Chill-N-Reel Fishing Can Koozie
NO DEAL
EPISODE SUMMARY
🕓 Air Date: May 13, 2022
Asking For:
$300,000 for 10%
Investor:
No Deal
Deal:
No Deal
PRODUCT SUMMARY
The Chill-N-Reel is a beverage insulator equipped with a hand-line fishing reel, designed for a relaxing day of fishing and drinking.
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Background Story
Chill-N-Reel, established by the trio of entrepreneurs, Chase Terrell, Chris Diede, and Jake Rutledge, originates from their shared passion for fishing and the pursuit of leisure. This innovative company operates from two distinct locations, with Chase Terrell based in the tranquil town of Sand Springs, Oklahoma, while Chris Diede and Jake Rutledge call the vibrant city of Austin, Texas, their home.
Jake Rutledge, a devoted and seasoned Tulsa firefighter with a profound love for fishing, had a moment of inspiration during a family vacation in the beautiful coastal state of Florida. It was during this vacation that he keenly observed the challenges of simultaneously managing a fishing rod and a refreshing beverage. In a true “eureka” moment, he conceptualized the ingenious idea of a combined drink insulator and hand-line fishing reel. This revelation laid the foundation for what we now know as the Chill-N-Reel.
Even in the face of initial doubts regarding the practicality of their concept, the founders displayed unwavering faith in the appeal of a product that seamlessly merged the joy of fishing with the leisure of enjoying a drink. Drawing upon their collective experiences and resources, they embarked on a journey to develop a product that would cater to casual anglers seeking a hassle-free and enjoyable fishing experience. Their dedication to product development and astute marketing strategies eventually attracted a substantial customer base, leading to their moment in the spotlight on the renowned television show “Shark Tank.”
The Product
The Chill-N-Reel is a multifunctional fishing accessory designed to enhance the fishing experience while allowing users to enjoy their favorite beverages. Featuring a unique combination of a drink insulator and a hand-line fishing reel, the product is tailored for casual fishing trips and relaxation.
The device functions as both a drink holder and a simplified fishing reel, providing users with the convenience of simultaneously managing their fishing line and beverage. The design allows for easy casting and reeling, catering to the needs of recreational anglers seeking a hassle-free fishing experience. While primarily intended for smaller fish, it has demonstrated the capability to handle fish of moderate weight, expanding its utility for a wide range of fishing enthusiasts.
The Chill-N-Reel’s benefits lie in its user-friendly design, making it accessible for individuals seeking a leisurely fishing experience without the complexity of traditional fishing equipment. Its affordability, priced at $12.95 for solid colors and $15 for camouflage designs, makes it an attractive option for those looking to enhance their fishing trips without significant financial investment.
The product can be purchased through various retail channels and online platforms, with manufacturing operations based in Tulsa, Oklahoma, ensuring quality and local production. Its compact and lightweight structure further contributes to its portability, making it a convenient accessory for fishing enthusiasts of all skill levels.
How It Went
The company’s position before Shark Tank
Chill-N-Reel has demonstrated a robust performance within the recreational fishing market, capturing a substantial customer base attracted to the product’s unique blend of utility and leisure. With a sales record of $1.34 million over the past 12 months, the company has showcased its capacity to appeal to a diverse audience seeking a simplified fishing experience. While the product’s simplicity initially raised concerns among investors, its significant sales figures indicate a strong market demand for accessible and user-friendly fishing accessories.
The company operates with a localized manufacturing base in Tulsa, Oklahoma, emphasizing its commitment to quality and local production. Although details about specific partnerships and wholesalers remain undisclosed, the company’s retail presence suggests collaborations with various retailers and online platforms to distribute its products to a wider market. However, despite its impressive sales figures, Chill-N-Reel has faced challenges in managing its expenses, particularly concerning marketing costs, which accounted for a significant portion of their expenditures, reaching approximately 40%.
Consequently, the company experienced a decline in profits, with last year’s earnings totaling just over $70,000, and the current fiscal year indicating a loss of $25,000 due to inventory-related costs and substantial advertising expenses. With $350,000 worth of inventory in their warehouse, the company has demonstrated the capability to meet consumer demand, ensuring a steady supply of products to support their sales momentum. The company’s financial structure highlights the need for strategic management of marketing expenses and inventory to maintain a healthy profit margin and sustain its market position within the recreational fishing industry.
The Negotiations:
During the negotiations on “Shark Tank,” the Chill-N-Reel founders faced a challenging yet spirited interaction with the Sharks. Despite initial skepticism about the product’s market potential, Robert Herjavec expressed interest, offering $300,000 for a substantial 35% equity stake, coupled with a royalty deal of $2 per reel sold. The entrepreneurs, however, countered with a 15% equity offer, hoping to maintain a larger portion of ownership within the company. Despite the allure of the royalty deal, they ultimately declined the offer, choosing to adhere to their original vision for the company.
The other Sharks, including Mark Cuban, Kevin O’Leary, Lori Greiner, and Daymond John, expressed reservations and eventually opted out of investing due to concerns about the company’s net margin, high marketing expenses, and the perception of the product’s simplicity. While acknowledging the company’s impressive sales figures, the Sharks highlighted the need for a more sustainable financial structure and greater profitability to secure their investments.
Despite the decline of the offered deal, the Chill-N-Reel founders remained resolute in their decision, expressing confidence in their product’s appeal and the potential for future growth. While the negotiations did not result in a successful partnership with the Sharks, the founders left the show with a firm belief in the market potential of their innovative fishing accessory.
