Patent Attorney and Founder
Achal: Hi Sharks, I’m Achal.
Russ: And I’m Russ, and we’re Cabinet Health, the sustainable healthcare company. Did you know that the medicine industry produces 190 billion single-use plastic medicine bottles every single year? That’s enough to make a line from here in Los Angeles to Australia 325 times.
Achal: Of all those bottles, only 3 to 7% are recycled; the rest end up in our oceans, landfills, and eventually our bodies.
Russ: Sharks, in my hand is the amount of microplastics that you unknowingly ingest every single year. That’s 260 grams of microplastics, which is like consuming a credit card every single week. Cabinet Health is a sustainable healthcare company that has invented the world’s first compostable and refillable system. Today, we sell and manufacture high-quality over-the-counter medicines and supplements, and we’re on a mission to eliminate single-use plastic one cabinet at a time.
Achal: We’re positioned to change this industry entirely, and we’re here today to ask for a $500,000 investment for a 2.5% stake in Cabinet. So, Sharks, are you ready to revolutionize the healthcare industry?
Russ: Sharks, in front of you is a sample of our products. It starts with our refillable, stackable, and super space-efficient bottles. Also, right next to that are our compostable refill pouches that meet FDA standards. While they might look like plastic, they are made out of backyard compostable materials. I see you opening them—it’s a child-resistant cap, and then you hear that satisfying snap. That’s our closure system. Cabinet promises customers that we’ll provide our products at a price lower than the brand name, with more pills. Customers continually save by staying sustainable and using our plastic-free refills, saving about 20 to 30% on pricing.
Kevin: So the refills come in these packages? This is the idea?
Achal: Absolutely. The way our product system works is when you buy a starter set, it’s around $10 to $20. That glass bottle you have in front of you is a forever bottle. You purchase it once, and we make a 60 to 80% product margin on that.
Kevin: So you’re selling a commodity. You’re appealing to me because I care about sustainability. Is that the story?
Russ: That’s a really important part of it, Kevin. We actually have 700,000 customers to date, and the reason they buy from us is, number one, we offer better value. Customers can save sustainably on refills. The first refill is where the savings start because you’re not using expensive packaging.
Kevin: This is an expensive package, Kevin. Is it even better?
Russ: Yes. Our products are priced lower than the brand name. The reason we can do that—I’ll let Ael share about our supply chain advantage—is that customers save on the first purchase.
JD: Would you buy it?
JD: The containers have a utility patent, right?
Matt: No, I wouldn’t. It seems like they were asking for a considerable amount of money for very few shares.
JD: Yeah, they offered a royalty on the number of units sold. The whole premise is based on the idea of eliminating single-use plastics.
JD: That problem doesn’t weigh on me as much because plastics are recyclable, right?
Matt: We recycle them where I live. I don’t know if they go to a separate landfill, but can’t they be melted down and repurposed into recycled plastic?
JD: It’s interesting; it’s all based on that premise. They do have a novel closure mechanism, probably airtight and ergonomic. On the patent side, it’s specific to medicines, which is great. The biggest positive is that their utility invention is useful for any type of container, not just healthcare.
Matt: From a trademark perspective, they’ve done a great job covering their bases. They have multiple trademark registrations at the USPTO: word marks, design marks, retail store sales, product information, and downloadable software applications. They’ve applied broadly and strategically. I have no qualms about how they’re filing their trademark applications—they look great.
JD: It’s not an actual cabinet, so I think it’s definitely suggestive. It brings to mind the concept, making it registerable.