Overview
BeatBox Beverages is a wine company that offers unique flavors and packaging that appeal to millennials. The company was founded in November 2011 by five co-founders: Jason Schieck, Brad Schultz, Aimy Steadman, Daniel Singer, and Justin Fenchel.
BeatBox Beverages was launched as an alcoholic wine product that tasted more like vodka and Gatorade, and within a year generated $200,000 in sales.
The company appeared on Shark Tank in 2014 and struck a deal with Mark Cuban, becoming one of the biggest deals on the show at that time. As of 2024, Beatbox Beverages is valued at $200 million.
Shark Tank Pitch
In 2014, Justin Fenchel, Brad Schultz, and Aimy Steadman appeared on season six of Shark Tank, seeking $200,000 for a 10% equity stake.
The founders made a strong start to the pitch and handed out samples to the Sharks.
Mark Cuban proposed $600,000 for 33%, and the founders countered with the same equity but for $1 million, and Cuban agreed. This was one of the biggest deals on the show at that time.
Sales After Shark Tank
Four months after the episode aired, BeatBox Beverages did $440,000 in sales. The publicity was a huge help, and the company is continuing to grow exponentially.
Their products are now available at over 65,000 retail locations including 7-11, Walmart, Kroger, Casey’s, and Circle K. Revenue has grown from $1 million in 2017 to $18 million in 2021, with expectations to make $20 million in 2022 and $100 million by the end of 2023.
Despite the impressive growth, the business lost money pursuing growth over profits, losing $4.2 million in 2019 and $3 million in 2020 but becoming profitable in 2021.
They’ve also raised $15 million at a $200 million valuation through crowdfunding and investors such as Rob Dyrdek, Louis The Child, and Party Favor.
As the business expanded its range of drinks, it set up a new company called Future Proof LLC under which the BeatBox brand sits. Out of the five original co-founders, three remain. Daniel Singer left in 2013, and Jason Schieck left in 2021.
The Founders
The co-founders of BeatBox Beverages are Jason Schieck, Brad Schultz, Aimy Steadman, Daniel Singer, and Justin Fenchel.
Justin Fenchel is a serial entrepreneur who started as a financial analyst and did an MBA at McCombs School of Business with Aimy, Jason, and Dan. Brad Schultz has a bachelor’s degree in marketing.
The Birth of BeatBox Beverages
BeatBox Beverages was launched in November 2011 as an alcoholic wine product that tasted more like vodka and Gatorade.
The co-founders bootstrapped the business with $55,000 and borrowed an additional $100,000 to fund its growth. The drinks became a huge hit, and within a year generated $200,000 in sales.
In conclusion, BeatBox Beverages is a wine company that has seen exponential growth since appearing on Shark Tank in 2014. The unique flavors and packaging of their products have appealed to millennials, and the company is now valued at $200 million.
Despite losing money pursuing growth over profits, the company became profitable in 2021 and has raised $15 million at a $200 million valuation through crowdfunding and investors.
Lessons From BeatBox Beverages’s Success
Based on the Shark Tank episode about BeatBox Beverages, here are three practical tips for aspiring young entrepreneurs:
1. Be willing to pivot and adapt
BeatBox Beverages initially faced challenges with their 5L bag-in-box format. When it didn’t sell as expected, they adapted by creating a single-serve Tetra Pak, which significantly boosted their sales.
Entrepreneurs should be ready to pivot and make changes to their product or business model based on market feedback and performance. Flexibility and responsiveness to market demands can be crucial for success.
2. Create a strong brand and community
BeatBox Beverages emphasized that they weren’t just selling wine; they were selling fun and creating an experience. They built a strong brand that resonated with their target audience, fostering a sense of community.
Entrepreneurs should focus on building a brand that goes beyond the product, creating an emotional connection with their customers and a community that supports and promotes their business.
3. Be strategic in scaling your business
The BeatBox team recognized the importance of scaling rapidly and making a big impact in the market. They sought out an investor who could help them achieve fast growth and expand their distribution network.
When scaling, it’s essential to have a strategic plan and the right partners who can provide not only financial support but also expertise and connections to help grow the business efficiently.
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