"It Only Holds Three Cans?" The Sharks Question Chill Systems | Shark Tank US | Shark Tank Global

Summary

Chill Systems introduces the Chiller, a portable beverage cooler with a built-in freezing gel that eliminates the need for ice. The founders, both ex-employees of Google and Apple, aim to reduce waste from single-use plastics and support clean water projects. Despite facing skepticism from the sharks about its sustainability and market potential, they seek $150,000 for 15% equity. The sharks critique the high costs, market competition, and the founders' business focus, leading to a unanimous decision to pass on investment.

Takeaways

• 🧊 The Chiller is a portable beverage cooler designed to keep drinks cold without the need for ice.
• 🌐 The product is marketed as a sustainable alternative to traditional ice methods, aiming to reduce waste from clean water and single-use plastics.
• 💸 Chill Systems, the company behind the Chiller, is seeking $150,000 for 15% equity to expand their business.
• 🔄 The Chiller is versatile, capable of holding cans and bottles, including larger bottles like champagne.
• 📈 The company has achieved $111,000 in sales over the last two years, starting with a Kickstarter campaign.
• 💼 The founders, Chase and Brian, left their jobs at Google and Apple to pursue this venture, working full-time on the Chiller without taking a salary.
• 💰 The initial cost to produce the Chiller was $37, but it has been reduced to $18, and it is currently being sold at retail for $30.
• 🗣️ The Sharks expressed skepticism about the product's market potential, sustainability claims, and the founders' business strategy.
• 🚫 None of the Sharks offered a deal, citing concerns about the product's practicality, competition, and the founders' presentation.
• 🔄 The founders emphasized their commitment to sustainability and personal growth, despite the Sharks' doubts about the business model.

Q & A

What is the Chiller and what does it do?

The Chiller is a portable beverage cooler designed with a freezing gel built-in to keep drinks cold without the need for ice.

What is the main selling point of the Chiller according to the pitch?

The Chiller's main selling point is its sustainability, as it aims to reduce waste from clean water and single-use plastics, and it donates a portion of each purchase to support clean water projects.

How does the Chiller differ from traditional ice-based cooling methods?

The Chiller eliminates the need for ice, which can be inconvenient and time-consuming to manage, and it can chill various types of cans and bottles, including larger ones like champagne.

What is the capacity of the Chiller in terms of the number of cans or bottles it can hold?

The Chiller can hold three cans at a time, and it is designed to be versatile enough to accommodate cans or bottles.

How long can the Chiller keep drinks cold?

The Chiller can keep drinks cold for up to six hours.

What was the initial cost structure for producing the Chiller, and has it changed?

The initial cost to produce the Chiller was $37 per unit, including manufacturing, import, and sleeve costs. However, the cost has since been reduced to $18 per unit.

What was the initial funding goal for Chill Systems on the show, and what were they offering in return?

Chill Systems was seeking $150,000 for 15% equity in their company.

What was the reaction of the sharks to the Chiller's sustainability claim?

Some of the sharks were skeptical about the Chiller's sustainability claim, pointing out the plastic components of the product and questioning its environmental impact.

What was the sharks' main concern regarding the Chiller's business model?

The sharks expressed concerns about the high production cost, the sustainability claims, and the marketability of the product, leading most of them to decline investment.

What was the total sales amount that Chill Systems had achieved prior to the pitch?

Chill Systems had achieved $111,000 in sales over the last two years, starting with a Kickstarter campaign that raised $51,000.

Why did the founders, who previously worked at Google and Apple, decide to start Chill Systems?

The founders decided to start Chill Systems because they wanted to make a difference in the world and felt they were not learning enough in their previous jobs, despite the financial security and potential for early wealth.

Outlines

00:00

🍺 Introduction to the Chiller Beverage Cooler

Chase introduces the Chiller, a portable beverage cooler designed by his company, Chill Systems. The Chiller is unique for its built-in freezing gel, eliminating the need for ice. Brian, another presenter, highlights the inconvenience of traditional ice methods. The Chiller's capability to cool various cans and bottles, including large ones like champagne, is emphasized. Despite its size and weight, the Chiller is positioned as a future-oriented, sustainable solution, reducing waste from clean water and single-use plastics. A portion of each sale is donated to clean water projects globally. The Sharks are offered samples with chilled drinks to experience the product firsthand. The Chiller's versatility is showcased, with the ability to switch between cans and bottles, although it can only hold three cans at a time. The sales pitch includes a discussion on the product's sustainability and the founders' passion for making a difference, even if it means taking a pay cut from their previous high-paying jobs at Google and Apple.

