Mark Cuban's Investment Transforms Black-Owned Wine Company Wondry From $225,000 To $1.1 Million In Sales In Under A Year

On a recent episode of ABC’s "Shark Tank," husband-and-wife duo Whitney and Chaz Gates revealed that their Black-owned wine label Wondry experienced a surge in annual sales, surpassing $1.1 million. The catalyst behind this impressive growth? Investor and Dallas Mavericks owner Mark Cuban, who invested $225,000 in the Dallas-based company less than a year ago.

During their initial pitch on the show in November 2022, the owners disclosed that Wondry generated $250,000 in lifetime sales, with $60,000 in profit over 11 months. Cuban’s investment secured a 15% stake in the business, marking the beginning of a journey. Less than a year after appearing on the show, Wondry CEO Whitney Gates credited the exposure from "Shark Tank" for propelling their brand from a local Texas business to a nationally recognized brand.

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The Gateses initially sought an investor to fund an automated bottling line to replace their manual labor processes and to expand beyond their 1,400-square-foot facility. The infusion of Cuban’s $225,000 into Wondry gave the company multiple benefits that pushed it toward a complete overhaul. Two weeks after the investment, Cuban introduced the Gateses to a representative at national alcohol distributor Southern Glazer's. The meeting led to Wondry reaching a distribution deal to appear in restaurants, retailers and airline partners throughout the United States. 

Today, Wondry operates from a sprawling 10,000-square-foot space, and its products are available in over 400 stores nationwide — a substantial increase from the 50 retailers at the time of their initial "Shark Tank" appearance. From this facility, it produces a range of cocktail wines that are 100% natural and feature berry, citrus and exotic fruit flavors. 

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Splash Wines is another company trying to make its mark in the competitive wine space. It operates a direct-to-consumer e-commerce model that delivers value-oriented wines to consumers throughout the U.S. 

Wondry’s journey began with the Gateses investing $100,000, mainly from personal savings, to launch the wine label in August 2021. They wanted to create an approachable wine made from high-quality ingredients. The couple leveraged their prior work experience to improve the odds of success. Whitney previously worked in marketing for major beverage brands, and Chaz was in-house counsel for a tech company, which gave them insights into the market and a range of skills needed to start a business. 

Black entrepreneurs own less than 1% of U.S. wine labels, according to data from the Association of African American Vintners (AAAV), an organization founded in 2022 to promote Black participation and ownership in the wind industry. Cuban’s investment in Wondry reflects a sound business decision and a commitment to supporting underrepresented entrepreneurs.

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