Bottle Bright Cleans Water Bottles
DEAL
EPISODE SUMMARY
🕓 Air Date: January 13, 2015
Asking For:
$75,000 for 15%
Investor:
Lori Greiner
Deal:
$75,000 for 33%
PRODUCT SUMMARY
Bottle Bright is an effervescent cleaning tablet designed to remove stains and odors from portable drinkware. It offers a natural and easy solution for cleaning hard-to-reach areas in drinking containers.
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Background Story
Bottle Bright, the brainchild of Justin Koehneke and Seth Friedman, originated from the duo’s shared frustration with the challenges of cleaning portable drinkware, particularly hydration packs used in their passion for mountain biking. While concluding a day of mountain biking, the founders faced the unpleasant reality of dealing with a hydration pack that tasted unpleasant due to its difficult-to-clean design. The existing methods, involving dishwashers or harsh chemicals like chlorine bleach, proved inefficient or unsafe for the task at hand.
Motivated by a desire for a safe, easy, and effective solution, Koehneke and Friedman embarked on a mission to create a product that would address the common issue of stains and odors in portable drinking containers. This quest led to the birth of Bottle Bright, an effervescent cleaning tablet designed to tackle these problems naturally. The founders, both avid mountain bikers, recognized the limitations of available cleaning methods and decided to leverage their collective expertise to develop an innovative solution.
Despite facing challenges, including a significant loss due to a product recall related to ecological packaging, Koehneke and Friedman remained committed to their vision. The company’s journey reflects a blend of entrepreneurial spirit, practical problem-solving, and a dedication to creating a product that enhances the user experience. With a foundation rooted in their own frustrations and a commitment to sustainability, the founders sought to revolutionize the way people clean their portable drinkware, ultimately leading to the creation of Bottle Bright.
The Product
Bottle Bright, an innovative cleaning solution, takes the form of an effervescent tablet designed to revolutionize the maintenance of portable drinkware. The product offers a simple yet highly effective cleaning process. To use Bottle Bright, consumers fill their portable drinking container with water, drop in a tablet, and let it work its magic. The tablet’s natural and mineral-based ingredients create a powerful solution that efficiently removes stains and odors from hard-to-reach areas within the container.
The benefits of Bottle Bright are numerous. It provides a safe and all-natural alternative to traditional cleaning methods involving toxic chemicals or dishwashers, which may not effectively clean narrow openings. The tablet ensures no residual odor or smell after use, leaving the drinking container fresh and ready for use. Bottle Bright is available for purchase in convenient 10-pack pouches.
The production cost of these pouches is an economical 79 cents, allowing for a wholesale price of $2.99. Retailers then sell the product for $5.99, providing a competitive and accessible pricing structure for consumers. This user-friendly and cost-effective solution positions Bottle Bright as an attractive choice for those seeking a reliable and eco-friendly way to maintain the cleanliness of their portable drinkware.
How It Went
The company’s position before Shark Tank
Bottle Bright’s performance reflects a blend of successes and challenges in the competitive market of cleaning solutions. The company reported $110,000 in sales in the previous year, with a current year-to-date figure of $85,000. However, their journey was not without obstacles. A notable setback involved a $100,000 loss attributed to a product recall related to ecological packaging. Despite this setback, Bottle Bright remains committed to its vision. The company has established partnerships with two large private label customers, indicating a strategic move towards collaborating with established entities.
These partnerships involve manufacturing the same formula under the private label, contributing to the company’s revenue stream. However, it’s noteworthy that these partnerships did not yield profits, with the founders expressing a loss in the challenging year of 2013. Bottle Bright wholesales its product at $2.99 to retailers who, in turn, sell it for $5.99. The retail pricing appears competitive, aligning with the product’s cost-effective production. Funding-wise, the company sought $75,000 during their pitch on Shark Tank, aiming to allocate the funds for administration.
However, the founders expressed openness to alternative ideas on how to utilize the investment. The negotiation with Lori Greiner concluded with a deal of $75,000 for 33.33%, with a specific condition that the funds go towards fulfilling purchase orders rather than administrative costs. The founders, Justin Koehneke and Seth Friedman, seem determined to leverage the expertise of their new partner, Lori Greiner, to propel Bottle Bright into the retail market and, potentially, a broader consumer base.
The Negotiations:
The negotiations for Bottle Bright on Shark Tank were dynamic and culminated in a successful deal with Shark Lori Greiner. Justin Koehneke and Seth Friedman initially entered the Tank seeking a $75,000 investment in exchange for a 15% equity stake in their company. However, the negotiation landscape quickly evolved as the Sharks delved into the details of the business. Kevin O’Leary and Mark Cuban were critical of the product’s potential, citing concerns about market demand and the effectiveness of Bottle Bright in a saturated industry.
Despite this skepticism, Lori Greiner saw an opportunity and expressed interest in making an offer. She proposed a $75,000 investment for a larger equity stake of 33.33%, emphasizing that the funds should be allocated specifically towards fulfilling purchase orders rather than administrative expenses. In response to Greiner’s offer, the founders countered, suggesting a 25% equity stake. Greiner stood firm, ultimately settling at a compromise of 33.33%, and the deal was sealed.
The negotiation highlighted Greiner’s strategic approach, leveraging her expertise and existing initiatives with retailers like Bed Bath & Beyond to enhance Bottle Bright’s market penetration. The founders, appreciative of Greiner’s insight and potential for growth, enthusiastically accepted the deal, marking a successful outcome for both parties involved. This negotiation showcased the delicate balance of valuation, market potential, and strategic partnerships in the entrepreneurial landscape, ultimately leading to a positive collaboration between Bottle Bright and Lori Greiner.