05:01

🗣️ Shark Tank Pitch and Feedback on the Chiller Cooler

The second paragraph delves into the Sharks' critique and the founders' defense of their Chiller product. One Shark, seeking to be more amicable, expresses frustration with the presentation and the perceived lack of practicality in using the Chiller, especially when traditional ice is readily available. The high valuation request of $1 million for 60,000 is met with skepticism. The Sharks question the sustainability claims, pointing out the plastic components of the Chiller. The founders counter by emphasizing their commitment to making a difference and learning beyond their previous roles at Google and Apple. They clarify that the Chiller is designed to be long-lasting and recyclable, aiming to reduce plastic waste. Despite the Sharks' concerns about the product's market viability and the founders' business strategy, one Shark offers words of encouragement, acknowledging the potential of the product and the founders' dreams.

Keywords

💡Chiller

A 'chiller' in the context of the video refers to a portable beverage cooler designed to keep drinks cold without the need for ice. It is a central product being pitched, with a built-in freezing gel for cooling. The script mentions, 'this is the chiller... a portable beverage cooler with freezing gel built in,' highlighting its innovative feature of not requiring ice, which is a traditional method of cooling beverages.

💡Sustainability

Sustainability is a key theme in the video, emphasizing the product's eco-friendly nature. The script mentions that the chiller 'reduces waste of clean water and single-use plastics,' which is a significant selling point. The founders also express their commitment to sustainability by donating a portion of each purchase to clean water projects, indicating that their business model is not just profit-driven but also values environmental impact.

💡Recyclable

The term 'recyclable' is used to describe the materials used in the chiller, which are designed to be environmentally friendly. The script states that 'all the materials are also recyclable,' which is an important feature for consumers who are increasingly conscious of the waste they generate. This aligns with the broader theme of sustainability within the video.

💡

💡Kickstarter

Kickstarter is mentioned as the platform where the initial funding for the chiller was raised. The script says, 'we started with a kickstarter campaign we did 51 000,' indicating that the product development was crowdfunded, which is a common method for startups to validate their ideas and gather initial capital.

💡Plastic

Plastic is a material that is both a component of the chiller and a point of contention in the discussion about its environmental impact. The script includes a critique: 'look at the amount of plastic that's in there,' suggesting that despite the chiller's sustainability claims, its use of plastic could be seen as contradictory. This highlights the complexity of product design in terms of material choices and their environmental implications.

💡Equity

Equity in this context refers to the ownership stake in the company that the founders are offering to the sharks in exchange for investment. The script includes a line, 'we're seeking 150 000 for 15 equity,' which outlines the financial terms of the deal they are proposing. Equity is a common form of investment where investors receive a share of the company's future profits.

💡Retail Partnerships

Retail partnerships are mentioned as a strategy for getting the chiller product onto physical store shelves. The script says, 'we already have retail partnerships in place,' which implies that the product is not just an online offering but also has a physical presence in the market, increasing its accessibility to consumers.

💡Cost

Cost is a critical factor discussed in the video, particularly in relation to the product's pricing and the company's financials. The script details the cost breakdown: 'the chiller you have in front of you... to all the way up to thirty seven for that one that you have in front of you.' Understanding cost is essential for the sharks to evaluate the investment potential and for the founders to strategize on pricing for profitability.

💡Investment

Investment is a central theme of the video, as the founders are seeking financial backing from the sharks to grow their business. The script includes various offers and negotiations: 'we're seeking 150 000 for 15 equity,' which showcases the dynamic of startup funding where investors provide capital in exchange for a share in the company's future success.

💡Shark Tank

Shark Tank refers to the show's format where entrepreneurs pitch their business ideas to a panel of investors, or 'sharks,' who may choose to invest. The script mentions 'sharks you each have samples,' indicating the interactive nature of the show where investors get to experience the product firsthand. Shark Tank is a platform for entrepreneurs to gain exposure, funding, and business advice.

