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Stay Cool

CBD and Kava Relaxation Beverages - Invest in a Growing Industry

Highlights

1
Partnership with 3 distributors - increases our exposure to more than 15,000 stores nationwide
2
Sold more than 55,000 bottles - currently in 20+ states across the US
3
The relaxation and stress-relief drinks market reached $294 MM in 2018 with yearly growth at 15.7%
4
Stay Cool is the only kava beverage in the market that is readily available nationwide
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Awarded SPINS Top Product Trend for Health Beverages - 2019
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Our CBD beverages will be available by Q4 2019; additional CBD products planned for 2020 (balms, gummies, pet soft chews)
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Generated more than $170,000 to date
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We are a true health and wellness company that provides natural products to ease the mind and body from stress-induced symptoms

Our Team

Founder & True Self Ambassador
Over seven years experience in strategic business consulting for Fortune 500 companies. Skilled in operations, design, marketing, communications, technology, and sales. A native Texan living in San Diego.

Stress has become a major issue in the U.S. and there's a need for healthy products to help manage it. After experiencing chronic stress, I turned to mother nature for answers. I discovered kava and figured if it could help me better manage stress then it might do the same for others. I'm hoping I can positively impact as many people as possible.

Founder & Stay Cool Ambassador
Staying focused through many stressful jobs where I was overworked and unhealthy to find my calling at Stay Cool. Stay Cool changed my life and I can only hope it can be an eye opener for as many people as possible.

The Story of Stay Cool

Everyone has the ability to shine a light to make a difference in other people’s lives. You cannot be afraid to utilize your talent or take the risk of exposing yourself. This is a philosophy the founders of Stay Cool wish to share with the world. By sharing their own life experiences when it comes to stress and anxiety, they want to inspire positive change and help others improve their mind and body.

Both Tyler and Steven believe the effect you have on others is the most valuable thing a person can do. They established Stay Cool as a way to encourage others to do what they love so that they can utilize their time on earth to positively impact those around them. Working as a technology and data security consultant for over 6 years showed Tyler first-hand how stress can impact people's lives in the workplace. His previous work took him all across the country and into a vast array of business environments where one thing remained constant – everyone is dealing with stress.

The high demands of consulting and crazy work schedule had taken its toll on Tyler’s mind and body. Making matters worse, Tyler was finding himself “living for the weekend” to drink and unwind after long hours at his job. Eventually, all of this led to him seeing a decline in his health which created panic attacks. After a visit to the doctor, Tyler was diagnosed with severe stress/anxiety. Even though he was given a prescription to deal with the symptoms, he knew it was just a temporary fix  to the underlying problem. Unhappy with his overall situation, Tyler realized that he needed to better himself.

After adopting a healthy lifestyle change of clean eating and working out, he ultimately came across kava as a natural supplement to help him relax at night. Not only did kava allow for him to sleep though the night without tossing and turning, but it helped relieve tension in the back of his neck. He thought if kava could do wonders for him, it could do the same for others. That is when he decided to speak with his good friend and future business partner Steven to tell him about kava. Ironically, Steven was going through his own issues with stress and anxiety at the time, both personally and professionally. After trying kava for himself, he was surprised that it was able to provide relaxation benefits to ease his own stress. Since Steven was at a point in his life where he wanted to make a career change and find a job that was more meaningful to his life, it only made sense for both him and Tyler to start a business that could truly make a difference. In order to live with greater purpose, the founders started Stay Cool so that they could provide a healthy alternative for stress relief.

It is a given that you will act differently when stress impacts the way you think and feel. If left untreated, the symptoms of stress not only create a long list of health issues like heart disease but it can ultimately cause us to lose track of who we really are as a person. In order to inspire positive change, Stay Cool is dedicated to helping others maintain a healthy balance by providing natural alternatives to ease the mind and body. 

Our Current Products

Stay Cool manufactures functional, relaxation beverages that provide various stress reducing benefits.  As the beverage industry continues to grow and create different segments, consumers are demanding products that provide relaxation qualities that are plant-based. That is where our products come into play.  Our functional beverages contain natural, non-GMO ingredients and appeal to a wide range of needs.

Health markets like Whole Foods and Sprouts are requiring beverages to follow strict, clean labeling requirements. This means products need to have non-GMO ingredients with no artificial flavors or additives.  With this in mind, we made sure to not cut any corners when developing our beverages. We only use high-quality, natural ingredients that will pass any clean labeling requirements.  As for the label design itself, we wanted to make sure our product stood out when placed on a crowded grocery shelf.  We created a label that was not only colorful, but encompassed a laid-back, tropical theme that people would find appealing. 

As for additional products, we also sell snapback hats in order to generate another revenue stream and improve our marketing efforts. There are different styles of snapback hats available for purchase, each displaying a similar tropical theme that goes along with the look of our beverage labels.  These have been sold to retailers currently selling our beverages as well as directly to consumers.

