Wondry – Cocktail Wines
DEAL
EPISODE SUMMARY
🕓 Air Date: November 11, 2022
Asking For:
$185,000 for 8%
Investor:
Mark Cuban
Deal:
$225,000 for 15%
PRODUCT SUMMARY
Wondry is an award-winning collection of wines infused with organic fruit extracts, offering a unique blend of premium wine and craft cocktails with 9% alcohol by volume.
WATCH HERE
IN A RUSH?
Click these to jump to the section you want to read.
Background Story
Whitney Gates and Chaz Gates, a husband and wife team, are the founders of Wondry. Hailing from Dallas, Texas, they set out to disrupt the conventional wine industry. Whitney developed her passion for winemaking through her late uncle, who was known for making wine in his garage.
Chaz, on the other hand, embarked on a remarkable journey from growing up in a challenging environment, working multiple jobs, earning a master’s degree, working in Congress, teaching in China, attending law school, and ultimately becoming in-house counsel for a tech giant. Together, their diverse backgrounds and shared love for wine led them to create Wondry, with a mission to provide premium wines with unique flavors and a higher alcohol content.
The Product
Wondry offers a range of wine products, including Sangria Especial, Cran-Apple en Blanc, and their unique Southern Country Cocktail Cream. These wines are crafted to have a 9% alcohol by volume, which is higher than most semisweet wines.
The wines are priced at $18.99 and are made using premium, organic, and all-natural ingredients. Wondry utilizes a proprietary fermentation and infusion process to create fruit-forward, aromatic, and well-balanced wines.
The wines are available for purchase both directly to consumers and through retailers, including Target and Total Wine.
How It Went
The company’s position before Shark Tank
Within 11 months of starting the business, Wondry achieved $250,000 in sales with a 32% operating margin, translating to a $60,000 profit. They had invested $100,000 of their savings into the business and had secured distribution agreements with major retailers like Target and Total Wine, becoming the second-best-selling Black-owned adult beverage brand nationwide.
The Negotiations:
Whitney and Chaz initially asked for $185,000 for an 8% equity stake, but Mark Cuban offered $225,000 for 15%. After a brief counteroffer, they accepted Cuban’s offer. While other sharks, like Daymond John, Lori Greiner, and Kevin O’Leary, opted out, Mark Cuban recognized the potential in Wondry and made a deal with the passionate entrepreneurs.
In the end, Wondry secured a deal with Mark Cuban, who was excited to support a local business with a promising future. The founders expressed their gratitude and excitement for the opportunity, marking a significant step in their journey to disrupt the wine industry.
