor activities.
| Product Name | Price | Size |
|---|---|---|
| COLDEST Limitless 36oz Bottle | From $38 to $55 | 36oz |
| COLDEST Limitless 46oz Bottle | From $45 to $65 | 46oz |
| Coldest 26oz Universal Bottle | From $20 to $34 | 26oz |
| Coldest 36oz Universal Bottle | From $40 | 36oz |
| Coldest 46oz Shaker Bottle | $51 | 46oz |
| Coldest 36oz Shaker Bottle | $43 | 36oz |
| Coldest 32 oz Sports Bottle | $40 | 32oz |
| Coldest 46oz Universal Bottle | From $56 | 46oz |
| Coldest 26oz Shaker Bottle | From $32 to $40 | 26oz |
| Coldest 24 oz Sports Bottles | From $32 to $35 | 24oz |
| Coldest 18 oz Sports Bottle | $23 | 18oz |
| Coldest 14 oz Sports Bottle | From $21 to $25 | 14oz |
| Coldest 40 oz Sports Bottle | $44 | 40oz |
| Coldest Half Gallon Jug | From $64 | Half Gallon |
| Coldest 21 oz Sports Bottle | $29 | 21oz |
| Coldest 64 oz Sports Bottle | $56 | 64oz |
| Coldest 12 oz Sports Bottle | From $19 to $24 | 12oz |
| Coldest Gallon Jug | $110 | Gallon |
| Coldest 32 oz Bottle | $36 | 32oz |
| Coldest 64 oz Bottle | $52 | 64oz |
| Coldest 21 oz Bottle | From $26 to $32 | 21oz |
| COLDEST Limitless 36oz Bottle (Most wished for gift) | $54.99 | 36oz |
| COLDEST Limitless 46oz Bottle (Most wished for gift) | $64.99 | 46oz |
COLDEST Limitless Series
The COLDEST Limitless Series is a high-performance collection of water bottles. These bottles use a triple-insulation technology, that can keep liquids cold for up to 36 hours, or hot for as long as 13 hours.
Equipped with a durable stainless-steel construct, the Limitless bottles assure a robust exterior that withstands daily wear and tear. They come with three interchangeable lids, catering to various drinking preferences: a sip straw lid, a flip-top drinking lid, and a blend-and-chug lid. The design incorporates a built-in handle for ease of carrying, enhancing its user-friendly nature, especially for on-the-go hydration.
The COLDEST Limitless Series also stands out for its innovative blend-and-chug lid, which consequently appeals to health and fitness enthusiasts.
COLDEST Recovery Ice Pack
COLDEST recovery ice packs are designed to provide an effective cold therapy to reduce swelling, manage pain, and accelerate recovery from injuries. These gel ice packs offer full-body coverage, tailored for different body parts such as the knee, arm, elbow, shoulder, and back.
- Coverage: The packs conform to the body, ensuring maximum contact with the affected area.
- Durability: Constructed with robust materials, the packs withstand frequent use.
- Temperature Retention: The ice packs maintain a consistent cold temperature to optimize therapeutic impact.
| Product Name | Price | Application |
|---|---|---|
| Ice Packs No Wrap | From $9 | General cold therapy for injuries |
| Hot + Cold Gel Ice Pack (Small) | From $18 | Relief for ankle sprains, strains, and swelling |
| Ankle Ice Pack | From $27 | Full-Body Ice Pack |
| Full Body Ice Pack | $56 | Relief for neck pain, stiffness, and injuries |
| Ice Pack With Wrap | From $17 | General use with added convenience of a wrap |
| Knee Ice Pack | From $32 | Relief for knee injuries, post-surgery recovery and arthritis |
| Wrist Ice Pack | $15 | Relief for wrist injuries, carpal tunnel syndrome and joint pain |
| Neck Gel Ice Pack | $10 | Relief for eye strain, puffiness, migraines, or post surgery recovery |
| Air Compression Ankle Ice Pack | $26 | Relief for ankle sprains, strains and swelling with added compression |
| Air Compression Hip Ice Pack | $28 | Relief for hip pain, injuries, post-surgery recovery with added compression |
| Air Compression Knee Ice Pack | $17 | Relief for knee injuries, post-surgery recovery and arthritis with added compression |
| Air Compression Shoulder Ice Pack | $24 | Relief for shoulder injuries, rotator cuff injuries, and post-surgery recovery with added compression |
| Air Compression Wrist Ice Pack | $17 | Relief for wrist injuries, carpal tunnel syndrome and joint pain with added compression |
| Circle Ice Packs | $10 | General cold therapy for small injuries or localized pain |
| Eye Ice Pack | $26 | Relief for eye strain, puffiness, migraines or post surgery recovery |
| Hand Ice Pack | $18 | Relief for hand injuries, arthritis, and post-surgery recovery |
| Foot Slipper Ice Packs | $18 | Relief for foot pain, plantar fasciitis, and post-surgery recovery |
| Head Ice Pack | $24 | Relief for headaches, migraines, and post-surgery recovery |
| Ankle + Foot 360° Ice Pack Sleeve | $26 | Comprehensive relief for ankle and foot injuries with full coverage |
| Knee 360° Ice Pack Sleeve | $26 | Comprehensive relief for knee injuries with full coverage |
| Shin 360° Ice Pack Sleeves | $30 | Relief for shin splints, swelling, and post-exercise recovery |
| Head 360° Ice Pack | $21 | Comprehensive relief for headaches, migraines with full coverage |
| Coldest Ice Vest | $69 | General body cooling for hot weather or post-exercise recovery |
With an emphasis on cold therapy, COLDEST recovery ice packs can be a staple for athletes and individuals with an active lifestyle, but they also cater well to those with chronic pain conditions.