As for introducing additional products within the Stay Cool brand,  we will be adding a whole new line of beverages that contain CBD.  As the market expands for relaxation products, consumers are looking for natural ingredients that can deliver different types of benefits.  Though CBD products are considered a separate market than relaxation drinks, it is only a matter of time until they are included in the same space. 

In addition to our new beverage line, we have also made plans to include other relaxation based products that contain CBD.  More information about our plans can be found in the Future Outlook - CBD section below.

So, What Exactly is Kava?

Kava is a tropical plant that is grown in South Pacific countries like Fiji and Vanuatu. Its ability to ease the mind and body makes it a natural remedy to things like stress, relaxation, sleep, and enhanced well-being.  The process to make kava is very tedious - grind the roots into powder, place the powder in a bag, knead the kava with water to extract the active components, strain into a bowl, and finally, serve as a drink.  

The end result is a bitter and earthy drink that contains wonderful benefits but doesn't taste great. As an alternative, Stay Cool provides kava that is not only ready-made but flavored with natural ingredients. We eliminate the need for customers to make their own kava or resort to purchasing it from unreliable companies. Our final product is a clean, better tasting kava for people to enjoy!

When to Drink Stay Cool and What to Expect

Kava is truly mother nature’s answer for all things stress. That is why people people down in the South Pacific have been drinking it for centuries. Though stress is very common, it can impact everyone differently - sleep issues, muscle tension, anxiety, restlessness, etc. What makes kava so unique is that it can alleviate all these stress-induced symptoms naturally.  However, what makes drinking kava that much better is that it can be used specifically for a stress-induced situation or complement any relaxing activity:

The average consumer is always on the go, so it is crucial for products to be ready-made and convenient.  This is a big reason reason why relaxation-based beverages like Stay Cool are in demand.  Instead of taking pills, or tinctures, drinks are the preferred way for people to find stress relief.  Our drinks not only provide the consumer the added freedom of taking Stay Cool when they need it the most, but we deliver a unique experience that consumers can enjoy.  Why do we say this?  Because drinking kava is truly a unique experience that no other drink can provide. Below is a quick rundown of what to expect when you drink Stay Cool for the first time.

Market Analysis and Opportunity

Demand for functional beverages is growing as consumers shift towards healthy choices. Even though there are countless functional drinks that help with energy and gut-health, there are very few products that actually focus on relaxation and stress relief. With stress affecting millions of people everyday, the relaxation beverage market is expected to grow substantially in the near future.

Just in the past 5 years, the relaxation beverage market has grown at a rate of 15.7% yearly. As a result, the industry produced $294 million in revenue for 2018. If the following trend continues, we expect (but not guarantee) that this emerging drink segment will continue to grow:

Now more than ever, stress is being impacted by workload at the office, economic responsibilities, social status, and maintaining a healthy balance between work and personal obligations. Overall, more than 70% of people in the United States say they need help in how they manage the effects of stress. Consumer demographics like Millennial's & Generation Z experience significant levels of stress and hold strong purchasing power. They not only prefer relaxation drinks over pharmaceutical aids, but they have a desire to spend money on discretionary products and discover new alternatives to stress relief. Not only does kava fit that need, but people are starting to take notice for it's truly amazing benefits. Though you may have never heard of it, kava has quickly gained national attention from key media outlets. 

After our recent showing at the Natural Products Expo West in Anaheim this past spring, we have noticed that our kava beverages cater to several different consumer demographics. Since stress is a very common issue, it impacts people everywhere even if they do not share similar interests.  Our drink not only targets the health and holistic-practicing consumers who perform yoga or meditation, but it also targets not so health conscious consumers like people who use vaping products or go to smoke shops. In essence, even though these groups appear to be widely different, they share the same common goal of wanting to use products that help relax and alleviate stress.  That basic need has opened the door for greater reach into the market space for our product.  Below are several different examples of where Stay Cool can be sold. 

Our success is not limited to the traditional sales model for beverage manufacturers. Being able to expand outside of grocery and convenience stores and into supplement stores, vape shops, and yoga studios improves our overall success as a company. More retailers and a wider net to attract our target consumers limits our chances of failure. Once we start selling our CBD drinks and other relaxation-based products to complement our kava line, Stay Cool will quickly establish itself as the go-to company for relaxation.

Current Status

Stay Cool has found plenty of success in the relatively short time of selling our relaxation beverages. During our first year at Natural Products Expo West, our company was highlighted by SPINS as a top product in the health and wellness beverage market:

At this trade show alone, more than 3,500 companies show up to exhibit and over 85,000 people attend to find out the latest and greatest in natural products. So, being recognized as a top product at this gigantic expo is something we're very proud of.  As for other accomplishments, we’ve been able to do quite a lot given the limited time and resources available to us as a company. Below are some of the other things we can proudly stand behind.

