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Shark Tank's cast members, also known as Sharks, make a lot of deals and investments on the show. Some of the throw investments turn out to be fruitful and provide a desirable return, while others go out of business and are not able to generate enough profit to sustain themselves.
The venture Painted Pretzel, which was showcased in season 3 episode 6, saw the face of both worlds. Its founder, Raven Thomas, appeared on Shark Tank in February 2012, hoping to expand her business. Seeing the potential of the product, Mark Cuban wasted no time making a deal.
The deal worked in the company's favor, as Raven told Wags Redefined Magazine in May 2016 that her company got a boost from its appearance on Shark Tank. She added that her company's sales skyrocketed by 1,500% post-episode.
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However, The Painted Pretzel now appears to be out of business as their website is no longer available and their last Instagram post was uploaded on January 2, 2020, where the brand wished Happy New Year.
The Painted Pretzel's business after Shark Tank appearance
The Painted Pretzel's founder Raven Thomas appeared in season 3 episode 6 seeking $100,000 for 25% equity. The stay-at-home mom shared that she came up with an idea to make chocolate-covered pretzels intended to be sold as gifts.
Seeing the success she was getting from the product, she started the business and offered a range of candy pretzels. However, she was at the point in the venture when she needed help, which was the reason she appeared on the show.
Shark Mark Cuban was impressed by the idea and saw a growing potential in it. He made the deal on the asked condition without any negotiation.
The partnership initially turned out to be big and according to a CNBC report, the company’s annual revenue hit $1.5 million in 2014 which was a huge jump from the $75,000 that Raven Thomas shared on the show.
The candy brand also gained many corporate clients and their huge orders helped grow the business even faster. they expanded their reach and the products began to appear in more stores. The online sales reportedly grew as well when they set up their website and included a shop on Amazon which helped them reach customers all over the country.
With the success of their core products, they started introducing more variety and added new and exciting flavors. As seen on their Instagram handle, their new presentation included pretzel rods and pretzel bark which gained a following of its own among the consumers.
The Shark Tank product moved into a commercial kitchen space in Scottsdale, Arizona and it increased the efficiency and time of making a pretzel.
Mark Cuban seemingly reacts to his investment in Painted Pretzel
The success of Painted Pretzel was short-lived as the company started to see a decline over the years.
In a March 2017 Q&A with Oxford Union students, Mark Cuban reflected on his investments that failed. Cuban highlighted one venture that he regretted backing. While he didn't directly take the name of the company, he shared that investing in the chocolate-covered pretzel company drove him "crazy."
According to a Benzinga report dated November 10, 2024, the Shark Tank investor was hinting at The Painted Pretzel. While everything was initially looking great for the company, its sales reportedly went down due to its business model.
Cuban explained in the Q&A session that the main issue stemmed from the free shipping that the venture was offering. He shared that while the pretzels cost around $14, they sold it for $29.95 hoping to get a profit margin of $15. However, the free shipping expense was $16 per piece—exceeding the intended profit margin and leading to losses.
He added:
"I probably shouldn't have [invested]. No lie, to this day, I still get emails"
The Shark Tank investor explained that free shipping was initially intended to attract more customers and boost profits. However, it only led to financial losses, with Cuban, describing it as watching cash "just disappear" before his eyes.
Shark Tank season 16 episodes are currently airing on ABC.
