HotShot Coffee
NO DEAL
EPISODE SUMMARY
🕓 Air Date: October 30, 2015
Asking For:
$300,000 for 10%
Investor:
No Deal
Deal:
No Deal
PRODUCT SUMMARY
HotShot is the first grab-and-go, ready-to-drink hot coffee in a can, heated and stored at 140 degrees in a special HotBox, providing a convenient solution for on-the-go coffee lovers.
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Background Story
Danny Grossfeld, the owner and founder of HotShot, was inspired to create the product after experiencing a lack of hot coffee options during a trip to Japan. Frustrated with the absence of readily available hot coffee in convenience stores, he stumbled upon the concept of hot canned coffee in a stand-up fridge. This sparked the idea for HotShot, a grab-and-go hot coffee solution.
Danny invested six years and close to $2 million in developing the beverage, facing challenges in perfecting the formula to withstand constant heat for up to four months. The funding came from friends and family, including a half-million dollars from Danny’s father. Despite the lengthy development process, HotShot was set to launch in the fall, with potential interest from movie theaters and other convenience stores.
The Product
HotShot introduces a revolutionary concept by offering a ready-to-drink hot coffee experience in a can. The magic lies in the HotBox, a hot fridge that maintains HotShot cans at 140 degrees 24/7. Users simply open the HotBox, grab a can, and enjoy a perfectly prepared hot coffee without the need for brewing or waiting in line.
The insulated label ensures that the can is comfortable to hold, providing a convenient solution for those in a rush. The product was inspired by the popular trend of hot canned coffee in Japan, and it took six years and extensive testing to develop a beverage that could withstand constant heat for an extended period.
How It Went
The company’s position before Shark Tank
With an investment of nearly $2 million over six years, HotShot had reached the point of launching in the fall. The development process included testing over 1,500 variations to perfect the formula, emphasizing the product’s uniqueness. Funding primarily came from friends and family, and there was interest from potential customers, including movie theaters, willing to conduct tests.
Despite the significant investment, there were no sales at the time of the pitch. The founder expressed optimism about the product’s potential in a market where hot canned coffee had achieved $15 billion in sales in Japan the previous year.
The Negotiations:
The sharks were skeptical about HotShot’s viability, given the six-year development timeline with no sales. Kevin O’Leary, known for his pragmatic approach, expressed concern about the lengthy journey without revenue and suggested that if a business couldn’t make money in 36 months, it might be better to abandon it. Mark Cuban and Lori Greiner both decided to pass on the investment, citing competition and concerns about the business model.
Robert Herjavec, while appreciating the idea, ultimately opted out as well. Despite not securing a deal, Mark Cuban offered to test HotShot in his Landmark theaters once it was launched, providing a potential opportunity for exposure and feedback. Lori Greiner, however, not only declined to invest but also advised the founder to reconsider the venture, expressing doubt about its long-term success. The negotiations concluded with Danny Grossfeld leaving the tank without a deal but with a potential customer in Mark Cuban for future testing in Landmark theaters.
