Coffee Joulies Temperature Regulator Update | Season 4
Engineers and entrepreneurs Dave Petrillo and Dave Jackson created a product to help cool down coffee and regulate the temperature. Will they earn a deal on
Shark Tank Coffee Joulies Update
- Entrepreneurs: Dave Petrillo and Dave Jackson
- Business: Temperature regulators for coffee
- Ask: $150,000 for 5% equity
- Result: $150,000 in exchange for a $6 royalty for retail, $3 royalty for wholesale, and $1 in perpetuity after investment is recouped
- Sharks: Kevin O’Leary, Lori Greiner, Robert Herjavec, and Daymond John
Dave and Dave brought their invention, Coffee Joulies, to the tank. The product helped cool down coffee that came out too hot, and kept it at the optimal temperature for up to five hours.
When the guys served piping hot coffee to the sharks, that was poured 3 hours earlier, the sharks were really stunned. Daymond John asked if Coffee Joulies could also be used for tea, which the two Daves confirmed was possible. They also said the product could be used for oatmeal, soup, or any hot liquid.
Lori Greiner asked about the cost and price. Dave and Dave told her that it cost them $3.65 per to make a single one and that the 5-pack retailed for approximately $50. When Lori asked about their sales, they shared that they made $575,000 in 2011 with $50,000 as their net profit.
Kevin O’Leary asked them where the rest of the money went and the two founders told him that they spent a lot on patents, tooling, and legal fees to develop and protect their product. Despite these large expenses, they still managed to turn a profit, so the sharks were impressed.
The sharks were even more impressed when they discovered that Coffee Joulies was on track to hit the $1 million mark. They shared that their previous sales were all online, and that in 2012, the year the episode filmed and aired, they were expecting to roll out in retailers like Bed, Bath, & Beyond, OfficeMax, and more.
Daymond liked the numbers but unfortunately could not forgive their $3 million valuation. For that reason, he became the first shark to go out of the tank.
Kevin too felt that the sales and valuation had a wide gap, so he created a deal that he felt would make sense for the circumstances. He offered Dave and Dave the $150,000, in exchange for a $6 royalty on all units sold. When his money was recouped, it would drop down to $1 in perpetuity.
Lori liked the sound of this deal, and asked Kevin if he would be amenable to inviting her in. After he confirmed she would help them roll out on QVC, Kevin welcomed her into the deal. Robert Herjavec also wanted in. Soon after, Daymond reconsidered his move and asked if he could have a piece of the action as well.
Now up against four sharks, Mark Cuban made his offer of $250,000 for 12% equity, with the proviso that he did not want Coffee Joulies rolled out in retail or on QVC. Dave and Dave now had two very different deals, with very different selling strategies laid out before them.
Needing another opinion, the two Daves excused themselves into the hallway to call a friend and advisor. To sweeten the deal, Kevin stepped out into the hallway to interrupt their call and told the Daves that the offer had been changed. He now would offer the $150,000 with a $6 royalty on all retail units sold, but the royalty would be only $3 per unit sold via wholesale. The $1 in perpetuity after the investment was recouped would stand as is.
When the guys returned, they accepted Kevin’s deal which included Lori, Robert, and Daymond as well. What happened next for the company? Keep reading our Coffee Joulies update to find out!
Research for our Coffee Joulies update revealed some bad news. Unfortunately, the deal was never finalized with the sharks. Then, things went from bad to worse when Bed, Bath, & Beyond began selling a knockoff version of the product, despite Coffee Joulies patents. While the Coffee Joulies website appears to be active, products are out of stock. In 2023, it’s unclear if the company is still in business.
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Jennifer is an avid Shark Tank fan that has been watching the show for years. She serves as Senior Editor at Shark Tank Recap and ensures that all our information is accurate and that our posts are up to date. Her favorite Shark Tank products are Le-Glue and Ring!