Zipz Wine Company offers a variety of single-serve wines in goblet glasses. Wine is pre-packaged in a plastic wine glass that has been entirely shrink-wrapped. Simply remove the shrink wraps from the wine when it’s ready to drink.
The result is similar to a standard wine glass once the shrink wrap is removed. Glasses come with screw-on lids for storing them.
There is a range of white and red varieties of wine to choose from. Zipz’s biggest deal in Shark Tank history was landed by Mr. Wonderful.
What is Zipz Wine?
Zipz Wine is a single-serving wine that is easy to transport. Wessel bottles resemble wine glasses and package the wine.
You can remove the outside wrapping to create a coaster that doubles as a lead. Andrew advertises the product by stating that the portable glass will not leak or spill, and Andrew also proves its ruggedness by standing on it in front of the sharks.
Although the sharks were somewhat surprised by the price request, Andrew pitched the product well and was awarded $2.5 million for 10% of the stakes.
Shark Tank made its largest investment to date on its 11th episode of the sixth season. Andrew McMurry appeared on the show and asked for $2.5 million in exchange for 10% ownership of a company.
Who is the Founder of Zipz Wine?
Zipz Wine is the brainchild of Andrew McMurry, founder and president of Zachys Wines, and J. The visionary behind Zipz Wine is Henry Scott.
J Henry Scott and Andrew McMurry, both wine experts, had the vision to create packaged wine in single-serving sizes that were more hygienic and more well-packaged than comparable items.
The idea for single-serve packaging was pitched to Scott at Citi Field in New York by Andrew. Zips later partnered with Fetzer Vineyard; this allowed them to expand the distribution of their product to more stadiums and arenas. The shark tank was transferred to Andrew for him to secure a larger deal.
Zipz Wine Before Shark Tank
J Henry Scott was the visionary behind Zipz. A longtime wine business expert, Andrew McMurray, experimented with new ways of packaging wine in single portions.
Early prototypes lacked hygienic features and were unwrapped, according to Scott. Scott focused his efforts on refining this concept.
Zipz was born unaware of his existence. A zip-off outer package coupled with a dual-function lid and coaster made for a practical product with a long shelf life.
Scott asked Andrew about developing a single-serve for Citi Field, home of the New York Mets. Zipz eventually partnered with Hopland, California-based Fetzer Vineyards.
The partners could expand into new stadiums and arenas throughout the country by partnering with a winery. Andrew, on the other hand, was sent to the Shark Tank to close the deal.
The two predicted that their container would grow to the same popularity as the soda can in winemaking.
How was the Shark Tank Pitch of Zipz Wine?
Andrew asked the tanks for a $2.5 million investment in exchange for 10% of the Zipz Wine. Sharks were surprised at the price of the transaction.
Zipz is all about packaging and licensing and would provide a novel alternative to disposable bottles and glasses. Andrew unzipped the outer cover to display the goods.
Andrew explains that the covering will protect the wine from UV light. Andrew unscrews the glass’s cap and attaches the lid to the bottom to demonstrate the glass’s dual purpose as a coaster.
A similar product named “Copa-di-vino” was previously featured on the show, with founder James Martin appearing twice and declining both times to work with the tanks.
Andrew stated that the company had already attracted 25 investors who had committed 8.5 million dollars.
Andrew says that the investors are primarily Wall Street professionals and include three professional sports franchise owners. The Zipz wine has generated $650,000 in revenue since it was launched, says McMurry.
Zipz wine is sold at 1200 outlets throughout the United States, and he is now looking forward to securing a distribution deal with Costco.
O’Leary and all the other sharks emerge eventually. Kevin explains that lowering the price of the product will allow him to obtain his Costco merchandise.
Andrew responds that the package can be altered. Kevin O’Leary accepts the offer because he retains the option to purchase an additional 10% stake as part of the exit.
For example, if the company was valued at $50 million at the time, O’Leary may purchase 20% of the company for $10 million.
A call to the investors is requested by Andrew to ensure that the arrangement is acceptable to them.
Andrew McMurry secured a $2.5 million investment, making it the show’s largest acquisition to date.
What Happened To Zipz Wine After Shark Tank?
Kevin was willing to work tirelessly to ensure Zipz’s success after the deal. In addition, he took a chance with his brand, O’Leary Fine Wines, by utilizing the technology.
