[Music] Next up is a modern version of an Ancient beverage [Music] Hi sharks my name is Ayala Solomon and I'm from Sonoma California my company is The honey Wine Company producers of be Divine I'm seeking 750 000 for 20 of my Business For centuries people from all over have Been enjoying the world's oldest Alcoholic beverage it's made from a Simple sustainable naturally sweet Ingredient honey that's right it's Called honey wine Ethiopia where I was born is the largest Honey wine drinking country in the world Commonly referred to as Mead I have Perfected the formula Every sip of be divine helps save our Endangered bees and promotes a permanent Change for thousands of beekeeping Households and forests around the world Ultra smooth and fragrant be divine is Produced in small batches from just two Ingredients raw local honey and pure Spring water When you said be divine you'll Experience the taste of Exotic floral Nectars dancing on your palate I love That I'm ready yes all right so We start from left to right okay on the Far left is the Brute non-sparkling And I'll join you okay this is a shark
Tank tradition we have to do this [Applause] So that's the brute brute is remarkably Dry and complex and the oak aging gives It a nice mellow vanilla finish the next One is a sweet non-sparkling has mellow Tropical fruit flavors cheers Let's let Daniel do one okay go ahead So finish it off with the sparkling Sweet Oh I like this one I like this one oh It's really good I like every single one Of these oh wow thank you how much does It cost at retail the non-sparkling is 39 retail the sparkling is 49. And how many have you sold Uh in six years now we've just over four Hundred thousand Over six years dollars worth six years Yes How many did you sell last year in the Last 12 months we've sold 115 000. why So little about it yeah well uh it's uh One by myself doing this I had a Full-time job for the first five of the Six years there wasn't a huge marketing Budget we've put in about six hundred Thousand dollars between myself family And some friends Wow oh yeah tell us your story on why Are you doing this I was born in Ethiopia I grew up in Kenya my father was in in agriculture And we always in Outdoors just to grow
Up going on Safari I came to the US I Went on to study environmental economics And also have an MBA in finance so I was Able to put all these things together And come out with a product that would Promote my interests and also address Some of the environmental and social Concerns when you came out I saw honey Wine I thought oh kind of a shtick yeah And then I tried it and I loved it now I'll buy it I'm gonna guess the problem With your product is people aren't going To buy it until they try it exactly and That's why I think there's a bigger Problem I think it's price because 39.95 That's not a price you would sample new Wine here's a fact 97 of wines sold in America is sold for Under 14 a bottle 97 what's your cost For this bottle uh that's uh 5.93. so Why are you selling it so expensively When you can get to that 14.99 price Point because uh I mean it's just Classical strategy either your small Volume high margin or so how's that Strategy working for you It's a long-term play because this is Something you could go over time and not Only got to have an introductory you've Got to have a price point where people Come up Mark I think you're going down The wrong road I don't think it matters What the price is and yes 97. cost 35 yeah the problem here is
People need to try it well that's that's My point Robert Mark is right on the Money it's that sweet spot of being Under 15. right yeah and if it's not What you like you haven't really lost That much exactly I like all wines and I I appreciate the Mastery of what you've Made here but two big issues here one is Getting trial I think Robert brought That up breaching the 14 price point is Very hard Very hard well I mean lowering the price Is not going to get people to buy more We've experimented with that and it's Not sustainable That's 97 of the market focus on the Issue of valuation you have to you have To ship 50 000 cases to break even how Many cases are you shipping yeah well I Was doing about four or 500 cases a year Or 500 yeah you know what I'm a product Person I've done wine deals I'm not Kevin but I'm not snobby about once Frankly Tastes good looks good first white wine It's kind of like a dream come true Thank you and I love that and you're Saving the bees so to me I feel like it Doesn't really matter the things that You were just saying because I was Talking about this is a hobby it's not a Hobby and let me tell you something I Have talked with my fellow sharks here's The bottom line we're going to make you
