Ghia Non-Alcoholic Aperitif
NO DEAL
EPISODE SUMMARY
🕓 Air Date: October 14, 2022
Asking For:
$250,000 for 5%
Investor:
No Deal
Deal:
No Deal
PRODUCT SUMMARY
Ghia is a nonalcoholic beverage that offers a fresh and complex flavor profile, making it an excellent alternative to alcoholic drinks.
WATCH HERE
IN A RUSH?
Click these to jump to the section you want to read.
Background Story
Melanie, the founder of Ghia, hails from Lyon, France, and currently resides in Los Angeles, California. With a background that includes working for notable companies such as Sweetgreen, Glossier, and Goldman Sachs, Melanie drew on her experiences and expertise to create Ghia. Her inspiration for Ghia came from a desire to provide a sophisticated and flavorful alternative to alcoholic beverages.
She recognized the need for a premium, non-alcoholic drink option that could be enjoyed by individuals who wanted to abstain from alcohol without sacrificing taste and quality. The idea for Ghia emerged during the COVID-19 pandemic, a challenging period to launch any business. Melanie leveraged her personal outreach, reaching out to 400 accounts through Instagram to introduce Ghia to chefs and influencers. Her dedication paid off as Ghia quickly gained traction, amassing $2.5 million in sales in its first year.
The Product
Ghia is an all-natural, non-alcoholic aperitif designed for those looking to enjoy a sophisticated and flavorful drink without the effects of alcohol.
It offers a unique blend of flavors, including yuzu, rosemary, juicy Riesling grapes, and citrus notes, providing a fresh and complex taste profile reminiscent of traditional Italian amaros like Campari.
Ghia’s bottle retails for $38 and contains 10 to 12 servings, while the ready-made spritzes retail for $5 each. The cost to produce a bottle is $6.50 and $1.25 for a spritz, with plans to reduce the spritz cost to 70 cents in the near future.
How It Went
The company’s position before Shark Tank
Ghia had a remarkable first year, achieving $2.5 million in sales with a primary focus on online distribution, which accounted for 75% of their sales. The company’s success can be attributed to Melanie’s personal outreach efforts, where she contacted 400 accounts, including notable chefs and influencers, through Instagram. Ghia’s premium positioning allowed it to thrive despite the challenges of the COVID-19 pandemic.
While Ghia is primarily an online business, it has managed to secure partnerships with various accounts and has established a presence in 750 locations. Melanie personally engaged with many of these accounts during the pandemic, which contributed significantly to Ghia’s growth.
The company’s funding history includes a $3.5 million investment round, which began with a $900,000 investment at a valuation of $7.5 million. Melanie currently holds a 57% ownership stake in Ghia, even after the company raised an additional $6.5 million at a $35 million pre-money valuation, bringing the total valuation to $41 million. Ghia expects to double its sales to $4.5 million in the current year, with further growth anticipated in the future.
The Negotiations:
Melanie initially sought $250,000 for a 5% equity stake in Ghia, valuing the company at $5 million. Daymond John and Lori Greiner, both unable to consume the product due to health issues, were the first to bow out. Mark Cuban acknowledged the challenges of the non-alcoholic beverage category and expressed concerns about the substantial capital required to scale Ghia. Ultimately, he also decided not to invest.
After hearing other sharks’ reasons for stepping out, Robert Herjavec reiterated his original offer of $250,000 for 5%. However, he was no longer in the running as Melanie chose to consider other offers. Kevin O’Leary made a surprising offer, expressing her belief in Melanie and her product. She offered the $250,000 for 10% equity, which would have resulted in a $2.5 million valuation. However, Melanie declined this offer.
In the end, Melanie decided not to accept any of the offers presented to her, including Robert’s, who had previously offered $250,000 for 5%. Despite the sharks’ interest and various offers, she maintained her vision for Ghia and chose to continue on her entrepreneurial journey independently.
