Shark Tank Update: How Lori Greiner made the $926M Scrub Daddy empire while Kevin O’Leary and Mark Cuban said no

In 2012, Aaron Krause pitched Scrub Daddy on Shark Tank, a smiley-faced sponge that changed texture based on water temperature. Mark Cuban and Kevin O'Leary doubted its potential, but Lori Greiner saw its value and invested $200,000 for 20% equity in the company.

Over the years, Scrub Daddy became a household name, earning $926 million in sales by 2023, solidifying its place as one of the most successful Shark Tank products. Lori’s expertise, particularly in retail and QVC, played a key role in transforming a niche product into a massive business success.

“Connections are everything,” she said.

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Shark Tank journey of Scrub Daddy

Scrub Daddy's Shark Tank pitch

Scrub Daddy first appeared on Shark Tank during season 4, episode 7, in 2012. The product, invented by Aaron Krause, was a cleaning sponge that had a unique feature: it changed its texture based on water temperature.

It was hard in cold water and therefore better for cleaning tough surfaces, and soft in warm water and therefore ideal for delicate work. The ergonomic design of the product in the shape of a smiley face also brought a playfulness that captured the attention of some viewers.

Despite the charismatic pitch from Krause, which included some very strong first sales figures from QVC, the Sharks weren't all on board. Mark Cuban wasn't sure about a product like this ever becoming a strong retail store option and passed. Kevin O'Leary also bowed out with an offer that Krause didn't think was the best for himself.

However, Lori Greiner, known as the “Queen of QVC,” immediately saw the sponge's potential to perform well on television and in retail markets. She offered $200,000 for 20% equity, a deal that Krause accepted, marking the beginning of Scrub Daddy's rise.

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What happened to Scrub Daddy after Shark Tank?

Following the Shark Tank episode, Scrub Daddy's success took off, thanks in large part to Lori Greiner’s guidance. After securing her investment, Lori used her expertise in retail and her strong connections with QVC to help propel the product into the spotlight. She featured Scrub Daddy multiple times on QVC, where it quickly became a bestseller. In its first appearance, 42,000 units were sold in under seven minutes.

The product eventually expanded to major retail stores like Walmart and Target, massively increasing its market presence. Throughout the years, Scrub Daddy has become one of the most recognizable cleaning products in the world. By 2023, it had generated over $926 million in sales.

The company also added many more products under this name, presenting various variations of the original sponge, such as seasonal patterns and special sponges for specific cleaning jobs. The company, headquartered in the United States, increased the number of employees to over 270, and now sells in more than 250,000 retail locations around the world.

In an interview with Business Insider in April 2015, Greiner shared her thoughts about the deal with Scrub Daddy, saying,

"The Scrub Daddy to me was a perfect product...It was clever and unique. It was different. It was something that people need and want."

Aaron Krause also credited Lori Greiner with being instrumental and hands-on in the product's success, saying,

""She's not human!...I'll send her an email at 2 in the morning, and she'll reply...She doesn't babysit."

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While Mark Cuban and Kevin O'Leary passed on the opportunity, Lori Greiner’s investment and guidance transformed the product into one of the most successful stories in Shark Tank history.

New episodes of Shark Tank air on Fridays at 8/7c, and can be streamed anytime on Hulu.