Solana Beach-based company obtains guidance, funding, appears on ABC’s “Shark Tank” following graduation -
Background:
While working as a Product Specialist for global lifestyle brands such as Burton Snowboards and Diesel Footwear, Jayla Siciliano learned that part of the job involved attending social functions, including dinners, fashion shows, parties and happy hours where alcohol was served. As a kickboxing instructor and health and fitness enthusiast, the continuous drinking environment and extra calories didn’t fit Siciliano’s lifestyle. It wasn’t long before she found that the wining and dining and negative affects of alcohol left her feeling groggy the next day. She sought to find an alternative that would allow her to partake in social events, but wouldn’t compromise her healthy lifestyle. Siciliano started pouring soda water into her wine and discovered she not only had more energy while socializing, but felt better the following morning. Siciliano was on to something. In 2008, she quit her job and devoted her time, energy and money into researching and redefining the light wine category.
Solution:
In 2010, Siciliano founded Bon Affair, the first premium wine spritzer that contains wine from California, purified sparkling water, zero sugar, no added preservatives, electrolytes, and at 6.5 percent alcohol, contains only half the calories compared to regular wine. Made in the U.S., Bon Affair’s wine comes from Paso Robles and is manufactured in Lodi, California.
While enrolled in the MBA program at the University of San Diego and working on Bon Affair’s product development, Siciliano was also using her action sports background and experience working as a volunteer and marketing domain expert for SD Sport Innovators. She knew one of the investor events was around the corner and since she was also seeking funding, she applied for its Springboard program. In 2011, Siciliano was accepted into the four-month intensive business accelerator program. From there, she was introduced to her mentors: Tony Rodriguez (Business Advisor), Dan Ruchman (Finance), Mick Sick (Marketing) and Shekhar Vyas (Legal).
The Springboard process provides mentorship to refine a company’s business plan and help articulate the business opportunity in compelling five and 15 minute presentations that can then be taken on the road to potential investors and strategic partners. Prior to starting the program, Siciliano faced three challenges. First, she didn’t have experience in the alcohol industry. Second, she didn’t have a proof-of-concept. Finally, she lacked funding. Siciliano was not only looking to obtain assistance in these areas, but she was looking to open herself up to new investor networks. The mentors played a big role in reviewing Siciliano’s business plan, looking for holes and refining her deck.
“Jayla was very responsive to the Springboard mentoring team’s feedback and suggestions for improving her business plan and dealing with potential investors,” said Tony Rodriguez. “One vital decision was for her to determine where to draw the line on what to give up, such as the ability to hire and fire staff, in exchange for funding.”
Results:
Today, Bon Affair is not only generating revenue, but expanding. The premium wine spritzer is available online and in retail locations. Siciliano’s product is in nearly 30 stores ranging from Albertson’s to Nordstrom’s Cafe to various Whole Foods Market’s from Los Angeles to San Diego.
Following Springboard graduation, Siciliano raised the money she needed from investors. An unfortunate incident occurred with Bon Affair’s bottling during the first production run that resulted in a loss of more than $100,000. Siciliano thought she’d have to close the doors and locate a new bottler. Around this time, an advisor recommended Siciliano apply for ABC’s hit “Shark Tank.” In February 2013, she submitted her application and in September 2013, the mini-sharkette went face-to-face with the shark tank investors in which she scored a deal with NBA Maverick’s owner Mark Cuban and obtained $150,000 for 35 percent of her company. The episode aired in May 2014 and just 10 days following her appearance, more than 2,000 orders were placed online and retail stores sold out of her product.
“My Springboard mentors had experience in the alcohol industry and provided a lot guidance as Bon Affair expanded. They played a crucial role in preparing us to pitch investors and positioning us for growth,” explained Siciliano. “If you have a basic business plan and haven’t pitched in front of investors before or need to improve your presentation, Springboard is a great tool to refine your business plan,” explained Siciliano.
As for future goals, the company is focused on expanding. Siciliano is expanding at retail in California, has signed with a major distributor for Texas, has begun exporting internationally, and is leveraging online opportunities. The company is actively involved in local community events and partners with fitness studios to provide the wine spritzer for their events. In addition, Bon Affair recently had a presence at the San Diego Rock ‘n’ Roll Marathon.
“The undeniable value of SD Sport Innovators’ Springboard program is the proven process for guiding entrepreneurs through the development of a business plan that includes operational “go-to-market” features that provide not only investor credibility, but real action plans to help the company launch successfully,” said Rodriguez.
About Bon Affair
Bon Affair has launched the country’s first ready-to-drink wine spritzer—real California wine, purified sparkling water, electrolytes and grape seed extract. That’s it. Zero added sugar. With half the calories of regular wine (300 for the entire 750ml bottle) and added electrolytes, it’s attracted the attention of not only gourmet and health-food retailers, but also serial entrepreneur Mark Cuban. For more information, visit http://www.bonaffair.com.
About SD Sport Innovators
SD Sport Innovators (SDSI) is a non-profit, business accelerator that connects and drives the growth of Southern California's vibrant sports economy by offering elite level networking and innovative programs and services for start-ups, mature companies and service providers. We offer mentoring, education and capital funding opportunities for start-ups; best practice collaboration, access to new technology and public policy advocacy for mature companies; as well as deal flow to our service providers and the Southern California investment community. To learn more and apply to Springboard, visit http://www.sdsportinnovators.org/programs_mentoring.
