‘Shark Tank’ turns intense as Kevin O’Leary brutally calls founders 'cockroaches': "Going to get crushed"

"Shark Tank" investor, also known as Mr.Wonderful, Kevin O'Leary, is not just a ruthless negotiator and shrewd businessman, but he often says the most unpleasant things to entrepreneurs. The shark, known to reduce some founders to tears, decided to lash out at Allison and Stephen Ellsworth, co-founders of Mother Beverage, an apple cider-based flavored health drink. The Texas-based couple came on the reality show to seek investment for their beverage business. "We're here seeking $400,000 in exchange for 10% equity in our company," the couple revealed during the introduction. However, the sharks seemed less enthusiastic about trying a drink based on apple cider vinegar. But O'Leary went a bit too far and described them as "beverage cockroaches going to get crushed by big guys who want that shelf space back."

On the other hand, Lori Greiner said that their product "tastes sugary soda" after trying a shot of the raspberry rose flavor. The couple clarified that the drink contained only a tablespoon of apple cider and was available in a variety of flavors, with the most popular ones being pineapple turmeric, lime ginger, and blueberry sage. They then discussed the beverage's business aspect, stating that they began selling approximately 18 months ago and have made a profit of $500,000. Additionally, Stephen explained that their business just got approval for "placement in over 200 locations," and the product retails for "$2.99 to $3.59 based on the retailer's margin." He also added that bottle production was extremely cheap, between $0.78 to $0.85. 

That is when O'Leary skeptically pointed out, "You have the only way I get out of this thing alive is somebody buys you at some point there's an exit right." He added, “Every beverage guy comes in here, and the future's so bright, we've got to wear shades. But you're still vinegar roaches." O'Leary backed off from the deal, citing valuation risks, and the other sharks followed suit. "I will be a customer but I won't be a partner. I'm out," Greiner remarked before forfeiting the deal. The only investor interested in the flavorful apple cider beverage was Rohan Oza, who offered $400,000 for 25% equity. As per Food Republic, Mother Beverage rebranded to Poppi after gaining the investment from "Shark Tank."  

The Ellsworths had a humble beginning as they were cash-strapped during their early days of investment in the company and raised $125,000 from their loved ones to kickstart their dream project. Unsurprisingly, their "Shark Tank" debut made them popular, and their beverage received tremendous support with stocks flying off the racks. The brand completed more than $1 million in sales and rebranded with a new look and theme, creating a mass appeal. In a new update posted on YouTube, Oza can be seen gushing over his decision, saying, "You see it on a shelf, you want to gravitate to it. I love the brand so much that I've doubled the investment."

Poppi soda has now gained worldwide customers with its trendy packaging and social media presence. The brand has a large following on TikTok, which has helped it double its sales. The brand received more than $13 million in investments in 2021 due to its popularity among celebrities, and it gained an additional $25 million with B venture capital funding. Poppi totally crushed O'Leary's prediction, as it now holds a 34% market share in the soda sector, which is expected to balloon into a $173 billion revenue by 2025.