Apollo Peak Wine For Cats and Dogs
DEAL
EPISODE SUMMARY
🕓 Air Date: April 7, 2017
Asking For:
$100,000 for 10%
Investor:
Kevin O'Leary
Deal:
$100,000 for 20%
PRODUCT SUMMARY
Apollo Peak offers the first-ever all-natural wine for pets, called Pinot Meow, made with beets and herbs, providing a unique experience for cats and dogs to enjoy with their human companions.
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Background Story
Apollo Peak, the innovative company behind the first-ever all-natural wine for pets, Pinot Meow, was founded by Brandon Zavala. Brandon Zavala entered the entrepreneurial scene with a foundation in the pet industry, working as a sales representative for a pet food company. It was during this time that he identified a distinct niche in the market for pet beverages. The idea for Apollo Peak’s cat wine, Pinot Meow, originated as a playful gimmick, reflecting Zavala’s creativity and desire to create a product that would provide pet owners with a novel and enjoyable experience.
The initial concept was centered around addressing a common scenario – the desire to unwind with a bottle of wine after a stressful day, but having only a pet, such as a cat, as a companion. Zavala saw an opportunity to offer a unique and entertaining solution to this situation, leading to the creation of Pinot Meow. The product is crafted with all-natural ingredients, excluding alcohol and grapes, and instead featuring organic beets and herbs like catnip, peppermint, and chamomile.
As the pitch unfolds, it becomes evident that what began as a gimmick evolved into a broader product line, including offerings for dogs. Apollo Peak’s commitment to creating a comfortable and enjoyable experience for pets and their human companions, along with Zavala’s background in the pet industry, contributes to the brand’s appeal and success. The unexpected success in sales, exceeding $192,000 in the three months leading up to the pitch, showcases the viability and market interest in Apollo Peak’s innovative pet beverages.
The Product
Apollo Peak’s flagship product, Pinot Meow, is a groundbreaking all-natural wine designed specifically for pets, offering a unique and enjoyable experience for cats and dogs alike. The cat wine is crafted without alcohol or grapes, ensuring the safety of pets. Instead, it features organic beets and a blend of herbs including catnip, peppermint, and chamomile. This innovative formula aims to enhance social interactions between pets and their owners, providing a playful and entertaining experience.
The product is presented in an eight-ounce bottle, retailing at $11.95. The pricing reflects the quality and uniqueness of the beverage, positioning it as a premium and memorable option for pet owners seeking a special treat for their furry companions. The distinctive and clever names assigned to the pet wines, such as Pinot Meow, add a charming touch to the product line.
Pet owners can purchase Apollo Peak’s cat wine directly from the company’s online platform, emphasizing the convenience of online sales and the appealing margins associated with this distribution channel. The pricing strategy aligns with the perceived value of the product and its potential to create memorable moments for pets and their human companions. The product’s success is further highlighted by its availability in major retail outlets such as Petco and Krogers, showcasing a growing market demand for this innovative and entertaining pet beverage.
How It Went
The company’s position before Shark Tank
Apollo Peak has demonstrated robust performance and a favorable market position, as evidenced by its impressive sales figures in the three months leading up to the Shark Tank pitch. During this period, the company achieved sales exceeding $192,000, exceeding the expectations of the Sharks and underscoring a significant market demand for their innovative pet beverages. The company has strategically secured partnerships with major retail outlets, including Petco and Krogers, indicating a broadening distribution network and increased accessibility of its products to consumers.
These partnerships with established retailers contribute to the company’s visibility and accessibility in the pet market. Apollo Peak’s online presence is a key component of its success. Direct online sales contribute to favorable margins, as highlighted by the founder, Brandon Zavala, during the pitch. The company’s ability to tap into online channels reflects a sound understanding of contemporary consumer trends and preferences.
The strategic decision to partner with O’Leary, who brings expertise in the pet industry, is likely to contribute not only to financial stability but also to valuable insights and guidance. The profitability of Apollo Peak is supported by its sales figures and the positive reception of its unique products in the market. The company’s ability to generate over $192,000 in sales within a short timeframe indicates a healthy financial position.
The Negotiations:
The negotiations for Apollo Peak’s cat wine, Pinot Meow, on “Shark Tank” were dynamic and culminated in a successful deal with Kevin O’Leary. Brandon Zavala, the founder, initially sought $100,000 for 10% equity in his company. The Sharks were intrigued by the unique product but raised concerns about the pricing strategy and the overall market viability of cat wine. Two Sharks, Kevin O’Leary and Robert Herjavec, extended offers to invest in Apollo Peak. Kevin O’Leary proposed $100,000 for 33.3% equity, emphasizing his experience in the pet industry and the potential for growth in the niche market.
On the other hand, Robert Herjavec offered $100,000 for 25%. The negotiations took an unexpected turn when Zavala accepted Kevin O’Leary’s offer $100,000 for 20%, opting for a higher equity stake in exchange for O’Leary’s expertise and strategic approach. The negotiation process showcased Zavala’s strategic thinking as he weighed the offers against the unique aspects of his business. Despite expressing an initial preference for the margins obtained from online sales, Zavala ultimately recognized the value of O’Leary’s offer in terms of experience and industry knowledge.
The negotiation also highlighted the challenges associated with pricing in the pet market and the need for a strategic partner to navigate these complexities. The acceptance of Kevin O’Leary’s offer marked a turning point for Apollo Peak, aligning the company with a Shark known for his business acumen and success in the pet industry. The negotiation concluded with excitement and optimism as Zavala expressed gratitude for the unexpected multiple offers and the opportunity to grow Apollo Peak into a nationally and globally recognized brand.
