Bee d’Vine Honey Wine
DEAL
EPISODE SUMMARY
🕓 Air Date: November 13, 2020
Asking For:
$750,000 for 20%
Investor:
Mark Cuban, Lori Greiner, Robert Herjavec, Daniel Lubetzky (25)
Deal:
$750,000 for 40%
PRODUCT SUMMARY
Bee d'Vine is a honey wine produced in small batches, crafted from raw local honey and pure spring water, offering a unique and sustainable alcoholic beverage.
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Background Story
Ayele Solomon, originally from Ethiopia and raised in Kenya, founded The Honey Wine Company in Sonoma, California. With a background in environmental economics and an MBA in finance, he aimed to create a product that combined his passion for wine with his commitment to environmental and social causes.
Bee d’Vine, a modern twist on the ancient beverage of honey wine, was born out of his desire to promote honey-based mead, the national drink of Ethiopia, while also addressing the global decline in bee populations. Ayele’s journey began as a side project while he held a full-time job, and over six years, he poured his heart and soul into perfecting the formula for Bee d’Vine.
The Product
Bee d’Vine is a premium honey wine that stands out for its simplicity and unique flavor profile. Crafted in small batches, it combines raw local honey and pure spring water to create a smooth and fragrant wine experience.
Available in various styles, including Brut non-sparkling, sweet non-sparkling, and sparkling sweet, Bee d’Vine offers a diverse range of tastes to suit different preferences. Each sip is described as a journey through exotic floral nectars that dance on the palate.
Bee d’Vine is currently available for purchase through its website, and efforts are ongoing to expand its distribution and retail presence.
How It Went
The company’s position before Shark Tank
The Honey Wine Company, producer of Bee d’Vine, has been in operation for six years. Over this time, they’ve achieved approximately $400,000 in sales. However, in the last 12 months, their sales reached $115,000. The company’s founder, Ayele Solomon, initially juggled the business while holding a full-time job, which limited the scale of operations and marketing efforts.
Funding primarily came from Ayele himself, along with contributions from family and friends, totaling about $600,000. The primary challenge for the company has been limited brand exposure and the higher price point of their product compared to the majority of wines on the market. While their product is exceptional, Bee d’Vine faced difficulties in getting consumers to try it due to its relatively high retail price.
The Negotiations:
Ayele Solomon entered the Shark Tank seeking a $750,000 investment in exchange for 20% equity in The Honey Wine Company, the producer of Bee d’Vine, a honey wine. The Sharks, however, were quick to express concerns about the product’s high retail price and limited sales figures. Mark Cuban, Daniel Lubetzky, Lori Greiner, and Robert Herjavec collectively made an offer that would involve all four Sharks coming on board as partners.
They offered $750,000 for 40% equity in the company, with each Shark taking a 10% stake. While Ayele initially hesitated and wanted to negotiate, the Sharks made it clear that this was a non-negotiable offer, and he had to accept the terms as presented. The Sharks saw the potential in Bee d’Vine but recognized that the key challenge was getting consumers to try the product due to its higher price point.
They believed that by collectively joining forces, they could not only help Ayele lower the price to a more competitive range but also provide the brand with the exposure and marketing it needed to succeed. Ultimately, Ayele accepted the offer from all four Sharks, expressing his excitement about the partnership and the opportunity to work with such a strong team.
