The Kooler – Cooler Within a Cooler
DEAL
EPISODE SUMMARY
🕓 Air Date: February 3, 2017
Asking For:
$50,000 for 15%
Investor:
Daymond John
Deal:
$50,000 for 33%
PRODUCT SUMMARY
The Kooler is a double-wall insulated cooler that holds a gallon of ice water along with separate compartments for protein shakes or energy drinks, designed for fitness enthusiasts.
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Background Story
Stan Efferding, renowned in the fitness industry as the White Rhino, brought The Kooler to the Shark Tank with a unique blend of athletic prowess and entrepreneurial experience. Based on the episode transcript, the specific location of the company is not disclosed. However, Stan’s impressive background provides a compelling foundation for The Kooler’s inception. As an IFBB professional bodybuilder and world-record powerlifter, Stan Efferding’s journey in the fitness world spans over 25 years. His expertise extends beyond personal achievements, as he has trained both amateur and professional athletes, guiding them toward success.
Recognized as the reigning title holder of Mr. Olympia’s World’s Strongest Pro Bodybuilder, Stan’s physical prowess is coupled with a deep understanding of the nutritional needs of athletes engaged in heavy-duty lifting and rigorous training. The idea for The Kooler emerged from Stan’s first-hand experience coaching athletes. Understanding the essential role of proper nutrition and hydration in achieving peak performance, he identified a need for a more convenient and efficient way to carry and access drinks during workouts. This realization led to the invention of The Kooler, touted as the world’s only cooler within a cooler.
The Kooler addresses the challenges athletes face in managing multiple drinks and nutritional supplements. Stan’s vision was to create a product that not only caters to bodybuilders like himself but also appeals to a broader audience. This broad appeal is evident in his marketing strategy, acknowledging that the average person in the gym, including moms, dads, and even children, could benefit from the convenience offered by The Kooler. Stan’s entrepreneurial journey is marked by success, having turned three startup companies into multimillion-dollar businesses. The product’s development reflects not only his commitment to fitness but also his business acumen in identifying and addressing a specific market need.
The Product
The Kooler, introduced by Stan Efferding, is a revolutionary fitness accessory designed to enhance hydration and nutritional convenience during workouts. Functioning as the world’s only cooler within a cooler, The Kooler offers a comprehensive solution for fitness enthusiasts.
The product consists of a double-wall insulated cooler with a gallon capacity for ice water, ensuring users stay hydrated during exercise or throughout the day. What sets The Kooler apart is its incorporation of separate compartments designed to accommodate protein shakes or energy drinks. This addresses the nutritional needs of athletes and individuals engaged in rigorous training. The cooler includes a second shaker bottle, facilitating the post-exercise consumption of protein or carbohydrate powder.
The Kooler’s design ensures that the ice water in the main compartment keeps the additional shaker bottles cold. This innovative approach enables users to carry three different drinks within one ice-cold container, streamlining the process of staying hydrated and meeting nutritional requirements. The product targets a broad audience, not just limited to bodybuilders, as evidenced by Stan’s observation that moms, dads, children, police officers, and firefighters on the go have found value in The Kooler.
For those interested in purchasing The Kooler, it is available both online and through various retail locations, including General Nutrition Center, Vitamin Shoppe, and mom-and-pop nutrition stores. Stan sells the product for $32.95, making it a convenient and accessible solution for individuals seeking a versatile and efficient way to manage their hydration and nutrition during physical activities.
How It Went
The company’s position before Shark Tank
The Kooler has demonstrated a promising start in the market. In the 16 months since its launch, the company, led by Stan Efferding, has achieved $120,000 in sales, reflecting a positive reception of the product in the fitness and nutrition market. The Kooler’s distribution strategy involves partnering with a national distributor, the largest one in the country, with seven regional warehouses. This distributor services over 30,000 locations, including well-known outlets like General Nutrition Center, Vitamin Shoppe, and mom-and-pop nutrition stores. This broad reach indicates a strong network of wholesalers and retailers supporting The Kooler’s presence in the market.
The customer base of The Kooler extends beyond the expected audience of bodybuilders, as Stan Efferding discovered that over half of the consumers are moms, dads, children, police officers, and firefighters who are frequently on the road. This diverse customer demographic suggests the product’s versatility and appeal to a broader market segment. The company’s funding model involves online sales, accounting for half of their total sales. Additionally, Stan Efferding has invested in an aggressive travel schedule, attending expos nationwide to promote and sell The Kooler.
To overcome challenges associated with in-store visibility, Stan expressed the need to explore alternative marketing channels, such as infomercials or QVC-style presentations. This strategy aligns with a proactive approach to addressing hurdles and expanding The Kooler’s market reach. Overall, The Kooler appears to be in a growth phase, with positive sales figures, strategic partnerships, and a recognition of potential areas for improvement and expansion. The successful negotiation with Daymond John on the episode further solidifies the company’s trajectory towards growth and success in the fitness and nutrition industry.
The Negotiations:
The negotiations for The Kooler in the Shark Tank unfolded with a mix of enthusiasm and skepticism from the Sharks. Stan Efferding, the White Rhino, initially sought $50,000 in exchange for a 15% equity stake in his company. The Sharks engaged in a lively discussion, with Kevin O’Leary expressing concerns about the product’s broad appeal, and Mark Cuban questioning the scalability of the business. The negotiation took an unexpected turn when Daymond John entered the scene with an offer. Recognizing the potential within the fitness industry, Daymond offered $50,000 for a larger equity share, proposing a third of the company (approximately 33.33%).
The negotiation highlighted the niche nature of The Kooler and the challenges associated with its marketing and distribution.The Sharks deliberated on the viability of the product for a broader consumer base, and one by one, Mark Cuban, Robert Herjavec, Kevin O’Leary, and Lori Greiner opted out, expressing concerns about the product’s scalability and market appeal. Daymond John, however, saw the potential and made a strategic offer to align with the fitness-focused product. After a brief consultation with the other Sharks, Stan Efferding accepted Daymond’s offer, securing $50,000 for a third of The Kooler.
The negotiation showcased the importance of finding the right partner who understands the industry and can contribute to the growth of a niche product. The strategic decision to partner with Daymond John, a seasoned entrepreneur with a background in fitness-related businesses, provided a favorable outcome for both parties. The successful negotiation marked a pivotal moment for The Kooler, opening doors for further collaboration and expansion in the competitive fitness and nutrition market.
