On Friday's episode of ABC's "Shark Tank," Mark Cuban called a CEO's business "perfect" — and promptly rejected it.
The CEO, Annie Leal, is the founder of McAllen, Texas-based I Love Chamoy. It's a food company: Traditional Mexican chamoy is a street food condiment, often made from chili peppers, dried fruits and added sugar.
Leal's chamoy, which uses monk fruit as an alternative sweetener, boasts zero calories, carbs or added sugars, she said on the show. She sells it on her website, and on the shelves of 250 HEB grocery store locations across Texas.
The business began in late 2021, after Leal's dad was diagnosed with diabetes, forcing him to change his diet. "I wanted to find something healthier for my dad, and there wasn't anything like that available," she said.
By the episode's taping, Leal had brought in $1.3 million in year-to-date sales, thanks to her large social media presence, she said. I Love Chamoy has more than 422,000 followers on TikTok, as of Monday afternoon. One of its recent videos, posted earlier this month, has 2.5 million views and counting.
I Love Chamoy's projected sales for 2023, Leal said: nearly $4 million, including roughly $1.5 million in profit. She's the company's sole employee, she added. (I Love Chamoy works with a small number of contractors, Leal confirmed to CNBC Make It.)
Cuban's advice: 'Stick to your guns'
Leal asked the Sharks for $300,000 of funding, in exchange for 5% of her company. The money — and an investor's sage advice — would help her make a "bigger footprint" in retail, she said.
Cuban was impressed, applauding Leal for growing her company and becoming profitable in such a short amount of time.
"Annie, you've earned that spot right there," he said. "You're doing everything right. You've gone to social. You didn't just do it like a traditional consumer food product. Everything's perfect"
Just one factor prevented Cuban from extending an offer. "It's not my taste," he told Leal. "I just couldn't be out there saying, 'It's a great product, but it's not great for me' ... I'm out."
Lori Greiner and guest investor Jason Blum, founder of Hollywood's Blumhouse Productions, also declined to make an offer, saying Leal didn't need their help. Barbara Corcoran followed suit, saying she didn't want to be a part of the "retail ride."
That left Kevin O'Leary, who offered Leal $300,000 for 15% of the company. Breaking into retail would be harder than Leal thought, he said: "There's enough risk in this deal because the big guys in this space can easily knock you off."
The other investors weren't fans of the offer, with Blum calling O'Leary "brutal" for even suggesting it, and Cuban yelled for Leal to "stick to your guns."
Leal offered an 8% equity stake in her company. O'Leary cited 12.5% as his final offer, and Leal decided to walk away without a deal.
"That was a bloodsucking offer that Kevin made," she said. "His ask, 12.5%, was just way too high."
Disclosure: CNBC owns the exclusive off-network cable rights to "Shark Tank."
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