22below founder Kenny Ramsey stepped away from a successful career in thermal technology in 2017, ready to dive head-first into his own startup venture.
The Charlotte company launched its first product, an insulated silicone can sleeve, after a successful Kickstarter campaign that raised more than $23,000. The sleeve's silicone material is designed to keep cans insulated and cold, while being thin and flexible enough to fit into your back pocket.
22below has grown quickly in the last three years, with $184,000 in gross sales in 2018, $598,000 in 2019 and $1 million projected for 2020, Ramsey said. It was also named a 2019 Inno on Fire winner in the B2C category.
Ramsey said while the original can sleeve---which fits a standard can size---remains a strong seller, he soon discovered there was an opportunity to develop a more slender can sleeve after realizing a large portion of his customers were women.
Ramsey said the hard seltzer and "skinny can craze" helped determine what 22below's core product would be moving forward.
"When they came out with seltzers, girls who were drinking mixed drinks because they don't like beer started drinking out of cans," he said. "I think it was perfect timing and paring of a product."
Earlier this month, the company launched three new neon colors for summer: orange, green and pink.
"The vast majority of people who like our product have told me it's because it's like an accessory. It’s the world we live in," Ramsey said. "Our product has made it into the realm of not just an item for functionality, but a stylish can sleeve."
And though the can sleeves have proven successful, Ramsey said he's always working on 22below's next big idea. To help determine what his customer base would respond to the best, he sent out a survey asking what types of future products they would like to see.
"We heard back from women that they want a feminine backpack cooler that works well, looks cute and doesn’t weigh a lot," he said. "I've designed and developed this backpack cooler that is going to have a really poppin' snakeskin print."
Ramsey said the backpack, similar in function to other major brands like Yeti and RTIC, will weigh just one pound when empty. It will fit a 12-pack of slim cans and an ice pack. The bag is designed to keep drinks at 35 degrees Fahrenheit.
The backpacks, which will retail for $120 to $150, are expected to sell on its website in August.
While product expansion is important, Ramsey said the can sleeve is the heart and soul of 22below. To ensure the product remains fresh, he's been working on second generation sleeves.
"Big picture is working on Gen-2 koozies," he said. "What you’ve seen, what’s out there now, was our first-to-market product. We knew if we tried to get it perfect on the first try we’d never make it to market."
Ramsey's goal, which he said he's achieved, was to first prove the product then double down on making it better. The new can sleeves will weigh one ounce, in comparison to the current sleeve, which weighs three ounces.
He said while it may not seem like a huge difference, the new sleeve will not only feel noticeably lighter, but will be a major cost savings measure and allow 22below to potentially cut down on shipping costs to the customer.
"Silicone is very expensive and has a lot of weight to it," he said. "Being able to reduce weight on our product allows us to get into a different shipping category and save between $50,000 and $60,000 per year in shipping. That's a salary just off weight savings."
Ramsey hopes to have the new sleeves for sale in time for the holidays.
