Scrub Daddy’s famous sponge was rejected by a Fortune 500 company and forgotten in a box for years. It’s now a $220 million empire (2024)

Before the smiling Scrub Daddy sponge was a staple in millions of American kitchens, it was rejected by a Fortune 500 company.

Scrub Daddy inventor Aaron Krause, 45, sold his first company, which made buffing pads, to 3M in 2008. He tried to include the now-ubiquitous dish sponge he had invented, which was marketed as a “hand scrubber.”

“They carved [the sponge] out of the deal, and left it with me because it was so worthless,” Krause told Fortune in a recent YouTube interview. The circular yellow sponge sat in a box, untouched, for three years.

Then in 2011, Krause’s wife, Stephanie, asked him to clean the their moldy lawn furniture. He found his rejected product in a box labeled “scrap,” and was amazed at how it left the surface of the grimy chairs sparkling clean.

“I knew right away this was destined to be the best dishwashing tool in the world,” Krause said.

After a successful pitch on Shark Tank, Krause’s once-rejected product has spawned a cleaning empire. Scrub Daddy boasted $220 million in sales in 2023, Krause said, and is now planning for a global expansion.

Young ambition

When Krause was a 10-year-old living in Wynnewood, Penn., he created his first invention—a rope and pulley system to help him turn off bedroom lights from the comfort of his bed.

“That was the first time I realized I could come up with a crazy idea, build something, and change my world,” he said. “From then, I literally started looking at the world completely different.”

This ambitious spirit followed Krause through high school and college. To earn his own money, he would clean and wash cars in the neighborhood.

Krause enrolled at Syracuse University in 1988, and graduated with a degree in psychology. He rejected the idea of a “real” job, and instead opted to start his own car-washing business—a decision that devastated his parents.

“My mom was crying,” Krause remembers. “My grandma said, ‘Just disown him!’ And my dad said, ‘Son, you have until the end of the summer to make it a real business and get it out of my garage.’”

But Krause’s business grew, inspiring his first big product, a buffing pad for polishing cars.

In 1995, Krause sold his car washing business and turned his focus to a new venture: Dedication To Detail, a buffing pad manufacturer. 3M bought the company, and Krause stayed on as a developer and consultant.

New life for Scrub Daddy

After finding the Scrub Daddy was just as useful for washing dishes as it was for lawn furniture, Krause took his invention to his coworkers at 3M.

“They said, ‘Oh, you’re crazy. It’s a wasted product,” Krause said. But the entrepreneur knew he could win over the naysayers if they could just see his product in action. He gave each coworker a sponge to test, and quickly won them over.

Krause invested $150,000 to patent his invention and began selling it at his friend’s chain of local grocery stores.

“He came to me after a couple of days and said, ‘I’ve never seen anything like it. We normally sell two or three sponges a day, you’re selling 200 to 300 in one of my stores. You need to go to every one of my stores and do that,’” Krause remembers.

Krause would go on to sell his product on a website and QVC, where he became a fan favorite. This bolstered his confidence enough to try out for his favorite show—ABC’s Shark Tank.

Krause filled out an application online and in three months received a call from Shark Tank producers. In October 2012, Krause was featured on season four, where he left with a $200,000 investment and 20% equity stake deal with entrepreneur and judge Lori Greiner.

After the episode aired, Krause said, Scrub Daddy crossed a million dollars in sales within 24 hours. Today, Scrub Daddy is considered one of the most successful products in the show’s history.

Business today

Scrub Daddy moved its headquarters to Pennsauken, N.J., in 2021. Its newest facility features a television studio, a warehouse, a koi pond, and a store for customers.

Krause is still inventing, working with his in-house engineering department to tap into various sectors of cleaning.

“We make sponges, but why don’t we make mops? Why don’t we make toilet cleaning products? Why don’t we make barbecue brushes?” Krause explains. “We’re in the cleaning business now. We’re not just making sponges.”

In 2014, the company introduced Scrub Mommy—a hybrid between the original Scrub Daddy and a traditional sponge. Krause said the company is now launching two or three products every year.

In March 2023, Scrub Daddy entered a partnership with global consumer goods company Unilever. This collaboration helped Scrub Daddy enter international markets with co-branded products. Krause also plans to expand his sponge empire to Europe in the near future.

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Scrub Daddy’s famous sponge was rejected by a Fortune 500 company and forgotten in a box for years. It’s now a $220 million empire (2024)

FAQs

Was Scrub Daddy rejected? ›

Before the smiling Scrub Daddy sponge was a staple in millions of American kitchens, it was rejected by a Fortune 500 company. Scrub Daddy inventor Aaron Krause, 45, sold his first company, which made buffing pads, to 3M in 2008.

