In today’s review of Shark Tank episode 12, season 16, a startup “KiidCoffee” is up for a task and solving a problem we did not know existed. Read on to find out more:
Key Highlights
- KiidCoffee is making waves in the coffee market with specially-made coffee for kids.
- David and his son; Ethan asked for $50K for 10% of their company, at a valuation of $500K.
- The startup just got off the mark in April, last year and since then, they have generated sales over $75K.
- Read Kiid Coffee Shark Tank Product Review
Pitchin’ In Right
As the Shark Tank narrator said “A famous beverage for an unlikely consumer”. Still, a consumer is a consumer, right? And finally, someone is targeting the untapped market of coffee for kids, who if we closely observe, are in huge numbers around us.
Co-founded by David Sanborn and his cute little son, Ethan, this father-son duo is on a roll. I love the fact that David trusted his son like no other father. And, Ethan paid back in full for the trust his father had put in him.
A lively pitch was the prime example of it, where David and Ethan complemented each other at every step. Now, let’s move on to what they presented.
Explaining the Product
KiidCoffee is simply a coffee for kids but with a twist. Unlike conventional coffees which are overloaded with caffeine, KiidCoffee is 99.9% caffeine-free. Obviously, no parent in their sane mind would let their toddler have a gulp of a caffeinated drink, be it coffee or an energy drink.
But, as I said, this product is very different as it’s safe for kids to drink, and enjoy with their parents in the morning. Plus, an added benefit for kids is that they won’t feel left out anymore in the breakfast where adults leisurely have a sip at their coffee while kids drink milk.
Talking about milk, don’t you think that most kids don’t like milk at all? So, how about handing over to them a cup of KiidCoffee? Well, David came up with this and surely, it was the brightest of ideas.
Two Cents on Creation
Ethan, the kid broke his both legs at two different times.
The Cause?
Lack of calcium and resulting in weaker bones?
The solution?
Calcium-rich sources like milk.
But he doesn’t like the milk, now what?
KiidCoffee!
And this is how David, along with his son came up with the idea of this incredible startup. Their coffee is full of ingredients that everyone would want for their kids. And not just this, it’s not as expensive as you might think, which I will discuss next.
The Numbers
As I already mentioned above, KiidCoffee was launched in April 2024. And till now, they have generated sales of over $75K. Not bad, right?
Now, coming to the part that matters to you the most. The cost of this coffee sachet is just $14. However, the production cost? $3.50!
Yes, insane profit margin on the sale of a single product. Anyway, a shark did ask why is there so much profit margin. Well yeah, I mean they could sell it for a lesser price and get more customers, right?
However, David has a satisfactory answer, as he stated that the product contains ingredients that are expensive, to which Mark and Lori nodded in yes.
| Metrics | Amounts |
| Ask | $50K |
| Equity | 10% |
| Sales | $75K |
| Production Cost | $3.50 |
| Selling Price | $14 |
What did the Sharks Say?
Mark, being Mark was the first one to opt out, and I’m not gonna blame him this time. He simply thought that KiidCoffee had so much at their hand right now, and needed some time. On this, he simply said that he wouldn’t invest.
Next up was Kevin, who offered the whole amount but for a 30% share in the company, with no contingencies involved. However, Kevin was a little more interested in this startup as he believed that his social media power would be a game changer for their company. And hence, offered a thoughtful validation of his assessment.
Then, Daniel jumped in and offered $50K for 20%, a better deal than what Kevin offered.
And before all of this, David revealed that KiidCoffee had already been selling their coffee with the help of retailers. And that, those retailers sell around 2 bags of coffee every day. Impressive, right?
And in an instant, Mark said in his typical way “I’m going to make you an offer”
Then, Lori intervened and said that she would like to offer $50K for 20% along with Mark, obviously if he agreed, which he did.
Who Got the Deal?
David was a little worried about the valuation of his company. Seeing his plight, Daniel made the ultimate move and countered his offer:
$50K for 20% and would offer 5% stock options if David agrees to pursue this as full-time.
From here on, Kevin suddenly jumped to 15%, as he was desperate for the deal.
However, it was too late now as David and Ethan had already chosen Daniel and secured the deal.
| Sharks | Deal Offered | Remarks |
| Daniel | Yes | Loved the product. |
| Barbara | No | Did not say anything. |
| Kevin | Yes | Wanted to market the product via social media. |
| Lori | Yes | Loved the idea of retailing the product. |
| Mark | Yes | Applauded the healthy ingredients. |
My Assumptions
Here is the mind-twisting work that I had to do for you folks! Considering the selling price of the product does not change, I’ve done a 5-year analysis of KiidCoffee below:
Kiid Coffee Networth
| Year | Sales (Units) | Revenue ($) | Production Cost ($) | Gross Profit ($) |
| 2024 | 5,357 | $75,000 | $18,750 | $56,250 |
| 2025 | 8,036 | $112,500 | $22,500 | $90,000 |
| 2026 | 12,054 | $168,750 | $33,750 | $135,000 |
| 2027 | 18,081 | $253,125 | $50,625 | $202,500 |
| 2028 | 27,122 | $379,688 | $75,942 | $303,750 |
| 2029 | 40,683 | $570,000 | $114,000 | $456,000 |
Considering this, KiidCoffee’s net worth would be more than a million dollars in years to come.
So, How Was It?
No denying that it is a product that everyone would want for their kids. But the price and availability are some major question marks as the major part of the business is only done via the website. Nevertheless, I am hopeful for the product, as it’s a problem-focused item.
Furthermore, with Daniel on their side, who’s always serious about his investments, I believe KiidCoffee would definitely cross a million-dollar net worth in years to come.
