Obvious Wines
DEAL
EPISODE SUMMARY
🕓 Air Date: January 27, 2019
Asking For:
$150,000 for 5%
Investor:
Lori Greiner
Deal:
$160,000 for 12,50%
PRODUCT SUMMARY
Obvious Wines offers a curated collection of wines directly from eco-friendly vineyards worldwide, featuring straightforward and educational labels for easy consumer understanding.
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Background Story
Brice Baillie, the founder of Obvious Wines, brings a unique blend of French heritage and business acumen to the world of wine. Originally from the Champagne region in France, Baillie made a significant life shift, moving to Los Angeles around three and a half years ago. His background is rooted in business, and he gained valuable experience in the finance sector, notably working for L’Oréal.
The inception of Obvious Wines was sparked by Baillie’s observations of the complexities and intimidations surrounding the wine-buying process. Despite his enthusiasm for American and Californian wines, he recognized that not only was he feeling lost in the expansive world of wine, but those around him were also overwhelmed and intimidated by the selection process. This realization led to a profound question: how could he help people navigate the diverse world of wines while maintaining high quality and simplicity?
Baillie’s answer to this question became the foundation of Obvious Wines. The company emerged as a response to the need for a more approachable and less intimidating wine experience. Departing from his finance career, Baillie embarked on a journey to simplify the wine-buying process. He envisioned a brand that offered curated collections of wines directly from eco-friendly vineyards across the globe. The key differentiator was the creation of straightforward and educational labels, ensuring that consumers, regardless of their level of wine expertise, could easily understand and enjoy the wines.
The Product
Obvious Wines stands out in the wine industry by offering a curated collection that prioritizes simplicity, transparency, and a snob-free experience. The product line features wines directly sourced from eco-friendly vineyards worldwide, ensuring a commitment to environmental sustainability.
The core innovation lies in the packaging and labeling of Obvious Wines. Each bottle is adorned with straightforward and educational labels designed to demystify the often-intimidating world of wines. The front label succinctly describes the taste profile, making it easy for consumers to understand and select a wine that aligns with their preferences. On the back label, additional information is provided, including details on the wine’s origin, food pairings, and tasting notes for more advanced consumers.
Priced at $16 retail, Obvious Wines are sold to retailers for approximately $11, making them an attractive and accessible choice for consumers seeking quality wines without the hefty price tag. The product’s availability is currently concentrated in Southern California, with distribution expanding to over 100 locations within seven months of launching.
To purchase Obvious Wines, consumers can find them in select retail locations in Southern California. The company employs an approachable and consumer-friendly strategy, ensuring that individuals with varying levels of wine knowledge can confidently choose a bottle that suits their taste preferences.
How It Went
The company’s position before Shark Tank
Within seven months of its inception, Obvious Wines has demonstrated robust performance and notable growth, positioning itself as a promising player in the wine industry. The company’s health and position are marked by impressive sales achievements, having sold over 9,000 bottles and generating over $100,000 in wholesale revenue. This success has been primarily concentrated in Southern California, where Obvious Wines has secured distribution in over 100 locations, showcasing a strong market presence.
Obvious Wines has strategically partnered with eco-friendly vineyards worldwide, emphasizing sustainability in its product sourcing. These partnerships not only contribute to the company’s commitment to environmental responsibility but also enhance the appeal of its curated wine collection. In terms of distribution, Obvious Wines has established relationships with wholesalers, facilitating the availability of its products in diverse retail locations. The company’s structured approach to distribution involves both importation and distribution licenses, allowing it to maintain control over its products’ journey from vineyard to consumer.
The key stakeholders in Obvious Wines’ success are its customers, who appreciate the brand’s snob-free approach and the quality of its curated wines. While the product is currently available in Southern California, the positive reception indicates potential for broader market expansion. In the funding landscape, Obvious Wines has not disclosed specific details about its current funding sources or available capital. The current company structure reflects an entrepreneurial spirit with a focus on sustainability, transparency, and a consumer-friendly approach, paving the way for Obvious Wines to make a lasting impact in the wine industry.
The Negotiations:
The negotiations for Obvious Wines on “Shark Tank” unfolded with a dynamic interplay of wit, expertise, and strategic decision-making. Founder Brice Baillie entered the Tank seeking $150,000 in exchange for 5% equity, presenting a vision of democratizing the wine industry through Obvious Wines’ snob-free approach. While Kevin O’Leary, a significant player in the wine business, opted out early, citing himself as the anti-customer, Lori Greiner recognized the potential and made a substantial offer of $150,000 for 12.5% equity.
However, Baillie, demonstrating savvy negotiation skills, countered with a slightly higher valuation, asking for $170,000 for the same equity percentage, emphasizing the value Greiner brings beyond just financial investment. Mark Cuban, injecting humor into the negotiation, amusingly declared his rule against investing in companies that bring out mimes but commended Baillie’s efforts. Greiner, known as the “Queen of QVC,” strategically lowered her offer to $160,000 for 12.5%, aligning the deal more closely with Baillie’s initial ask. In the spirit of compromise, Baillie accepted the revised offer, sealing the deal with a cheerful celebration of “Chevaliers du Tastevin.”
The negotiation showcased Baillie’s ability to navigate the competitive wine industry, securing a strategic partnership with Greiner that extends beyond a simple financial investment. The synergy between Baillie’s vision for Obvious Wines and Greiner’s industry expertise positions the company for sustained growth. The negotiations culminated in a successful deal that not only injected capital into Obvious Wines but also leveraged Greiner’s valuable connections and experience, solidifying a promising future for the snob-free wine brand.
