CocoTaps – Coconut Opening Tool
NO DEAL
EPISODE SUMMARY
🕓 Air Date: November 26, 2017
Asking For:
$150,000 for 10%
Investor:
No Deal
Deal:
No Deal
PRODUCT SUMMARY
CocoTaps offers a 100% made in the USA coconut water system that allows for quick and safe tapping of coconuts, providing a fresh and re-sealable source of coconut water.
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Background Story
CocoTaps is the brainchild of Coco Vinny from Long Beach, California. A problem solver from a young age, Vinny overcame weight challenges and later discovered the refreshing taste of coconut water. Frustrated with the traditional and risky methods of opening coconuts, he set out to create a re-sealable coconut and a tapping system.
After a year and a half of research and development, including securing patents and ensuring manufacturing in the USA, CocoTaps was born. Vinny, a 6’5″ Mexican Jew, was driven by a passion to share the ultimate vacation beverage experience with everyone. The product aims to bring the freshness of coconut water right from the source without the mess and stress of traditional methods.
The Product
CocoTaps offers two main products: a do-it-yourself tap kit and a branded tapped beverage line. The tap kit includes a Coco Tapper and a Coco Tap, allowing users to safely and quickly tap a coconut.
The process involves making a hole in the coconut with the Coco Tapper, threading the Coco Tap counterclockwise, and tightening it with the wrench-like end of the tap. The result is a fully re-sealable coconut that can last up to four weeks in the refrigerator, according to lab results.
The company’s branded tapped beverage line is available in over 20 resorts on the Las Vegas strip, with a distribution model that involves daily deliveries to major corporations such as Caesars, MGM Mirage, Cosmopolitan, Wynn, and Encore. The product is priced at $45 per case, with a minimum order of 5 to 10 cases per resort.
CocoTaps has identified a market beyond its current offerings, envisioning a three-phase plan: phase one focuses on the ultimate vacation beverage, phase two involves coco cleanse where coconuts and everything needed are shipped to customers, and phase three introduces the CocoTaps Shack model for franchises.
How It Went
The company’s position before Shark Tank
In its first year, CocoTaps achieved almost a quarter million dollars in revenue. By January 2017, the company was trending to double its previous year’s performance. The current sales breakdown is 80% from the tap-branded beverage and 20% from the tap kit. The company’s major clients include resorts on the Las Vegas strip, with daily deliveries to renowned establishments. CocoTaps has successfully set up a high-volume production system in California and Nevada, strategically located five minutes from casinos.
Despite its niche market, CocoTaps has garnered interest from resorts worldwide, indicating potential for expansion. The company emphasizes its made-in-USA status, competitive pricing against Chinese alternatives, and a commitment to delivering a quality product.
The Negotiations:
The Sharks express confusion and concerns about the scalability and focus of CocoTaps. While they appreciate the taste of the product, they find the business model too complicated, with a narrow margin. Lori Greiner suggests that the product is too niche, and the potential investment could be risky. The lack of clarity on the company’s focus and operational game plan becomes a stumbling block.
Ultimately, none of the Sharks make an offer, citing concerns about the complexity of the business and the entrepreneur’s ability to scale. Despite the rejection, Coco Vinny remains optimistic, expressing gratitude and enthusiasm for the CocoTaps journey.
