The founders of Grinds Coffee Pouches, Matt Canepa and Pat Pezet, encountered a failure on the way to success as entrepreneurs.
The two of us are former amateur and minor league baseball players, and I always told my teams to “get the best results by failing the least.”
Consider this: you are in the Hall of Fame if you fail to pitch two-thirds of the time (a pathetic average in most circumstances).
After completing their degrees, the two entrepreneurs returned to CAL Poly, San Luis Obispo. They stayed up late studying and needed a caffeine kick.
Grinds Coffee Pouches were born when they, instead of preparing fresh coffee, placed wads of coffee grinds between their cheeks and gums, similar to chewing tobacco.
They began placing coffee grounds into pouches and developing a business plan. Their Grinds Coffee Pouches won two CAL Poly business competitions (for a total of $18,000), and several judges invested in them.
They visited minor league parks and distributed complimentary Grinds Coffee Pouches to players because of the pair’s baseball heritage. Several major leaguers had endorsed their products by 2011, and they offered a variety of flavors.
What Is Grinds Coffee Pouches?
Grinds Coffee Pouches are a healthier alternative to chewing tobacco that significantly boosts energy.
It’s flavored coffee in pouches with active ingredients similar to those found in 5 Hour Energy beverages, such as taurine and guarana.
The Grinds pouch contains caffeine, energy-boosting vitamins, and other components to give you a similar rush to coffee. You can access it whenever you need it because it is unprocessed.
Chewing on Grinds Coffee Pouches is an unusual method of quitting smoking. These little pouches combine flavorful coffee with vitamin B and taurine to boost your energy.
The grinds coffee pouches come in cans and contain the equivalent of four to five cups of coffee.
|Company Name||Grinds Coffee|
|Entrepreneur||Matt Canepa And Pat Pezet|
|Product||Tobacco Alternatives – Flavored Coffee Pouches|
|Investment Asking For||$75,000 For 10% equity in Grinds Coffee Pouches|
|Final Deal||$75,000 For 15% equity in Grinds Coffee Pouches|
|Shark||Daymond John And Robert Herjavec|
|Episode||Season 4 Episode 15|
|Business Status||In Business|
Who Is The Founder Of Grinds Coffee Pouches?
Matt Canepa and Patrick Pezet are the co-founders of Grinds Coffee Pouches. They attended California Polytechnic State University and earned degrees in business and finance.
They were both minor league baseball players, which prompted them to launch Grinds Coffee Pouches. Canepa played baseball professionally for the Chicago Cubs.
It took Canepa and Pezet to finish their economics projects much of the night. Their habit of stuffing coffee into their mouths was similar to chewing a chaw of chewing tobacco to ward off sleepiness.
It was an energized feeling for Canepa and Pezet, and their creative juices were flowing as well. The baseball players realized that they could create a healthier alternative to tobacco chewing with coffee wads.
Grinds Coffee Pouches was created as a profitable business due to their late-night epiphany. You can purchase the branded coffee pouches online in a variety of flavors. Furthermore, 20 major league baseball teams feature these products in their clubhouses.
Grinds Coffee Pouches appeared on Shark Tank seeking funding for expansion. Canepa and Pezet were looking for investors. They reached an agreement with two of the Sharks after much haggling.
Grinds Coffee Pouches Before Shark Tank
Grinds Coffee Pouches are designed to be chewed instead of tobacco to substitute for tobacco chewing.
Pat Pezet and Matt Canepa, both Cal Poly San Luis Obispo, came up with the idea while working on a class project one night.
Pat and Matt were looking for something to do when they came across coffee grounds.
It was awkward at first, but they were able to feel that it worked by chewing on these and getting energy.
The concept of this flyer inspired Matt and Pat to enter a contest, which resulted in both of them receiving a $500 prize.
Their baseball experience led them to recognize the need for a chewing tobacco alternative.
The product launched by Matt and Pat was embraced by many baseball players, including the manager of the San Francisco Giants, when they won the title.
