Zipz, a single serve wine company, made Shark Tank history last week by closing the biggest deal in the show’s history.
The company makes a wine-by-the-glass product that is covered in a protective wrapping to increase its shelf life. Zips came to Shark Tank seeking $2.5 million for 10 percent of the company, which it received from Kevin O’Leary along with some other contingencies. To date, the company has raised $8.5 million from 25 backers, including six former Goldman Sachs partners.
Not every Shark Tank investor was enthusiastic about the idea though. Co-host Mark Cuban wanted nothing to do with it. He said, as reported by Inc:
“I’m not a wine connoisseur, but even then, I would drink MD 20/20 from a quality perspective over a brand with a zipper named Zipz. Huge mistake. I’m out.”
Regardless of the objection, the company received its money it was seeking. The deal surpassed even a previous high water mark of $2 million investmented in Ten Thirty One Productions, a company that creates live horror attractions.
Even though single-serve wine from a company called Zipz might not appeal to wine connoisseurs or people with a selective palate, it seems to meet a particular need. The packaging, in particular, offers an innovative solution for people who like to enjoy wine without going through an entire bottle. The company’s founder Andrew McMurray tells Inc:
“In single-serve wine, shelf life is king. In our opinion, our packaging is going to become to the wine industry what the aluminum can became to the soda industry.”
Time will tell whether the idea really takes off. But beyond investment, the revenue the new product has already made certainly seems to point to some kind of demand. Thus far, Zipz has racked up about $650,000 in sales over the course of 16 months. And with the right investment, something it seems the company will have no trouble raising, there may be no end to the product’s possibilities.
What a nice idea. I am pretty sure that there is a good market that is interested in single serve wine. After all, we cannot all afford a bottle. This is quite cool if you’ll ask me.
It does seem like a product that a lot of people will be interested in. We’ll see if it really takes off.
O’Leary know wine, so if he can get them in Costco while finding an outlet for his personal wine brand I think it will be a wise investment for him. These guys are millionaires and billionaires for good reason.
I agree – it seems like a good match to me!
There’s already a single serve wine out there (Copa). Not sure what is special about this one, but then again I didn’t watch the show.
Hmm I hadn’t heard about that one before. Maybe the packaging here is different.
Whatever it is that makes this product shelf-stable actually colors the “glass” after a time and gives the wine a terrible, soapy taste. It ain’t wine.
Yikes! I’ve never tried it myself. Maybe it just shouldn’t have that long of a shelf life.
Ronald, The oxygen barrier material changes color after a while and changes the taste of the wine? I didn’t realize this was a problem. Did you find out first hand?
I’ve had them. I’ll stick with two buck chuck. Zipz is aweful.
Sorry to hear that – evidently it’s not for everyone.
How will the wine keep its flavor on the shelf?
This ideas is not new Large wine makers such as Gallo and Sutter Home, and Fetzer just to name a couple already sell single serve wine bottles in four packs, with screw off tops. THey have a powerful distribution netwrork. Any wine maker can change their packaging and distribution to single serving. The inside product (wine) becomes the key. Perhaps a start up company could offer to package and distribute single serve products for any wine producer. I can’t see where Zipz packaging is so superior to the screw top that is would take off.
I agree with that point.
There’s some one serving bottles that are sold at some groceries stores as well as little stores. Some are even wines that have been on the market for a while. Where you can find a large variety of them is all over the caribean islands starting from Puerto Rico.
So wine in a glass is not a novelty, it just the same as screw of the top one serving bottles but with the feeling of having a cup of wine. Downside of this is that wine bottles are dark color for a reason. Light will affect it’s structure and taste, so having a clear cup will really affect the shelf life. So it really defeat the purpose.
Nope. Only USP is shape of package, which is just a gimmick. Drinking out of a wineglass-shaped plastic bottle is no more elegant than drinking out of a paper cup. Meanwhile, single serving bottles are just as possible as existing mini soft drink cans.
Modified atmosphere packaging (replace oxygen with nitrogen) would extend shelf life almost indefinitely.
I saw this and had to try it. I love wine and like a glass with dinner when I cook. What I hate is letting a bottle go to waste. So I often feel I have to drink the whole bottle – not always good for my workout or work the next day. The plastic glass is quality and reusable. I am saving the glasses to use for times I want to bring my own wine or can’t use glass like at a park. The wine itself is ok. I probably wouldn’t buy again since I don’t like the wine, and it is a bit rough, but if you are ok with $10 btls and many of the grocery store wines you may find this worth while. As an entrepreneur I love this idea and hope to see it a success- please include some higher end wines. I’d buy them!
Good idea and better mouse trap, but now they need to focus on the wine & winery, not the container… It won’t sell as a container but it will as a Cabernet or Chablis from a major winery. Good luck to them.