Wine Balloon
DEAL
EPISODE SUMMARY
🕓 Air Date: February 10, 2012
Asking For:
$40,000 for 30%
Investor:
Mark Cuban, Lori Greiner (50/50)
Deal:
$400,000 for 100%
PRODUCT SUMMARY
The Wine Balloon is an innovative wine preservation device designed to extend the life of opened wine bottles. It employs a unique balloon mechanism that creates an airtight seal, preventing oxidation and preserving the wine's flavor for longer periods, even after the bottle has been opened.
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Background Story
Eric Corti, with a background in construction management, is a wine enthusiast who recognized the common dilemma faced by wine drinkers – the fear of wasting wine due to oxidation after opening a bottle. Armed with a keen eye for innovation and a passion for wine, Eric conceptualized the Wine Balloon as a solution to this problem. His inspiration stemmed from personal experience and a desire to create a product that would enhance the enjoyment of wine for enthusiasts everywhere.
Investing approximately $65,000 of his own money into research, development, and initial production, Eric launched Wine Balloon with a soft release. The positive response from early customers and retailers validated the product’s potential and prompted Eric to seek investment to further expand his business.
The Product
Made from medical-grade latex material, the Wine Balloon is easy to use. Consumers insert the balloon into an open wine bottle and inflate it by squeezing the grape cluster. This inflation creates a tight seal, effectively minimizing the wine’s exposure to air and preserving its freshness.
When ready to pour another glass, users simply deflate the balloon by squeezing the valve, allowing them to enjoy their wine on multiple occasions without worrying about spoilage. The product’s efficacy, ease of use, and affordability make it an attractive option for wine enthusiasts seeking a reliable preservation solution.
How It Went
The company’s position before Shark Tank
Wine Balloon achieved promising results during its soft release, selling over 700 units directly through its website without significant marketing efforts. With a retail price of $22 per unit and a production cost of $6.50, the company demonstrated strong potential for profitability and scalability. Eric’s investment of $65,000 underscores his commitment to the venture’s success, while the positive market response indicates a demand for the product.
The Negotiations:
Eric’s pitch attracted interest from multiple Sharks, with Kevin O’Leary offering $40,000 for a 30% stake. However, Mark Cuban and Lori Greiner presented a more compelling offer of $400,000 for full ownership of Wine Balloon. Despite initial hesitation, Eric ultimately accepted their offer, recognizing the opportunity to leverage their expertise and resources for the company’s growth.
The negotiations showcased Eric’s determination to secure the best possible outcome for Wine Balloon, ultimately leading to a mutually beneficial agreement with Mark and Lori.
