Pitch Introduction
Pie Wine Shark Tank pitch brought an innovative beverage concept to the Tank – a wine specifically crafted to pair with pizza. Entrepreneurs Kevin Klein and Josh Green entered seeking $200,000 for 7.5% equity in their canned wine business, promising the Sharks they had created the perfect pairing for one of America’s favorite foods. The concept aimed to reinvent how people enjoy pizza with a beverage that actually complements rather than conflicts with the flavors.
Business Overview
Product/Service: Pie Wine is a sweet sparkling easy drinking canned table wine specifically designed to pair with pizza. The product comes in three varieties: red (Sweet Za), white (Crisp), and a world-famous red blend. Problem It Solves: The business addresses the common issue of beverage and food pairing mismatch, particularly with pizza where traditional drinks like beer don’t complement the flavors optimally. Target Market: Pizza lovers across America who enjoy a convenient, pre-packaged beverage that enhances their dining experience. Unique Selling Proposition (USP): Pie Wine positions itself as the OG Pizza wine – the first wine specifically created and marketed as pizza’s perfect companion, inspired by Italian traditions but perfected in California.
| Company Detail | Information |
|---|---|
| Product Name | Pie Wine |
| Founders | Kevin Klein and Josh Green |
| Product Varieties | Red (Sweet Za), White (Crisp), World Famous Red |
| Packaging | Canned (4 packs and 12 packs) |
| Price Point | $5.50 retail per can |
About Founder’s
Kevin Klein and Josh Green are best friends of over 30 years who came together to create Pie Wine. Kevin has a background in entertainment, hosting a morning radio show on K-Rock in Los Angeles for about 20 years, which he describes as being in the fun business. Josh brings the business acumen with an educational background including law school, a master’s in accounting, and experience working at bulge bracket Investment Banking. At the time of the pitch, Josh was helping run one of the largest spatial Computing video game companies in the country as the CFO. Both founders demonstrated significant commitment to their venture, with each making substantial personal financial investments.
- Kevin sold his 401(k) to fund the business
- Josh sold his house to invest in the company
- The pair had been working on the concept for two years before the pitch
- Both founders consider this their full-time commitment despite other professional engagements
Shark’s and Founder’s QnA
What exactly is Pie Wine?
Pie wine is a sweet sparkling easy drinking canned table wine that goes great with your favorite slice. That’s why we say pie wine is the OG Pizza wine AKA Pizza’s new side piece AKA it puts the ah in pizza.
Why did you create this product?
We knew we had to reimagine and reintroduce to the masses what pizza loving Italians have known for Generations that pizza goes best with a sweet slightly bubbling wine traditionally known as a lusco. That’s why we say born in Italy perfected in California.
What are your sales so far?
We launched 2 weeks ago and as of early today we have distribution in eight states. We’ve already had distributor commitments for between $3 and $400,000 already and we’re talking to 18 other states. We expect that to be well north of a half a million in 30 days and what we’re projecting for the first 6 months is about a million5 in the end of the year about $6.5 million.
Is this your full-time job?
It’s not a side hustle. I sold my 41k to do this. I ended up talking to my wife and we sold the house so that we could use some of that money. We’re all in Big Time.
What are your margins?
It cost us $150 right now to make we have a plan to get it down to $125 with more production. We’ll sell to Distributors for 325 and then it would sell if you were at Ralphs or Kroger whatever around $5 550.
Who is your biggest competitor?
Looking at comps Bev is one of the comps that came out and Bev just got sold. They went out with a pre-money valuation before they had any sales at $7 million we’re doing a discount because the truth is we want a shark.
Why did you decide to go into business together?
I’ve known him since we were 8 years old I love the guy he’s a big part of my life. I have an amazing Wife and Kids the last four years have been a little challenging because my wife unfortunately has metastatic cancer and doing something with your best friend is really exciting. I want to teach my kids hard work is so important like nothing’s given. I want to do a business with him because I love him and I want to see him successful.
Can you make an offer with a buyback option?
Can I make you guys all an offer if you don’t like the deal we’ll buy you out after a year no strings attach. That is very honorable it’s not about liking the deal it’s about there’s so many big players coming into this Market that I don’t know if I’m really ready to to take that fight on.
Key Stats & Financials
Despite being just two weeks old at the time of their Shark Tank pitch, Pie Wine showed impressive early traction with significant distribution agreements and strong financial projections. The founders had invested substantially from their personal funds, demonstrating their commitment to the venture.