As an direct result of our early success, we have attracted the attention of 3 major distributors in the United States. Partnering with these distributors will be a great step in the right direction for us to continue our growth.  Starting in Q4, all 3 distributors will introduce Stay Cool to their network of customers, both regionally and nationwide. DPI, the largest of the 3 distributors, has established an efficient network of shipping centers in key geographic locations across the United States. The distribution divisions are strategically located to maximize responsiveness to customer demands and provide contiguous market coverage. In order to scale our growth successfully, we will use 3 of their 8 distribution centers as a starting point. These 3 centers will each account for 4 different states:

  • West (Arizona, Nevada, Texas, California)
  • Pacific Northwest (Oregon, Washington, Utah, New Mexico)
  • Southeast (Florida, Georgia, South Carolina, North Carolina)

Their network of retailers consist of grocery stores, convenience stores, juice shops, and college campuses. As a result of this new distribution partnership, Stay Cool will now be carried in a Southern California grocery store chain called Bristol Farms. Before the end of the year, we expect to be placed in a number of other retailers that buy directly from DPI distribution.  

As for the other two 2 distributors, they are regionally based within the United States. Their clients include juice shops, counterculture stores, convenience stores, vape/smoke lounges, herbal and wellness shops, and corporate offices.  These distributors will focus on different states - Florida, Georgia, and Michigan. 

Partnering with these new distributors will provide an opportunity for Stay Cool to greatly increase our sales potential.  However, prior to these new partnerships, we have still been able to create a high level of reoccurring orders and establish a monthly revenue stream that has been steadily growing.  Our sales for 2019 have gone up considerably and if the trend continues, we are on track to close out the year with more than double our output from last year: 

The fact that we've been able to generate this much revenue without breaking into the grocery store market or selling to distributors has us excited for our future sales growth. As an example, the distributor that will sell throughout the state of Michigan has a network of over 250 retailers.  As stated in the graph above, our average order size for retail stores is roughly 9 cases - 3 cases per flavor. Based on just this distributor's network of clients and our average order quantity, we anticipate ramping up our production runs very quickly in order to fill these orders. 

Future Outlook - CBD

As mentioned earlier, we plan to expand our company offerings to cater to the demand for relaxation-based products.  An example of this is to start manufacturing products that contain CBD.  Though CBD can be provided in various ways, it is expected that beverages will be the preferred method of consuming it. That's why there has been a sudden increase of CBD beverages to hit the marketplace.  The revenue from CBD drinks was $12 million in 2018, and the projections see the market surpassing $200 million by 2022.

Though kava shares similar benefits to CBD, it is important to provide a wide range of products that can canter to individual needs.  Kava is great for relieving stress-induced symptoms like anxiety and insomnia, whereas CBD is great for physical aliments like inflammation and chronic pain.  Retailers prefer selling products from a single company that have multiple SKU’s, so we are taking the necessary steps to ensure our success for the future. Offering CBD drinks further increases our market presence in the relaxation beverage space and makes us that more attractive to retailers. By staying ahead of the curve with product innovation, we hope Stay Cool will distinguish itself as a true wellness company that retailers will want to carry.

Both the formulation and manufacturing process has already been established internally for the CBD beverages. We expect to complete our first test run of CBD beverages at the beginning of October in preparation for Q1 of 2020. Most distributors and retailers like to review new products during that time so we will have both our kava and CBD beverages ready for distribution.

Lastly, as the need for relaxation products continues to grow, CBD is starting to find its way into different product applications.  CBD balms and creams are becoming more popular so we have established connections to manufacture those when the time is right. Another thing we are seeing a demand for is the use of CBD to help out our furry friends.  Pets owners are looking for natural ways to ease physical aliments or separation anxiety from dogs and cats.  So, when we have the necessary capital and resources in place, we plan to add CBD pellets and soft chews to our product offerings as well. 

Trending in the Right Direction

The demand for health and wellness products continues to grow at an accelerated pace. Health-conscious consumers are seeking natural alternatives to stress relief and looking at beverages to fulfill that need. Not only do we have a proven kava beverage that is successful in generating monthly revenue, but we strategically developed a path for future success.

In general, the potential market size for relaxation-based beverages has Stay Cool excited for future business.  Market analysts predict that the relaxation drink market can reach upwards of $1.3 billion in the coming years. As a rule of thumb, leading companies in the space will shoot for a 10% market share.  That is our goal moving forward as we continue to build upon our past successes. As for other future goals, we hope to become big enough to grab the attention of larger companies. Just like with any new segment within an industry, larger corporations look to acquire the smaller companies making headway within a developing market.  We cannot guarantee that this will happen, but we're companies like Coca-Cola take notice as we strive to become a leader in the relaxation beverage space.

Stay Cool has established a solid foundation for current and future success. We have a great brand identity, a solid business structure, and the desire to become a successful relaxation beverage company.  Nonetheless, we are all about helping others ease the mind and body.  So, we hope you will join us in our journey to help as many people live a more healthy, less stressful life!

Overview