The founder of Zipz Wine, Andrew McMurray, presented his ambition and creativity for a single-serve wine packaging business on Shark Tank season 6 episode 11.
As most people like to take a few sips of wine in combination with a medium-rare steak for their winter dinner, Andrew had an idea to introduce this creative and unique product design to the world.
Company Overview in Shark Tank
|Company Name||Zipz Wine|
|Episode||Season 6, Episode 11|
|Product Offering||Modern Portable and Single-Serve Wine Packaging|
|Required Investment||$2.5 million for 10% share of the business|
|Closing Deal||$2.5 million for 10% equity of the company|
|Offered Sharks||Kevin O’Leary|
|Current Business Status||Out of business|
What is Zipz Wine?
Single-serve wine glasses like Zipz Wine are ideal for those who like a glass of wine once they travel. The product is designed in single-serve packaging, so it is very portable for travellers.
Typically, the business provides a wine that is packaged in a bottle, which mimics the typical wine glass. Moreover, the Zipz Wine’s single-serve bottle, which is designed as a typical wine glass, is the company’s signature product. When the lid is unbottled, it can also be used as a coaster.
Regarding its production, the glass is produced with BPA-free, bio-plastic, and stemware materials.
How Does Zipz Wine Work?
This new packaging innovation comes from Andrew McMurray, who wants to serve wine lovers while they are travelling. The company is based in New Brunswick, Canada, producing convenient and single-serve wine packaging.
The products are packed in a plastic container resembling a wine glass. Also, it features a screw lid on top. The lid can be served as a coaster when it is opened.
Therefore, with this simple concept, users will be able to pack their favorite wine while on the go. Then, all they need is to unscrew the lid and enjoy the most delicious wine anywhere and anytime.
In addition, to ensure the high quality of the packaging product, the company builds a leak-proof glass that is the same as a regular wine glass.
Who Founded Zipz Wine? Founder Backgrounds
Andrew McMurray was not the only person who created Zipz Wine alone. The business was a combination of J. Henry Scott, who also brought this concept.
Initially, Scott saw that pools, trips, stadiums, and many more travelling places are not suitable for bringing wines. Then, after working with Andrew for 10 months, they both established a Zipz Wine business and produced the most surprising product on the market.
Andrew has formed a productive and prolific team to make wines in the stocks. The company had distributed its product only to stores in 20 different states.
In order to make things more extensive and more successful, the business has to enter a Shark Tank, the biggest reality TV show in America. Thus, Andrew eventually presented his Zipz Wine business to look for an opportunity on Shark Tank Season 6 Episode 11.
Zipz Wine Business Before Shark Tank
Although Andrew McMurray is the well-known one, the Zipz Wine business concept was envisioned by his partner, J. Henry Scott. On the other hand, Andrew, who was a Zachys Wine and Liquor president, finally produced a single-serve wine that is portable for backpackers and travellers.
The initial prototype of the product was not neatly wrapped and sanitary at all. Thus, Andrew’s partner concentrated on better the design. Then, they first produced a package that could be zipped. Thus, they attach a screw-lid feature that can be used as a coaster.
After that, they produce wine packaging with recyclable and plastic-free materials that are leak-proof.
The company also collaborated with Fetzer Vineyards, which is headquartered in Hopeland, California. Furthermore, the Fetzer Vineyards is one of the established wineries that could support the Zipz Wine business on a bigger production scale.
With more ambition, Andrew McMurray brought his business to Shark Tank in the hope of a greater financing.
Zipz Wine During Shark Tank Pitch
Andrew entered the Tank searching for a $2,500,000 investment to get a 10% equity in Zipz. Daymond John’s raw and real reaction to this million-dollar capital was a pure shock.
The founder explained that packaging and licensing are the key selling points of Zipz Wine. He believes that it would be a fresh product to the plastic cups and small bottles that are already available in the market. After that, he gives free samples and shows how to open it and.
The best part is the product’s durability could withstand Andrew’s weight even when he climbed on top. Besides, unwrapping and putting the lid back on is as simple as “zipping” off a piece of outer packing and putting it back on leisurely.
Kevin thinks that Andrew is a wise guy because the inventor’s provision is precisely what Keven has been looking for. Nevertheless, the Sharks inquire how Zipz differs from Copa Di Vino.