An offer yeah and the offer is this You're going to get four sharks Mark Daniel myself and Robert okay so we're Gonna make you an offer 750 000 but we Want forty percent 10 for each shark for Each shark We will help you you need the trajectory Of the publicity the sales Recognizability do you know how rare it Is that you get four sharks I don't want Kevin to be left out and I want to know We are very comfortable without I can't Do it I I have I have very complex yeah I know Kevin O'Leary whines look there's Two things one this is non-negotiable Because this is the only way we're going To get four in so you're going to have To say yes to the 40. there's no Negotiating and two the second goal is Other than the environmental issues We're going to destroy our leery wine We're just gonna blow them away whatever He's going to sell we're going to sell Four times as much because they're 40 Yards I just want you to do great here's my Counter no meeting some cases Please understand do your numbers make No sense just for 750 000 we're doing This because we're believing in the long Term and because of what glorious Because the value of four of us working Together this is non-negotiable this is A yes or no if I were you I wouldn't
Even think about that okay like [Music] Thank you Then let's do this yesterday We can do a little Ethiopian dance What he did uh-huh okay Next into the tank is a product that Provides an ice cold beverage exactly When you want it [Music] Sharks my name is Alexander Simone I'm An inventor from San Francisco I'm here Today seeking one hundred thousand Dollars as an investment for five Percent of my company Pronto Concepts my Invention solves a problem that millions Of wine lovers all over the world face Every day [Music] Wine in the moment with the best Spontaneous beverage ironically requires The most preparation and foresight That's why I invented Pronto Bev [Music] Behold the world's fastest wine chiller As soon as you pour any bottle into Pronto bed the wine grade stainless Steel interior jump starts a rapid heat Transfer process Or wine experts recommend that each Variety of wine be chilled to its own Specific temperature which truly unlocks The flavors Within Pronto bed's built-in thermometer
Monitors your wine so you get that Perfect temperature every single time Pronto Bev can chill a bottle up to 20 Degrees in just 30 seconds before Pronto Bev the only way to choose from your Wine collection and enjoy immediately Was to own a wine refrigerator Well there we have it perfectly chilled Wine So sharks when it comes to your wine and When it comes to your money would you be Waiting around or do you need it pronto All right all right when you like to Come up and check out the before and After I do come on up And just to let you know Um this prototype is actually not food Grade But it should be safe I drink from it All the time Is it cold Kevin It's beyond chilled it's it's cold isn't The right temperature it's the right Temperature for a white God could I have Some wine please I'll be your server Okay Damon do you want to go out please thank You Mark sure why not thank you all Right Mr John thank you Mr Cuban So you were saying you don't have like The right one here right right so is This not even in production yet it's not A production yet what's the material That holds the temperature Delta behind
The stainless steel is our trade secret Pronto gel is that patented we have a Provisional patent on it yes okay how Did you come up with this idea I was Back in college trying to drink a bottle Of wine with a girl and the wine was Warm so me being kind of like the Inventor type I grabbed a pasta strainer I filled it with ice poured the wine Through and amazingly the wine was super Cold super fast and we go to drink the Wine and it was just horribly when you Did that you also diluted the white yeah So that that is a huge issue in chilling White wines this doesn't dilute it which Is a good thing and I know that because I'm a member of the Chevrolet And we care about the temperature of our Wine yeah [Laughter] [Music] Okay Um can you tell us where you're at with Sales yes so we just finished our Indiegogo uh crowdfunding campaign Yesterday and we raised fifty four Thousand dollars What were you looking for 25 000. and What does it cost on crowdfunding it's 89 when we're actually selling it we'll Sell it for 129 oh cost us twenty two Dollars to make so if you're positioning This product as a wine chiller basically Why do you have to put it back in the