Each pack has a gel interior that stays flexible when frozen, allowing for mobility and comfort during use. The material is non-toxic and safe for all ages, suitable for both at-home care and professional healthcare settings.
To maintain a cold temperature, the COLDEST ice packs typically require a couple of hours in the freezer before use. Depending on individual pain relief or therapy needs, the user can apply the pack directly to the skin or over a thin fabric to prevent frostbite.
COLDEST Pet Beds
Pets like being cool too, right? Especially during the hot summer days. And what about during the cold winters? COLDEST pet beds got you there too. These beds are designed to keep your doggie comfortable no matter the temperature
Key Characteristics of the Pet Beds
- Design & Materials: The COLDEST Pet Beds integrate cooling technology designed for pets who require a cooler surface to rest. They feature materials such as breathable mesh and cooling gel-infused memory foam, catering to pets’ comfort during warmer periods.
- Durability: These beds incorporate chew-resistant fabrics. They withstand rough use, making them a practical choice for pet owners interested in a long-lasting solution.
- Size & Portability: Manufacturers offer various sizes, ensuring suitability for different pet breeds. Some designs also prioritize portability with lightweight construction and foldable features, aiding in easy transportation.
- Health Benefits: The cooling effect of these beds promotes relief from conditions such as arthritis and hip dysplasia. The elevated design aids airflow, which helps in maintaining an even body temperature for pets.
- Maintenance: The COLDEST Pet Beds typically come with removable and washable covers. This simplifies the upkeep and contributes to a hygienic rest area for pets.
COLDEST Bedding Products
COLDEST introduces a line of bedding products designed to enhance sleep quality. They craft these products with a focus on cooling technology, catering to those who seek rest in a cooler sleep environment.
Features:
- Cooling Fabric: The fabrics used in COLDEST bedding products utilize advanced cooling materials. This technology is engineered to maintain a refreshing sleep temperature throughout the night.
- Moisture Wicking: To combat night sweats, the bedding boasts moisture-wicking properties, ensuring sleepers remain dry and comfortable.
- Breathability: A high level of breathability allows for consistent airflow, which adds to the cooling effect of the bedding.
Product Range:
- Pillows: Their pillows incorporate the same cooling technology to complete the sleep experience.
- Comforters: The COLDEST Cozy Comforter features a breathable fabric that feels cooler than traditional cotton and prevents pilling.
Maintenance:
The COLDEST bedding is designed with durability in mind. It resists pilling and is intended for long-term use with proper care. The materials selected ensure ease of maintenance without compromising on the cooling features.
Target Users:
Ideal for individuals prone to overheating at night, hot flash sufferers, or anyone who prefers a cool sleeping environment. These products address common sleep disturbances related to temperature regulation.
COLDEST Hydration Supplements
COLDEST Hydration Supplements aim to optimize hydration for athletes and active individuals. They feature an engineering-backed formula designed for rapid absorption. Each packet contains a blend of sodium electrolytes and glucose, following a specific ratio that triples the electrolyte content while keeping sugar to a third compared to leading sports drinks.
Nutritional Profile:
- Electrolytes: Higher concentration for intense replenishment
- Sugar: Reduced quantity to support hydration without spiking blood sugar levels
- Non-GMO Ingredients: Ensures natural component integrity
Usage:
- Single-serving packets are convenient for on-the-go use
- Simply mix with water for quick preparation
Health Benefits:
- Supports endurance during prolonged activities
- Aids in rapid recovery post-exercise
Product Line:
- The Coldest Water offers these supplements in various flavors, catering to diverse preferences.
- Their hydration formula has undergone optimization by engineers in collaboration with athletes, ensuring effectiveness.
Consumer Feedback:
- Positive reviews highlight the taste and efficacy of the hydration packets.
- Many users report feeling hydrated longer during sports activities.
Accessibility:
- Available for purchase online at Amazon and through The Coldest Water’s official website.
Patents Behind COLDEST
COLDEST has quite a remarkable list of pending patents and trademarks. In Shark Tank terms, this is a powerful card since investors like Lori Greiner always ask about protecting intellectual property.
| Product | Patent |
| COLDEST Limitless Lid | 62265403, Patents Pending |
| COLDEST Limitless Bottle | 29892994, Patents Pending |
| COLDEST Universal Bottle | 29893433, Patents Pending |
| COLDEST Dog Bowl | 29894129, Patents Pending |
| COLDEST Sports Bottle | No. 29/877,937., Patents Pending |
| COLDEST Pillow | No. 29/909,222, Patents Pending |
| COLDEST Gallon | No. 29/909,225, Patents Pending |
| COLDEST Half-Gallon | Patents Pending |
Patent specifics:
- Innovative Technology: The patents encompass advanced insulation techniques and materials ensuring superior thermal retention.
