Justin Fenchel, Brad Schulz, and Aimey Steadman seek an investment for BeatBox Beverages, mixed drinks in a box, in episode 604. The team, along with two other co-founders, met in business school in Austin, TX. BeatBox Beverages came to be when Justin wanted an alternative drink to bring to parties and events. Rather than tote a 30-pack of beer or a box of wine to a gathering, he decided to create mixed drinks in a box.
BeatBox Beverages are actually made from orange wine and they come in four flavors: Blue Razzberry Lemonade, Cranberry Limeade, Box A’Rita, and Texas Tea (available in Texas only). The drink is 22 proof and 11.1% alcohol by volume; it’s low calorie (about 40 calories per serving) too. Each box of BeatBox beverages holds 5 liters, enough for over 30 5 ounce servings. At $19.99 per box, it delivers a lot of bang for your buck!
The company, founded in 2012, had an unsuccessful IndieGogo Campaign in early 2013. They raised $6000 on a $10,000 goal. Unlike Kickstarter, which doesn’t disburse funds until a funding goal is met or exceeded, IndieGoGo allows entrepreneurs to keep all money raised, whether the goal is met or not.
So far, Beat Box Beverages only sells in Texas. They will be selling online nationally “soon” according to their website. One of the obstacles facing alcohol sales is the product must be licensed in each state individually, which can be a cumbersome and time-consuming process. They are likely looking for a Shark to help with national distribution.
Will BeatBox Beverages toast to a deal with a Shark?
BeatBox Beverages Shark Tank Recap
Justin, Brad, and Aimey enter the Tank seeking $200K for 10% of the business. They have an expensive bottle of wine on a table and call it BORING! Then they wheel out the Beatbox Beverages and explain the product, calling it a “party in a box.” They hand out samples to the Sharks; Lori and the other Sharks like it. Mr. Wonderful thinks it tastes like crap!
They explain they started by self distributing and didn’t have time to market it. They now use a co-packer. The business earned $245K in 14 months with half of those earnings from the most recent quarter. They started with $55K and $100K in debt. Justin explains they want to expand by tastings, Mark thinks it’s a bad way to leverage it better. He wants bigger distribution.
Mr. Wonderful explains how beverages that go viral can kill it in some markets, but get killed in others. Kevin thinks getting distribution will be difficult. Barbara offers $400K for 20%. Kevin offers $200K for 20% because he’s worth twice as much as Barbara and he knows the space.
Mark doesn’t see it as a wine product and thinks they need to grow faster. He thinks he’s best suited to grow it quickly and offers $600K for 33%. Justin counters with $1 million for 33% and Mark says he’ll do a deal. The result: DEAL with Mark Cuban!
BeatBox Beverages Shark Tank Update
The Shark Tank Blog constantly provides updates and follow-ups about entrepreneurs who have appeared on the Shark Tank TV show. Once an episode has aired, we monitor the progress of the businesses featured, whether they receive funding or not and report on their progress.
BeatBox Beverages went forward with Mark Cuban and is featured in Beyond the Tank episode 110. Read a full recap and update HERE.
Fast forward to November, 2021 and Beat Box is the fastest growing brand in its category. The company is now called Future Proof Brands LLC. They’ve added to their line which now includes Corkless, a canned single serve wine; Brizzy, a seltzer cocktail and Vizzy, a hard seltzer. They are in over 12,000 stores including. Kroger, Circle K, Quik Trip and many more. Annual revenue is $11.5 million. In March, 2022, they surpassed $2 million in equity crowd funding on Wefunder. The company hopes to raise $5 million at a $190 million valuation. The WeFunder campaign ended up raising $2,222,117.
As of July, 2022, BeatBox continues to be the number one fastest selling 500ml wine in the U.S. They are in over 34,000 retail outlets and 2021 revenue was $18 million. 2022 revenues are projected at $20 million with 1.8 million cases shipped. In September, 2022, they became the official punch of the Alabama Crimson Tide and the products will be sold at all men’s and women’s sporting events.
Another Update Segment
The company gets an update segment in episode 1402. In the update segment, they explain they did $350,000 in sales before Shark Tank and $750,000 after. The problem was, sales flatlined for two years. They got into 400 Wal Marts and didn’t sell through. They decided to start selling single serve products and sales went from $1 million to $2 million. In 2019, they doubled again to $4 million. Since appearing on the show, they have $57 million in lifetime revenue. As of October, 2022, they’re in over 2000 7-11 stores and have 450 distributors in 48 states. Mark calls the three entrepreneurs fun and well connected to their customers.
In March, 2023, they announced they will be sold in the American Airlines Center during Dallas Mavericks and Dallas Stars games. As of July, 2023, the company is valued at $200 million. In the season 15 premier, Mark Cuban said they’ll do $100 million in sales for 2023. As of April, 2024, I can confirm that Mark was right – they did over $100 million in 2023.
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