What Happened To Zipz Wine After Shark Tank?

This post may contain affiliate links and I may receive a small commission if you make a purchase using these links – at no extra cost for you. Please read my disclaimer here.

As a wine aficionado, I've always been curious about the fate of Zipz Wine, a company that pitched their innovative single-serve wine packaging on "Shark Tank" in 2014. 

Kevin O'Leary, the shark known for his love of wine, was so impressed by the product that he invested $2.5 million for a 10% stake in the company, making it the biggest deal in the history of Shark Tank at the time.

So, what happened to Zipz Wine after their appearance on "Shark Tank"? Let's take a closer look.

The rise of single-serve wine

Zipz Wine was founded by Andrew McMurray and J. Henry Scott, who saw an opportunity in the growing demand for single-serve wine. 

What Happened To Zipz Wine After Shark Tank

According to a Nielsen report cited by wine writer Dr. Liz Thach, canned wine sales grew by 61% in 2020, indicating that there is a market for innovative packaging solutions in the wine industry.

Zipz Wine's patented plastic packaging was shaped like a wine glass and featured a shrink-wrap label with a zipper-like pull tab. The packaging was designed to protect the wine from UV rays and extend its shelf life.

Appearance and pitching on "Shark Tank"

Zipz Wine's appearance on the "Shark Tank" show is one of the most notable events in the company's history.

Appearance and pitching on Shark Tank

On episode 11 of Shark Tank's season 6, McMurray pitched Zipz Wine to the sharks, asking for a $2.5 million investment for a 10% stake in the company. 

After fielding inquiries from the sharks, McMurray eventually landed a deal with Kevin O'Leary.

As expected, the sharks asked many probing questions about Zipz Wine, its unique packaging design, and the potential of the product in the market. Despite the grilling, McMurray's compelling pitch convinced Kevin O'Leary to invest in the product

O'Leary, an established wine connoisseur and vineyard owner, was particularly excited about the deal and tweeted about it, expressing his belief that Zipz Wine could achieve success if it got into Costco.

However, Zipz Wine's fate after its appearance on the show was not what O'Leary or McMurray had hoped for. The product failed to make it to Costco, and the company struggled to generate profits in its first few years after the deal. 

Despite this setback, McMurray made the bold decision to shift the company's focus from a business-to-consumer approach to a business-to-business model.

The company started offering its patented packaging design as a solution to other winemakers who were looking for innovative packaging alternatives.

This pivot allowed Zipz to leverage its competitors' endorsement, as they began advertising Zipz's packaging when using it to package their wines. 

However, despite this change in strategy, the company failed to remain operational beyond 2019.

Zipz Wine's journey on "Shark Tank" is a testament to the challenges that entrepreneurs face after appearing on the show.

It highlights that a deal with the sharks is only the start of the journey, and many factors at play can either make or break a business.

After the appearance on Shark Tank and the shift to a B2B packaging company

Despite sales appearing to be doing well, Zipz Wine failed to bring in profits in the first couple of years after the deal on Shark Tank.

After the appearance on Shark Tank and the shift to a B2B packaging company

McMurray ultimately decided that selling wine was not going to work out at all with so many better-established brands to choose from, and the business model needed to change.

The company shifted its focus to being a business-to-business packaging company, leveraging its patented design to partner with winemakers. This approach turned Zipz's competitors into endorsers of its product, as they put their wine in Zipz's bottles. 

It's unclear how successful this strategy was, but it appears that Zipz Wine didn't last as a company. Shark Tank Tales reported that 2019 marked "the last of Zipz Marketing efforts," and the company's website was dormant as of 2021.

Shark Tank success is harder than it looks

Zipz Wine's experience highlights the challenges of turning a "Shark Tank" deal into a successful business.

Shark Tank success is harder than it looks

While on-screen deals seem like they're sealed and guaranteed for success, the reality is that many deals don't materialize after the cameras stop rolling.

Investors need to re-verify the entrepreneurs' claims and agree on the terms of the investment, and some on-camera handshakes never turn into deals on paper. 

Daymond John estimated that about 60-80% of deals made in the show's first seven seasons materialized after filming ended, meaning that many of the silver-screen handshakes ultimately don't go any further.

Conclusion

In conclusion, the story of Zipz Wine after Shark Tank serves as a reminder that making a deal on the show is just the beginning of a long and challenging journey. 

Despite landing a record-breaking deal with Kevin O'Leary, Zipz Wine ultimately shifted its focus from being a direct-to-consumer wine business to a business-to-business packaging company before eventually going dormant.

The wine industry, like many others, is highly competitive and constantly evolving

While the demand for single-serve wine continues to grow, companies must continuously innovate and adapt to meet consumers' changing needs and preferences.

Shark Tank remains a popular show, and many entrepreneurs still see it as an opportunity to bring their products to a larger audience and secure investments

However, the story of Zipz Wine serves as a cautionary tale for those who may believe that a handshake with a shark guarantees success. 

The real work begins once the cameras stop rolling, and it's up to the entrepreneurs to navigate the challenges and uncertainties of the business world.

About the author 

Peter Keszegh

Most people write this part in the third person but I won't. You're at the right place if you want to start or grow your online business. When I'm not busy scaling up my own or other people' businesses, you'll find me trying out new things and discovering new places. Connect with me on Facebook, just let me know how I can help.

{"email":"Email address invalid","url":"Website address invalid","required":"Required field missing"}