"I don't want to go down that road" — When Barbara turned down Pricklee in Shark Tank over previous experiences

In Shark Tank season 13 episode 22, pharmacy school graduates Kun Yang and Mohammed Hassoun presented their cactus water company Pricklee, seeking $200,000 for 5% equity. After tasting their low-calorie drink, the Sharks reviewed their monthly sales of $55,000 across 500 stores. When it came to Barbara, she shared her past experience.

"I invested in a Chill Soda company going back maybe 10-11 years ago. It's where I lost my first $200,000. Then they did round of investing, I lost another two, then another two. The distribution killed them. I learned to respect how dangerous it is, so I don't want to go down that road again. So, I’m out," said Barbara.

She initially declined the investment. The momentum shifted when Kevin O'Leary offered $200,000 for 20% equity, prompting Barbara to reconsider her stance. Barbara ended up bagging the deal.

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Barbara invested in Pricklee after initial rejection in Shark Tank season 13

Barbara's rejection came from experiencing three separate $200,000 losses in her previous beverage company investment Chill Soda. The deal took place in Shark Tank season 1 episode 9. Despite getting suggestions from other Sharks to not invest, Barbara took a stake in the company but later faced struggles.

The Shark Tank investor’s experience with distribution problems made her especially careful about new drink products. She watched the same pattern unfold multiple times as retail placement costs mounted up.

The distribution expenses kept growing with each expansion attempt. Her earlier beverage investment required continuous funding rounds that drained resources. Market penetration costs exceeded projections repeatedly.

Store placement fees created ongoing financial pressure. Retail partnerships demanded substantial marketing budgets. The distribution network's complexity brought unexpected expenses.

Pricklee arrived at Shark Tank with strong market performance data. Their $55,000 monthly revenue came from steady sales across 500 retail locations. Manufacturing costs were held at $1 per unit while maintaining retail prices from $2.99 to $3.49.

The founders shared plans to drop production expenses to 65 cents through larger manufacturing runs. A potential 7-11 partnership showed serious expansion capability. Their three distinct flavors targeted health-focused consumers.

Each can contained 35 calories and half the sugar of coconut water. The drink used sustainably sourced prickly pears. Natural antioxidants and vitamins enhanced the product's appeal. Market testing proved strong consumer acceptance. Initial store placements showed promising sales velocity.

Kevin O'Leary studied the numbers and made a firm offer of $200,000 for 20% equity. The founders pushed back with a counter proposal, requesting $200,000 as a line of credit while maintaining their 5% equity position. Kevin adjusted his stance slightly, suggesting 10% equity instead.

Barbara watched this exchange and made an unexpected return to negotiations. The Shark Tank investor offered $200,000 as a line of credit and 20% equity, bringing her beverage industry experience back to the table. The founders considered both Sharks' backgrounds carefully. The negotiation moved quickly after Barbara's re-entry. In the end, the entrepreneurs left the tank with Barbara’s offer.

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Post-pitch developments

Pricklee's growth since the Shark Tank appearance shows significant market expansion. The company reached $1.5 million in sales during 2023. Their retail footprint grew to include Sprouts Farmers Market locations across 23 states. Distribution expanded beyond their initial northeast market base.

The brand built a social media following of 16,000 Instagram followers and 37,000 followers on TikTok. Their Amazon storefront supplemented brick-and-mortar sales. Additionally, the company added several regional supermarket chains including All Town Fresh and Harmon's.

Website sales increased through subscription programs, and the brand maintained its original three flavor offerings. Their market presence strengthened in natural food stores, and revenue projections for 2024 exceeded $4 million.

Manufacturing costs decreased as predicted, and the company secured additional retail partnerships. At the same time, store placement continued expanding nationally while marketing efforts focused on health-conscious consumers. This led to improved sales velocity in existing retail locations.

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Fans can watch new episodes of Shark Tank on ABC network.