Bottle the way we can get it to chill so Quickly it basically is like a cannon Blast of cold you're saying it freezes If you leave it inside it won't freeze But the temperature will keep dropping With any alcoholic drink there's a Perfect temperature and just to let you Know all the temperatures are written Right on the packaging thank you very Much so you seem to know a lot about Wine what's your background I actually Studied entrepreneurship we're at Arizona State I came up with this idea Like I said I've worked for other Startups in the past but I've known my Entire life that I was going to do Something like this So I have no idea why people aren't Really going over this valuation so Let's look at the crowdfunding platform You're on you only sold fifty four Thousand dollars in two months the first Two months do you have some other stuff That's going to give us uh a reason to Get to a two million evaluation there's Another reason so one of our biggest Competitors they're also a wine chiller But they take way longer and there are Other drawbacks to the product that Prompt event has a lot of advantages of What does the competition cost what does It cost they charge uh eighty dollars They're doing how much in business 10 to 20 million a year 10 to 20 that's a big
Big swing So you believe that that's why you're Worth two million dollars I see our product as being worth far More than that all right you've been Watching Shark Tank where did we go Wrong Why do you think we would ever invest in A company at this level with a two Million evaluation this company has only One direction to go and that's up well Then I failed you because I obviously am Not giving the right lessons here and The right information because I don't Want you to go into another room and Make a stupid mistake like that Evaluation is crazy I'm out Okay one of the challenges I have in Working with inventors when you're an Inventor first in an entrepreneur second You want to invent but the harder part Is turning it into a company that's Profitable enough to make it worthwhile Valuing this company at two million Dollars I just don't see that I don't See it going there and so for those Reasons amounts oh that hurts far we've Been a great Parker Alexander look you Know great product that you're very Passionate about doesn't make a great Company then your evaluation isn't Trivial it's just way too soon for me I Mean I I'm out but I think the only Person I've been interested would be a
Wine expert what do you call a wine Experts A great reason to toast Okay Alexander I don't care what you Think it's worth all right I know the Challenges of getting into the wine Business there's tons of competition and Very little of its proprietary but I see The Merit of it I would use it there's More good news I'm going to make you an Offer and it's the only offer you're Going to make not going to negotiate Okay you've got to be kidding me I'm gonna go and give you a hundred Thousand dollars I want fifty percent Yeah You know why because you don't know what You don't know and you really need Somebody to actually endorse this and Help you get it out there hey but this This price I have some good news and some bad news What do you want first uh give me the Bad news first bad news first I'm out [Laughter] What's the good news from that I'll tell you the good news the good News is I think you have something Clever and I think that it has Merit I went out because I think that there's A lot of time and education and learning And tweaking for you to get to a price Point that I think will be a hero but I Do think you have the potential to get
There and you have a member of the uh Listen Alexander you do have an offer What do you want to do There's no way I have any flexibility I've been doing this my whole life and You can't give up 50 of that company It's not a company Alexander's Discussion with Kevin Kevin if if I gave You 50 of my company right it would be Doomed from that moment why because I Need Equity to play around with so I can Give me 15 50 is there a better partner Than me is there 20 no I No no no no no I take you out of the Wastelands the darkness I bring you to The light Darkness all right that's what's gonna Happen that's what's going to happen you Have a high probability of making money Versus you walk out the door with Without a deal and you are so dead to me I won't even remember this thing I'm Willing to negotiate but I need to keep Some Equity yeah for myself So I can go and raise the other hundred Thousand I have interested people in Another hundred thousand look if you had Come more advanced with sell through and Proven sales that's different I would Have given you more credit maybe had Flexibility you have none of those Things Okay Kevin are you stuck at the 50 I said at the beginning Robert I have No flexibility give them 200 000 or 200.
