Sick of boring party drinks, ‘Shark Tank’ founders reinvented boxed wine — and scored a million-dollar deal
‘Shark Tank’ welcomed a pitch that aimed to turn boring boxed wine into something new. Three entrepreneurs, Justin Fenchel, Brad Schulz, and Aimey Steadman, stepped onto the podium of the acclaimed reality business show with their product, BeatBox Beverages. The season six product featured mixed drinks in a box. According to Shark Tank Blog, the team and their two other co-founders had met in a business school in Austin, Texas. The company came to life when Fenchel wished for an alternative drink to bring to parties and events. He was bored with the 30-pack of beer and a box of wine that he usually carried to the gatherings. That's when he decided to create mixed drinks in a box.
The outlet also notes that BeatBox Beverages are made from orange wine, and they come in four flavors: Blue Razzberry Lemonade, Cranberry Limeade, Box A’Rita, and Texas Tea, the last of which is available in Texas only. The wine is 22 proof and 11.1% alcohol by volume, while also being low-calorie. Each box holds five liters, enough for over 30 five-ounce servings, priced at $19.99. According to Shark Tank Recap, they had been self-distributing their boxed wine rather than partnering with a larger distributor. The founder of BeatBox Beverages asked for $200,000 in exchange for 10% equity.
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The contestants also mentioned that they had generated over $235,000 in revenue in just a small period of twelve months before filming. They were aiming for $120,000 in sales during that quarter. The company was founded in 2012 and faced an unsuccessful Indiegogo campaign in early 2013, raising only $6000 out of their $10,000 goal. Soon, Barbara Corcoran offered $400,000 in exchange for 20% equity. This offer was projected to maintain BeatBox Beverages’ valuation of $2 million while offering them more money for a little bit more equity.
Kevin O’Leary–who already had great experience in the wine business–offered the trio $200,000 for 20% equity. Mark Cuban then offered a lot more money: $600,000 in exchange for 33% equity. In a counteroffer, Fencehel asked the judge for $1 million in exchange for the 33%, which Cuban instantly accepted. As of 2023, according to Shark Tank Recap, BeatBox Beverages was still in business. Their appearance on the reality TV show gave the company a huge boost in marketing, after which they managed to get in touch with several thousand retailers across America.
The outlet also reports that after their appearance, BeatBox Beverages has generated over $57 million in sales and has redesigned the product to be single-serve drinks instead of a multi-use container. Within just 18 months, the company expanded to 26 states, and according to Food Republic, the product became available in Walmart. The company also introduced 17-ounce single-serve boxes in a variety of flavors, each priced at under $5. Their sale doubled from $1 million to $2 million in 2018 and again to $4 million in 2019.