Why ‘Shark Tank’ Producers Recruited Hotshot Coffee, And Why Mark Cuban Said He’d Give It A Test

Any coffee lovers who watched the October 30 episode of Shark Tank likely got a hankering for a cup of joe when they saw Danny Grossfeld’s pitch. Grossfeld invented Hotshot Coffee, which at first glance resembles those caffeine-and-sugar laden brews in many retail refrigerators across the country. But Hotshot is different, because, well, it’s hot.

Grossfeld explained that he came across the idea while visiting Japan and on a late-night hunt for some hot brew. Desperate, he grabbed a can from what he thought was a refrigerator, and discovered hot, canned coffee. As Inc. recalled in its Shark Tank episode recap, Grossfeld spent the next six years and $2 million to create the product’s technology and to finally get close to a launch.

In early 2015, Hotshot launched a Kickstarter campaign. It fell fall short of its $100,000 goal, but the product was picked up by the Los Angeles Times, and that article caught the attention of a Shark Tank producer. Grossfeld failed to land a deal during his pitch, but Mark Cuban offered to test the product in one of his movie theaters once it was launched. And that isn’t the end of the story.

Clay Newbill, Shark Tank producer, told Inc. that Grossfeld’s long time spent in development and lack of sales did not discourage the show from extending him an invitation. Those elements normally spell the death knell for a Shark Tank pitcher, but apparently getting a deal is not the primary element the showrunners look for when booking entrepreneurs. They want something the investors will be excited about.

“We liked his passion, drive, and his company.”

And as Business Insider reported last week, the appearance paid off for Grossfeld. The vote of confidence from Cuban was just the start. After the show aired, private investors offered to fund the launch of Hotshot. Cuban, although he did not comment to Business Insider, is expected to follow through with his on-air promise of a test run in theaters. Grossfeld told Inc. he appreciated Cuban’s enthusiasm.

“Mark was super sweet to me and very receptive. He’s the one person I’d want to partner with.”

Kickstarter was actually a tough platform for a product like Hotshot, according to Grossfeld, although he told Heavy he didn’t regret his experience with the crowdfunding site.

“The challenge for Hotshot with Kickstater was that the potential investors didn’t really understand the concept of hot canned drinks unless they could see it or experience it themselves. That was a fairly large barrier, but then, having a Kickstarter campaign and the efforts to promote it put me on ‘Shark Tank’s radar, which led to my appearance.”

Hotshot has two components: the Hotshot coffee and the Hotbox, a microwave-sized heater to keep the cans warm. As Grossfeld discussed on Shark Tank, part of his technology research went into finding the right formulation so that the cans could be on heat for several weeks without the quality of the product declining. Grossfeld told Inc. Hotshot has a three-month shelf life.

Although there is hot, canned coffee in Japan, it clocks in at about 110 degrees. That’s significantly cooler than Hotshot’s 140-degree temperature. Part of the product technology is in its label, which acts as an insulator, keeping the coffee hot but the can comfortable to the touch.

Hotshot Coffee is taking pre-orders on its website. You can see the next set of entrepreneurs pitch the Shark Tank next Friday night at 9 p.m. on ABC.

[Main photo by Bob Levey/Getty Images Sport]