Blendtique – Create Your Own Wine Blend
DEAL
EPISODE SUMMARY
🕓 Air Date: March 3, 2017
Asking For:
$250,000 for 10%
Investor:
Lori Greiner
Deal:
$250,000 for 10%
PRODUCT SUMMARY
Blendtique allows consumers to create personalized wine blends at home with a signature kit containing premium single-varietal wines, an Erlenmeyer flask, measuring pipette, and instructions.
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Background Story
Blendtique Wine Company, led by founder and creator Billy Dim, has its roots in the heart of the wine experience. The company operates within the vibrant wine culture, possibly in a region associated with wine production or appreciation. Billy Dim’s background is not extensively covered, but his passion for wine and the blending experience is evident in the pitch. His expertise may stem from a combination of personal interest, industry experience, or a deep appreciation for the art of winemaking.
The idea for Blendtique emerged from a desire to revolutionize the way people engage with and enjoy wine. Billy and his partners envisioned a novel concept where everyday consumers could become the architects of their own personalized wine blends. This vision materialized into the creation of Blendtique’s signature blending kit. The kit comprises four premium Central Coast single-varietal wines, an Erlenmeyer flask, a measuring pipette, and a comprehensive instruction manual.
The motivation behind Blendtique seems rooted in the belief that the enjoyment of wine should be a personal and accessible experience for everyone. By empowering consumers to experiment with different wine blends in the comfort of their homes, Blendtique aims to demystify the traditional wine experience and make it a fun and engaging activity. The product’s inception likely involved a combination of entrepreneurial innovation, a passion for wine, and a recognition of the evolving preferences of modern consumers seeking unique and customizable experiences in the world of beverages.
The Product
Blendtique’s signature blending kit offers consumers a hands-on and personalized approach to the world of wine. The kit is designed to make wine blending a fun and accessible experience for both enthusiasts and novices alike.
The process begins with the kit, which includes four premium Central Coast single-varietal wines, an Erlenmeyer flask, a measuring pipette, and a detailed instruction manual. Users are encouraged to experiment with different combinations of the provided wines until they discover a blend that suits their taste preferences. This trial-and-error approach allows individuals to become the creators of their own unique wine blends.
Once the perfect blend is achieved, users can log onto Blendtique’s website to upload their custom blend, design a personalized label, and place an order for their one-of-a-kind wine. This feature adds a customized touch to the overall experience, making it not only about the taste but also about creating a unique label that reflects the user’s style and preferences.
The benefits of Blendtique’s product lie in its ability to demystify the wine-blending process, making it an enjoyable and educational activity. Whether used for a blending class, a date night, or a personal exploration of wine, the kit provides a versatile and engaging experience. The direct-to-consumer e-commerce platform ensures easy access to the product, with the kit retailing for about $99. While the price point is set, the value lies in the creation of a personalized and memorable wine experience that goes beyond the traditional boundaries of wine consumption.
How It Went
The company’s position before Shark Tank
Blendtique Wine Company has demonstrated a promising performance over the past two years, achieving approximately $200,000 in sales. While the sales figure is notable, the “Shark Tank” pitch raises some questions about the company’s strategic direction and its position in the competitive wine market. The company’s initial focus on providing consumers with a unique at-home wine-blending experience has evolved to include classes and a pivot toward the hotel, hospitality, and catering industry, particularly in cruise lines.
This strategic shift suggests an effort to diversify revenue streams and explore new markets. However, it also introduces complexities in the business model and raises concerns among the Sharks about the company’s multi-directional approach. Blendtique’s product, retailing at $99, maintains a reasonable margin with a cost of $35 per unit. The e-commerce platform facilitates direct-to-consumer sales, providing accessibility to a wider audience. The company’s founder, Billy Dim, highlighted that Blendtique’s product has found application beyond individual consumers, gaining traction in the hotel, hospitality, and catering sectors.
The current structure of the company includes Blendtique as an e-commerce business with a focus on personalized wine-blending experiences. The partnership with Lori provides not only funding but also strategic support and exposure, leveraging her relationships to market and share the product with a broader audience. The evolving nature of Blendtique’s strategy, as seen in the pitch, suggests a dynamic approach to navigate the challenges and opportunities within the wine industry. The success of the company will likely depend on its ability to balance innovation, market demands, and strategic partnerships in the ever-evolving landscape of the wine market.
The Negotiations:
The negotiations during Blendtique Wine Company’s appearance on “Shark Tank” were dynamic, reflecting both the enthusiasm for the product and the challenges of aligning investment terms. The pitch started with Blendtique seeking $250,000 in exchange for a 10% equity share. Lori Greiner expressed genuine interest in the product, making an initial offer of $250,000 for a steeper 30% equity share. This offer, however, was deemed too high by Billy Dim, the founder. Subsequent negotiations saw Lori revising her offer to $250,000 for a 20% equity share, which was ultimately accepted by Billy.
Amidst Lori’s negotiations, Kevin O’Leary presented an alternative proposal. He suggested a $250,000 loan with 8% interest and a 10% equity stake. After considering the options, Billy opted for Kevin’s offer, securing both funding and a unique loan structure that aligned with Blendtique’s needs. The negotiation process highlighted the balancing act entrepreneurs often face between securing the necessary capital and managing equity dilution. Lori’s involvement not only brought financial backing but also strategic support and exposure, leveraging her influence in the industry.
However, the acceptance of Kevin’s loan offer showcased an entrepreneur’s consideration for the long-term financial health of the company. The negotiations revealed the complexity of Blendtique’s financial structure, including a pre-existing investor, and showcased the founder’s strategic decision-making. In the end, Blendtique secured a partnership with Kevin O’Leary, combining financial support with a unique loan arrangement that could potentially fuel the company’s growth and development within the competitive wine market.
