Kanaga is a company started by a trio of entrepreneurs who asked themselves while toting their beverages around, "Isn't there a better way?" And, when they found there wasn't, in classic Shark Tank fashion, set out to create (and sell it).
The problem Kanaga wanted to solve was how to keep drinks cool while still making them easy to get to where they're going to get drunk. The entrepreneurs found that existing solutions were either really good at keeping drinks cold but were heavy and hard to move around or were light, easy to destroy, and not super great at keeping things at the desired temp.
As a compromise, Kanaga introduced the Case Mitt, an idea inspired by the old school can insulator. The Case Mitt is a sleeve that can hold a 12-pack of already cold beverage and insulate it against outside warmth. It even features a top flap for easy access to the drinks inside. And, in case you're asking yourself, "is this perhaps the pinnacle of bro acheivements?" the answer would be a solid yes. Even the entrepreneurs acknowledge their bro-dom. On the upside, the entrepreneurs claim that it will keep your beverages cold for up to seven hours. So... sometimes necessitity is the mother of invention...
Kanaga, as a company, has been selling for six months and has booked $103,000 in sales during that time. 30% of those sales comes from a Kickstarter that they launched. The other 70% are B2B sales that are custom made products with featured brands or logos. However, all of those sales are made via an online platform.
The basic 12-pack Case Mitt retails for $29.95. However, they also make a 24 to 30-can Case Mitt that retails for $34.95. They claim that custom items cost $20 per item. The basic item costs $9.60 per unit landed.
The entrepreneurs claim that they have been approached by Annheiseur-Busch to do a $16,000 test market order for their three largest brands to gauge effectiveness. Should the test succeed, they could potentially sell 10,000 more units.
Each of the entrepreneurs has invested $833 into starting Kanaga and that is all the capital that's been invested into the company and one has even worked for Beatbox Beverages, a company that Mark invested in, way back in season six.
This deal aired on Episode 10.18.
Making A Deal
Not a lot to say about this one. After the connection to Beatbox Beverages was mentioned, Mark offerred the entrepreneurs $100,000 for 20% equity instead of the 10% they were looking to give away. This effectively bit the company's value in half to just $500,000. The entrepreneurs agreed and gained Mark as a partner.