One glass of wine can go a really long way.
Andrew McMurray, a representative for single-serving wine purveyors ZIPZ Wine, secured $2.5 million of funding in the most recent episode of the popular American investment television program/game show Shark Tank. According to several news sources, the $2.5 million, 10 percent equity investment by Shark Tank investor Kevin O’Leary makes the estimated $25 million dollar value of the company the biggest deal in the show’s history.
“We were thrilled to have Kevin O’Leary as a partner after the filming. We considered him as a ‘must have’ shark for our wine licensing product,” ZIPZ Chief Executive Officer J. Henry Scott said in a press release this week.
O’Leary tweeted his delight over the negotiation.
“What a night! I’ve never been so excited about a #SharkTank deal!” O’Leary wrote from his verified Twitter account.
Business Insider noted the ZIPZ idea was the second such single-serving wine idea to appear on the show – Copa Di Vino, the first single-serving startup on the show, failed to secure funding because the company’s owner and the sharks could not see eye to eye.
“McMurray, however, was more willing to negotiate with the Sharks and was much more comfortable in front of them,” Business Insider reported in a story earlier this week.
According to wine blog Dr. Vino, the negotiation began with talks about licensing the company’s technology to big wineries.
Shark Mark Cuban bowed out of the negotiations because he disliked the company’s name.
O’Leary “liked the product as-is but insisted it was way overpriced … He prevailed over the others saying that he could get the ZIPZ branded wine into Costco if they would agree to sell it at $1.49 retail,” Dr. Vino wrote.
According to Business Insider, the deal between O’Leary and ZIPZ is only possible if “O’Leary is able to lock down a contract with Costco.”
The ZIPZ management team is comprised of Scott, McMurray (national wine consultant), President Pat Scire, Chief Operating Officer Donald Asay, Vice President of Sales David Antell, Board Director Neil Desena and Advisor Louis Holder, according to the ZIPZ website.
The company uses “100% recyclable, BPA-free materials” in their packaging, the site says.
At the time of publication, ZIPZ’ website showed four types of wine for sale: a 2010 Cabernet Sauvignon, a 2013 Pinto Grigio, a 2012 Merlot and a 2012 Chardonnay.