Quick Shark Tank Update on Foam Cooler
- Shark Tank Episode: Season 16, Episode 6 (aired November 22, 2024).
- Founders: Chad Lee and David Kittle.
- Ask: $150,000 for 10% equity (valued at $1.5 million).
- Deal: Secured $150,000 for 30% equity with Daymond John.
- Unique Selling Points: Lightweight EVA foam construction, floats in water, highly durable.
- Sales Milestones: $251,000 in combined lifetime and committed sales by the pitch date.
- Retail Presence: Available in Target stores and online, with plans for expansion.
Foam Cooler, co-founded by Chad Lee and David Kittle in 2022, is a game-changer in the outdoor gear market. Reflecting on traditional coolers, David once observed, “Most cooler boxes are bulky, heavy, expensive, and easily breakable.”
Leveraging their backgrounds in product design and sales, the duo created Foam Coolers. These lightweight and unbreakable coolers are made from EVA foam.
They promise exceptional portability, boasting the ability to float even when loaded. The product resonated with outdoor enthusiasts and families seeking a simple yet efficient solution for trips, picnics, and poolside outings.
Foam Coolers offer more than utility. They combine style, affordability, and sustainability, making them a standout product for modern consumers.
Foam Coolers Journey Before Shark Tank
Before appearing on Shark Tank, Foam Coolers had already built a promising foundation. Both founders had deep industry roots, with David Kittle contributing extensive product design expertise and Chad Lee bringing marketing prowess.
David’s innovative approach was inspired by his family’s needs: “My family, who suffers from food allergies, always carries a cooler on picnics, road trips, and beach outings.”
Dissatisfied with existing options, he developed the Foam Cooler using EVA foam. This material is lightweight, durable, insulating, and recyclable.
Their flagship model, a 12-inch cube cooler weighing just four pounds, can hold up to 30 cans, 12 long-neck bottles, or four wine bottles. It supports up to 16 pounds of ice while maintaining buoyancy.
Foam’s innovative use of “closed-cell EVA technology” enabled its products to remain durable yet portable.
David and Chad self-funded the business, investing $150,000 of their own money into development. The cooler’s price structure included a $25 manufacturing cost, $50 wholesale price, and $99 retail price.
By the time of their Shark Tank pitch, Foam Coolers had generated $114,000 in lifetime sales. They also secured commitments for $137,000, bringing total sales to $251,000.
Their early success included a partnership with Target, which agreed to stock the product in 97 stores following a cold call from the founders.
Shark Tank Pitch Recap
Chad and David entered the Shark Tank stage with confidence. They showcased Foam Coolers as “the world’s first EVA foam cooler.”
To highlight the product’s durability, they placed a cooler under a construction roller, which failed to cause any damage.
The Sharks were intrigued, but they had many questions about the product and business model.
Kevin O’Leary raised concerns about insulation, asking, “How long will it keep things cool?” The founders explained that despite being thinner than traditional coolers, EVA foam provides excellent insulation.
Kevin also inquired about distribution. The founders replied, “We have already launched in Target.”
The Sharks responded with varying levels of interest:
- Kevin O’Leary: Offered $150,000 for 33.3% equity, citing the risk-reward ratio in retail distribution.
- Daymond John: Proposed $150,000 for 30% equity, emphasizing licensing as a growth strategy. He remarked, “Licensing this cooler to other brands could be advantageous for the business.”
- Lori Greiner and Mark Cuban: Declined to invest due to concerns over market visibility and risk.
- Todd Graves: Opted out but praised the duo’s journey, stating, “I will become a customer, but I cannot invest.”
Chad and David countered both offers by proposing $150,000 for 17% equity. However, neither Kevin nor Daymond budged. Ultimately, the entrepreneurs chose Daymond’s offer, valuing his licensing expertise.
Foam Cooler Shark Tank Update
The Shark Tank episode brought immediate visibility and boosted Foam Cooler’s sales. Their website experienced a surge in traffic, which translated to significant sales growth.
Foam capitalized on its newfound popularity and enhanced its retail and e-commerce presence.
In addition to Target stores in Florida, Arizona, and California, Foam participated in trade events like the Surf Expo in Orlando and the Atlanta Market.
These events helped the brand gain traction among niche audiences such as surfers and campers.
Foam also launched Gen 2 models, incorporating customer feedback. The upgraded coolers featured “increased hardness, better-fitting lids, and adjustable straps with stronger buckles.”
Available in seven vibrant colors, the Gen 2 models were priced at $125, with a discounted rate of $109. Accessories like stickers, straps, and apparel further expanded their product line. This approach catered to a growing fan base.
Future Plans
Foam’s vision for the future includes scaling its product line with new sizes, designs, and distribution channels. They aim to optimize production costs to make the coolers more affordable.
At the same time, they want to maintain quality. Their partnership with Koozie Group, a leading supplier of sustainable products, underscores their commitment to growth.
As they expand into more retailers, Foam’s goal is clear: “We want to ensure the product sells well in every store.”
Closing Remarks
Foam Cooler’s journey from inception to Shark Tank stardom is a testament to innovative thinking and entrepreneurial spirit. With a unique product, solid partnerships, and Daymond John’s mentorship, Foam is set to redefine the cooler market.
The company continues to expand. Its lightweight, durable, and vibrant coolers promise to become staples for outdoor enthusiasts.
“Foam keeps coming up with new ideas and enhancing their offerings,” setting the stage for even greater success in the years ahead. Stay tuned for the next chapter in Foam’s story!
We’re closely following the company to bring you valuable insights. Stay tuned for the latest updates on Foam Cooler!
Feature Image Credit: @abc/@christopherwillard