Highlights

Introduction of 'chiller', a portable beverage cooler with built-in freezing gel.

Chiller's ability to cool drinks without the need for ice.

Chiller's compatibility with various can and bottle sizes, including large bottles like champagne.

Critique on the chiller's size and weight, suggesting it's heavy.

Chiller's sustainability pitch, reducing waste of clean water and single-use plastics.

Chiller's social mission, donating a portion of each purchase to support clean water projects.

Fundraising goal of $150,000 for 15% equity in the company.

Chiller's versatility, able to hold cans or bottles.

Discussion on the chiller's capacity, which is limited to three cans at a time.

Chiller's duration of keeping drinks cold, up to six hours.

Sales figures to date, with $111,000 made over the last two years.

Cost breakdown of the chiller, from production to retail price.

Current retail strategy, selling at a loss to prove market viability.

Challenges to the chiller's sustainability claims due to its plastic components.

Founders' background, previously working at Google and Apple.

Reasoning behind leaving high-paying jobs to pursue the chiller project.

Critique on the presentation quality and advice for future pitches.

Sharks' skepticism about the product's sustainability and market potential.

Sharks' decisions, with some choosing to opt out due to various concerns.

Final remarks from the founders, emphasizing their commitment to the product and mission.

Transcripts

[Applause]

next up is a product designed to keep

your cool

[Music]

hey sharks i'm chase our company is

chill systems and this is the chiller

it's a portable beverage cooler with

freezing gel built in

and

hey sharks this is brian sorry i'm late

i had to buy ice ooh the chiller doesn't

need ice man i had to stop at the

inconvenience store now i got to break

this up

i put

[Music]

[Music]

