COLDEST Net Worth Shark Tank Update

Summer is a season many of us love for its bright, sunny days and the feeling of a fresh start to the year. But sometimes, the heat becomes too intense, making it hard to enjoy fully. The high temperatures can cause uncomfortable sweating and even make it difficult to get a good night’s sleep. On top of that, drinks and water warm up quickly, leaving us without cool, refreshing sips to help beat the heat.

Dave Stark and Joe Wayne, the owners of COLDEST, are here to rescue all those who are irritated from the heat. Their product is the coolest water bottle that sustains the coolness of the drinks in it for up to 36+ hours. They also experimented with more than 50 hydration brands with their bottles. Their bottles also contain non-slip rubber bottoms and a leakproof quality. Moreover, their company also has other cool products such as pillows, dog beds, and dog bowls.

The owners came on Shark Tank to request $600K in exchange for 2% in their company. They also presented the sharks with their limited bottle series including three lids that keep the bottle insulated. Let’s explore their journey on the show.

COLDEST Net Worth Shark Tank Update

Dave and Joe were looking for an investment of $600K in exchange for 2% equity in the company. At the time of the episode, they valued their company, COLDEST, at $30 million. They did not secure a deal with any of the Sharks. After the show was aired, COLDEST experienced a big increase in website traffic, sales, and social media exposure. As per my rough estimate, the current net worth of COLDEST in 2024 is around $25 million.

Shark(s) name	Offer & Demand	Counteroffer	Accepted?
Kevin O’Leary	$600K for 2% equity	$600K for 5% equity + $2.25 per unit royalty, until $3 million earned	No
Mark Cuban	Out	N\A	N\A
Lori Greiner	Out	N\A	N\A
Robert Herjavec	Out	N\A	N\A
John Daymond	Out	N\A	N\A

The Owners’ Backstory

Dave related that he and Joe are twins and their parents are immigrants. Their father came from Jordan and their mother from the Philippines and both the couple are engineers. This interest also developed in the twins and they started to watch business podcasts. They also worked inside businesses including software, building websites, etc. but they all failed.  Then in 2015, they started working on COLDEST and Dave even put his $14K in the business. He sent this investment to a factory for 1000 bottles. After two years, they made about $900K in revenue

Initial Pitch

The owners came on the show to seek $600K for a 2% equity stake. Their product is a water bottle that sustains the coolness of water for up to 36 hours. They also have other products including cool pillows, dog beds, and dog bowls to help people and animals cope with the heat.

Queries about the Product

Daymond asked the first question about the initial 1000 bottles ordered from the factory and their selling duration. Joe highlighted that the bottles sold out in just five months. Their selling medium was Amazon and then in 2017, Dave started to focus only on marketing while Joe turned to making the product. Then in just one year, they made $1M to $3M in sales.

Kevin then interrupted and asked for a yearly revenue detail. Dave replied that in 2017, they made about $900K in sales and in 2018, their sales were about $2.5M. The sales were $5.9M in 2019 and in 2020 they made $9.3M in sales.

Moreover, the sales increased further and made about $12.3M in sales, and last year they made $15.1M in sales.

Cuban wanted to know about their profit last year. Dave replied that last year they lost about $400K because of the inventory as the bottles were selling a lot and thus, they kept buying them.
The sales money is always used in the company again for branding, SKUs, and for adding new categories.

Daymond asked about the worth of their inventory. One of the twins related that they have about $2.5M worth of inventory currently.

Lori then inquired about their SKUs. They have a total of about 350 SKUs.

Daymond was also curious about the cost of the product and its selling price. Dave pointed out that the bottle retails for $55.99 and it costs them $10 to $12 to make. They would probably make $22M in sales for this year as well.

Herjavec was confused regarding the $30M valuation of their company. Dave replied that it is because of their growth rate which increases every year by a huge amount.

Cuban was interested to know the percentage of sales they are spending on advertising their product. The owner pointed out that they invested almost $3.3M alone in an advertisement last year.

Shark’s Response and Final Decision

Lori was the first shark to drop the deal as she didn’t like the idea of their high inventory and their loss.

Cuban also showed disinterest in investing in their business as he thought their marketing strategies were not good enough.

Herjavec also backed out because of their lost money.

Daymond dropped the deal as well as their business is too risky for him because they will have to spend more on inventory every time.

Kevin then offered them $600K for 7% equity with a $2.25 per unit royalty, until $3 million was earned.

Joe then counter-offered Mr. Wonderful $600K as a loan with $900K to be repaid in 3-5 years.

Kevin didn’t like the counter-offer and revised his offer to $600K for 5% equity with a $2.25 per unit royalty, until $3 million was earned as a final offer.

The twins counter-offered him $1.5M for a 5% stake for the second time with the option to buy back the 5% in 3 years for 1.5x the investment.

As Kevin and the twins were not on the same terms, they left without a deal.

Product’s Availability

After their appearance on the show, the twins got over 8,000 people shopping live on their website. They also took some advice from the Sharks and decided to reduce the number of products they offer. Once their current stock sells out, they’ll be discontinuing items like pillows, bedding, sheets, comforters, dog beds, ice packs, and certain bottles.

Coldest is offering a 30% discount on these closeout products, which are clearly labeled on their website. As of June 2024, and following the episode’s first re-run, Coldest is expected to exceed $25 million in sales for the year.

Their products are available on Coldest’s website.

Conclusion

Coldest made a unique appearance on Shark Tank, showing its new cooling products, including water bottles that keep drinks cold for up to 36 hours. Despite strong sales growth and extensive product offerings, the company faced challenges with high inventory costs and marketing expenses, leading all but one Shark to decline an investment. Kevin’s offer ultimately was not accepted, and the twins left without a deal. However, their appearance increased customers to their website, and they have since focused on core items, offering discounts on closeout products. Coldest is still on track to exceed $25 million in sales this year.