Highlights
- Andrew McMurray presents Zipz Wine, single-serving wine in a recyclable plastic wine glass, on Shark Tank
- Zipz Wine offers four varieties and has sold $130,000 in licensing fees with $8.5 million invested
- Kevin O’Leary invests $2.5 million for 10% equity with an option for another 10%, making it the biggest deal in Shark Tank history
Overview
| Category | Details |
|---|---|
| Name | Zipz Wine |
| Founders | Andrew McMurray |
| Industry | Beverage |
| Product | Single-serving wine in recyclable plastic glasses |
| Funding | $8.5 million in investments |
| Investment Ask | $2.5 million |
| Equity Offered | 10% |
| Valuation | $25,000,000 |
Andrew McMurray hopes the Sharks like his version of single serving wine when he pitches Zipz Wine in episode 613. Scott likes wine, but didn’t like the single serving options or packaging that was available, so he set out to create his own brand. The centerpiece of Zipz Wine is the single serve container that’s shaped like a wine glass. The lid, once opened, also doubles as a coaster.
The Zipz wine “glasses” are made from recyclable, BPA-free, plastic stemware that have the look and feel of a real wine glass. Scott envisioned Zipz at stadiums, pools and other places where wine glasses aren’t an option. The wine inside is made for Zipz by Fetzer Vineyards and there are currently 4 varieties: Cabernet Sauvignon, Pinot Grigio, Chardonnay, and Merlot.
McMurray put the company together from concept to production in 10 months – unheard of in the wine industry. He’s assembled a top-notch team and has the product on store shelves in 20 states. You can also purchase Zipz online.
The product is similar to another wine product that appeared on Shark Tank. Perhaps Mr. McMurray is looking for that special Shark who will take Zipz BIG quickly. Will a Shark toast to a deal with Zipz?
Zipz Shark Tank Recap
Andrew enters seeking $2.5 million for 10% of the business. He says it’s all about PACKAGING and LICENSING. He says it’s right up Kevin’s alley and Kevin says “you are wise, grasshopper.” He demonstrates how to open it, then hands out samples. The Sharks ask how Zipz is different from Copa Di Vino.
The difference between Zipz and Copa Di Vino is shelf life; Zipz lasts for a year. Kevin asks him to clarify the patent. Andrew explains he’s sold $130K in licensing fees to put it into major league ball parks. He also says there is a team of investors that have invested $8.5 million. Kevin thinks the packaging has merit, but the pricing is too high at $2.99 per glass.
As Kevin and Andrew argue, Mark says he’s out. Kevin then explains how he got into COSTCO with O’Leary Wines. Robert wants to know why he doesn’t just license the packaging. Kevin is still stuck on the price point and Daymond goes out. Lori likes the design, but she thinks the business is too complicated – she’s out.
Robert likes the product, but wants it to be a straight licensing deal – he’s out too. Mr. Wonderful keeps harping on COSTCO. Right before a commercial break, Kevin says if he teams up with Zipz, they need to lower the price-point. After the break, Kevin asks how Andrew can get the price down. Andrew says he can get the price down with scale. Kevin then offers $2.5 million for 10% with an option to buy another 10% at a $25 million valuation IF he gets them into COSTCO. Andrew steps out and explains the deal to his partners.
When Andrew comes back in, he says the partners are a bit confused. Andrew accepts and he and Mr. Wonderful toast to a deal.
RESULT: BIGGEST DEAL IN SHARK TANK HISTORY! Deal with Kevin for $2.5 Million for 10% with an option for $2.5 Million for an additional 10%
Zipz Shark Tank Update
The Shark Tank Blog constantly provides updates and follow-ups about entrepreneurs who have appeared on the Shark Tank TV show. Kevin O’Leary closed the deal with Zipz and is actively working with them on licensing deals.
In Beyond the Tank episode 208, a detailed update on the business and its challenges is provided. Read about it HERE.
Unfortunately, in 2016, Zipz got out of the wine making business but they still license their packaging to other beverage manufacturers.
Posts About Zipz on Shark Tank Blog
Zipz Company Information
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Video
How would they get a patent on the product when the Copa de Vino guy had a very similar idea?
I wonder how they got a patent for the product since it is so similar to the Copa de Vino guy?
The UV resistant plastic wrapper protects the product for greater shelf-life.
That’s the twist on the patent.
A clever improvement that should have been obvious to the Copa developers.