Gobie H2O Filtered Water Bottle
DEAL
EPISODE SUMMARY
🕓 Air Date: April 5, 2013
Asking For:
$300,000 for 10%
Investor:
Daymond John
Deal:
$300,000 for 40%
PRODUCT SUMMARY
Gobie H2O offers the world's most advanced filtered water bottle with Flex Flow technology, providing clean and purified water instantly, anywhere.
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Background Story
Rusty Allen, an industrial design entrepreneur, conceived the idea for Gobie H2O during the recession when he realized he was spending more on single-use water bottles than on gas. Frustrated by the waste and cost, he aimed to develop a solution that could provide clean water sustainably.
Based in San Diego, Rusty’s background in industrial design equipped him to innovate a product that not only filtered tap water but could purify water from various sources, addressing broader global needs. His relentless dedication to the project led to the creation of Gobie H2O, driven by a mission to combat plastic waste and provide access to clean water worldwide.
The Product
Gobie H2O’s key feature is its Flex Flow technology, combining the durability of a hard-shell bottle with the accessibility of a soft-shell one. This innovation allows users to have clean, purified water instantly, anywhere they go.
The upgraded filter removes 99.99% of contaminants found in water, making it suitable for filtering tap water, as well as water from other sources. The filter’s efficacy was demonstrated by Rusty during the pitch, where he showcased its ability to purify water contaminated with dirt, offering a solution for clean drinking water in various environments.Â
Available for $30 retail, each bottle comes with a filter designed to last for three months or 100 gallons, offering consumers a convenient and cost-effective solution for clean water. The initial focus of the product is to compete with single-use water bottles in the American market, with plans for expansion into other regions as the company grows.
Gobie H2O bottles are manufactured in San Diego, ensuring quality control and supporting local production. The company prioritizes sustainability by offering a reusable alternative to disposable water bottles, contributing to the reduction of plastic waste.
The product can be purchased online through the company’s website, where customers can also reorder replacement filters. With its sleek design and advanced filtration technology, Gobie H2O aims to revolutionize the way people consume water, offering a sustainable and convenient solution for clean hydration.
How It Went
The company’s position before Shark Tank
Gobie H2O has achieved significant traction since its inception, with sales totaling 10,000 bottles and 15,000 filters sold online within 17 months, resulting in a revenue of $285,000. The company has also secured partnerships with major retailers such as Bed Bath & Beyond, Target, and JCPenney, demonstrating early success in penetrating the retail market. However, challenges arose during negotiations with retailers, as they requested additional color options to consider stocking the product, highlighting the competitive landscape of the water bottle market.
The company’s manufacturing process is based in San Diego, ensuring quality control and supporting local production. Gobie H2O’s business model revolves around selling both the bottles and replacement filters, providing a recurring revenue stream while promoting sustainability through reusable products.
The Negotiations:
During the negotiation phase on Shark Tank, Rusty Allen initially sought a $300,000 investment for 10% equity in Gobie H2O. However, concerns were raised by the Sharks regarding the product’s differentiation in a competitive market flooded with similar water filtration solutions. Despite Rusty’s emphasis on Gobie H2O’s advanced filtration technology and unique design, the Sharks questioned the product’s value proposition and scalability.
Ultimately, only Daymond showed interest in investing, offering $300,000 for 40% equity with a contingency to secure deals with big-box retailers. Rusty considered the offer, seeking advice from his business advisor before accepting. Despite expressing surprise at the high equity stake Daymond proposed, Rusty ultimately agreed to the deal, valuing Daymond’s expertise and connections in the retail industry. This decision marked a pivotal moment for Gobie H2O, securing vital funding and strategic support to expand its market presence and drive future growth.
Though some Sharks expressed skepticism and opted out of investing, Rusty remained confident in Gobie H2O’s potential, believing in the product’s ability to disrupt the beverage industry and address pressing environmental concerns. By securing a partnership with Daymond, Gobie H2O positioned itself for success, leveraging his expertise and resources to accelerate its trajectory and achieve its mission of providing clean, purified water to consumers worldwide.