- Material Advancements: They detail the use of durable, high-grade materials that contribute to the longevity and performance of the products.
- Structural Design: Particular attention in their patents is given to ergonomic and robust design, enhancing user experience and product resilience.
On top of the pending patents, COLDEST holds 14 trademarks.
Where Can You Buy COLDEST Products?
Customers seeking to purchase COLDEST products have several options. The primary source is the company’s official website, which offers a comprehensive selection of their merchandise. These products include water bottles, shaker bottles, ice packs, pillows, and bedsheets.
For those who desire to match with the offerings from a popular TV show, they can obtain the LIMITLESS water bottle as seen on Shark Tank Season 15. Online shopping aficionados may also explore the variety of COLDEST items available through different online retailers.
Additionally, third-party online retailers such as NBC News showcase a curated list of ‘Shark Tank’ products, including those from COLDEST.
COLDEST Revenue Streams
Coldest generates income through a multi-tiered approach centered on collaboration and customer engagement. One significant revenue stream stems from their affiliate programs. Influencers can promote Coldest products and receive compensation based on the sales they drive.
The company also has wholesale and retail programs in place. These allow various retailers to stock and sell Coldest products, expanding the brand’s market presence and accessibility.
In addition, Coldest offers incentivized loyalty rewards. Customers earn points for purchases that they can redeem for discounts on future transactions. This system encourages repeat business and strengthens customer relationships.
Another pillar of their revenue model is the ambassador programs. Enthusiasts of the brand represent and recommend Coldest merchandise, earning rewards, and providing organic marketing.
Lastly, their VIP program enhances customer retention by providing exclusive benefits to frequent shoppers. It promotes a sense of exclusivity and incentivizes high spending.
COLDEST Reviews
Customers are generally really excited about the COLDEST Water products. They talk about the durability and insulation performance of the bottles. Users frequently mention the long-lasting cold retention, with some reports of ice persisting for over 24 hours.
User Feedback
- Durability: Users report that the bottles withstand daily wear and tear.
- Insulation: The insulation quality receives high praise for its effectiveness.
- Design: Several reviews point out the sleek design and ease of carrying.
Positive Aspects
- Cold Retention: Ice remains solid over extended periods, exceeding users’ expectations.
- Build Quality: The bottles exhibit a high level of craftsmanship and material selection.
Criticisms
Some users note issues with bottle weight, citing a heavier than expected experience when full. Others touch on price, suggesting the premium cost aligns with the high quality but may not suit all budgets.
COLDEST Social Media
COLDEST has a strong social media presence across various platforms. They engage with a diverse audience, providing updates, content, and community interaction.
On TikTok, COLDEST has over 380,000 followers, doing a fantastic job in using short-form video content.
Instagram is another platform where COLDEST shines, with a community that has grown to more than 100,000 followers. They have over 1,100 posts including product highlights, customer experiences, and branded content.
COLDEST also mastered YouTube with over 38,000 subscribers. Through its 476 uploaded videos to date, they provide a mix of the social media platforms.
| Platform | Followers |
|---|---|
| TikTok | 380.3K |
| 102K | |
| YouTube | 38.4K |
The COLDEST Community Work
The COLDEST company consistently engages in community work, focusing on contributing to the local area through various initiatives. They actively participate in environmental sustainability programs, thereby showing their commitment to ecological conservation. Their involvement often includes sponsoring local events that aim to educate and promote environmental awareness.
Employees at COLDEST take part in regular clean-up drives. These volunteer activities help maintain cleanliness in public spaces and encourage community participation. They also collaborate with local schools to provide educational materials and resources. This support for education highlights their investment in the future generation.
Furthermore, COLDEST has initiatives that support community health. They organize wellness programs that offer free hydration products to sports teams and local athletes. Providing these resources demonstrates their dedication to fostering healthy lifestyles.
The COLDEST team also responds to crises quickly, donating supplies to those affected by natural disasters. Their readiness to help during emergencies showcases their empathy and solidarity with community members in times of need.
COLDEST Sustainability and Environmental Plans
Coldest Water’s main goal is to produce lasting, sustainable products, primarily water bottles, to reduce plastic waste. They’re offsetting over 62.4 million plastic bottles usage every year and are committed to neutralizing their carbon footprint. They’ve collaborated with green projects globally, focusing on a Wind Farm Project in Mersin, Turkey which produces renewable energy for the national grid, provides job opportunities and supports UN Sustainable Development Goals. The company’s products are carbon-neutral and contribute to funding these sustainability initiatives.
Seb
Seb is a PhD scientist by training, and an entrepreneur by heart. He started his first business while in elementary school, and he got in trouble for it! He then moved onto various online ventures, including consulting and e-commerce. Seb loved Shark Tank since he saw the first episode of Season one on TV. The rest is history.
