We all deserve to take a break now and then from our daily routine. There was nothing more leisure for founding Beer Blizzard partners Tom Osborne and Mike Robb than time spent outdoors.
A persistent intruder, however, crept in during their time away from the office: warm beer. It is impossible to keep a buzz going with an 80-degree beer out in the sun.
Mike and Tom came up with a clever idea so they could keep their beers chilled even without a refrigerator.
The Beer Blizzard was developed after months of trial and error and copious amounts of beer consumption.
The irregularly shaped hydra-gel cube froze faster and remained frozen longer than water. A warm beverage is instantly chilled when it fits snugly inside the circular insert at the bottom of any aluminum can.
How about a cherry on top? Even to the very last drop, it remains cold.
They were ecstatic at the prospect of solving a global problem. There is no difference between the cans in Pittsburgh, Pennsylvania, and Brazil, because beer is drunk everywhere. Hence, it is possible to create solutions that are effective for all beer drinkers.
The Beer Blizzard received a Gold Medal in the Technical Design category at the 2014 Invention & New Product Exposition (INPEX).
Their invention generated so much interest that they turned to Kickstarter to raise $5,000 for 10,000 copies.
It took them three days to accomplish their goal. The crowdfunding campaign garnered almost 2,000 pledges totaling nearly $43,000. The researchers were well aware that they were onto something big.
Table of Contents
- What is Beer Blizzard?
- Who are the Founders of Beer Blizzard?
- What was the Beer Blizzard Shark Tank Pitch?
- What Happened to Beer Blizzard after Shark Tank?
- How Does Beer Blizzard Make Money?
- How much is Beer Blizzard worth?
- Who are the Competitors of Beer Blizzard?
- Who are the Investors in Beer Blizzard?
- Is Beer Blizzard Profitable?
- Key Takeaways from Beer Blizzard Business
What is Beer Blizzard?
Beer Blizzards are discs that cool beer. Refreezing these plastic disks is possible. Beer cans can be perfectly encased with these discs, which are cleverly designed to exact dimensions.
The hydra-gel material freezes faster than water and remains frozen for a longer period.
We don’t enjoy drinking warm beer. People prefer cold beer in hot weather. It gets harder to keep beer cool in warmer weather.
Beer Blizzards were born from this. A Beer Koozie, a fabric or foam sleeve stubby style beer holder, is also available from Beer Blizzards. In addition, Beer Blizzard provides thermal insulation for the beer containers.
Who are the Founders of Beer Blizzard?
Mike Robb and Tom Osborne co-founded Beer Blizzard.
Tom worked in the food safety industry, while Mike Robb was a lawyer. The two come from Pennsylvania and have been close friends for quite a while.
Especially when they were away from their desks and enjoying a cold one, they enjoyed time away from their desks. However, they were always faced with warm beer when they began designing something to keep beer colder for longer periods when there was no refrigerator available.
What was the Beer Blizzard Shark Tank Pitch?
Tom and Mike came to the Shark Tank in March 2016 looking to raise $100,000 for a 20% stake in the Beer Blizzard business and create ties with national retailers.
The couple chose a casual pitching outfit consisting of jeans, shorts, and a Beer Blizzard T-shirt. The company’s CEO was named Mike, but he was the Chief Redneck in Command of the company, Tom stated.
Tom added that he specialized in two different areas, as did the CRIC. As the sharks chuckled politely, they shook their heads.
Mark Cuban nodded, agreeing with him. The first thing he mentioned was his casual outfit, but the second was beer.
The team discussed their past attempts to solve this impenetrable problem before presenting their final product, the Beer Blizzard.
Tom explained that it is a reusable ice cube that also fits into a dome-shaped opening at the bottom of carbonated beverages.
The couple chanted together, “America will never again have to suffer the indignities of a warm beer.” The Sharks laughed briefly.
Lori was not as thrilled by her beer sample as some of the other sharks, but she quickly inquired whether or not the Beer Blizzard coolers effectively kept beverages cold.
Tom explained that independent laboratory research had found that the Beer Blizzard can keep drinks cool for 21 minutes when combined with an insulator when normally food warms up after six minutes.
As confirmed by Mike when Kevin O’Leary inquired about it, the Beer Blizzard is covered by both design and utility patents.
The company admitted the gel froze more quickly than water, but the company declined to divulge much else.
The product was marketed specifically for beer consumers, but Lori noted that it could also be used for soft drinks of any kind. During her conversation, she inquired whether they have thought about including other types of beverages as part of their target audience.
While exploring this technique, Mike said that he and Tom settled on making the Beer Blizzard a product for drinkers who are generally more concerned with the temperature of their beverages.
It was evident there was much laughter in the section, and the upbeat attitude of the tank was not only a rarity but also a positive sign for the Beer Blizzard couple.
Since they had always been prompt in providing the information requested by the shark, their good-natured demeanor seemed to rub off on the sharks, who seemed much more relaxed and receptive than they usually are during a pitch.
The Sharks learned about the astounding success of the Kickstarter campaign from Tom.
Tom confidently informed Robert Herjavec that the business generated $166,000 in gross revenue during the preceding twelve months.
Herjavec noticed that the Beer Blizzard packages included the phrase ‘As seen on TV and asked what this meant.
Tom said they made the pact in preparation for their Shark Tank visit, which brought more laughter from the sharks, and he amused them further when he revealed that he and Mike had been drinking when they came up with the idea.
