Zips offers a single serve wine glass that is about packaging and licensing. Andrew talks about the single-serve wines that are out today are different from his. Zips come in a wine glass that is so strong, Andrew can stand on it. The packaging is done with a plastic UV wrap to protect the wine, and the lid unscrews to open the glass. Zipz is competition to Copa Di Vino. He owns the patents on his rights.
Zipz single serve wine glass does not violate Copa Di Vino Patent
Andrew claims that Copa Di Vino licenses the patent, and does not hold the patent. The difference between the two is the shelf-life. Zips last well over a year. They are in shelf-life testing with three of the top brands.
Andrew claims the mix to the plastic, and the UV wrap is his patent, and it does not infringe on the other patent. Zips is Andrew's brand, but he is willing to license his wine glass. He has licensed the glass at $.15 a glass.
Zips has raised eight and a half million dollars with twenty-five investors, with six retired Goldman Sacks partners of which three own a professional sporting franchise. Andrew wants all five Sharks at the table with him.
Sales for Zips are six-hundred-fifty thousand dollars with the retail cost of $2.99 per glass, and a price of $.95.
The packaging idea fails on pricing because it is so expensive to produce the glass.
Entrepreneurs: Andrew McMurray
Ask: $ 2,500,000k for 10% equity
From: Scarsdale, New York
Season: Season 6 Episode 611
Sharks: Mark Cuban, Daymond John, Kevin O'Leary, Lori Greiner, Robert Herjavec
Other companies: Biaggi, S.W.A.G. Essentials, GameDay Couture
First Aired: 12/05/2014
Deal: Kevin O'Leary for $2.5 million at 10% equity and an option to buy in another $2.5 million for an additional 10% equity at a value of twenty-five million dollars.
What do the Shark Tank Investors say about Zipz Single Serve Wine Glass
Mark Cuban is not a wine connoisseur and would take Mad Dog 20/20 over wine with a zipper logo. He is out.
Daymond John says that he is not investing this amount of money with this amount of risk, and therefore he is out.
Kevin O'Leary tells about going to Costco to talk wine, they are the most significant buyer of wine at $5.2 billion, and he said he is going into the wine business, and they said to prove it, and he does not have his wine in Costco as of this episode. He wants to team up with him to get it into Costco, but not at the current price. Kevin makes him an offer of $2.5 million for ten percent, and another option to buy $2.5 million at the valuation of twenty-five million provided he gets this into Costco. He takes Kevin's deal!
Lori Greiner says it is a brilliant design, but all the rest is so complicated that she can't see her way through the deal. Lori is out.
Robert Herjavec asks why not license to the big manufacturers and let them deal with it? He said that he is already in this far, and so he has to keep going. Robert Herjavec likes the product, and he likes the better product. He wants to keep it simple and license it. He doesn't like the path he is going down, and so he is out.
Zipz Single Serve Wine Glass after Shark Tank?
Zipz single serve wine glass appears in Beyond the Tank, a Shark Tank update show. Kevin O'Leary did the deal, and now he can put his wine into single serve glasses. They are expanding into ballparks nationwide. They are finishing the year at $1.2 million, and they are producing at maximum capacity, requiring a co-packer for their product.
Kevin O'Leary tells Andrew he needs to get out of the wine business and they need to license the product. But, the big wines are testing, and have not closed a deal as of 2016 Beyond the Tank.
Andrew found a co-packer to handle the volume they need for their new customer. They can do 200 glasses a minute, with two million cases of the wine. They now have a nationwide partner who is taking over their wine business. Now they are focused on the royalty, and the package. Zipz can meet the needs of the new STK customer.