Zipz became a household name for promoting single-glass wine in innovative containers. Founder Andrew McMurray introduced the concept on Shark Tank, where it received one of the largest investments ever. Zipz has stopped making wine to focus on packaging and licensing. Zipz Wine is estimated to be worth $1 million by 2024.
Andrew MacMurray’s Background
Andrew McMurray is from Scarsdale, New York. He studied business, management and marketing at the University of Massachusetts Amherst, graduating in 1990.
Three years after earning his bachelor’s degree, Andrew became Vice President of Zachys Fine Wine, a position he still holds today. Although he appears on Shark Tank solo, he runs the company with his partner, J. Henry Scott.
Scott graduated from Rutgers University with a degree in Engineering. In 2005, he got his first job as a producer at independent film company HD Productions. In 2010, he worked in corporate development at health and wellness company AirSpa.
From idea to reality
Zipz was born out of a meeting between McMurray and Scott at Citi Field in New York City. There, Andrew shared his idea for a single-serve wine product, and Scott loved it. They partnered with Fetzer Vineyards to launch the business.
The startup launched in 2012, but its initial design was poor, with no packaging to prevent wine from leaking. This inspired Scott to design a dual-function coaster and lid.
The packaging is a plastic container in the shape of a wine glass. To drink, you simply open the package and twist off the top. Fetzer Vineyards helped market the product to stadiums and generated more than $650,000 in sales.
Zipz’s Shark Tank Talk
It was a promising product, and about 25 experienced investors lined up to invest $8.5 million. Even so, the founders specifically wanted help from a “Shark Tank” investor. In 2014, Andrew McMurray appeared on the show’s sixth season, offering a 10% stake for $2.5 million.
Despite Andrew’s appeal and Zipz’s clever design, the Sharks were not convinced. After a strong start, Andrew began to grow more anxious when Mark Cuban announced he was out. The other three Sharks soon followed suit.
Luckily, Kevin O’Leary was a wine connoisseur who wanted to get into Costco. After some bargaining, they came to a deal. Kevin agreed to invest $2.5 million for a 10% stake, but with the option to buy another 10% later at the same valuation.
Post-Shark Tank Challenge
Zipz Wine landed one of the biggest deals in Shark Tank history, but unfortunately, the company’s future wasn’t as bright as the founders had predicted. After the show aired, the company faced a lot of hurdles to overcome.
With the help of Kevin O’Leary, Zipz Wine signed a contract with Arctic Beverages. The startup’s products were sold in more than 1,200 locations across the United States. They later sold wine packages through online shopping platforms. However, competition was fierce and the business model of selling wine to consumers was not profitable.
Brands like Chillin, the Chilean Chardonnay winemaker, were always one step ahead. This led Zipz to stop producing wine and focus on packaging for other companies. In the years after the show, Zipz was making about $600,000 a year but was not profitable. The company changed its name from Zipz Wine to Zipz Packaging and was valued at $1 million.
Categories: Shark Tank
Source: svlsf.edu.vn