As a young child, Alpharetta’s Ethan Sanborn wasn’t a fan of milk alone, but he liked the taste of a latte.
So he and his dad David Sanborn, a self-described inventor and “tinkerer,” started Kiid Coffee, a sugar-free, caffeine-free powder with added nutrients that could be added to milk.
The business quickly found an audience online. Largely through Instagram videos, it generated an impressive $150,000 its first eight months. A recent appearance on ABC’s “Shark Tank,” taped last September and aired March 7, has turbocharged sales even more.
“We’ve seen a huge reaction,” said David in a Zoom call with The Atlanta Journal Constitution. Kiid Coffee, available on its website or Amazon, is sold as a powder added to milk for $14 per 12 servings. “We’re just trying to keep our heads above water to get inventory in.”
“We have a multiple thousand people waiting,” said Ethan, a second grader in Dolvin Elementary School in Alpharetta. .
Ethan, who broke two bones before a doctor noticed a calcium deficiency, loves his own product, which comes in three flavors: caramel latte, choco latte, and original latte. And he hasn’t broken a bone since he started using Kiid Coffee.
On the show itself, the father-son team gave a spirited presentation.
“What parent would hand their kid real coffee?” David said during the pitch.
“This guy!” Ethan said pointing at his dad as the Sharks laughed.
David: “Don’t worry. This coffee is.. tell him, Ethan!”
Ethan: “99.9% caffeine free!”
David: “That’s less caffeine than a single ounce of milk chocolate... Kiid Coffee is loaded with nutrition. It’s made with organic water processed decaffeinated coffee which is rich in antioxidants. It has probiotic fiber for healthy digestion, calcium for strong bones and...”
Ethan: “...so much more!”
Four of the Sharks showed interest: Mark Cuban, Lori Greiner, Kevin O’Leary and Daniel Lubetzky.
The Sanborns said they wanted $50,000 for 5% interest in the company. O’Leary first offered $50,000 for 30%. David Sanborn shot that one down quick.ly.
Cuban bowed out at first because he felt the company was too young, but showed more interest after David mentioned that several coffee shops now sell Kiid Coffee as an alternative to hot chocolate.
Cuban and Greiner teamed up to offer $50,000 for 20%, which Lubetzky matched. Ethan countered with 10%. Lubetzy said he’d offer 5% in stock options back to the Sanborns once David quits his full-time job and focuses only on Kiid Coffee. This effectively reduced his offer to 15% ownership for $50,000.
Although O’Leary matched Lubetzky’s offer with no strings attached, the Sanborns chose Lubetzky, founder of the Kind snack company who sold his business to Mars for $5 billion in 2020.
Credit: Disney
Credit: Disney
David Sanborn said he likes that Lubetzky has a deep background in retail sales and hopes his expertise will help Kiid Coffee eventually get into supermarkets and grow overseas. “I text Daniel back and forth,” he said. “He’s surprisingly accessible for a billionaire.”
The Georgia Tech grad isn’t quite ready to give up his full time job in strategy and operations at a consulting firm, but he hopes to replicate his previous success creating and selling FLAVORS Food Toppers for dogs in 2020 to Beaumont Products. And he’s thrilled to be doing this with his son.
“It’s fun to have a business and I really want to make money and I love making stuff,” Ethan said.
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