Beer Blizzard – Beer Can Ice Pack
DEAL
EPISODE SUMMARY
🕓 Air Date: March 18, 2016
Asking For:
$100,000 for 20%
Investor:
Mark Cuban
Deal:
$100,000 for 25%
PRODUCT SUMMARY
Beer Blizzard is a reusable plastic dome-shaped ice cube designed to fit the concave bottom of all aluminum beer and soda cans, keeping beverages ice-cold.
WATCH HERE
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Background Story
Ozzy, an attorney fighting for victims of lung cancer and mesothelioma, and Mike, an executive in the food business, came up with the Beer Blizzard during a Memorial Day getaway to Ozzy’s hunting cabin. Frustrated with warm beer, they discovered a solution by designing a reusable ice cube that fits the bottom of aluminum cans. Wanting to share their invention with the world, they appeared on Shark Tank seeking a deal to leverage the Sharks’ contacts for mass distribution.
The Product
The Beer Blizzard is a simple yet innovative solution to the age-old problem of warm beer. The reusable plastic dome-shaped ice cube is designed to perfectly fit the concave bottom of all aluminum beer and soda cans.
Users freeze the Beer Blizzard and insert it into the can to keep beverages ice-cold for an extended period. The product has undergone testing, certified by an independent laboratory, revealing that it extends the time a beer stays cold from around 6 minutes to 21 minutes on a warm day.
How It Went
The company’s position before Shark Tank
Beer Blizzard, in business for just over a year, gained traction through a successful Kickstarter campaign, raising $43,000 in 45 days and reaching their goal in three days. They have sold 66,000 discs in packs of six, generating $156,000 in gross revenue with a net profit of $135,000. While primarily selling online, they expressed interest in expanding to retail. However, their attempts to collaborate with beer companies for promotional purposes were met with challenges.
The Negotiations:
During the pitch, Lori questioned the versatility of the product beyond beer, suggesting it could work for sodas as well. However, the founders emphasized their focus on the beer market. Robert and John ultimately opted out, with Robert expressing concerns about the sustainability of the business.
Mark Cuban made an offer of $100,000 for a 25% stake, but eventually, the founders accepted a counteroffer from Mark Cuban. They appreciated Cuban’s business perspective and potential for retail expansion, choosing him as their partner. The deal was sealed with a beer toast, marking the beginning of their partnership.