He suffered a tarnished reputation. Zipz was the subject of a Beyond the Tank update in April 2016, over a year and a half after their initial transmission.
Shark Tank spinoff Beyond the Tank explores the challenges that firms must face after their appearance on the show.
A wine tasting event in Scarsdale, New York, reveals Andrew McMurray to the world. This event will be hosted by Zachys, a family-owned luxury wine merchant. Andrew wants to make an impact after spending years serving his wife’s family.
They discuss their most pressing concerns during a meeting with Zipz’s other executives. For example, while sales are increasing, particularly at stadiums and arenas on the west coast, Zipz cannot meet demand.
Its manufacturing plant is just incapable of handling the demand. Additionally, Andrew does not intend to remain in the winemaking business indefinitely.
While it was an effective technique to demonstrate the business’s concept, he sees genuine prospects in heavily licensing the technology.
They updated about Zipz Wine in Beyond the Tank, a spin-off of the show. The section demonstrated the difficulties they had following Shark Tank. The company was unprepared for the additional sales and was unable to meet the increased demand.
They later exited the winemaking business in favor of licensing. The products are sold in a variety of retailers and online marketplaces such as Amazon. Regrettably, the wine never made it to Costco.
After exiting the winemaking company, the product cannot be purchased; however, the packaging can be licensed.
Kevin is worried about the company’s expansion. It’s been consistent but not explosive, as he had planned. The genuine possibility lay in working with distribution channels such as retail and restaurant chains, not only stadiums.
He defined three critical elements at a meeting with Andrew. To begin, they would need to establish distribution channels instantly. Kevin took the initiative and scheduled an appointment with The ONE Group, a multinational hotel organization.
Since STK, their restaurant chain, previously stocked O’Leary Fine Wines, he already had a connection. Their next task would be to scale manufacturing to meet these demands by using a vast co-packing facility.
Most crucially, Zipz still had $4.5 million in the bank, which was sufficient to keep the business running for eighteen months.
Licensing was the first step toward generating revenue. Zipz’s margins could be increased by licensing the technology and earning royalties. This point was critical.
According to Kevin, if a business does not generate revenue within three years of its existence, it is a hobby. You are not a corporation.” Their leaders were apprehensive during a meeting with The ONE Group. STK’s restaurants already used plastic packaging.
Additionally, they questioned Zipz’s ability to scale to meet their level of demand. They were, however, familiar with Kevin and took him at his word. Kevin and Andrew both assured Zipz that Zipz would secure a co-packer to keep up.
They had one shot at meeting home and worldwide demand. Kevin advised, “This wine bears my name.” “If you mess up this, I’m going to murder you.” It’s difficult to tell whether he was joking.
Andrew was able to deliver after a great deal of effort. He ultimately chose a top-of-the-line co-packer capable of packaging two million cases of wine per year.
Andrew and Kevin had a tour of the facilities, marveling at the automated filling line that filled each glass from the bottom, eliminating oxidation. Zipz also secured a national partnership with Arctic Beverage. Chillin is the company’s Chilean wine line.
According to Andrew, their duty was now to concentrate on the packaging and royalties collection. It was critical to secure a national partner due to the piggyback effect of other brands.
As Zipz found its way onto shop shelves where Chillin was already available, other wineries would be interested in participating as well.
For Andrew, this was about grandiose concepts. Zipz was destined to be his legacy. After decades in the wine industry, he was determined to leave a lasting impression. “You have performed admirably, grasshopper.
You’ve concentrated on royalty,” Kevin commended. Andrew and the other members of Zipz have ensured their futures in the wine and packaging industries by altering their business model.
Who are the Investors in Zipz Wine?
There were 25 investors in Zipz Wine in 2014 who invested $8.7 million. On Shark Tank, Andrew offered 10% of the stakes for $2.5 million, which would be worth $25 million in 2014.
Andrew revealed that most of the investors were Wall Street professionals, including the owners of three professional sports teams.
How Does Zipz Wine Make Money?
While on Shark Tank, McMurry mentioned that the company was in the wine business and the licensing industry. Their product was sold at sporting events and six stadiums after joining forces with Fetzer. Andrew also stated that they were in discussions with other wine brands, including Yellow Tail.
Since the company began, Andrew has generated $650,000 in revenue, and its products are sold in 1200 locations across the country.
The company announced on an episode of Beyond the Tank that it would be leaving the wine business and focusing solely on its Zipz packaging business.