Additional Coverage:
- Mark Cuban took a million dollar gamble on this ‘Shark Tank’ product and it went as expected (marketrealist.com)
BeatBox Beverages Scores a Million-Dollar Deal with Mark Cuban on Shark Tank
Scoring a million-dollar deal on Shark Tank is a rare feat, but the founders of BeatBox Beverages—Justin Fenchel, Brad Schulz, and Aimy Steadman—managed to do just that, impressing Mark Cuban with their innovative alcoholic beverage.
The trio entered the Tank seeking $400,000 for a 20% stake in their company. Their pitch centered around the idea that bringing wine to a party was boring, and BeatBox, packaged in vibrant, beatbox-shaped containers, was the solution. The entrepreneurs described their product, essentially a flavored wine drink designed for mixing and creating party-friendly cocktails, as a fun and exciting alternative to traditional party beverages.
The founders, who met in business school in Austin, Texas, explained that the idea was born out of a desire for a more exciting alternative to the standard 30-pack of beer or box of wine.
While the Sharks sampled the product, reactions were mixed. Kevin O’Leary, a wine connoisseur, wasn’t impressed with the flavor profile.
However, the founders’ sales figures—$235,000 in the previous year and a projected $120,000 in the upcoming quarter—piqued O’Leary’s interest. Each BeatBox sold for $19.99, representing solid value, but the company also carried $100,000 in debt.
Despite his reservations about the taste, O’Leary saw the potential for the product to go viral. Barbara Corcoran, recognizing the opportunity, offered the requested $400,000 for 20% equity. O’Leary countered with $200,000 for the same 20% stake, arguing his expertise was worth double Corcoran’s.
Mark Cuban then entered the fray, declaring that BeatBox wasn’t a wine product, but a “fun” product. He stressed the need for rapid growth and offered $600,000 for 33% equity, positioning himself as the ideal partner to help the company scale.
The entrepreneurs countered Cuban’s offer, proposing $1 million for 33%. To everyone’s surprise, Cuban accepted, securing the deal.
In a subsequent update, the co-founders reported that Cuban’s investment paid off, with BeatBox Beverages achieving significant milestones after their Shark Tank appearance.