"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.