Additional Coverage:
- ‘Shark Tank’ turns intense as Kevin O’Leary brutally calls founders ‘cockroaches’: “Going to get crushed” (marketrealist.com)
“Mr. Wonderful” Turns Up the Heat on “Shark Tank,” Calls Founders “Cockroaches”
“Shark Tank” investor Kevin O’Leary, never one to mince words, unleashed his sharp tongue on entrepreneurs Allison and Stephen Ellsworth, founders of Mother Beverage, an apple cider vinegar-based health drink. The Texas couple pitched their product, seeking $400,000 for a 10% stake in their company. While the sharks were hesitant about the apple cider vinegar base, O’Leary took his criticism to a new level, calling the founders “beverage cockroaches going to get crushed.”
Fellow shark Lori Greiner also expressed reservations, likening the raspberry rose flavor to “sugary soda.” The Ellsworths defended their product, highlighting its low sugar content, variety of flavors, and successful sales track record of $500,000 in 18 months. They also secured placement in over 200 retail locations, selling each bottle for $2.99 to $3.59, with a low production cost of $0.78 to $0.85 per bottle.
O’Leary remained skeptical, predicting the company’s only hope was acquisition. He doubled down on his insult, referring to the founders as “vinegar roaches.”
Ultimately, all the sharks except Rohan Oza declined to invest. Oza offered $400,000 for 25% equity, an offer the Ellsworths accepted.
Following the show and Oza’s investment, Mother Beverage rebranded as Poppi.
The Ellsworths’ journey began with a modest $125,000 raised from family and friends. Their “Shark Tank” appearance catapulted them to success, driving sales beyond $1 million and prompting a complete rebranding. Oza has since doubled his investment in Poppi, impressed with the brand’s growth and market appeal.
Poppi’s vibrant packaging and savvy social media presence, particularly on TikTok, have fueled its popularity and doubled its sales. The brand has attracted significant investment, including over $13 million in 2021 and an additional $25 million in venture capital funding. Defying O’Leary’s initial prediction, Poppi now commands a 34% market share in the soda sector, a market projected to reach $173 billion by 2025.