Daymond John was curious about the purpose of the $100,000 investment. Mike explained that his company wanted to expand its inventory, many manufacturing runs, and hence profits, but acknowledged that they needed help from a shark to set up meetings with large retailers.
Robert Herjavec concluded that Beer Blizzard was merely a product; it was a nice product but not sufficient to sustain a company as a whole.
He wished Tom and Mike continued success, but he had no interest in investing in the firm. Daymond John agreed that additional effort would be required to build the business, and he joined Robert in resigning.
Mark Cuban, on the other hand, had much better news for the couple. He admitted he loved the concept and that, while it was unlikely to generate millions of dollars, it possessed the considerable potential for success.
Mike and Tom made their Shark Tank debut in episode 725. They were asking $100,000 in exchange for 20% stock. The sharks were ecstatic and asked numerous questions. First, Lori inquired as to whether they had tested the product.
On that point, the inventors stated that they had the product CBA examined by an independent laboratory. Their utility and design patents, on the other hand, remained pending. Finally, Lori inquired as to if they were also interested in the soft drinks business.
However, the founders stated that this device was designed specifically for beer.
Tom began to respond to the offer when Lori intervened swiftly, ‘Wait, there’s more.’ She, too, was interested in partnering with Beer Blizzard and offered the entrepreneurs exactly what they were looking for from the tank: $100,000 in exchange for a 20% stake in the business.
Lori accepts their offer and offers them $100,000 in exchange for 20% ownership. Robert Herjavec believes this will be a promotional item and thus does not wish to invest.
Daymond John stated that he lacks the relationships that the couple will require to build their business and not contribute value.
That is also why he is absent. Mark Cuban gives them $100,000 in exchange for a 25% stake. Despite Lori’s offer of $100,000 for 20%, they choose Mark Cuban since Mike has a man-crush on him.
To the surprise of the sharks, Tom and Mike requested a moment to consult. Daymond said that there was nothing to ponder, as Lori’s offer was the superior of the two, but the entrepreneurs were thinking something else.
Tom eventually explained to Lori that while he and his partner were ‘flattered’ by her offer, Mike had a ‘serious man-crush on Mark, as they were both from Pittsburgh and would accept his deal.
Lori observed, ‘How am I going to compete with a man-crush?’ Mark rose to shake on the transaction.
Tom and Mike announced their departure from the tank to the sounds of boisterous laughing, and Mark Cuban grinned at Lori with the faintest sparkle of satisfaction in his eyes.
What Happened to Beer Blizzard after Shark Tank?
Despite Mark Cuban’s promise of $100,000 in exchange for a 25% stake in the show, the deal with the founder of Beer Blizzard failed.
Michael stated that Shark Tank contributed largely to their success; they became very popular after appearing on the show.
Even without Cuban’s assistance, the team could generate sales and pursue sponsorships with NASCAR and Walmart. In addition, Beer Blizzard was awarded a gold medal for its innovative technical design.
Beer Blizzard was a great success after Shark Tank. They launched a Kickstarter campaign intending to raise $5,000 to fund the production of 10,000 units. It only took them three days to achieve their objective.
How Does Beer Blizzard Make Money?
Beer Blizzard is available in six packs for $12.99 and twelve-packs for $19.99. As part of each bundle, you will also receive a Beer Koozie. In addition, they launched a Kickstarter campaign to raise $5,000 for their 10,000 units.
However, within just three days, they were able to accomplish their goal. The company generated $43,000 in 45 days by selling Beer Blizzards. You can purchase their products from their official website.
How much is Beer Blizzard worth?
Beer Blizzard sold 11,000 units through campaigns, generating a profit of $35,000 and a gross profit of $156,000 following the Shark Tank broadcast.
Beer Blizzard was able to raise $43,000 through the Kickstarter campaign. The company sold 11,000 pieces and generated 156,000 dollars in revenue. The deal resulted in a profit of $35,000 for them.
Who are the Competitors of Beer Blizzard?
Some numerous brands and firms sell portable refrigerators on the market. These refrigerators are smaller in size and can be transported by car.
Several companies, including Ztoma, manufacture cooling cups that keep drinks cool in the summer without refrigerators.
Who are the Investors in Beer Blizzard?
Here is the list of Investors in Beer Blizzard:
Dale Earnhardt Jr.
Beer Blizzard approached NASCAR superstar Dale Earnhardt Jr. regarding a licensing deal following its Shark Tank appearance. Unfortunately, the investment deal was unsuccessful.
Beer Blizzard’s creators had struck a deal with Mark Cuban. However, a deal for Cuban to contribute $100,000 in exchange for a 25% stake in the company fell through for unknown reasons.
Is Beer Blizzard Profitable?
Beer Blizzard earned a net profit of $35,000 in 2014. Their products are sold at Walmart, 7-Eleven, Target, and Bed Bath and Beyond.
However, the deal with Dale Earnhardt Jr. didn’t work out. As a result, Beer Blizzard closed its doors in 2018, and its website was shut down. Furthermore, the social media handles have been deactivated.
Key Takeaways from Beer Blizzard Business
Beer Blizzards intended to raise $5,000 via Kickstarter but raised $43,000 thanks to the support of 2044 people.
Beer Blizzard attempted to negotiate a licensing agreement with Dale Earnhardt Jr., allowing them to use his name on the product, but the deal fell through.
Beer Blizzard is available at Target, Walmart, and 7-Eleven. However, once their agreement with Dale Earnhardt Jr. fell through, they ceased operations.