"Calories are calories"— When Mark Cuban rejected Duex on Shark Tank

Shark Tank season 13 episode 7 featured Sabeena Ladha pitching Duex, her vegan cookie dough company. She sought $300,000 in exchange for a 10% stake. During the presentation, she highlighted the company's sales of $630,000 in the filming year, with production costs at $3.70 per jar and a retail price of $15.

After sampling the product and reviewing its nutritional information, Mark Cuban addressed the core issue.

"We're not your demo, but at the same time, calories are calories, and too many kids gaining too much weight is still a real problem in this country. If there was something here that I could hang my hat on to say as an alternative, I'd probably go for it because I think you're incredible but it's not there," Cuban said before exiting the deal.

While the Shark Tank pitch ended without securing an investment, Duex sales reached $1.8 million by the end of 2021.

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Mark Cuban rejects Duex cookie dough over product’s calorie content on Shark Tank

Ladha presented impressive metrics during her Shark Tank pitch. In the filming year, Duex generated $630,000 in sales through direct-to-consumer channels and specialty retail locations. The company's production cost was at $3.70 per jar, with a retail price point of $15, indicating healthy margins.

Their product line featured seven distinct flavors, including chocolate chip, brownie batter, peanut butter, sugar and spice, gingerbread, pumpkin spice, and birthday cake. The pitch gained momentum as Ladha shared her background in venture capital and her experience in the food industry.

She explained that Duex originated during the 2020 pandemic when she identified a gap in the market for functional desserts. Working with a naturopathic doctor, she developed formulations that incorporated supplements into vegan, gluten-free recipes. Each flavor offered specific functional benefits, for instance, the brownie batter variety packed vitamin C equivalent to five oranges.

After tasting samples of both raw dough and baked cookies, Cuban focused on the calorie content per serving. He referenced weight issues and questioned whether enhanced cookie dough could address these concerns. This perspective shaped his final decision, as the Shark Tank investor saw limitations in marketing Duex as a true alternative to conventional desserts.

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Sharks' responses and final outcome

Robert Herjavec led the Sharks' feedback with strong praise, calling Ladha one of the most impressive entrepreneurs he has met in his 13 years on the show. He cited her market understanding and business metrics as key strengths. Lori Greiner examined the health angle from a different perspective, stating that the product needed more nutritional benefits to match its marketing position.

Kevin O'Leary acknowledged that he wasn't the ideal customer. Guest Shark Nirav Tolia connected with Ladha's entrepreneurial story but explained that his expertise lay in technology rather than food products.

The Shark Tank pitch dynamics shifted when Robert Herjavec made an offer of $300,000 for 15% equity. This proposal valued the company at $2 million, lower than Ladha's initial ask. She responded with a counteroffer of $300,000 for 12.5%.

When Herjavec held firm, Ladha proposed 10% equity along with 5% in advisory shares. This second negotiation attempt prompted Herjavec to withdraw his offer completely. He explained his investment would have backed Ladha's capabilities rather than the product category.

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Post-Tank success

As per Shark Tank Blog, Duex demonstrated significant growth after the episode aired. The company reached $1.8 million in sales for 2021, substantially exceeding its initial projections. By early 2023, Duex products were available in over 1,200 retail locations nationwide. The distribution network expanded to include Target, Whole Foods, Hyvee, Erewhon, Westside Market, and Foxtrot.

Product innovation continued with the launch of a cinnamon roll flavor in May 2022, specifically marketed for breakfast consumption. The company also introduced new categories, including dessert spreads and donut variations, while maintaining its commitment to vegan ingredients and supplemental nutrients.

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Watch Shark Tank season 16 on the ABC network.