Some of us have skipped out on our morning coffee because the line at the coffee shop was too long or because we did not have the time to make a cup of coffee. This is the problem Danny, founder of HotShot USA intended to solve. But the question is, “is HotShot coffee successful?”
Hotshot USA is successful and thriving, having its best part in August 2021. This business has its own HotBoxes in many locations across the country. They are also available in Walt Disney World with has a yearly revenue of two million dollars.
The convenience and ease that comes with the Hotshot coffee beverage is an interesting fact about the coffee. You don’t have to miss out on your hot morning coffee due to long queues as the HotShot have you covered. To learn more about HotShot Coffee and its success before and after Shark Tank, kindly scroll down and continue reading this article.
Is Hotshot Coffee Still Successful?
Less than three years after the episode of Hotshot Coffee was aired on Shark Tank, the company teamed with Amazon. After then, Amazon started to fulfill hot chocolate subscriptions and Hotshot hot coffee since July 1st, 2018.
HotShot has also worked with movie theaters, resorts, supermarkets, and sporting stadiums. This coffee is available in five flavors in the US: Caramel, French Vanilla, Black, Hot Chocolate, and Espresso. A 6-pack of eight fl. Oz. cans are available for twenty-six dollars, nine-nine cents on the HotShot website. While a twelve-pack with a box is available for sixty-nine dollars, ninety-nine dollars.
HotShot has also worked with supermarkets, resorts, movie theaters, and sporting stadiums, including Madison Square Garden.
How Does it Work?
The can used to manufacture this product is made from seventy percent recycled material and the labels on each one serve as an insulation to keep the coffee hot. To warm up your coffee, you will require the custom-made Hot Box which is basically a kind of hot-fridge lunch box. It will heat up the coffee to a hundred and forty degrees.
It takes ninety minutes for the coffee to get to this temperature. This means that you are required to keep the Hot Box full at its nine-can capacity constantly. Interestingly, the can dose not burn your hands while it remains hot because of the insulated label used on the can
There are many different varieties of HotShot drinks available for preorder, including Caramel Frappe, espresso, black coffee, Hot Chocolate, and French Vanilla. But, it cannot be the same as a made-to-order flat white or soy latte; however, HotShot’s flavors are pretty tasty. They hoped to offer a wider selection in the future, including drinks such as apple cider and green tea.
What is the Difference Between Hotshot Coffee and Regular Coffee?
The major difference between HotShot coffee and regular coffee is that HotShot coffee sits in its own heated display, maintaining the coffee at a hundred and forty degrees, while regular coffee does not. Opting for a HotShot coffee in a can instead of manually making a coffee cup undoubtedly would help save quite some time.
Who is the Founder of Hotshot Coffee?
HotShot was invented by Danny Grossfeld. Before founding HotShot USA, he was already a successful businessman. He now serves as the President of this business. This business originated from an inspiration that struck him.
One early morning in Japan, he decided to go out for coffee before a business meeting but could not locate a cup of hot coffee. So, after giving up, he went to what seemed like a cold coffee refrigerator. But it wasn’t a refrigerator but a can of hot coffee.
When he returned to the US, the impetus for the establishment of HotShot USA was the success of Japanese canned coffee. For six years, Danny worked to perfect his establishment. He spent almost two million dollars over the last six years.
However, HotShot did not generate any revenue after spending that much money. All he got was inquiries, but none of those inquiries resulted in sales. Despite the obstacle, he was determined to keep developing.
The product’s inventor also produced the HotBox – an insulated container that keeps nine cans of coffee hot for up to three months. For his ingenuity and tenacity, the Shark Tank praised him.
Hotshot on Shark Tank
Danny – the founder of HotShot USA, went to Shark Tank hoping to gain an investment of three hundred thousand dollars in exchange for ten percent of his company. He dived into his pitch by telling the Sharks that he had established an incredible convenience in hot coffee that is perfect for busy coffee-lover who always had busy mornings.
With his invention, they could just grab a hot drink from the HotBox and never have to stand in line for coffee or make a cup of coffee. HotShot was the first grab-and-go ready-to-drink in a can coffee product available in the US.
After that, he asked which of them was ready to join the coffee revolution and become a Hotshot themselves. At this point, the Sharks went ahead to taste the coffee, and they liked it. Some of them remarked on the pleasant taste.
The Shark’s Conclusion on the Pitch
After years of perfecting the product, Danny then went further to say that he was launching HotShot now. Robert inquired what the two million dollars invested in the business was spent on. Danny explained that he had finally manufactured a product that tastes great, despite many months of being continuously heated and that the development process had cost a million dollars.
In the end, none of the Sharks were ready to invest in the business, as the product was yet to make any sales after six years. While they liked the idea, they were not fans of the business per se. They further advised him to consider doing something else.
Hotshot After Shark Tank
Danny expressed his disappointment after the show, stating that the Sharks had not seen the HotShot‘s potential. He also expressed amazement that they had shown faint interest in such a profitable sector. He further mentioned that for a long time, people had been telling him that his idea would not work and that their objective, in fact, strengthened his willpower to succeed.
Months after the show, Danny stayed positive about the future, mentioning that in December 2015, three movie theater chains had agreed to test HotShot coffee during the first three months of the following year. But no indication was found that the tests actually took place.
Since the first episode of HotShot, the business’s website promised that HotShot products would be available for preorder. But in March of 2016, the company announced that all preorders would no more be accepted and that all payments made on preorder would be refunded due to issues relating to production.
After that, the business’s social media accounts became entirely deserted. HotShot’s Facebook page has gotten a few inquiries from prospective customers inquiring when to buy their products for themselves. None of those inquiries have gotten a response.
HotShot Coffee at the Moment
Despite Danny’s lost deal, he remained enthusiastic. He has currently completely overhauled his website and has started taking preorders on the HotBox. He has expanded the market by manufacturing store machines that can store and keep the coffees hot at the retailers. In 2021, the business has grown into two million revenues.
Although there are lots of competitors in the market, Starbucks has remained Hotshot’s biggest competitor so far. After a close analysis of Starbuck’s website, one would agree that their products have great similarities. Starbuck’s DoubleShot Energy Drink has a ready-to-drink and canned packing concept just like that of Hotshot.
After Starbucks launched the Doubleshot Energy and Coffee beverages in June 2008, it has remained at the top of the table in the ready-to-drink subcategory for energy coffee. And with Starbucks declaring their product as best-selling, Hotshot has remained on their toes to ensure they are unbeatable. Continues innovations and production of different delicious coffee recipes has helped keep Hotshot in the match.
HotShot Coffee is a delicious beverage that comes with a lot of ease and convenience for consumers especially those that love to keep it hot. HotShot is still in business and is flourishing in malls, movie theaters, stadiums, and large retailers. They have increased their market share by producing hot beverage flavors and Store Machines. They are bound to grow large and wide in the Hot Drink segment.