'Shark Tank' Season 15: Fly With Wine misses deal as Sharks discover primary investor's 'parasite'-like patent control
OS ANGELES, CALIFORNIA: The creators of Fly With Wine, a company that develops and markets lifestyle products for wine and spirits, brought their creative ideas for traveling with wine to 'Shark Tank' Season 15.
Their standout product, VinGardeValise, is the first luggage line made expressly to safely and securely protect wine bottles while in transit. But, unfortunately, the founders had to go empty-handed.
The founders walked in seeking $500K for an 8% stake in their company. Kevin O'Leary was astounded to learn the company is $6.25million in valuation.
After learning everything there was to know about Fly With Wine, Mark Cuban shared that he felt it was a hard business to scale to the level of profitability that made him want to become an investor.
According to Robert Herjavec, the founders could only acquire the product from their primary investor; she could only make it. Because the prototype was patented to someone else, Robert dubbed the founders Ron Scharman and Ryan Neergaard resellers.
As an investor, he believed the company would not expand to the point where he could recoup his investment. He added that Ron and Ryan weren't aligned with the people who made their IP. As long as the product was manufactured by someone else, and they were merely storing inventory, they would not earn a profit and would only generate money through sale-through.
Emma Grede agreed with Robert, as she too felt the founders were not aligned with their primary investor. She wished they had recused themselves from the complexity before appearing on 'Shark Tank'.
Lori Greiner was impressed by the sales but was also aware of the fact that the company was not making much money, and that had her concerned.
Kevin said the founders were totally controlled by the manufacturer, who ultimately controlled the price point. He added that he wouldn't want to be associated with a company that had one manufacturer-cum-primary investor take the final shot like a "parasite."
How was Fly With Wine founded?
Fly With Wine was founded in 2016 by two individuals who had successful careers in the wine industry. Before entering the wine industry in 2001, CEO and chief marketing strategist Ron had over a decade of experience in administrative and executive positions.
Ron has held multiple top-level positions with firms such as New Wine Logistics, eWinery Solutions, and Chatterbox Wine Marketing Services since then, in addition to teaching at Sonoma State University's Wine Business Institute.
Ryan is the director of business development at FlyWithWine. Ryan has extensive marketing and management expertise, having worked with companies such as Astra Digital, Chatterbox Wine Marketing Services, and Napa Valley Wine Train, to name a few.
Following a terrible irritation while on vacation, Ron was inspired to create Fly With Wine. On a vacation to Burgundy, France, he discovered a winery with an outstanding assortment.
He was unable to bring any home, however, because Ron's only alternatives were to ship them by local mail in unknown circumstances or risk them being destroyed in the cargo of the flight.
Knowing there had to be a better method, Ron and Ryan, who were both working at Astra Digital at the time, set out to create one.
They created a prototype with the help of a New Mexico-based designer and formally started the company in 2016.
What products are offered by Fly With Wine?
Fly With Wine has developed dramatically over the years, with an ever-expanding number of retail and wholesale partners that utilize and sell its products.
The company was recently featured as one of the few businesses in a special Napa Valley version of the popular board game 'Monopoly'.
While Fly With Wine is most known for its beautiful and long-lasting bags, the company also manufactures other necessary storage and travel equipment like backpacks, box carriers, and glass-carrying cases. The firm also provides a variety of accessories, such as chiller sheets and bottle opener sets.
Fly With Wine just added a new useful storage item to its lineup, and 2022 saw the introduction of its sibling firm, WineHive.
The wine storage system, built by industrial designer John Paulick, takes inspiration from the beautifully structured honeycombs generated by bees to give consumers a simple, elegant, and practical way to keep their beverages organized.
Fly With Wine even offers bespoke installation services for consumers with a certain idea in mind, since the device fits readily on any wall, tabletop, or coffee table.
Fly With Wine founders are avid 'Shark Tank' fans
Fly With Wine has worked hard to reach this point. Its unique ideas and products continuously put the team ahead of the competition, propelling Fly With Wine to the top of its industry.
Whether or not this status helps the firm land a transaction on 'Shark Tank' appears unimportant, as the presenters are just thrilled to have been featured in the long-running ABC show in the first place.
In an interview with The Press Democrat, co-founder Ryan, a lifelong 'Shark Tank' fan, stated how much it meant to him to finally make it on the show.
"It felt like making the Super Bowl," Ryan said, adding, "Ever since day one, when Ron and I started this company, I've just been like, 'man, this product has 'Shark Tank' written all over it.'"
'Shark Tank' Season 15 airs on Fridays on ABC at 8 pm ET.
For those who miss the episode, it will be available on demand the following day and on Hulu. Additionally, viewers can explore past seasons and episodes on Amazon Prime Video and iTunes.