"Murdering money" — When all sharks stopped Barbara from investing in Shark Tank product

Shark Tank season 1 episode 9 pitch turned contentious when Dan Mackey sought $55,000 for 10% of Chill Soda, a vitamin-enhanced drink with half the calories of regular soda. In the episode aired on October 13, 2009, four Sharks quickly dropped out after learning Mackey's marketing background lacked beverage industry experience.

Only Barbara Corcoran remained interested. All Shark Tank investors suggested rejecting the pitch. However, Barbara went on to offer $50,000 for 20% equity, which Mackey accepted immediately. Shocked by the deal, Kevin stated,

"You are guilty of murdering money you're going to go to jail…Have you lost your mind?...You have offended the primal forces of capitalism."

As per Shark Tank Blog, the investment ended in a complete loss after distribution problems forced the company to switch from retail sales to email-only orders. It eventually shut down operations.

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Shark Tank's Barbara Corcoran faced resistance from all Sharks before Chill Soda deal failed

Dan Mackey walked into the Tank with samples of his vitamin-enhanced, low-calorie drink. His initial presentation focused on the product's health benefits and market potential. The Sharks started questioning his experience in the beverage industry.

Mackey admitted he came from a marketing background and had no prior experience in the beverage sector. This sparked concern among the Sharks about his ability to manage the complex distribution networks required in the soda business.

A crucial moment arrived when Mackey discussed his sales figures. The entrepreneur mentioned "250," which initially alarmed the Sharks, who thought he meant total cans. The mood shifted when he clarified the actual number was 250,000 cans, bringing in $175,000 through a distributor.

Kevin Harrington analyzed these numbers and determined the business would need substantially more capital than the requested amount.

He explained that beverage industry scaling requires millions in inventory and marketing costs. While other Shark Tank investors backed away, Barbara viewed Mackey's pitch differently. She focused on his genuine approach and the growing market demand for healthy alternatives. The product's taste impressed her, along with its reduced calorie content and vitamin enrichment.

Barbara offered $50,000 for 20% equity, doubling the equity Mackey proposed initially. Despite the higher equity requirement, the entrepreneur accepted without negotiation.

This quick acceptance made other Sharks more concerned about his business judgment. Robert Herjavec specifically noted that an experienced entrepreneur would have tried to negotiate better terms.

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Post-Shark Tank

As per Shark Tank Blog, the partnership faced immediate challenges after the show aired. The initial distribution agreement that promised widespread retail presence fell through. Mackey's lack of industry connections complicated efforts to secure new distribution channels.

The company switched to direct email sales as it was the only method of reaching customers. This drastic shift from retail presence to email-only sales severely limited growth potential and market reach. The company struggled to fulfill orders efficiently through this limited sales channel. In addition, manufacturing costs remained high due to smaller production runs.

As per the Shark Tank Blog, Barbara Corcoran confirmed the investment loss in an October 2014 interview. Conference and Expo. However, she did not reveal additional details about the amount recovered, if any.

Chill Soda officially closed its business operations after failing to overcome distribution and operational hurdles. The market presence diminished gradually until the company ceased all activities. The promising deal with 250,000 cans worth $175,000 became the peak of company performance.

Barbara Corcoran faced loss in her investment (Image via Getty)

Dan Mackey moved away from the beverage industry completely. Shark Tank entrepreneur started a private equity firm in 2020, marking the final chapter of the Chill Soda story. The firm focuses on different market sectors, showing Mackey's shift from product-based business to investment management.

The product's core selling point of having half the calories of regular soda with added vitamin benefits never fully reached its target market. The company website, while technically still accessible, remains frozen in time with outdated product information and non-functioning purchase options.

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Shark Tank season 16 is airing on ABC network.