- Sales: At time of pitch, secured $300,000-$400,000 in distributor commitments across 8 states
- Margins: Production cost of $1.50 per can (projected to decrease to $1.25), selling to distributors at $3.25 per can
- Valuation: The entrepreneurs valued their company at $2,666,667 based on their $200,000 ask for 7.5% equity
- Investment Request: $200,000 for 7.5% equity
- Use of Funds: To scale production, expand distribution, and grow marketing efforts
| Financial Metric | Details |
|---|---|
| Investment Sought | $200,000 |
| Equity Offered | 7.5% |
| Company Valuation | $2,666,667 |
| Founder Investment | Over $300,000 |
| 6-Month Projection | $1.5 million |
Business Potential and TAM
The market potential for Pie Wine is significant given the universal popularity of pizza in America and the growing trend of canned alcoholic beverages. The total addressable market includes both pizza consumers and the expanding canned wine market, which has seen consistent growth in recent years. Positioning itself as the official drink of pizza creates a unique niche that could capture a dedicated consumer base looking for the perfect pairing experience.
- The canned wine market is experiencing rapid growth with increasing consumer acceptance
- Pizza is consumed regularly by approximately 94% of Americans, creating a massive potential customer base
- The product taps into the convenience trend with ready-to-drink packaging
- Unique positioning as the first wine specifically created for pizza pairing gives it first-mover advantage
Pie Wine: Ideal Target Audience & Demographics
| Demographic | Details |
|---|---|
| Age Range | 25-45 years old |
| Lifestyle | Social, pizza enthusiasts who enjoy casual entertaining |
| Income Level | Middle to upper-middle class |
| Consumption Habits | Regular pizza consumers who enjoy alcoholic beverages |
Marketing and Distribution Strategy
Pie Wine’s marketing strategy centers around its unique positioning as the official wine for pizza. The company leverages catchy slogans like the OG Pizza Wine and Pizza’s new side piece to create brand recognition. Their distribution approach focuses on securing partnerships with distributors across multiple states, with an ambitious expansion plan. The founders also recognize the importance of experiential marketing, encouraging consumers to try Pie Wine with their favorite pizza to experience the perfect pairing.
- Distribution through major retailers like Ralphs and Kroger
- Partnerships with pizza restaurants and delivery services
- Social media marketing emphasizing the pizza pairing experience
- Experiential marketing at food and wine festivals
Pie Wine Deal Outcome
Despite an engaging presentation and impressive early traction, Pie Wine left the Tank without securing a deal. All five Sharks passed on the investment opportunity for various reasons. Kevin O’Leary was launching his own sparkling wine line and didn’t want to compete. Mark Cuban had a conflict with BeatBox Beverages, a company he had previously invested in. Daymond John, Lori Greiner, and guest Shark Candace Nelson all felt the market was too saturated or the concept too niche for their investment portfolios.
| Shark | Reason for Passing |
|---|---|
| Kevin O’Leary | Launching his own sparkling wine line |
| Mark Cuban | Conflict with BeatBox Beverages investment |
| Daymond John | Too many competitors in the market |
| Lori Greiner | Felt it was too early to invest |
| Candace Nelson | Concept too niche for her portfolio |
Pie Wine Post-Show Update
Despite not securing a deal on Shark Tank, Pie Wine continued to grow its business after the show aired. The company expanded its distribution network beyond the initial eight states and maintained its three product varieties: Red, Sweet Za, and Crisp White. In March 2024, Pie Wine gained significant exposure by featuring at the International Pizza Expo, further establishing its brand in the pizza community. The company sells its products in 4-packs for $20 and 12-packs for $60 through its website and has also introduced branded merchandise for loyal customers.
Business Analysis & Lessons
The Pie Wine Shark Tank pitch offers several valuable business lessons. Despite having a solid product with good early traction, the founders faced challenges in overcoming the Sharks’ concerns about market saturation and competition. Their experience highlights the importance of addressing potential competitive threats directly and having a clear strategy to differentiate in crowded markets. The personal story of friendship and commitment added emotional appeal, but ultimately wasn’t enough to secure investment when combined with market concerns.
- Thorough competitive analysis is essential when entering a crowded market space
- Personal stories can enhance a pitch but must be supported by strong business fundamentals li>Early traction is impressive but needs to be accompanied by a clear path to scalability
- Understanding each Shark’s existing investments and potential conflicts is crucial before pitching
Pitch Conclusion
The Pie Wine Shark Tank journey demonstrates the challenges of launching a new beverage product in a competitive market. While the founders didn’t secure a deal, their concept of a wine specifically designed for pizza pairing shows innovation and market insight. Their continued growth post-show suggests there’s consumer interest in their product category. What do you think about Pie Wine’s concept? Would you try a wine specifically designed to pair with pizza? Share your thoughts in the comments below!