Rated as the most successful business to appear on Shark Tank, Scrub Daddy is a cleaning product founded by Aaron Krause. Their best selling product is a multi-purpose polymer sponge with a smiley face. As of 2024, Scrub Daddy is worth $250 million and makes over $200 million per year. Due to its success, Krause is worth $70 million!
Scrub Daddy’s Success After Shark Tank
The day after the episode aired, Scrub Daddy sold 42,000 sponges in less than seven minutes. Lori Greiner helped the product get into Bed, Bath & Beyond. Scrub Daddy is available to buy in major retail stores such as Costco, Walmart, CVS and Target.
By January 2017, Scrub Daddy had done over $100 million in revenue and lifetime sales hit $209 million by October 2019. In 2021, revenue growth was 80% year over year and in 2022 the company did $100 million in sales. As of October 2023, Lifetime sales have reached $926 million!
They are now selling over 20 products! To meet demand, Krause has ramped up production by expanding its manufacturing headquarters to 80,000 square feet. Aaron and his team use TikTok to advertise their products through viral marketing.
Today, Scrub Daddy is considered the third-biggest sponge provider in America. With this, Scrub Daddy’s market cap is worth an estimated $250 million. Before Shark Tank, it was valued at $1 million and Lori’s 20% equity stake is now worth $50 million!
On January 28, 2023, Shark Tank did another follow up episode and revealed the company signed a deal with Unilever. The partnership will boost Scrub Daddy ‘s international presence and they expect to double their sales. In 2023, the company made $220 million in sales!
Aaron Krause’s Background
Aaron Krause hails from Wynnewood, Pennsylvania and his parents are doctors. He started inventing at an early age and studied Psychology at Syracuse University.
After graduating in 1992, he set up a car washing business but Aaron wasn’t satisfied with the quality of buffing pads available as they damaged the exterior of a car.
He got a patent for his invention which is made from high-tech polymer. Krause knew he was on to something and sold the car washing business to focus on his new idea.
Krause currently lives in Voorhees Township, New Jersey with his wife Stephanie and two children (Bryce and Sophie). According to Zillow.com, their house is worth $2.1 million. The couple bought the property for $450,000 in 2015. Stephanie works for Scrub Daddy as the Director of PR and Corporate Event Planning.
Founding Scrub Daddy
The aspiring entrepreneur created the machinery required to manufacture the pads and ordered custom made foam from a German company. Aaron sliced it into a two-holed, ridged circle to grip it better. This was the birth of the smiley face sponge.
In 2008, Krause’s buffing pad company was acquired by 3M, the 8th largest conglomerate in the world. However, his infamous sponge wasn’t included in the deal and a pile of them were left sitting in a factory.
Three years later, Krause discovered that the sponge could harden in cold water and soften in hot water. Scrub Daddy was officially launched in May 2012 and presented it on QVC.
Shark Tank Recap
After watching Shark Tank with his wife, he thought it would be wise to bring on a strategic partner to expand into retail. At the time of the pitch, he was in only five supermarkets.
He appeared in season four, seeking $100,000 for a 10% equity stake. Aaron made an energetic presentation that captured the attention of the Sharks. Kevin O’Leary started the bidding war by offering $100,000 for 50%, but Aaron quickly declined.
Daymond John wanted to split a deal with Lori Greiner but she wanted to go solo. Lori ended up offering $200,000 for 20% and Aaron Krause happily accepted the offer!
