Brandon Zavala is the founder of Apollo Peak, a company with a wide range or wine-like drinks for cats and dogs. Zavala’s proposal is $100,000 for 10% stake in the company. Will the sharks invest in this business, or will they pass on this odd business opportunity?
We all know what it feels like when we get back home after a long day at work and all you want to do is unwind with a bottle of wine? Well, Apollo Peak’s goal is to grant your pets the opportunity to join in on the fun! Although the products don’t contain any alcohol nor grapes, they’re made with all-natural beets for the colour, and improved with herbs, including catnip, peppermint, and chamomile, each herb with its own distinctive benefit for increased social interaction.
But how did Zavala come up with such a unique idea? He used to work with a pet food company as a sales rep when he noticed a niche for beverages essentially unexplored.
With catchy names such as “Moscato” and “Pinot Meow”, the product’s are aimed for mainly cat owners who would like to unwind and pamper their feline companions.
Zavala’s initial aim was to use the name and the experience as a novelty or gimmick, although as interest in the product increased, so did their inventory, as they are currently starting to make wine-like drinks for dogs as well, such as the “CharDOGnay”.
But, is the company more than just a funny product? Much to the contrary, the company has sold over $192,000 over the past 3 months alone. One 8-ounce bottle costs $11,95, with a production cost of $1,25. Kevin expressed his worries about the price since, in the United States, wine for human consumption costs on average less than $12,99, therefore asking for cat and dog-owners to pay almost the same price for a very small bottle of “wine” for animal consumption. Zavala carried on to discuss the evaluation, saying that the company is on track to make between $1,2 million and $1,5 million by the end of 2017.
Mark Cuban was the first one to back out of the deal after claiming that “in no way on God’s green Earth I’m gonna be in the cat wine business.”
Soon after, it was Lori’s turn to turn down the business opportunity after using the same reason Mark used.
The third shark to decline an opportunity to invest on Apollo Peak was Robert, claiming he didn’t believe this would be a long-term business opportunity.
In an unexpected turn of events, Kevin mentioned he used to work as a marketing manager in a cat food company. From his time in the company, he learnt that cats don’t adhere to a routine very easily, but once they cling onto a flavour or brand, they don’t change. Therefore, if out of 5 families buying the wine, 3 of them make it part of the cat’s diet, Kevin believes they will become usual customers. O’Leary set his counteroffer at $100,000 for 33.3% of the company.
Quickly after hearing Kevin’s offer, Daymond quickly jumped in and offered $100,000 for 25% stake in the company.
After hearing Daymond’s offer, Kevin also mentioned that he ships around $10 million worth of wine to 40 different states in America. Zavala didn’t seem to care too much about this fact and instead asked Daymond if he would consider 15% equity for $100,000. Daymond countered with 20%, as did Kevin.
With two equal offers at the line, one from Daymond who has ties with Petco, and one from Kevin who sells directly to wineries all over the country, Zavala decided to pick Mr. Wonderful, Kevin O’Leary.
Perhaps one of the unique companies we have ever seen on the show, it’s still quite early to discuss how successful Apollo Peak has been since the show. You can find out more about the brand on their website apollopeak.com or check their products online.
Original Air Date: April 7, 2017
Entrepreneurs: Brandon Zavala
Company/Product: Apollo Peak
Proposal: $100,000 for 10% stake
Final Deal: $100,000 for 20% equity
Apollo Peak’s pet wines are non-alcoholic and 100% natural, based beverage for your pet. Their products are made with all natural herbs and organic beets. Their wines have no grains, no wheat, no corn and no soy and are manufactured in the USA.
At Investivate.com, we cover a wide range of topics including business, finance, entrepreneurship, success, personal development and much much more.
Wallet Buckle Shark Tank Pitch by Trevor Johnston and Justin Johnston10 May, 2017
Rumi Spice Shark Tank Pitch by Emily Miller, Kim Jung and Keith Alaniz04 May, 2017
See Rescue Streamer Shark Tank Pitch by Dr. Rob Yonover03 May, 2017
Under The Weather Pod Shark Tank Pitch by Rick Pescovitz01 May, 2017
Chirps Chips Shark Tank Pitch By Rose Wang and Laura D’Asaro29 Apr, 2017
A List of All Shark Tank Products From Season 1 to 825 Apr, 2017
Loctote Shark Tank Pitch by Adam Mcbride and Don Halpern25 Apr, 2017
Nootrobox Shark Tank Pitch by Geoffrey Woo and Michael Brandt