Biz Tips: Shark Tank Deal: BottleKeeper Accepts $1,000,000 from Lori Greiner and Mark Cuban

Biz Tips: Shark Tank Deal: BottleKeeper Accepts $1,000,000 from Lori Greiner and Mark Cuban

Biz Tip:

Shark Tank Deal: BottleKeeper Accepts $1,000,000 from Lori Greiner and Mark Cuban

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Adam Callinan and Matt Campbell came into the Shark Tank to pitch their product in hopes of securing a $1,000,000 investment for a 5% share of their company. These cousins are combating the “warm beer” epidemic with their product, BottleKeeper. It is a stainless steel, insulated bottle holder that features a neoprene insert to keep each beer perfectly cool, sealed and protected from falls. It also includes a convenient bottle opener in the lid.

The financial ask and the $20 million valuation of the company raise a few eyebrows in the Shark Tank. When BottleKeeper shares their sales of $1 million in the last 10 days and over $20 million in the last 3 years, the Sharks struggle to understand why they are in the Tank seeking help. Their current problem is that they need a capital investment because everything they net they are putting back into the company, primarily in marketing and IP enforcement. They also have 3,000 US companies on a waitlist to purchase the product. They need help with scaling the product, business strategy and making more efficient use of their marketing budget.

While the company does have 2 utility patents, they have spent considerable amounts of money and time enforcing their patents and trying to deter knock-off products from popping up in the market. The competitive products have also pushed them to sell on Amazon, but their primary platform is selling direct to consumers. Bottlekeeper spends a significant amount on Facebook marketing, citing that they have spent nearly $4 million on Facebook ads alone. The Sharks are concerned about their marketing methods and think that they could be more frugal and efficient by incorporating influencers into their marketing mix.

Barbara Corcoran is immediately concerned about the legal issues surrounding the product and declines to make an offer. Mark Cuban initially declines as well citing that there is not enough balance of risk and reward. Kevin and Alex both make offers but at a 20% share of the company which is higher than Adam and Matt are able to go. Lori begins to negotiate and Mark decides to join her with an offer of $1,000,000 for 5% stake in their company, plus a royalty of $1.50 per unit until $2 million is recouped. Although the negotiations were more intense than they anticipated, BottleKeeper accepts their deal.

What do you think about BottleKeeper’s product and Mark and Lori’s offer? Would you purchase this product? Sound off in the comments below!

For a full summary of this episode, check out this article. Shark Tank airs on Sundays at 9:00 PM EST on ABC.

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