Kevin O'Leary's investment in Zipz Wine was the biggest-ever "Shark Tank" investment at the time of the recording, per Just Wine. O'Leary, a self-proclaimed wine connoisseur and vineyard owner, was so excited about the deal that he tweeted about it. He guaranteed success for Zipz Wine if he could get it into Costco, where he thought it would be a perfect fit. Unfortunately, the product never made it onto Costco's shelves.
According to Small Business Journal, Zipz Wine failed to generate profits in the first couple of years after the deal, even though sales appeared to have been doing great. Andrew McMurray decided that peddling wine "was simply not going to work" with so many better-established brands to choose from, and the business model needed to change. So "Shark Tank"'s largest catch shifted to being a business-to-business packaging company focused on its patented design, rather than a business-to-consumer company that sold wine. This meant Zipz could partner with winemakers. McMurray explained that "it turned our competitors into endorsers of our product [the packaging]. Instead of competing with the best brands in the industry, they were now advertising our product when they put their wine in our bottles."
Despite a stunner of a deal with Kevin O'Leary, Zipz Wine didn't make it in the winemaking business (per Just Wine App). So how do on-screen deals translate to actual business results? When sharks and entrepreneurs shake hands at the end of a "Shark Tank" episode, it seems like the deal is sealed and success is guaranteed. But even for some of the best "Shark Tank" kitchen tools, plenty of work remains to be done.
Zipz Wine is a line of single serve wines that come in a goblet-style wine glass. The wine comes prepackaged in a plastic wine glass; the entire glass is shrink wrapped. When it comes time to drink your wine, you remove all of the shrink wrap and enjoy. With the shrink wrap removed, the product really resembles a normal wine glass. The glass comes with a lid that can be screwed on to store for later. The wine comes in several different white and red varieties. Mr. Wonderful struck what is now the biggest deal in Shark Tank history for Zipz.
As soon as Andrew McMurray, chief consultant and representative of Zipz Wine, began presenting his company's line of single-serving wines to the "Shark Tank" investors, they started comparing him to the founder of Zipz competitor Copa Di Vino, James Martin, the only entrepreneur to decline a deal on the show in two appearances.
Zipz sells single servings of wine packaged in sealed, durable plastic glasses. The concept has been around for several years, but McMurray tells the Sharks that the Zipz glass is engineered in a way that allows for a much longer shelf life than its competitors' offerings and is also recyclable, resealable, and incredibly durable. The design is patented.
Part of the reason Copa Di Vino's Martin, who's in the same business, is remembered by the Sharks as "obnoxious" and frustrating is that he was unwilling to pursue licensing deals. Zipz Wine, on the other hand, is looking to supplement its own wine offerings with major licensing deals.
In its first 16 months, McMurray tells the investors that Zipz made a $130,000 licensing deal with Fetzer Vineyards to get single servings of the wine in six Major League Baseball stadiums. Zipz is also in talks with three of the world's biggest 10 wine producers, including Yellow Tail.
He explains that the company already has $8.5 million invested in it over a pool of 25 investors that are primarily Wall Street types and include three owners of professional sports teams. The company has gotten its products into 1,200 US stores, including Wal-Mart locations, and has sold $650,000 of Zipz brand wine since its inception.
Eventually, every Shark except for O'Leary declines from making an offer because they don't see eye to eye with McMurray about the direction of the company. But O'Leary, the wine expert, has a connection with Costco, the world's largest wine vendor. In 2013 it sold $1.46 billion worth of wine.
O'Leary tells McMurray that he's been in talks with Costco about getting his O'Leary Fine Wines brand into its stores. He said that after first meeting with Costco's wine representative, it took him two years to prove that his name recognition was strong enough to push bottles. But then he needed to determine a way to make the wine more affordable, since 97% of the wine sold in the US is under $10, he explains.
"My adrenaline was certainly rushing," said McMurray, who appeared on ABC's "Shark Tank" Friday and scored the show's biggest investment for Zipz, a single-serving, glass-shaped wine container. "('Shark Tank' judge) Robert Herjavec said I wasn't sweating like the other wine guy."
"Shark Tank" cast member Kevin O'Leary offered Zipz $2.5 million if Zipz gets picked up by Costco, while his fellow cast member Lori Greiner offered to invest in Zipz with the goal of getting a wineless, reusable version of the plastic container into stores.
McMurray wasn't the first to appear on "Shark Tank" with a single-use wine container. In two previous seasons Copa di Vino founder James Martin appeared, perspired and walked off the show without accepting offers from the sharks.
In stores Zipz Wines retail for $3.99 per glass, according to the company's website, but Zachys sells them for $2.99 each. The packaging allows the wines to be stored up to 18 months and the calorie count ranges from 143 to 156 per 187ml glass.
ZIPZ Wine is a single-serving wine glass featuring a goblet design. Zipz wine comes in a prepackaged plastic wine glass, which is shrink-wrapped. All you need to do is remove the shrink wrap, and you are ready to enjoy your wine.
Once you remove the shrink wrap, the zipz wine glass is similar to the regular glass. These wine glass features screw lids to store wine inside them. You can purchase different varieties of red and white wines from Zipz wine. Also, Zipz got the biggest deal in the history of the Shark Tank show.
ZIPZ Wine is ready to drink single-serving wine glass, a perfect product for people who love to drink while traveling. The ZIPZ Wine bottle packages the wine of your choice inside it and resembles the standard wine glass.
Zipz Wine is a portable single-serving packed wine with a unique plastic Wessel that appears as a wine glass. The outer covering of the packaging can be zipped off and is dual functioning as a coaster. The leak and the spill-proof product are designed to protect the wine from UV rays.
Zipz Wine has become popular due to its convenience and portability. Zipz Wine is a joint venture between Andrew McMurry and J. Henry Scott, experts in the wine industry. It is currently sold in 1,200 stores across the US and is licensed by Arctic Beverages under the name Chillin brand of wines.
All you need to do is remove the outside wrapper, and you can enjoy your lovely drink. The founder of Zipz wine advertises the product as a portable wine glass that does not spill or leak while traveling.
Andrew presented his product zipz wine, on the shark tank show seeking an investment of $2.5 million in exchange for 10% of the Zipz Wine. The sharks gave unusual reactions listening to the amount Zipz wine founder asked for the investment in their product.
The founder of Zipz Wine explained that Zipz is a packaging and licensing company that provides an alternative to disposable bottles and glasses packed with wine for easy serving. Andrew unzipped the outer cover to display the goods.
Andrew says the investors are primarily Wall Street professionals and include three professional sports franchise owners. According to McMurry, the Zipz wine has generated $650,000 in revenue since its launch.
For Andrew, this was about grandiose concepts. Zipz was destined to be his legacy. After decades in the wine industry, he was determined to leave a lasting impression. You have performed admirably, grasshopper.
Zipz Wine ceased its wine-making business and shifted its focus to licensing deals. You can buy zipz wine packets in various stores around the country and order them from eCommerce websites such as Amazon and Walmart.
As a result, they decided to be no longer involved in wine-making, instead focusing solely on licensing their packaging. Zipz Wine products can still be found in various stores and websites like Amazon.
The company started when Andrew approached Scott in the Citi Field, New York with the idea of single-serving packaging. The zips eventually partnered with Fetzer vineyard, partnering with an established winery meant it could help them get their products in even more stadiums and arenas. But, Andrew was sent to the shark tank to get a bigger deal.
Andrew demonstrated the product by zipping off the outer covering from the product. Later, Andrew reveals the covering will protect the wine from UV rays. Andrew continues to unscrew the cap of the glass and attach the lid to the bottom showing its duality as a coaster.
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