Single serve wine is a huge industry but Andrew McMurray wanted to improve on the convenience of the product. His wine comes already served in a durable and unbreakable wine glass. Will the sharks make an offer on this innovative product on
- Entrepreneurs: Andrew McMurray
- Business: Single serve wine
- Ask: $2.5 million for 10% equity
- Result: $2.5 million for 10% equity + Option to Buy More Equity In Future
- Sharks: Kevin O’Leary
Andrew brought his unique single serve, Zipz wine product to the tank. His wine comes already packed in a wine glass but not just any glass. His is so durable that he even demonstrated its strength by standing on it. He passed passed out samples to the sharks. Wrapped in specialized UV paper to protect the shelf life of the wine, this product is easy to store and serve.
The vision for Zipz was currently unclear, at least according to Andrew. He believes that his company’s unique wine flavor isn’t the only item of value within his company. The patented packaging with UV paper around the glass was also of value in his mind. The sharks were struggling to understand how it could be possible that Andrew placed a $25 million valuation on his company, especially if they were going to be expected to invest $2.5 million of their own money.
Manufacturing a single glass costs Andrew just under $0.95, while he is able to sell it at a price point of $3.00. He has early-stage partnerships with baseball parks and sports arenas with the hopes of collecting licensing royalties on his patented technology. Unfortunately, sales numbers for Zipz did not come close to justifying the insane valuation that he placed on his company.
Lori Greiner and Mark Cuban decided to drop out along with Daymond John and Robert Herjavec, but Kevin O’Leary said that he would be interested if Andrew could get the price point down significantly. He pledged to help get his product into Costco stores across North America, but only if he could take meaningful steps to lower the production costs of a single glass of wine.
Kevin offered Andrew $2.5 million for 10% equity with an option to buy more equity in the future. After a quick phone call with investors, Andrew accepted the deal from Kevin. What happened next for this wine business? Keep reading our Zipz update to find out.
You will be excited to learn that Zipz is still in business! Research for our Zipz update revealed that the company is still running as an organization that licenses its packaging technology, though an online presence seems to be absent. They don’t produce their own branded wine any longer and stopped doing so back in 2017. Kevin continues to help find new licensing opportunities for Zipz as they become available.
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Andrew Smith is the founder and owner of Shark Tank Recap. He is a longtime Shark Tank fan that has been watching it for years and has seen every episode multiple times. His friends know him as the Shark Tank expert, because he can answer any question about the show! His favorite Shark Tank products are Bertello's pizza oven and Bug Bite Thing!