Protein pod founders lost $50K on a rookie mistake — but they came on ‘Shark Tank’ and landed a huge deal
Besides baseball, there's hardly anything common between Mark Cuban and Alex Rodriguez, but 'Shark Tank' brought the duo together for meaty investments. Rodriguez appeared as a guest judge on the show between seasons nine and 10. When a fitness brand pitched itself on the tank, Rodriguez, with his sports background, and Cuban, with his sharp entrepreneurial skills, decided to invest in it together. Years later, the brand grew exponentially, raking in millions of dollars. However, there is a catch.
In a 'Shark Tank' episode, husband-and-wife duo Joe and Megan Johnson from Michigan pitched their innovative startup, Vade Nutrition, which makes mess-free, dissolvable protein powder pods. Their idea stemmed from frustration over the hassle and mess of traditional protein powders, especially post-workout, when you're in the car, per CNBC. The pods, made from edible, food-grade film, dissolve instantly in water and contain 100% whey isolate, 20 grams of protein, 90 calories, and zero fat or sugar. Despite having just $80,000 in sales since launching online in 2017, they had a strong social media presence—all without any paid promotions.
The Johnsons shared a costly early mistake, which was spending $50,000 on incorrectly flavored powder that they couldn't use or return. Cuban, however, had a supportive response to their setback, as he said, "Welcome to being an entrepreneur." The Shark then quickly recognized the potential of the product, especially because of their pending utility patent. He offered $350,000 for 20% equity, pointing out the importance of their intellectual property, saying, "When you're grinding and your back is against the wall, you take the path of least resistance to cash."
He further added, "On the one hand, you have a patent, and that’s your hammer... your hammer is more important than everything else right now." As Lori Greiner considered making a move, Rodriguez cut in with humor and confidence, "Lori, you're thinking, so that might take a while," while he jumped in with his offer. Rodriguez explained why the deal made sense for him, saying, "This business is right in my wheelhouse. Between my sports background and the gyms that we own, we have access to over 1,000 gyms."
Rodriguez also pointed out his successful track record with Cuban, as he said, "We just bought a company called Ice Shaker here last season, and it's up over 500%. I did that with Mark." Rodriguez and Cuban made a joint offer of $700,000 for 40% equity, which was much more money than the couple originally asked for, but at the cost of a larger stake. The Johnsons tried to negotiate, countering with 25%, but Cuban was firm. "No," he replied, shutting down the counter. Despite the equity increase, the Johnsons eventually accepted the deal. As Joe Johnson put it, "For a protein powder on Shark Tank, Cuban and A-Rod are the dream team."
Although the deal with Cuban and Rodriguez on 'Shark Tank' never closed, Vade Nutrition still saw major success from the exposure, per Shark Tank Recap. Sales surged, media coverage grew, and they expanded into major retailers like Walmart, GNC, Kroger, Hy-Vee, Amazon, CVS, and Winn-Dixie. A 2020 manufacturing deal with Amway helped scale production, and their product line expanded to include collagen, MCT oil, pre-workout tablets, and plant-based shakes. In 2022, Vade ranked #392 on the Inc. 5000 list of fastest-growing businesses in the U.S., and by August 2023, their products were in over 8,000 locations.