What happens when two entrepreneurs decide that traditional coolers aren’t it? They go on Shark Tank; Chad Lee and David Kittle, walked into the Shark Tank with FOAM Coolers, seeking $150,000 for 10% of their company and they walked out pretty happy.
Their product promises to be both tough enough to survive a road roller and buoyant enough to float alongside your pool flamingo – all while keeping your beverages perfectly chilled. After a heated negotiation that had the Sharks circling, Daymond John landed the deal, securing 30% equity for $150,000. Not bad for a company that's essentially taken styrofoam and made it sexy (their words, not ours).
The Shark Tank deal came after some intense back-and-forth that proved these entrepreneurs weren't just blowing hot air – they had the numbers and a Target deal to back up their cool claims.
Did FOAM Coolers’ numbers meet Shark Tank expectations?
When it comes to sales figures, FOAM Coolers wasn't exactly floating around in the kiddie pool. By the time they faced the Sharks on Shark Tank, they'd already racked up $114,000 in sales, with another $137,000 committed on their way to filming – bringing their total to a cool $251,000 for the year.
Their pricing structure showed some method to the madness: retailing at $99, wholesale at approximately $50, and landing costs at $25. Not exactly gas station cooler prices, but then again, most gas station coolers can't survive being run over by construction equipment.
In what might be the entrepreneurial equivalent of dropping a "by the way, I'm famous" in casual conversation, the duo revealed they'd launched in Target just a week before the filming of the Shark Tank episode.
Sure, it was only in 97 stores – not exactly a nationwide takeover – but it was enough to make the Sharks' fins perk up. Their cautious approach to expansion (aka not wanting to end up in the Walmart clearance bin) showed they weren't just floating around without a strategy.
What moves did the Sharks make?
The Sharks' reactions were as varied as the contents of a well-stocked cooler. Daymond John initially seemed lukewarm, questioning whether the product's appearance justified its price point – apparently not everyone gets excited about premium styrofoam.
Lori Greiner, meanwhile, was practically doing backflips over their Target deal, declaring they had "disrupted a category," though Kevin O'Leary seemed confused about how one disrupts anything without massive sales.
Just when it seemed like the cooler might leave the Tank unattached, Kevin O'Leary jumped in with an offer that would make most entrepreneurs sweat: $150,000 for 33.3%. Not to be outdone, Daymond John, perhaps seeing visions of branded coolers dancing in his head, countered with $150,000 for 30%. The founders tried to cool things down with a 17% counteroffer but ultimately had to give in to Daymond's terms.
Mark Cuban and Todd Graves sat this one out – apparently, not even a floating, crush-proof cooler could tempt them to dive in. Lori, despite her earlier enthusiasm, decided to be a customer rather than an investor, proving that sometimes the best deals are the ones you don't make.
In the end, FOAM Coolers walked away with exactly what they needed: a Shark with retail expertise, branding know-how, and enough capital to keep their cool product from melting under pressure. Now they just need to prove that America is ready to pay premium prices for what is essentially indestructible styrofoam – but hey, stranger things have happened in the Tank.
As FOAM Coolers embarks on their journey with Daymond John as their new partner, they'll need to prove that their premium-priced product can make waves in the highly competitive cooler market. With Target already on board and a Shark's expertise in their corner, they might just have the perfect recipe for success.
Whether they'll become the next must-have accessory for pool parties and tailgates remains to be seen, but one thing's certain: they've managed to do what few can – convince a Shark that a better styrofoam cooler is worth a $150,000 bite.
Trending
Season 16 of Shark Tank airs on Fridays at 8 PM ET on ABC, with next-day streaming on Hulu and on-demand. Past seasons are also available on Amazon Prime Video and iTunes.
Reply
