New Era Brands
NO DEAL
EPISODE SUMMARY
🕓 Air Date: April 15, 2011
Asking For:
$500,000 for 30%
Investor:
No Deal
Deal:
No Deal
PRODUCT SUMMARY
New Era Brands offers Clip'n'Go Mint and Gum, a convenient clip-on case filled with sugar-free mints and gum, along with the Clip'n'Go Dual-Sided Contact Lens Case, designed for on-the-go use.
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Background Story
New Era Brands, founded by Bob Kroupa, is based on the premise of providing convenient solutions for everyday needs. Bob, a driven entrepreneur, hails from an extensive background in real estate development before venturing into the consumer products industry. The genesis of New Era Brands stemmed from Bob’s recognition of the ubiquity of breath fresheners and the inconvenience of forgetting them. Drawing from his experience in real estate and keen observation of consumer behavior, Bob identified an opportunity to streamline the way people carried and accessed breath fresheners.
This led to the creation of Clip’n’Go Mint and Gum, a clip-on case filled with sugar-free mints and gum, designed to attach easily to backpacks, keychains, or purse straps. Building on the success of Clip’n’Go Mint and Gum, Bob sought to expand the product line further, envisioning enhancements such as vitamins and antioxidants to cater to evolving consumer preferences. Additionally, he identified a gap in the market for functional products that offered added convenience, prompting the development of the Clip’n’Go Dual-Sided Contact Lens Case.
This innovative product catered to the needs of contact lens wearers, providing a compact solution for storing lenses and rewetting solution while on the move. Bob’s entrepreneurial journey reflects a commitment to addressing consumer needs through innovative solutions, driven by his background in real estate and a keen understanding of market dynamics. With a focus on convenience and functionality, New Era Brands aims to revolutionize everyday products and enhance the lives of consumers worldwide.
The Product
Clip’n’Go Mint and Gum is a convenient solution for fresh breath on the go. The product comes in a compact clip-on case that can easily attach to backpacks, keychains, or purse straps, ensuring that users always have access to breath fresheners when needed. Filled with sugar-free mints and gum, Clip’n’Go Mint and Gum provides a quick and easy way to freshen breath anytime, anywhere. Its portable design makes it perfect for travel, work, or outdoor activities.
The Clip’n’Go Dual-Sided Contact Lens Case is designed for contact lens wearers seeking convenience and portability. This innovative case features two compartments: one for storing contact lenses and another for rewetting solution. With its clip-on functionality, users can easily attach the case to backpacks or keychains, ensuring that they always have their contact lens essentials on hand. The dual-sided design allows users to carry an extra set of contact lenses, providing added peace of mind.
Both products are available for purchase online through the New Era Brands website and select retail outlets. Pricing varies depending on the quantity and packaging options, with discounts available for bulk purchases. With their practical design and user-friendly features, Clip’n’Go Mint and Gum and the Clip’n’Go Dual-Sided Contact Lens Case offer convenience and functionality for users on the move.
How It Went
The company’s position before Shark Tank
New Era Brands entered the market with promising products but faced challenges in maintaining profitability and market presence. Despite initial success with sales reaching $817,000, the company encountered difficulties in sustaining growth due to issues with shelf space and reorders. The company’s inability to secure consistent retail placement impacted its revenue stream, leading to fluctuations in sales and hindering its financial stability. New Era Brands relied on partnerships with retail outlets such as Walgreens, Winn-Dixie, and Amazon to distribute its products. However, the company struggled to maintain shelf space and faced competition from larger brands with greater market visibility.
This, combined with margin requirements and changing consumer preferences, contributed to the company’s challenges in securing long-term retail partnerships. The company’s customer base primarily comprised consumers seeking convenient solutions for breath freshening and contact lens care. However, the inability to maintain consistent retail availability limited its reach and hindered customer acquisition efforts. In terms of funding, New Era Brands initially received a significant investment of $2 million, primarily from founder Bob Kroupa. However, the company faced challenges in allocating funds effectively, with a substantial portion of the investment going towards overhead costs and operational expenses.
Despite efforts to reinvest profits back into the business, New Era Brands struggled to achieve sustained profitability. The company’s current financial position is precarious, with limited available capital and a need for strategic restructuring to address operational inefficiencies and regain market traction. With a focus on streamlining operations, optimizing product offerings, and strengthening retail partnerships, New Era Brands aims to overcome its current challenges and position itself for long-term success in the competitive consumer products industry.
The Negotiations:
In the negotiation process, Bob Kroupa sought a $500,000 investment for a 30% stake in New Era Brands, presenting his Clip’n’Go Mint and Gum and Clip’n’Go Dual-Sided Contact Lens Case products. However, the sharks expressed concerns about the company’s mixed product lines, high overhead costs, and lack of profitability. Despite Bob’s attempts to address these concerns, none of the sharks were convinced to offer a deal. Kevin O’Leary summarized the situation, pointing out the novelty of the products but highlighting the challenges faced by New Era Brands in a competitive market. He ultimately decided to pass on the investment opportunity, citing the lack of a viable business model.
Daymond John echoed O’Leary’s sentiments, expressing skepticism about the company’s financial management and overall strategy. He ultimately declined to make an offer, recognizing the risks associated with the investment. Barbara Corcoran also passed on the opportunity, noting the company’s mixed product lines and lack of clarity in its presentation. Despite Bob’s efforts to persuade her, she ultimately decided that the investment did not align with her investment criteria. Ultimately, none of the sharks were convinced to invest in New Era Brands, citing concerns about the company’s financial health, product lines, and overall strategy. Bob Kroupa acknowledged the sharks’ feedback and expressed gratitude for the insights provided, signaling a need for reassessment and strategic realignment moving forward.
