Dragons Give Young Food Entrepreneurs A Reality Check | Dragons’ Den

Thank you Hello guys my name is Christian this is Tom and this is Martin We are here today to ask for seventy Thousand pounds for 35 percent in our Company love the pop love the pop makes Packs and sells the world's best popcorn Does that sound good Um we have developed two different size Bags and we've got five wonderful Flavors Salt and pepper popcorn in the nude got Caramel we've got white chocolate we've Got our latest Dimension Whoopsie Daisy Kind of came about from a mistake We have operated for 10 months we've Turned over 31 000 pounds so far we're Not the biggest of companies yet but That's why we're here I'm sorry in the Kind of 10 months we've been doing this We found that there really is a market For this popcorn Um so weirdly while the events we serve At are kind of they're cool new events And yet the snacks which tend to be Served at them are almost stuck in the 80s but that's events we feel quite Confident now where we need your help is To move into retail we hope to change Love the pop and transform an absolute Passion of ours and our profitable Company of the future if you'd like to Now have a sample of one of our bags of Love to pop question will know

Um bring over some bags too Characterful pitch from popcorn Connoisseurs Martin McLaughlin Tom Callard and Christian Hartman in return For a 35 stake they want 70 000 pounds To turn their take on the popular Cinema Snack into a mainstream brand this is it Tastes fantastic Marketing expert Deborah meaden wants Clarification on what they've achieved So far Hi I'm Deborah so when you talk about Events how many events have you attended To generate your 31 000 so we have done 24 corporate events to date Um we also have a deal with a company Called Secret Cinema Um which is for this whole year Secret Cinema do Um really really cool big film events Okay Um so um this is you'll find this is Your plan on Packaging The level that we operate at the moment This is the packaging that we use and we Quite like the sort of handmade feel of It and we think it feels quite authentic And genuine so really your unique Selling point is that you're taking a Traditional product you're trying to add A Twist by I think possibly yourselves Being quite quirky oh really yeah okay Do you think that's enough of it I mean I think the focus really has to

Be tased because it's not a kind of Scalable business model for us to be Kind of the face of it Beyond it having A story that we started it like Ben Jerry's or something All other popcorn we think apart from Maybe one other is popped with hot air So it's slightly healthier but the Popcorn itself tastes kind of cardboardy So we use vegetable oil instead of hot Air the point is that we focus on taste Exclusively with the best ingredients Because we think people are willing to Pay more for that Firm belief in their products perhaps But how does that translate into profit Theoper fetus is next to cross-examine The confident Trio Guys Um popcorn's good But tell me what your business plan is How are you going to make money Out of this There's a three-step plan number one is We do the events we become the events Popcorn it helps to show off the brand It helps us get exposure to quite a few People that will allow us to move into Cafes bars and places where at the Moment there's maybe no this is all Great Theory give me some numbers nice Um the big bags and we'll sell in retail At 2 40. um and there are costs on that Will be

Um 25 Pence what just the raw materials Raw materials and labor packaging Packaging as well because it's for every Delivery Um There'd be a delivery on top of that Well you're going to charge delivery or Are you going to include that in your Charge delivery on top of that so you Think retailer is going to let you Charge them to deliver your product do You Um I mean that's something we could work It back into the bags if we have to but You never thought about it yourself have You spoken to any retailers and said I'll tell you what I'm going to sell you My products and I'm going to charge you To deliver it to you It's one of the key problems sure you Need great big fans to deliver this Stuff Is and if you're just delivering 20 30 Bags to a cafe You're going to make 20 30 quid it's Going to cost you that in distribution Costs You haven't thought it through [Music] Fledgling entrepreneurs get a lesson in Business from retail Dragon theoper Fetus and Duncan bannatyne does not look Impressed You're nice guys but I really think it's