huh

i put the chiller in my freezer last

night loaded my favorite drinks before i

left and now the ice cold

these drinks will be cold in

a while

this chills many types of cans and

bottles even big bottles like champagne

this cooler can hold all that well sure

look at the size of it yeah

it's super heavy too

the chiller is the future of portable

beverage cooling enjoy hours of ice cold

drinks anywhere save time money and the

environment

boy

yeah that's bad

good thing we at chill systems are

offering a more sustainable solution

choosing a chiller reduces waste of

clean water and single-use plastics

and we proudly donate a portion of every

purchase to support clean water projects

around the world and you can too partner

with us we're seeking 150 000 for 15

equity and together we can change

chilling forever

sharks you each have samples complete

with chilled drinks

chill so this doubles

you can either do cans yep or you take

the cans out like i just did and then

it's for a bottle that's right it's

incredibly versatile it only holds three

cans i mean

i don't know about you but i'll get

through this in about 45 minutes sure

and you know kevin we've heard that

feedback before from macho men on the

internet only three beers the chili

cools the three beers

at a time as soon as you have a cold one

you take a cold one out you put another

one in for cooling

how long does this stay cold so six

hours six hours what were the sales

we've done 111 000 to date that's over

the last two years we started with a

kickstarter campaign we did 51 000 on

kickstarter um what's the cost okay uh

the chiller you have in front of you uh

it's our product cost is awful

never ever start i

let me get there that was about 18 a

unit to build now then we had to import

the units 3.50 a unit so we hire up to

22 bucks we added those sleeves at 11

another 11

okay now you're up to thirty two dollars

to all the way up to thirty seven for

that one that you have in front of you

make it to make it the cost

thirty seven dollars let me let me get

there that was our first round of

inventory okay and since then we've been

able to bring that cost down to eighteen

dollars the one you have in front of you

we're actually selling those currently

into retail at a loss at 30 dollars to

prove out the market this is the first

sustainable portable beverage chiller

when you say this is the only

sustainable cooler

i'm not so sure let's try that like i

get i'm saving the plastic bag but look

at the amount of plastic that's in there

that is built to design to last forever

all the materials are also recyclable

they are all products so it's the

plastic isn't it only nine percent of

thrown away plastic is recycled give me

the reason why you decided to go in this

space because you sound like fun guys

great energy

of all the things you could have done in

the world why did you choose you wanted

to make the

umpteenth cooler so chase and i have had

good jobs out of school he went to work

at google and i went to work at apple

and two years into did you do for google

now i was in sales i was in finance and

so we were there for about two years

before we came up with this idea and so

for the first two years of this we were

building this on the side on the nights

on the weekends are you still working at

your job we quit them two years ago

we've been doing this whole time after

two years and are you making money to

sustain yourselves no no not profitable

yet we have not taken a salary since we

left our jobs two years ago do you want

me to make a call to get your jobs back

no

you probably got stock options you're

making great money you both have

fantastic jobs we're passionate growth

companies and then you know that story

of the sirens singing on the rocks

it's a cooler you leave felt the need

for ourselves it's a cooler pulling you

in from your fantastic jobs and stock

options

who is your number one competitor ice

ice

i want you to know for this season 12 of

shark tank i actually went to get some

some anger management therapy

because i didn't want to be mean i

wanted to be the new mr wonderful and

i'm working very hard right now to be a

nice mr wonderful i look at this and i

say to myself okay

i'm gonna take this and put this

thing in my freezer for extended period

of time i guess i'll take out the roast

and the chicken that's there and i'll

put this in here and then and then i'm

going to take three cans of beer just

three not more at a time at a time

and i'm going to i'm going to go

somewhere with this thing right 160 000

for your 60 000

a million dollars

plus more even

are you out of your

we're not out of our minds

you like to talk about the values why

would you do this i mean this stuff is

tchotchke they give it away at beer

companies there's a million coolers

it stops up

oh

it's the same

so i want to rip you to pieces i'm

trying to rip you to pieces i just this

for you to do kevin

you must stop this

there is no hope this is a really bad

idea

coolers

why

i don't even buy the sustainability

thing there's all kinds of plastic in

this thing i hate it i'm out

guys look first of all your presentation

sucked

the next time you sell it

sell it don't make it worse just stick

to your features and what sets you apart

so people truly understand it quickly so

well i think you got a shot it does

everything is advertised but for those

reasons about

you are clinically insane giving these

guys reason to go on i do not doubt that

you care about the environment about

that stuff but your product has to be

your protagonist your product has to be

your hero and it has to stand on its own

merits the social mission can never be

your crutch the social mission can never

be what you go to

for a lifetime not a crutch it's our

mission it truly is our mission it's the

reason we're committed to doing this

we knew this we had done the math we

could have been millionaires in our

early thirties

that's not what we wanted to do we

wanted to make a difference in the world

and this is our way to do it good yeah

no one question but brian it doesn't

make any sense yeah it does

it doesn't the reason it's not just

because we want to make a difference

it's also because we want to learn and

we're in google we're at google and

apple we had great jobs and we're

thinking to ourselves every night when

we come home

we're not learning enough we're here at

the office and we're doing the tasks

that are being sent our way but but

we're not learning enough so it wasn't

just about making differences

you might be the nicest guy in the world

but your story has so many

lapses of credibility for me

who's your competitor it's ice

like coming up seriously we know there's

a lot of competition in the cooler

market we're not you don't you

then

we're trying to solve then the story

pivots the sustainability and your

product is made of plastic and

plastic that's much last forever and

it's fully recycled come on i throw this

in this product and then buy the bag of

ice and then like well that's not really

the story it's about learning something

i wasn't learning enough but apple and

google look putting all that aside it

was a bad presentation it was a bad

presentation

i'm out

appreciate that thank you evan

i think it's gonna be really important

for you to get the cost down

people when it's affordable enough

they're gonna buy in

and i think that you have a shot

what for me to invest it's not what i'm

interested in investing in

so i'm sorry i'm out appreciate that

thank you then there's daniel

i'm not 100 confident this is a huge

business

but i'm very confident that if you

continue pursuing your dreams you're

going to figure it out so i wish you the

best i personally am out

congrats on what you've accomplished

good luck appreciate it

being on shark tank great experience but

they don't know everything we already

have retail partnerships in place we're

going to put our products on shelves so

customers can see them and love them and

the sharks are gonna wish that they

invested why would you encourage them to

go on with this i think it's a good

looking product it really is good

so how long was your anger management

classes i listen i really worked on it

and look it's i've been great

you