Zipz has a one-year shelf life, but Copa Di Vino’s is only suitable for six months. Kevin triggers the patent. To get it into major league ballparks, Andrew says he has sold $130K in licence fees thus far. He also asserts that a group of investors has put $8.5 million into the company. Kevin likes the presentation, but the $2.99 per glass price is out of line.
As Kevin and Andrew approach a heated discussion, Mark steps in and announces he is out. Kevin then goes into detail about how he could go into COSTCO with O’Leary Wines.
Robert is perplexed as to why he doesn’t simply licence the product packaging. Kevin still couldn’t agree on a price while Daymond left the room.
Although Lori likes the design, she believes the founder’s invention is too problematic and has decided to leave.
Robert feels impressed with the product’s invention. However, he wants it to have a straightforward licence agreement — he’s out as well.
Kevin keeps insisting on COSTCO’s shortcomings. Kevin states just before a commercial break that if he hooks up with Zipz, they will have to drop the price point.
Following the break, Kevin inquires how Andrew could get the price down. Andrew claims that by increasing volume, he would be able to lower the price.
Kevin decides to give $2.5 million for a 10% ownership in the company, with an option to offer an additional value if he can get them into COSTCO as well.
The founder walks out to his partners and outlines the terms of the agreement. Andrew and Kevin raise a glass to their collaboration.
Zipz Wine Closing Deal in Shark Tank
Andrew McMurray entered the ABC’s Shark Tank show, opting for $2.5 million for a 10% equity in the company. Surprisingly, this is the largest deal in Shark Tank history!
Zipz Wine After Shark Tank
Kevin was fired up to make Zipz a success when the deal was done. His own winery, O’Leary Fine Wines, took a leap of faith by embracing the new know-how.
Zipz were featured in a Beyond the Tank update in April of 2016, about a year and a half after their first broadcast. After participating in Shark Tank, many organisations encounter additional hurdles. Beyond the Tank, this spin-off series examines these issues in further detail.
The truth is the company’s manufacturing capacity can’t keep up with the demand for the wine glass, especially at stadiums and arenas on the west coast.
Nevertheless, it is also not something the founder plans to do for the rest of his life. Andrew sees genuine potential in licensing the technology, which is a decent approach to manifest the company’s potential.
With the company’s fluctuating expansion in mind, Kevin is anxious. Partnerships with retail and restaurant distribution chains rather than stadiums were the significant possibilities Kevin could make his investment in Zipz wine go further. That’s when Andrew outlined some crucial things in a meeting with him.
First off, a distribution network must be established quickly. Kevin scheduled an appointment with The ONE Group, an international hospitality firm, taking it upon himself. O’Leary Fine Wines were already on the menu at their restaurant chain, STK, so he already had a good connection.
Scaling operations with a substantial co-packing plant would be their next obstacle.
Another step is to increase its profit margins. Therefore, Zipz may simply licence out its technology and earn royalties.
Although STK’s restaurants previously used plastic packaging, the One Group’s executives were sceptical at a meeting. They also pondered whether or not Zipz could match their requirements,
Zipz was guaranteed by both Kevin and Andrew that a co-packer would be found to keep up with demand and supply regionally and globally.
After a lot of hard work on his part, Andrew was capable of delivering the task as promised. He finally chose Co-packers that can package two million cases of wine per year. On their visit, Andrew and Kevin got a behind-the-scenes look at the production process, filling each glass bottom-up to minimise oxidation.
Current Update: Is Zipz Wine Still In Business?
Zipz also became well-off in securing the national partnership of Arctic Beverage, for its product line. Chillin is the name of the company’s Chilean wine line. Their new task was to concentrate on packaging and royalty collection, in Andrew’s opinion.
Big ideals were at stake for Andrew. His work with Zipz would define his life, and he would be remembered for it. After working in it for so long, he wanted to leave his stamp on the wine business.
Zipz’s reputation in the wine and packaging sectors is safe, thanks to Andrew and the other relevant partners of the company’s new business strategy.
Unfortunately, Zipz isn’t currently making wine anymore. It has been announced that Zipz Wine has changed its name to Zipz Packaging. Only packaging and licensing services are now being offered.