‘Shark Tank’ video: Is HotShot Coffee delivering in the right way?
Sometimes for one reason or another, product ideas that work in some countries just don’t work in others. Maybe HotShot Coffee is going to be an example of that on “Shark Tank” Friday night.
In the video below, you can see an entrepreneur for his company talk about the six years and $2 million he has spent developing and preparing this plan to market. The idea for this is hot, canned coffee, which is very popular in Japan and other parts of the world. There are probably some people out there who would like this, given that it is somewhat more convenient than going into Starbucks and waiting in line, or even going to 7-11 and fixing up a coffee.
However, is it convenient enough to really matter? Are stores going to devote this much shelf space to something that has to be stored differently than the standard beverage? There’s no real similar comparison to something like this in America, and it’s such a gamble. Also, if things have not taken off for this in six years, are they ever going to? We’re really not sure. This is also still in the early stages given that finding the product right now is not an easy task.
Here’s one other interesting facet of this product so far: It attempted Kickstarter earlier this year, but failed to reach its goal.
We’ll see what happens with HotShot in the Tank. As a coffee lover this is the sort of thing we’d try if we ever saw it in a store, but if we were an investor, we’d just have a hard time banking on something in some competitive an industry.
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CelestialTerrestrial
November 11, 2015 @ 7:10 pm
The Sharks were kinda stupid. They didn’t fully understand the concept that has to develop the coffee first, he has to develop the insulation label, then he has to develop the HotBox units and then fully test everything at various temperatures to see what kind of shelf life at both room temperature and at 140 degrees before he can do a product announcement, and secure patents (which they now have on their HotBox units). Then he has to do small taste tests with small consumer groups, and THEN he has to generate interest amongst the large retail stores, convenience stores, movie theaters, hotels, airlines, college, consumer, etc. which is where he’s at. he was at -prelaunch for the product line. He told them he launches in Fall (right now) and then ships in Jan and that he has several movie theater chains performing a market test in Jan before they issue a large PO for a nationwide roll out. They are DUMB. REALLY DUMB.
Think about the potential if he gets those HotBoxes in a Hotel as a mini-bar item. The hotel can monetize it, and they can probably end up selling a couple of cans per hotel room, per day. do the calculation of 700,000 hotel rooms for JUST Marriotts if they decided to roll out those Hotboxes to every hotel room Marriotts has in JUST the US per year. 700,000 x 365 x 2 x $1.00 = $51 Mil, just to take care of Marriott’s 700,000 hotel rooms in the US. This guy has a HUGE potential. each consumer based HotBox can generate about $1800 a year in revenue since the average person drinks 2 cups of coffee a day and he charges $2.50 per can if you buy the consumer 12 pack. How many coffee drinkers are there in the US? About 150 million, if he got 1 million HotBoxes sold that would generate about $1.8 Billion in yearly sales from just the consumer HotBox for the home/office.
He’s opening up a complete new market category and that patent he has is the link to it’s success, there’s no other way to get a can of aluminum to 140 degrees and still able to hold the can.