What Happened to Coolest Cooler & Why Did It Fail?
January 25, 2025
The Coolest Cooler was a multifunctional outdoor accessory featuring a built-in blender, Bluetooth speaker, and USB charger. Launched on Kickstarter in 2014, it raised over $13 million but struggled to deliver on its promises. Increased tariffs and financial mismanagement led to its eventual downfall.
What Was Coolest Cooler?
The Coolest Cooler, a multifunctional cooler with a built-in blender, Bluetooth speaker, and USB charger, was marketed as a "portable party disguised as a cooler." It raised over $13 million on Kickstarter in 2014, becoming the second-highest grossing project on the platform at the time.
What Happened to Coolest Cooler?
The story of Coolest Cooler is a classic example of a crowdfunding success that turned into a cautionary tale:
Initial Success and Hype: The Coolest Cooler campaign raised over $13 million on Kickstarter in 2014, making it the second-highest grossing project on the platform at that time. The product's innovative features, including a built-in blender, Bluetooth speaker, and USB charger, captured the imagination of backers.
Production Challenges: Despite the initial success, the company struggled to fulfill its Kickstarter orders. They controversially decided to sell the cooler on Amazon before shipping all the owed products to backers, resulting in only about two-thirds of the 60,000 promised coolers being delivered.
Financial Struggles: The company faced significant financial difficulties, exacerbated by a tariff increase on Chinese imports to 25 percent. This financial strain was evident in their settlement with Oregon's Department of Justice, which required them to pay backers $20 per unfulfilled cooler.
Blaming Tariffs for Downfall: The company's CEO, Ryan Grepper, announced that the business was shutting down, citing the impact of increased tariffs as a devastating blow. This marked the end of a once-promising venture that had captured the attention of thousands of backers.
Lessons Learned: The Coolest Cooler case serves as a cautionary tale about the complexities and risks of crowdfunding and product fulfillment. Kickstarter acknowledged these risks and mentioned steps taken to improve transparency and help creators better understand what it takes to bring their projects to life.
When Did Coolest Cooler Shut Down?
Coolest Cooler officially shut down on December 9, 2019. The company cited increased tariffs on Chinese imports as the primary reason for its closure, which significantly impacted their ability to deliver the remaining coolers to backers.
Why Did Coolest Cooler Shut Down?
Tariff Increase Impact: The 25 percent tariff increase on Chinese imports was a significant blow to Coolest Cooler. CEO Ryan Grepper stated, “It was devastating to our business, and I know it was felt by many of you in one way or another as consumers and thousands of small businesses everywhere.”
Production Delays: The company faced severe production delays, managing to ship only about two-thirds of the 60,000 coolers promised to backers by March 2018. These delays eroded customer trust and created a backlog that the company struggled to overcome.
Financial Mismanagement: Despite raising over $13 million, Coolest Cooler failed to deliver all promised products. The financial strain was evident in their settlement with Oregon’s Department of Justice, which required them to pay backers $20 per unfulfilled cooler, a payment that remains uncertain due to the company's financial state.
Controversial Sales Strategy: The decision to sell the cooler on Amazon before fulfilling all Kickstarter orders sparked outrage among backers. This move was seen as prioritizing new customers over loyal supporters, further damaging the company's reputation.
Legal and Regulatory Issues: The settlement with Oregon’s Department of Justice in 2017 highlighted the company's financial troubles. They agreed to pay backers $20 per cooler that wasn’t received, but the financial instability made it unclear if these payments would ever be fulfilled.
Lessons Learned from Coolest Cooler's Failure
Manage Expectations: Clearly communicate potential risks and timelines to backers to maintain trust and transparency throughout the project.
Financial Planning: Ensure robust financial management to handle unexpected costs and avoid overextending resources.
Prioritize Backers: Fulfill promises to initial supporters before expanding to new markets to maintain loyalty and credibility.
Adapt to Changes: Be prepared to pivot strategies in response to external factors like tariffs or regulatory changes.
Production Realities: Understand the complexities of manufacturing and logistics to avoid delays and ensure timely delivery.
Legal Compliance: Stay informed about legal obligations and settlements to avoid regulatory issues and financial penalties.
Transparency: Maintain open communication with stakeholders to build trust and manage crises effectively.
We Shut Down Startups
Coolest Cooler's downfall is a stark reminder of the complexities involved in winding down a startup. If you're facing similar challenges, book a demo with Sunset to see how we can help.
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