What is the big deal about Scrub Daddy sponges? ›

One of the standout features of the Scrub Daddy is that it changes textures based on the temperature of the water: It is firm and rigid in cold water to help remove debris, but also soft, compressible and absorbent in warm water to act as more of a gentle sponge.

What happened to Scrub Daddy on Shark Tank? ›

Scrub Daddy now sells around 160 products, and it announced a partnership with Unilever Plc (ULVR. L) , opens new tab last year to develop co-branded products and grow internationally. The company sells its products through its website, on Amazon.com, and at retailers including Target (TGT.

Did Scrub Daddy become a millionaire? ›

But, behind the iconic ridges and gleaming eye holes are years of sweat and machine grime for Aaron Krause, 54, Scrub Daddy's Founder and CEO. Today, Scrub Daddy has made over $220 million in sales for 2023.

Does Shark Tank regret Scrub Daddy? ›

"I usually say no," John said in response. "But the company that I have to regret is one I lost the bid on. I lost it against Lori (Greiner), and it is a stupid looking little sponge. And every time I go in the store there's a Scrub Mommy, Scrub Baby, Scrub Daddy.

What is the most successful Shark Tank reject? ›

Click through to see the Shark Tank businesses that became wildly successful -- despite turning down their offer.
  • Brett Ida | Voyage-Air Guitars. Voyage-Air Guitar. ...
  • Hy-Conn | Facebook. Hy-Conn. ...
  • ©First Defense Nasal Screens. ...
  • ©Coffee Meets Bagel. ...
  • David Goldman | The Smart Baker. ...
  • ©Chexology. ...
  • ©Proof Eyewear. ...
  • ©Echo Valley Meats.

Why is Scrub Daddy so expensive? ›

It's worth noting that this is surely more expensive than your run of the mill sponge, but I imagine the large size and special material might contribute to the cost. According to the brand, the sponge is supposed to last two weeks — just as long as a normal one, though it'll vary for each person.

Do Scrub Daddy sponges get smelly? ›

Will my Scrub Daddy hold odors? FlexTexture® foam is lab tested to not hold odors for up to 8 weeks under normal conditions.

Is Scrub Daddy actually a good sponge? ›

These sponges are sturdy, easy to clean, easy to hold. They make scrubbing dishes easy. They don't scratch the surface of the pots. Great appearance and texture.

Is the scrubbie still in business? ›

While many companies inevitably fail without the funding and help from the Sharks, Jeff Dakin, Tyler Kessler, and Matt Hosey have fortunately managed not to become one of them. The company is still operational, having recently announced a relaunch of its initial product, called The Scrubbie 2.0.

Who owns Scrub Daddy? ›

After the sale, Aaron formed a new company called Innovative Accessory Products (IAP) which owned both the patent and scrap material known today as Scrub Daddy. By 2007, Multinational conglomerate 3M had their eye on Aaron's buffing pad company. They acquired it in August of 2008 taking everything.

How did Lori Greiner get rich? ›

In the mid-1990s, she invented a plastic earring organizer, patented it and launched her first company. The earring organizer was an immediate hit at JCPenney, which allowed Greiner to expand her business into other product categories, such as travel, electronics and household items.

Does Lori Greiner own Scrub Daddy? ›

On the Shark Tank episode originally airing in October 2012, Lori Greiner made a 20% equity stake deal with Krause for $200,000. The following day, Greiner and Krause sold 42,000 sponges in under seven minutes on QVC. Greiner then helped Scrub Daddy to be sold in retail stores such as Bed, Bath & Beyond.

Who is Lori Greiner's husband? ›

She is married to Dan Greiner.

Who accepted Scrub Daddy on Shark Tank? ›

After 3 long months of auditions, filming finally took place in July of 2012. On October 25th of that year, Scrub Daddy premiered on season four, episode seven of the show. Aaron's infomercial-like presentation grabbed the attention of celebrity “Shark” and prolific inventor, Lori Greiner, who secured the winning deal.

Did Scrub Daddy do well? ›

But the most successful hack we have found is called Scrub Daddy. The cleaning company was featured on Shark Tank in 2012 and has since become one of the show's most successful alumni. More recently, TikTok has caught Scrub Daddy fever.

How did Scrub Daddy succeed? ›

Shark Tank Success Story

He pitched his revolutionary sponge that changed texture based on water temperature, making it a versatile cleaning tool with a soft touch in warm water and a firm scrub in cold water. The sharks were captivated by the concept, and Lori Greiner, the “Queen of QVC,” saw its immense potential.

How much did the guy make from Scrub Daddy? ›

Scrub Daddy is reported - as of 2024 - as being worth a whopping $250 million, as per Filmysiyappa, and Krause takes home a salary of $20 million per year. He told The CEO Magazine in 2019: "If you told me 25 years ago that my greatest invention would be a kitchen sponge, I wouldn't have believed you.

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