Guzzle Buddy – Wine Bottle Glass
DEAL
EPISODE SUMMARY
🕓 Air Date: January 21, 2018
Asking For:
$400,000 for 10%
Investor:
Daymond John
Deal:
$400,000 for 25%
PRODUCT SUMMARY
Guzzle Buddy is a wine-bottle glass that turns your bottle into your glass, allowing for a ""classy"" way to drink directly from the bottle.
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Background Story
Jennifer Sullivan and Randy Rothfus, the creators of Guzzle Buddy, came up with the idea one night while watching an old sitcom featuring a similar product. Unable to find such a product in the market, they decided to create their own. Jennifer, a former geologist turned stay-at-home mom, partnered with Randy, a dentist, who had to retire due to hand surgery. The duo experimented through trial and error, eventually developing the Guzzle Buddy. Their initial success came when a social media platform with millions of followers picked up on their product, leading to $1.4 million in sales in just 10 months.
The Product
Guzzle Buddy is a wine-bottle glass with a silicone sleeve that fits into most bottles of beer, wine, soda, and hard cider. Made from strong borosilicate glass, the product is dishwasher-safe and freezer-safe.
It allows users to turn their bottle into a glass, making it a convenient and “classy” way to drink directly from the bottle. Priced at $24.99, the manufacturing cost is $3.12 per unit.
The product gained popularity through social media, especially after a tweet went viral, leading to a sellout within three days. Guzzle Buddy’s success prompted the creators to expand into beer, projecting similar success.
How It Went
The company’s position before Shark Tank
The company’s performance has been impressive, with $1.4 million in sales within the first 10 months, primarily from the wine version. The success was partly attributed to a viral social media post that garnered attention and led to a sellout in three days. The founders, Jennifer and Randy, have a background in unconventional fields (geology and dentistry) but found success through their entrepreneurial ventures.
The product’s profitability is notable, with $320,000 in profits. Guzzle Buddy’s pricing strategy involves selling the wine glass for $24.99, providing a substantial profit margin. The founders express confidence in the beer version replicating the success of the wine product. They see the potential for Guzzle Buddy to become a brand rather than a one-product wonder.
The Negotiations:
The pitch started with a $400,000 ask for a 10% equity stake. Mark Cuban and John Daymond were quick to express concerns about the high valuation, with Mark ultimately opting out. Other Sharks followed suit, expressing reservations about the steep ask. Lori Greiner, however, saw potential in the product and engaged in negotiations. After some back-and-forth, Lori offered a deal of $400,000 as a line of credit for 20% equity.
Daymond John jumped in with a counteroffer, proposing a 25% equity stake. The founders ultimately accepted Daymond John’s offer of $400,000 for 25% equity. The negotiation highlighted the challenge of justifying a high valuation, and Daymond’s strategic expertise and willingness to invest in the product’s growth sealed the deal. The founders expressed excitement about partnering with Daymond and transitioning from being a one-product wonder to building a brand.
