Goverre Sippy Cup For Wine
DEAL
EPISODE SUMMARY
🕓 Air Date: April 21, 2017
Asking For:
$200,000 for 13%
Investor:
Mark Cuban, Lori Greiner, Robert Herjavec
Deal:
$200,000 for 33,30%
PRODUCT SUMMARY
Goverre is a portable wine glass with a drink-through lid, offering a spill-proof solution for enjoying wine on the go.
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Background Story
Goverre, founded by Regan Kelaher and Shannon Zappala, is a portable wine glass company that emerged from a shared passion for wine and a desire to enhance the outdoor wine-drinking experience. The company’s presence is within the United States, given the reference to selling online and receiving a purchase order from the Container Store. Regan Kelaher and Shannon Zappala’s background experiences contribute to the unique blend of creativity and practicality that defines Goverre. The founders recognized a common annoyance among wine enthusiasts during outdoor activities – the inconvenience of using plastic cups that often lead to spills.
Determined to solve this problem, they set out to create a sophisticated and durable solution that would allow wine lovers to enjoy their favorite beverage without the risk of spillage. The product, Goverre, is not only a functional solution to the issue of spilled wine but also an embodiment of the founders’ commitment to quality and elegance. The white soda-lime glass used in Goverre is notably thicker than standard wine glasses, providing durability for outdoor use. The addition of a silicone sleeve further enhances its robustness.
The 17-ounce capacity, coupled with a unique drink-through lid, ensures that consumers can savor their wine without the constraints of traditional glassware. Regan and Shannon’s journey with Goverre reflects their dedication to creating a product that seamlessly integrates into the lifestyles of wine enthusiasts. The company’s success in securing significant sales and partnerships attests to the founders’ keen understanding of their market and the demand for an innovative solution in the realm of portable wine accessories.
The Product
Goverre, the brainchild of Regan Kelaher and Shannon Zappala, is a revolutionary portable wine glass designed to elevate the experience of enjoying wine outdoors. Crafted from a durable white soda-lime glass, Goverre is approximately twice as thick as conventional wine glasses, ensuring resilience for various outdoor activities. The addition of a protective silicone sleeve provides an extra layer of durability.
The standout feature of Goverre is its innovative drink-through lid, making it the only portable wine glass of its kind. This unique lid design allows users to pour their favorite wine into the glass, seal the lid, and then pack it in their bag for on-the-go enjoyment. The lid not only prevents spills but also preserves the integrity of the wine, making it an ideal choice for picnics, concerts, boating, and other outdoor events.
Goverre holds an impressive 17 ounces of wine, equivalent to half a bottle, and is available in various colors. Priced at $24 per glass, it can be purchased online and in approximately 300 specialty retail shops. The product’s popularity is further underscored by a recent purchase order from the Container Store for 9,000 units, reflecting its appeal to both individual consumers and larger retail chains.
How It Went
The company’s position before Shark Tank
Goverre has demonstrated robust performance, positioning itself as a thriving player in the market of portable wine glasses. With an impressive track record, the company has achieved notable sales figures, having sold $384,000 worth of glasses in the current year alone. Projections indicate a trajectory towards $500,000 in total sales, showcasing the company’s strong market presence. The strategic partnerships Goverre has cultivated contribute significantly to its success. While the episode does not provide an exhaustive list, it mentions a substantial purchase order from the Container Store for 9,000 units, indicating a growing interest in Goverre’s products from major retail chains. This partnership expands Goverre’s reach and strengthens its foothold in the market.
As for distribution, Goverre currently sells its products online and in about 300 specialty retail shops. This diverse retail presence underscores the broad appeal of Goverre among consumers. The company’s dedication to quality is further emphasized by its choice of white soda-lime glass, which is twice as thick as standard wine glasses, and the addition of a protective silicone sleeve for durability. In terms of financial health, Goverre’s profits are noteworthy, with a net profit of $134,000 on sales totaling $384,000. The founders have opted to reinvest all earnings back into the business, reflecting a strategic decision to fuel further growth and expansion.
The product’s price point, set at $24 per glass, has not encountered pushback from customers, affirming its perceived value in the market. The acquisition of a strong and soon-to-be-issued utility patent for the drink-through lid demonstrates the company’s commitment to innovation and differentiates Goverre from potential competitors. In summary, Goverre stands as a financially sound and innovative company with a growing market presence, strategic partnerships, and a commitment to delivering a high-quality product. The decision to reinvest earnings suggests a forward-looking approach, ensuring the company’s continued success and expansion within the market of portable wine glasses.
The Negotiations:
The negotiations for Goverre on Shark Tank unfolded in a dynamic and engaging manner, showcasing the founders’ ability to navigate the investment landscape. Regan Kelaher and Shannon Zappala initially sought $200,000 for a 13% stake in their business, presenting their portable wine glass as a solution to the inconvenience of spills during outdoor wine enjoyment. Kevin O’Leary, known as Mr. Wonderful, was the first Shark to express interest, offering $200,000 for a 33 1/3% stake. However, Mark Cuban, Lori Greiner, and Robert Herjavec were quick to present a joint counteroffer, proposing the same amount but for a 33 1/3% stake collectively, with each Shark taking an 8% share.
This collaborative offer aimed to provide Goverre with the combined expertise and networks of three Sharks. The negotiation took an unexpected turn when Kevin O’Leary, in an attempt to sweeten his offer, suggested a reduced equity stake of 15%. However, the founders opted for the three-Shark deal, aligning with Mark, Lori, and Robert at a higher equity share. The negotiation’s climax featured Kevin O’Leary attempting to sway Goverre back to his offer, emphasizing the value he brings to the business.
Nonetheless, the founders stood firm and chose to move forward with the three-Shark offer, celebrating the deal with Mark Cuban, Lori Greiner, and Robert Herjavec at $200,000 for a 33 1/3% stake. The negotiation underscored the founders’ strategic decision to align with a trio of Sharks, leveraging diverse expertise and connections. The dynamic exchange showcased the competitive spirit of the Sharks and the founders’ commitment to securing a partnership that would propel Goverre to new heights in the market of portable wine glasses.
