Highlights
- Aaron Walls and Brett Vegas pitch BeerMKR, a home beer-making kit that automates the brewing process with a smartphone app.
- They seek $500,000 for 2% equity but decline Kevin O’Leary’s offer of a $500,000 loan at 9% interest for 3% equity.
- Despite not securing a deal on the show, they continue to grow, raising over $457,661 through crowdfunding and reaching a $12.7 million valuation by 2023.
Overview
| Category | Details |
|---|---|
| Name | BeerMKR |
| Founder | Aaron Walls and Brett Vegas |
| Industry | Home Brewing, Technology |
| Product | Automated Home Beer Brewing Kit |
| Funding | Secured crowdfunding post-show |
| Investment Ask | $500,000 |
| Equity Offered | 2% |
| Valuation | $25 million (at the time of the pitch) |
Aaron Walls and Brett Vegas hope the Sharks like BeerMKR, their home beer making kit that “democratizes the beer brewing process,” in Shark Tank episode 1223. The company started as a class project between Walls, Vegas and two others while they were attending Cornell for their MBAs. The original business is called the BrewJacket. That company sells more traditional, yet innovative, home brewing supplies for people who brew on a larger scale. Home brewing takes a lot of time and money – these guys wanted to make a product that makes it inexpensive, quick and easy.
The key element of BeerMKR is the app that automatically heats and cools the beer during the fermentation process. The guys call their machine “the Keurig of beer.” All the ingredients come pre measured and packaged and the machine takes care of the rest. It’s about the size of a microwave and costs $579 for the BeerMKR and a tap for storing your beer. Extra taps are $119 and their MKRkits (the actual ingredients to brew) are $59 four a four pack and $89 for a six pack. Each kit makes the equivalent of 12 bottles or cans of beer.
They got things rolling with a successful Kickstarter campaign that raised $398,276 back in October of 2018. They had some issues with shipping and production and shipped their final products in December 2020. Like many businesses, the global Covid-19 pandemic exacerbated their manufacturing and shipping challenges. They’re ready to “disrupt the beer industry” and tell the world about their product. A Shark could help with that.
Company Information
Video
Posts about BeerMKR on Shark Tank Blog
The Beer MKR – Home Brewing Kit
BeerMKR Shark Tank Recap
Aaron and Brett enter the Tank seeking $500,000 for 2% of their business. They give their pitch and the Sharks sample the beer. They like it, but they don’t like the $25 million valuation, especially when they learn the BeerMKR guys have only sold 24 units. To be fair to the Beer MKR guys, the Covid-19 pandemic pushed their production back 9 months.
Did Shark Tank Invest In BeerMKR?
While Mark, Alex, Barbara and Lori back away from the deal, Kevin makes an offer. He offers a $500,000 loan at 9% interest for 4% of the company. The guys counter with 2%. Kevin meets them in the middle at 3%. Aaron and Brett decline Mr. Wonderful’s offer, prompting the Twitterverse to speculate if they really wanted a deal.
BeerMKR Shark Tank Update
The Shark Tank Blog constantly provides updates and follow-ups about entrepreneurs who have appeared on the Shark Tank TV show. The guys started a Start Engine crowdfunding campaign the day their Shark Tank episode aired. As of July, 2021, they’ve raised $335,883. That campaign ultimately raised $457,661. In a second campaign, they raised another $129,251.17. As of October, 2023 annual revenue is $3 million and the company is valued at $12.7 million – all without a Shark!
More products from this episode! Check out other businesses that participated alongside BeerMKR.
