Coldest Update 2024 | Shark Tank Season 15
David and Joe Ahmad appeared in Shark Tank Season 15 with an ask of $600,000 for 2% equity in Coldest water bottle company. It creates a line of cooling items, primarily water bottles, that keep drinks cold for over 36 hours.
The Sharks were surprised by the incredible sales. However, they were unhappy about its vast inventory and marketing strategy. Will any sharks invest in this business, and what happened after Shark Tank? Let’s figure it out in this Coldest Shark Tank update!
| Company Name | Coldest Water Bottles |
|---|---|
| Founders | David and Joe Ahmad |
| Founded | 2015 |
| Product | A line of cooling products |
| Ask | $600,000 for 2% equity |
| Deal | No deal |
| Sharks | No shark |
If you’re in a hurry and don’t have time to read the whole story, here’s what happened to the Coldest water bottle company after Shark Tank!
Coldest water bottle founders David and Joe pitched in Shark Tank with an ask of $600,000 for 2% equity. Kevin O’Leary offered $600,000 for 5% equity along with a $2.25/unit royalty until $3 million was recouped.
Joe and David were uncomfortable in giving royalty, so, they rejected that offer and left the show without any deal. However, Lori Greiner suggested selling their inventory and focusing on limited products.
As of March 2024, David and Joe decided to close out certain categories and products and focus on water bottles. Coldest pillows, beddings, sheets, comforters, dog beds, and select bottle lines are being discontinued once they sell out. Customers can use the CLOSEOUT coupon code to get a 30% discount on these products.
About the Company
David and Joe Ahmad founded Coldest in 2015. David is the CEO and founder of Coldest, while Joe is the co-founder and marketing head of the company.
They are from Florida, the hottest state in the U.S. They decided to make the coldest items to cope with the immense heat.
David pursued a Bachelor of Science in Engineering from Florida State University. He then focused on new product improvement, working up to 19 hours daily in Coldest’s on-site laboratory.
Joe Ahmad also studied for a B.S. in Engineering from Florida Atlantic University. Before joining Coldest full-time, Joe used to work as a civil engineer.
The early years at Coldest, from 2015 to 2017, were filled with extreme struggle and hard work. The founders put their everything into Coldest.
The progress came in 2018 when Joe offered to concentrate on marketing while David decided to focus on product development.
Coldest started their business with water bottles that keep drinks colder longer than other brands available in the market. Coldest bottles can keep drinks cold for 36+ hours and hot for 13+ hours. Additionally, it can fit in 99% of cupholders.
The bottles are leakproof with sturdy designs and non-slip rubber bottoms. Among the top 50 brands, Coldest stands out because of its bottles’ high cold retention capability.
The selling price of the Coldest Limitless Series Cup is $55.99. The making cost is $10-$12. The estimated net worth of Coldest is $0.5 million.
Alongside bottles, Coldest sells ice packs, pillows, bedding, and apparel to keep people and pets cool during hot weather. They additionally offer flavor drops and different accessories for their water bottles.
Besides their website, you can purchase Coldest products from Amazon as well.
Coldest Shark Tank Pitch and Episode Recap
Entrepreneurs and brothers David and Joe Ahmad pitched their company Coldest and demanded $600,000 for a 2% stake at a $30 million valuation.
David and Joe showcased their exclusive water bottles in front of the Sharks. As they pitched their items excitedly, the twins informed the sharks about their bottles’ stand-out elements.
Mark Cuban wanted to know about their background.
David revealed that both of their parents are engineers, so the twins believed that becoming an engineer was their future while growing up.
However, after completing engineering, they decided to start their own business. Dave previously saved up $14,000, which he invested into Coldest.
Kevin O’Leary asked about their year-by-year revenue.
They replied that in 2019 they made $5.9 million in sales, followed by $9.3 million in 2020. The sales of Coldest were $12.4 million in 2021 and $15.1 million in 2022.
Even though making vast sales of $15.1 million, Coldest was not profitable, and the company’s total loss was $400,000.
In 2023, they expect to complete the year with $22 million. However, their stock is selling rapidly, and they can’t keep up.
Lori Greiner said, “The problem is that you’re not making money.” She liked the initial concept behind the brand; however, they have an excessive number of SKUs and a lot of stock.
Lori added, “For me, it’s not a model I like,” and she goes out.
Mark Cuban asked about the cost of advertising.
The brothers responded that in the previous year, they used up almost $3.3 million in advertising. Mark lost his interest, and he eventually left.
Despite Coldest sales being very high, Robert Harjavec couldn’t understand why they were losing money. He also didn’t invest then.
Daymond John said the organization must continue spending money to keep up with their inventory. Since he would rather not be a part of that, he also goes out.
At that point, Kevin O’Leary was the only remaining shark. He offered $600,000 for 7% value, with a royalty of $2.25 for each unit until $3 million is paid.
Joe said, “We’re not super interested in a royalty deal,” he countered $600,000 as a loan with $900,000 to be repaid in 3-5 years.
Kevin didn’t like their proposal, so he gave them one last deal. He offered them $600,000 for a 5% value and $2.25 for each unit as a royalty until he earned $3 million.
The siblings countered back with $1.5 million for a 5% stake. Then, at the 3-year point, if Kevin decides to get out, he could return his equity, and they will pay him 1.5X his current investment.
Kevin was not interested and adhered to his offer. However, the brothers turned down his deal, and eventually, Coldest had to leave the Shark Tank without any deal.
Coldest Shark Tank Update
Shark Tank Clips follow-up companies and founders who appeared in Shark Tank. Unfortunately, Coldest founders left the show without any deal, but their appearance increased their brand exposure globally.
Many popular business portals, like Yahoo Finance, CNBC, NewsBreak, etc., covered their story, and the Coldest website saw a massive boost in traffic and sales.
In March 2024, Joe and Devid worked on Lori Greiner’s advice and decided to close out certain categories and products to focus deeper on the core of the brand.
Coldest is running a closeout deal with 30% discounts on pillows, bedding, sheets, comforters, dog beds, and select bottle lines. These categories will be permanently discontinued, and the brand will focus on limited products.
As of March 2024, the Coldest website is live, and the company is operational. Our team will follow up with the founders and come up with another Coldest update to see how their new business strategy works.
In the meantime, you can check other company updates that appeared in Shark Tank Season 15 Episode 15:
Conclusion
David and Joe got no deal in the tank, but they got so much valuable business advice from the Sharks. They worked on Lori’s advice and decided to clear their SKUs and focus on limited categories.
We’re hoping that this strategy will reduce the marketing expenses and increase their profitability. Our team is following up with Coldest Water Bottle founders, and we’ll update all details here.
