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Chase Mitchell and Brian Bloch pitched their ice-free cooler system on Shark Tank season 12 episode 17, seeking $150,000 for 15% equity. The presentation revealed concerning financials, with initial production costs at $37 while selling units for $30. After examining the product and business model, Kevin O'Leary delivered a strong criticism:
"You like to talk about the values. Why would you do this? I mean this stuff is tchotchke. They give it away at beer companies. There's a million coolers…Oh, it's the same. So I want to rip you to pieces. I'm dying to rip you to pieces.”
He further added,
“There is no hope. This is a really bad idea. Coolers? Why? I don't even buy the sustainability thing. There's all kinds of plastic in this thing. I hate it. I'm out."
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The Shark Tank company, founded by former Google and Apple employees, had generated $111,000 in sales over two years but received rejections from all five Sharks. Despite reducing manufacturing costs to $18, the business ceased operations in January 2022.
Chill Systems faces complete rejection from all Sharks on Shark Tank season 12
Mitchell and Bloch established Chill Systems after leaving positions at Google and Apple respectively. Their cooling system stored drinks without ice through a specialized freezable design. The founders created custom colors and patterns for different market segments.
Brian Bloch demonstrated current cooler problems by bringing a traditional ice-filled container into the Shark Tank. He showed how their system could hold three beverages simultaneously without ice. The presentation highlighted the product's 24-hour cooling capacity after freezer preparation. Their pitch focused on portability advantages and specialized features like wine bottle cooling capabilities.
The founders explained their direct-to-consumer sales strategy and promotional partnerships. They demonstrated various product designs including customizable options for corporate clients. The company started through a Kickstarter campaign in August 2018. Backers contributed $53,172 to launch initial production.
Manufacturing began with significant challenges as production costs reached $37 per unit. The retail price point of $30 created immediate losses on each sale. Despite reducing costs to $18 through improved manufacturing processes, profit margins remained tight. Distribution expanded beyond direct website sales to include Amazon listings and corporate promotional channels.
The Shark Tank company achieved $53,000 in sales through Kickstarter fulfillment and added $58,000 through retail channels. Early delivery challenges impacted customer satisfaction during the 2018 holiday season as production delays affected shipping timelines. The founder's business plan projected market expansion through retail partnerships and increased direct sales.
Daniel Lubetzky questioned the fundamental market demand, focusing on preparation time requirements. He pressed the founders about consumer willingness to pre-freeze units 24 hours ahead. Mark Cuban advised them to reduce their pitch length, stating they missed key selling points.
Robert Herjavec pointed out gaps in their presentation's credibility, particularly regarding sales projections. Lori Greiner analyzed the cost structure and suggested substantial price reductions would be necessary for retail success.
Kevin O'Leary emphasized issues with their production costs, market size estimates, and competitive positioning. Each Shark declined investment opportunities, citing different aspects of the business model as deal-breakers.
Aftermath
The company maintained standard operations through mid-2021. As reported by Shark Tank Blog, their Amazon product listings showed regular sales activity until July 2021. The official Chill Systems website remained active with full product offerings through late 2021. Social media accounts posted regular content and customer interactions until July 9, 2021. Product availability began decreasing across sales channels in fall 2021.
The company removed items from Amazon's marketplace during the fourth quarter. Their website stopped processing new orders in December 2021. Chase Mitchell's professional profiles confirmed the company's closure in January 2022. The founders transitioned to new business ventures after shutting down operations. Corporate promotional partners received final shipments in late 2021.
The Shark Tank company completed outstanding order fulfillment before closing. Total operational time from Kickstarter launch to closure spanned three years and five months. Manufacturing operations ended in the final quarter of 2021. Customer service channels remained active until the final business day to address existing orders.
Shark Tank season 16 airs on ABC network.