Time for a reality check for you to Think that you're going to take over the World and popcorn it's ridiculous You know I'm in the bags I mean it's Just to strip your bags it's not a Business you're going to take over the World you're not the new Ben and Jerry You're not anywhere near it And yeah I mean we realized that it's a Tiny tiny business at the moment it's It's barely a business it's a passion Um and we've got a good product I think We've got a good brand Um oh come on come on this is painful You've got a fairly good product but It's not the best popcorn it's not it's Not the greatest products it's not Fantastic and it's not bagged properly So I'm going to stop wasting any more Time I'm out The Trio's initial confidence takes a Hit as Duncan bannatyne crushes their Dreams of investment Will Hilary duvet find any Financial Comfort in the company's figures I'm Hilary hi Um so when you did your business plan How were your projections derived um We've based on a lot of what we have Done to date so we have certain Contracts for certain events and we're Also in negotiations with the contact of The company called Nomad they have a Hundred events in the next year a target

Audience of seventy thousand and then For year three Um honestly it was a bit of an estimate In terms of how we would get it into Retail I mean to me it's not coming over as a Business model A business plan for the Future it's coming over as cottage Industry that you know you are guys Obviously like popcorn so you thought Well we'll make it and we'll sell it That to me is not investable and not Sustainable I'm out Um I I think the amount of space it takes To pre-buy popcorn compared to other Much higher margin stuff is an issue and That becomes a bigger issue when you're Trying to sell into cafes where space is Absolutely at a premium so I think There's some structural issues what I do Think is do it make a bit of money don't Make this your lifetime living because I Suspect you've got more than this about You I'm out Two more investors walk away and Martin Tom and Christian look to be heading Back down the stairs without the 70 000 Pounds they badly need Now just two dragons remain Guys just noticed in the other little Pack that you gave me with the Clip

I noticed that I've got a lottery ticket Yeah it's not some subliminal message to Make me think actually I've got I got More chance of making money with this Ticket than I have with your business For us that's just little touches relate To put a sort of nice little sentiments That we offer out with bags you like to Give things away that cost money not as Extreme as the larger tickets because it Can be something like little jokes or a Little sentiments like that can I ask a Little bit of background about you what Where you've come from on this journey And how did you get to this point uh we All met through work we work in Advertising we were in the same agency In London yeah Who do you work for touch and touchy Okay And does the advertising agency you're Working for now know that you're doing This oh yeah they love it they're quite Supportive yeah which has been really Nice It's kind of building our own brand I Suppose so it's kind of good training Almost So where do you take that brand further For instance could you do corn snacks The brand can move could you do Fizzy Pop Yeah I mean this kind of does the Retro Vibe about it so I mean we were

Considering buying a candy floss machine Because it kind of fits in with that Whole feeling but just further down the Line we wanted to establish ourselves as Kind of love to drink love to pop love The candy yeah yeah Okay thank you Inexperienced entrepreneurs they may be But the trio have revealed expertise in Other areas that'll help launch a new Brand into the marketplace will this be Enough to convince Theo perfetus to Invest [Music] Uh guys listen you've got something About you But you're not going to get into Retailer massive premium There's so much more to do before this Could be a success I don't think I'm going to make money Out this okay and I hope you do and I Want to wish you the very best of luck But I'm afraid I might Thank you very much Listen guys I think the other dragons Have said it really um It's a tough one isn't it and I think Even you not in your head it's one of Those is it going to make money is it Not I'm sitting here and I'm thinking You remind me a lot of the three guys That you know have met who started a

Brand that's become quite well known now Innocence brand yeah yeah yeah Um you've got that quirkiness in you You've I know that comes from your Advertising agency stuff yeah um But I'm not totally convinced on the on The actual business and where it's at What I am absolutely convinced on Is the three people standing in front of Me I think you're articulate you're Intelligent you're clearly passionate And if you're able to to do a deal With us with one of the cinema groups And it would extend the brand which Might entice retailers to take a punt I'm going to make you an offer because I Think you have got something All of the money In return for 45 of your business For one moment yeah yeah A dramatic about turn as Peter Jones Surprises his rival dragons and makes an Offer but it's for nearly half the Company Will it prove too much for the brand Savvy entrepreneurs Foreign Tom and Christian have done it their Approach may have split the den but they Walk away with a multi-millionaire Business partner and a 70 000 pound Investment what up guys [Applause]

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