How do I raise the money Kevin if you're In my partner this needs to happen where Am I gonna get the other 100 I get Diluted too so maybe I'll go in on that Route maybe I'll put more money in Twitter's less than 50 it's not his Company anymore mark Yes or no Alexander and you won't budge At all because It's binary yes or no this is your Moment you decide What's your next product Alexander our Next product is the martini station for He's already out that that chills Martinis you know the problem with the Martini business is why to get into the Martini side of it and to do this and Get it out you need another hundred Thousand dollars right how are you going To get the other hundred we have people Who are interested but I know I can get The other hundred thousand okay I'll Give you a hundred thousand dollars for 25 contingent that you raise the other Hundred Yeah Done You gotta work your ass I will okay I Will I Really Wanna I cannot believe I just made a deal with Mark Cuban he went out first I was so Disappointed and he came back in after Listening to everything and this Terrible deal I'm trying to make with
Kevin it was it's this is the best day Of my life At all I would have never done it for Less than 15. you saved a hundred Thousand dollars that you could spend in The cheers [Music] My name is James Martin I live in Beautiful Oregon Wine Country and my Product is Copa Divino Come from a family of cherry farmers and My family has lived here for Seven Generations I worked in the world of Technology and then moved back to the Small community to try to raise a family On the farm and became passionate about Wine which is an Agricultural Product And developed my own Winery Will make wine easier and more Accessible for people to enjoy Our technology allows wine makers to be Able to package wine in a way that They'd never been able to before I know that Copa Divino is going to be So successful that I hope to be the First entrepreneur to actually come back And be a shark [Music] My name is James Martin I'm CEO and Founder of Copa Divino I'm here today Looking for an investment of six hundred Thousand dollars for 20 percent of my Company I love wine and it's my favorite way to
Celebrate life with my family and Friends and some of the greatest places To celebrate life are in the outdoors or At events unfortunately That's when wine gets very complicated Just to have a simple single glass of Wine you have to have wine bottles Corkscrews and fragile wine glasses That's why I created Copa Divino America's first premium wine by the Glass Just open And enjoy Cheers Customers of wine love my product but For businesses this is the game changer For a stadium that wants to offer a Premium wine by the glass product this Product is the only vessel that allows You to have premium wine by the glass I Have the largest retailers and venues in The country begging to serve my product I just need your help to create more Inventory this is the most revolutionary Wine Packaging created in the last 20 Years are you selling us on a packaging System or are you telling me you want to Enter the very competitive wine business I have a winery And my Winery currently we make about 2500 cases of wine a year and we're now Currently in Market with my product In the first six months We've sold product into 26 states with
The largest distributors in the country So you grow your own Chardonnay grapes And Cabernet Sauvignon I buy fruit from My friends that have Vineyards Cheers Cheers Toast to all of you oops So was that the easiest glass of wine You've ever served yourself it's a Little hard to take off No kidding James am I buying a wine label here am I Buying a packaging system We actually have three different revenue Streams we have the ability to license And and collect royalties we have the Ability to bottle for an industry and we Have the ability to go ahead and launch Our which of the streams are bringing in Sales today At first right now our own consumer Brand Copa Divino and what are sales in That today well we've been in the market For five months and we've had a half Million dollars of sales we've had over 800 000 worth of orders wow that's quick So people are buying your wine because It's easy to carry absolutely and They're also getting when they're Drinking my product they're also getting A don't come and tell me this is premium Wine it's not It's just industrial wine you have a Your wine snob so what to me I wouldn't Buy this one that's just me you're going
After a mass Market I think the Packaging is the play right how long Does it stay fresh we're good for a year The challenge with any time that you Reduce it down to a small amount is that The shelf life is very very short Usually 30 days we're getting a year out Of it have you patented this packaging Absolutely not only did we create a way To atmospherically package liquid we've Created a way that when alcohol Volatizes under heater pressure it won't Blow the seal we're talking about the Top Laboratories in the in the world That have worked on this project what Are you selling it all the Kroger chains Ralph's 7-Eleven we're in discussions With them why are we even in the wine Business why aren't we licensing this to All the wineries why aren't we going to Mondavi and everybody else and saying Buy this we are well right now we're Working on projects with two of the nine Largest wine companies in in the world Yeah how much money are you going to Make off those deals estimates next year Is about three to five million dollars Of sales of sales now I have a different Question why do we even need to be in The packaging business at all why is This not a patent asset that we go and Market to the largest packaging Companies on Earth you know the wine Industry right now needs companies like
