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What started out as a school project quickly developed into a growing product line and new business for three Clemson grads. Logan LaMance, Teddy Giard and Austin Maxwell cames to the Shark Tank in hopes of securing a strategic business partner and $100,000 in exchange for a 10% share in their company, Kanga. The friends developed Kanga’s signature product, the Kase Mate, when tasked with the assignment to design a product that would solve a common problem.
Find a problem, create a solution. The entrepreneur formula. #SharkTank
— Daymond John (@TheSharkDaymond) April 8, 2019
The friends quickly determined that they had a problem when they were tailgating for football games and drinking warm beverages. Nobody wanted to lug heavy, expensive coolers and ice to their tailgate. The entrepreneurial idea was born when they noticed someone opening a can and putting it into a can insulator. They wondered if they could create a product that would insulate an entire case rather than just a can. This idea was just the beginning of Kanga. As they began to work their way through their school project, they learned that they could create a case insulator inexpensively that would allow them to travel the path to profitability.
As they began to design their first product, they learned that the cardboard case acts as an initial insulator for the beverages. The Kase Mate then has a foam and fabric layer that creates a watertight barrier, preventing air from getting to the cans and cooling them down. Their patent-pending product snuggly fits around a 12 or 24 pack and keeps the beverages cold for up to 7 hours without ice. This allows the consumer to conveniently carry just the beverages without having to carry a cooler and ice too.
Will a Shark hop on investing in this new product? #SharkTank #KoolerThanACooler
— Shark Tank (@ABCSharkTank) April 8, 2019
Kanga currently has two main distribution channels. The first is through their e-commerce site which accounts for approximately 30% of their sales. The second is through wholesale partners that purchase the Kase Mate and have their company logos customized onto the product. This accounts for 70% of their sales. Although the beverage industry is a competitive market, Kanga has seen $103,000 in sales for 6 months. They have recently been given a PO from one of the largest beverage manufacturers in the world, Anheuser Busch, to perform a test market. If the test market goes well, they will place an order for 10,000 units.
After learning that the products have good margins and the partners have each put a small investment into the company, Mark Cuban does not waste any time making Kanga an offer. Because Mark feels that he is a Shark Tank leader with beverage companies, he quickly offers Kanga $100,000 for 20% of the company. He tells them that he will not counter and he will not hold his deal while they listen to any other offers that may come in. Logan, Teddy and Austin are thrilled to get an offer from Mark Cuban and they quickly accepted his offer.
In one of the more heartwarming portions of this episode, the partners from Kanga share that they are Shark Tank fans and some of them have watched every episode. They have grown up with the show. They discuss how they have applied what they have learned after watching Shark Tank to creating this product and launching their own business. The Sharks are very inspired by the positive outcome “Shark Tank” has had on these young entrepreneurs’ lives.
Truly luv hearing how #Sharktank has inspired people to pursue entrepreneurship. I feel so honored & humbled to be a part of this show that encourages people to take control of their own destiny! @ABCSharkTank #Kanga
— Lori Greiner (@LoriGreiner) April 8, 2019
#SharkTank, inspiring entrepreneurs for 10 seasons. pic.twitter.com/1sgfkd6H8y
— Shark Tank (@ABCSharkTank) April 8, 2019
What did you think about Kanga and the Kase Mate? Would you invest in this product? What advice do you have for young entrepreneurs who are just getting started? Spark up the dialog in the comments below!
For a full summary of this episode, check out this article. Shark Tank airs on Sundays at 10:00 PM EST.