Pitch Introduction
The Coldest Shark Tank pitch featured twin engineers David Stark and Joe Wayne seeking $600,000 for 2% equity in their cooling products company. Despite impressive $15.1 million in annual sales, the founders faced tough questions about profitability during their Season 15 appearance. Their presentation focused on products designed to stay colder longer, including water bottles tested against 50+ competitors and specialized cooling pillows and pet products.
Business Overview
Coldest offers innovative cooling products designed to outperform competitors in temperature retention. Their flagship water bottle maintains cold temperatures for 36+ hours, featuring a non-slip rubber bottom and 100% leak-proof construction. The company expanded beyond hydration to create the coldest everything store, addressing customer pain points like night sweats with specialized cooling pillows and pet products.
| Product Category | Key Differentiator |
|---|---|
| Water Bottles | 36+ hour cooling retention |
| Pillows | Night sweat prevention |
| Dog Products | Cooling beds/bowls for pets |
About Founder’s
David Stark and Joe Wayne are twin civil engineers from Naples, Florida, who founded Coldest in 2015. Both sons of immigrant parents (father from Jordan, mother from Philippines), they were initially pushed toward engineering careers. Despite their technical backgrounds, both brothers were obsessed with business from an early age, running multiple software website ventures before finding success with Coldest.
- Started with $14,000 personal savings
- Initially sold 4,000 bottles on Amazon
- Reached $15.1M revenue by 2022
- Operate from Florida warehouse
Shark’s and Founder’s QnA
What do we have here?
That’s our limitless series. It comes with three fully insulated lids and stays cold 36 plus hours.
Tell us about you guys?
My parents are both immigrants. My dad’s from Jordan and my mom’s from the Philippines. They’re both engineers and so our entire life we thought engineering was the only route to go into. Every day I’d listen to business podcasts because me and Joe have always been obsessed with business.
What happened with the $14,000 you mentioned?
I put it into the coldest water. I finally chose a factory, sent them the money for 4,000 water bottles. My older brother said do you really think you’re going to sell 1,000 water bottles? I messaged the factory to cancel but they responded it’s too late. Two years later we’re doing about 900k in revenue.
How long did it take to sell out?
It was probably within the first 5 months. We initially started on Amazon as a pure e-commerce company.
Give us year-by-year revenue?
2017 we did 900k. 2018 we did 2.5 mil. 2019 is 5.9. 2020 we hit 9.3 million. 2021 was 12.4 million. Last year we hit 15.1 million.
Why are you here? What were your profits last year?
Last year was 400k we lost 400,000. Our inventory keeps flying out of the warehouse and we keep buying a lot more colors and SKUs. All our money since day one has been going back into the brand.
What is your inventory worth right now?
It’s around $2.5 million inventory at cost. There’s over 350 SKUs.
How much does the bottle cost to make and sell for?
That specific product retails for $55.99 and we get it for around $10 to $11 landed.
What do you think you’re on track to do this year?
We’re on track to do 22 million up to that’s on the lowest end.
What percentage of sales do you spend on advertising?
A lot. Last year we did almost 3.3 million in advertising.
Why do you believe the inventory is a plus?
All of our stuff moves. It’s just a matter of when we want to discount it and break even at that product.
Key Stats & Financials
The Coldest financials show remarkable revenue growth but concerning profitability. Despite reaching $15.1 million in sales, the company operated at a loss due to high inventory investment and advertising spend. The founders’ $30 million valuation was based on growth trajectory rather than current profits.
- Sales: $15.1 million (2022)
- Margins: ~80% gross margin ($10 cost on $56 bottle)
- Valuation: $30 million requested
- Investment Request: $600,000 for 2% equity
- Use of Funds: Inventory expansion and marketing
| Year | Revenue |
|---|---|
| 2017 | $900,000 |
| 2018 | $2.5 million |
| 2019 | $5.9 million |
| 2020 | $9.3 million |
| 2021 | $12.4 million |
| 2022 | $15.1 million |
Business Potential and TAM
The cooling products market represents a significant opportunity as consumers increasingly prioritize temperature-regulating products for comfort and health. Coldest targets the premium hydration market competing with brands like Yeti and Stanley, while expanding into adjacent categories like sleep and pet products. Their viral social media success demonstrates strong consumer appeal.
- Premium hydration market growth
- Sleep wellness expansion
- Pet product diversification
- Viral marketing potential
Coldest: Ideal Target Audience & Demographics
| Demographic | Details |
|---|---|
| Age | 25-45 active lifestyle |
| Income | $50K+ premium buyers |
| Interests | Fitness, travel, pets |
| Location | Warm climate regions |
Marketing and Distribution Strategy
Coldest employs a direct-to-consumer strategy primarily through Amazon and their website. Their marketing relies heavily on digital advertising with $3.3 million spent annually. The brand gained significant traction through viral TikTok content showcasing product performance. Future plans include retail expansion and continued product line diversification.
- Amazon marketplace dominance
- Viral social media campaigns
- Digital advertising focus
- Product line expansion strategy
Coldest Deal Outcome
Despite impressive revenue, Coldest left Shark Tank without a deal. Kevin O’Leary made the only offer: $600,000 for 5% equity plus a $2.25 per unit royalty until he recouped $3 million. The founders rejected royalty terms, preferring to maintain control despite needing capital for inventory management.
| Shark | Offer |
|---|---|
| Kevin O’Leary | $600K for 5% + royalty |
| Other Sharks | No offers |
| Final Result | No deal |
Coldest Post-Show Update
Following their Shark Tank appearance, Coldest continued scaling operations from their Florida warehouse. The company maintained its direct-to-consumer focus while expanding product lines. Despite no Shark investment, the exposure likely boosted brand recognition and sales through their established channels.
Business Analysis & Lessons
The Coldest pitch highlights critical lessons about growth versus profitability. While impressive revenue scaling attracted Shark attention, the business model’s cash consumption raised concerns. Their experience demonstrates the importance of inventory management and sustainable unit economics even during rapid growth phases.
- Growth must be balanced with profitability
- Inventory management impacts cash flow
- Royalty deals provide investor protection
- Presentation quality affects perception
Pitch Conclusion
Coldest’s Shark Tank journey demonstrates how impressive revenue growth alone doesn’t guarantee investment. While their products resonated with consumers, operational challenges prevented a deal. The founders face the critical task of achieving profitability while maintaining their growth trajectory in the competitive cooling products market.