In the 11th episode of the shark tank in the 6th season one company took the largest investment the show has ever seen. Andrew McMurry appeared on the show asking for an investment of $2.5 million for 10% of company stakes.
Zipz Wine is a portable single-serving packed wine. The wine is packed in a plastic Wessel that appears as a wine glass. The out covering of the packaging can be “zipped” off and as a dual functioning lead which works as a coaster as well.
Andrew boosts the product by saying that the portable glass is leak and spill-proof, Andrew shows sturdiness by literally standing on the glass in front of the sharks. The sharks seemed very surprised by the asking price but Andrew did a great job in marketing the product and walked out with the investment of $2.5million for 10% of the stakes.
Zipz Wine at a glance:
- Portable single-serving packed wine.
- Founder: Andrew McMurry and J. Henry Scott
- Asked For $2.5million for 10% at $25 million valuation on Shark Tank.
- Received $2.5 million for 10% from Kevin.
- Currently in business.
Index:
Who is Zipz Wine Founder?
Zipz Wine is a joint venture between Andrew McMurry who is the creator of the Zipz Wine and the president of Zachys Wines and J. Henry Scott who was the visionary behind the Zipz Wines.
Andrew McMurry and J. Henry Scott are experts in wine had the vision to develop packed wine in single servings which were more sanitary and wrapped than the previous similar products.
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.
Did Zipz Wine get a deal on Shark Tank?
Andrew approached the tanks for an investment of $2.5 million for 10% of the stakes. The sharks were shocked by the deal price. Andrew continued by saying Zipz is all about packaging and licensing and that it would be a new alternative to miniature bottles and plastic glasses.
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.
The sharks states there has been a similar product on the shark tank before called “Copa-di-vino” the founder James Martin had appeared on the show twice refusing the deal with tanks both times.
When asked about the investors Andrew explained the company already had 25 investors who had invested 8.5 million dollars. Andrew further explains the investors are mainly Wall Street professionals and include three owners of the professional sports team.
McMurry states that the Zipz wine has made $650,000 since its inception he further explains the Zipz wine is sold at 1200 locations in the US and states that he is now looking forward to having sharks on board to get their product in Costco.
Eventually, every shark except O’Leary steps out. Kevin explains to get his Costco product they need to reduce the price of the product. To which Andrew explains they can make some changes with the packaging.
Kevin O’Leary accepts the offer on the condition that he will be able to buy another 10% of the stakes during the exit. This means if the company is valued at $50 million during the time then O’Leary will have the right to buy 20% of stakes which will be valued at $10 million.
Andrew requests to make the phone call to make sure if the deal was okay with the investors. Andrew McMurry got finally was able to get the investment of $2.5 million making it the biggest investment received in the show.
What Happened to Zipz Wine After Shark Tank?
In beyond the tank a spin-off of the show they updated about Zipz Wine. The segment showed the challenges they had to face after Shark Tank. The company wasn’t prepared for the increased sales and couldn’t keep up with the high demands.
They eventually went out of the wine-making business and kept their focus on licensing. The products are sold in various stores and websites like amazon. Unfortunately, the wine didn’t make it to Costco. Arctic beverages license it and selling with the name Chillin brand of wines.
Since leaving the wine-making business one can’t buy the product but can license the packaging. One can look for licensing deals with them from its website.
Zipz wine net worth and revenue:
During the Shark Tank, McMurry revealed that they were into licensing and were also into the wine business. They had partnered with Fetzer which helped them get their product in 6 stadiums and sports events, Andrew further states they were in the talk with more wine companies such as the yellowtail.
When asked about the sales Andrew revealed the company has made $650,000 since its inception and is sold at 1200 stores across the US. In 2017, in an episode of Beyond the Tank they revealed the company had gone out of the wine business and is only focusing on the licensing of Zipz wine packaging.
The company had a pool of 25 investors in 2014 who had invested $8.5 million into the business. Andrew has gone on shark tank to offer 10% of the stakes for $2.5 million, which is valued at $25 million in 2014.
Andrew revealed the investors were majorly Wall Street professionals and included three sports team owners.
Zipz wine Competitor’s details:
During the pitch it was revealed there had already been a similar product to Zipz Wine, however, Zipz Wine had an upper hand on its competitor stating they had the proprietary right over the packaging unlike the other brand “Copa-di-vino”. According to Andrew, no other brand offers the shelf life as their product which can be stored for 12 months.
Zipz Wine has a lot of competition in the market few of them are mentioned below.
Copa-di-vino:
Copa di vino is a very similar product to Zipz wine as it is also a single serving packed wine glass. Copa di vino was found by James martin. He had the idea while he was on the bullet train to southern France. Copa di vino is estimated to have a revenue of $70 million in 2021.
The Vini:
The Vini launched its first-ever single-serving wine glass 8 years ago. Created by Sunny Feaser who is a lover of wine, wanted to deliver fine wines in single-serve packaging. The product is available at selected retailers in South Florida and on online markets.
The Vini offers white and red wine in a sleek glass tube of 187 milliliter which is equivalent to a quarter of the regular-sized bottle of wine.
Is Zipz wine still in business?
Yes, Zipz wine is currently in business. They are open for licensing deals and even Arctic beverages license it and sell with the name Chillin brand of wines.
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FAQs:
What is Zipz wine?
Zipz Wine is a portable single-serving packed wine. The wine is packed in a plastic Wessel that appears as a wine glass. The out covering of the packaging can be “zipped” off and as a dual functioning lead which works as a coaster as well.
Who founded Zipz wine?
Zipz Wine is a joint venture between Andrew McMurry who is the creator of the Zipz Wine and the president of Zachys Wines and J. Henry Scott who was the visionary behind the Zipz Wines.