Mine to service them for these Niche Needs they don't want to invest in the Equipment and have to learn especially This process this is an art this is not This is a proof of concept is what You're saying they want to know it works They because they've seen it fail so Absolutely so this is their his way of Showing that it works listen there's a Belief Pioneers get slaughtered and Settlers Prosper with that said you're Just too early for me I'm out James is there a way to take the patent Out of Copa Divina Divina I really like your patents Can we pull the two apart Can we separate the licensing IP with Clarity IP the intellectual property IP As a separate entity and leave you with The wine business we can so if you can Come back to me and say Mark here's how I'd value the patent intellectual Property here's how much cash I'd like And here's how much stock I'm willing to Offer I'm wide open to that and then you Can own and run with your your wine Company and build as big a brand as you Like Mark you you have Your attendance in your stadiums every Year is rising oh no it's not lost to me That I could resell these absolutely If you made a few calls how many Stadiums would this product be sold not
Questioning that at all I don't want to Be in the commission sales business yeah Let's get focused on that so that at Least I can understand if I give you a Check for six hundred thousand dollars How much of the IP company and bottler I Could own how much is that How much you willing to sell me for six Hundred thousand dollars twenty percent Not enough You've already devalued the brand to to Worth this much no no we didn't do value To zero not at all or a negative no not At all It's not worth anything we but I think For for me I'm not going to try to talk You into splitting one from the other And my gut feel is it's not the Direction you want to do today I'm not a wine guy I don't want to build The brand So I'm out for that reason James I don't think I can bring anything to The table in this I'm out The real value in all of this is the IP Because if you really own it This category could explode and you will Make something off every time somebody Rips the top off one of these plastic or Glasses That's a business my friend absolutely That's how you get rich yep now can you
Focus on that and tell me how much of That you'd sell me for six hundred Thousand dollars The reality of what you're asking is Some of the competitive advantages that I have as a brand and as a bottler I'm Going to be offering and giving away to Another entity And currently I'm not ready to do that I feel a huge opportunity being lost Here I understand business I understand Numbers I've run the numbers the amount Of money I'll make on the IP side is far Smaller than the great amount of money That I'll make on the bottling really Absolutely Isolate the IP all right yeah I'll buy 51 of it for 600 000 I'll take control Of that and I'll take my chances in Terms of Licensing this to everybody in The industry I'll worry about your Darkest fear of not making any money I'll still sleep at night don't worry And then you can run the brand you can Run the bottling but I will license this To them but every time that happens You'll be getting 49 of what I bring Home every month sure The opportunity is greater than that The opportunity is far greater than that His deal is far better than what I would Offer reason being you can take the six Hundred thousand dollars and use it as You please and accomplish everything you
Want to accomplish on the other end and Invest in that however you want to Invest and get all the upside I would Never do a deal like that so for that Reason I'm out I I honestly think that if I could Explain to you guys a little clearer James you got to stop selling I'm a dream come true for you Do I believe this has a great Opportunity absolutely if I put over a Million dollars of my own money into This I have and is that worth going Ahead and selling at this point What we've what we've created off to Somebody else to control that portion of It that's the Special Sauce we all know That why give away your special sauce When you can have it integrated into the Other aspects of your business that Right now are successful I'm working on On right now contracts of over 15 to 20 Million dollars on private label Projects with 7-Eleven with Target with Some of the biggest wine companies in The world will he get an answer at any Point look James the answer is no oh the Counter me what do you want for 51 Percent Three million dollars forget it not a Chance James listen to me I am going to go buy A thousand dollar bottle of wine tonight And I'm going to drink it because I'm
Weeping for the opportunity lost it's The only way I can feel better about it And then I'll never remember it again I Won't care because there's a million Opportunities that will come to me Tomorrow this was your moment you turn Around it's gone Look to give forced in the mouth James Oh Really did Cheers Cheers Cheers thank you guys The guy needed me to get focused on what Really matters look you could have made Money on that side of it but he had a Grand slam he didn't know it I forget Who he is I don't care now it's over He's a dead man walking right just Another deal Kevin totally missed the Mark the the value in our product is the Brand we're the first to do wine by the Glass it's a huge opportunity and a huge Market we've already proved that so the Idea that we're going to break it down To one little component and that is sell The patents would be selling the life Out of the opportunity