Matt and Pat were informed that the manager substituted Grinds for chewing tobacco. The desire to build a business out of this concept fuelled Matt and Pat’s efforts.
They received assistance locating a manufacturer to begin manufacturing their product and received extensive exposure from media venues such as Entrepreneur Magazine.
They applied to appear on Shark Tank in the hopes of expanding their business and were invited to Season Four.
How Was The Shark Tank Pitch Of Grinds Coffee Pouches?
The Grinds Coffee Pouches were presented to episode 413 of Shark Tank by Matt Canepa and Pat Pezet, seeking $75,000 in exchange for 10% ownership in the company.
Pezet describes the pouches as containing fresh coffee enhanced with chemicals that keep consumers awake and alert.
Canepa distributes product samples, which the Sharks, except for Barbara Corcoran, try. They are taken aback by the flavor.
They sold $3,500 in their first year but received an endorsement from Bruce Bochy, the manager of the San Francisco Giants.
During their second year, they sold $135,000, and by the time they appeared on Shark Tank, they were on track to sell $300,000.
This coffee-flavored alternative to chewing tobacco seems to have favorable figures, but will the Sharks bite?
Barbara Corcoran admires the pair’s “energy” but thinks the product “simply isn’t something I can relate to.” She has escaped.
Kevin O’Leary informs the couple that they require funding to bring the product to market quickly enough to avoid being “crushed like the cockroach you are” by the large coffee corporations.
He offers a royalty of $0.25 on each can sold in exchange for $100,000, more than double what they asked for.
Daymond John is curious whether they are “seeking for pure capital or a strategic partner.”
Robert Herjavec counters. The pair would get $75,000 in exchange for a 15% stake, but Daymond John would like to be involved with the sale, bringing his marketing knowledge and outlets.
As Mark Cuban says, “you can play small or go big in any sport.” He calls the company a “mid-sized” business. He believes he won’t receive enough compensation for his time and goes out instead.
The duo counters Herjavec and John’s offer, asking whether they would accept $100,000 in exchange for a slightly larger equity interest.
The Sharks are unyielding. Their first offer stands, and the entrepreneurs accept it.
Final Deal: Daymond John and Robert Herjavec agreed to invest $75,000 For a 15% stake in Grinds Coffee Pouches.
What Happened To Grinds Coffee Pouches After Shark Tank?
It seems, however, that Robert and Daymond’s arrangement with Grinds Coffee Pouches did not finalize since Robert does not list the company on his website, and Daymond has not mentioned it in his numerous interviews and blogs.
Robert and Daymond likely invested when Grinds Coffee Pouches was still in its infancy, with little distribution.
Robert does not appreciate doing business with start-up companies, most likely because of the high risk involved. Daymond does not participate in many contracts where he receives less than 10% stock due to the time commitment.
Grinds Coffee Pouches have grown in popularity since it aired on Shark Tank, even though no deal was closed. Grinds Coffee Pouches received massive visibility after the show aired, and their popularity continues to grow through repeated reruns.
Grinds Coffee Pouches sell its goods online and through other online retailers such as Amazon. Matt and Pat have introduced new flavors to the market and have received favorable responses from others, including MMQB.
Grinds Coffee Pouches are also quite active on their social media platforms. They have over 23,000 likes on Facebook, demonstrating that Matt and Pat remain devoted to expanding Grinds into a huge brand.
Grinds Coffee Pouches Shark Tank Update
The Grinds Coffee Pouches company is still doing well through its website and online retailers, even though the Shark deal fell through. The pouches are selling like hotcakes, and the business is growing.
This coffee-flavored concept piqued the Sharks’ interest, and they have now come up with a product that helps to chew tobacco addicts quit and adds to the Shark Tank success storybook.
Grinds Cofee Pouches is still in business with annual revenue of $5 million in January 2022.
Is Grinds Coffee Pouches Still In Business?
Forbes reported that the deal between Grinds Coffee Pouches and Sharks fell through during the negotiations. However, Grinds Coffee Pouches are still in business and generating an annual revenue of $5 million as 2022.