Next up are Nick Johnson and Nick Graham Two entrepreneurs who share much more Than the same first name Feeling good yeah so we know each other From school actually and Nick and I used To play rugby together when we were 80 Years old yeah people say you never Start businesses with your mates and uh Yeah I actually kind of agree Let's have a product which they're Already well established across the pond Is yet to make a similarly Big Splash Here in Britain Trends typically follow from the United States over to Europe we really think There's a huge growth opportunity here In the UK and we're right at the front Of that wave [Music] Hi Dragons I'm Nick Graham and this is My old friend and business partner Nick Johnson we're here today to ask for 120 000 pounds for a 10 stake in our premium Alcoholic drinks business dragons I want To take you back to the summer of 2019 Where Nick and myself visited Toronto in Canada one beautiful evening we visited This amazing Park our friend suggested That we tried these drinks he said they Were called A Hard Seltzer we'd never Heard of it they were light refreshing Fruity alcoholic and delicious nothing Really was the same back in the UK we Wanted to take the idea back to the UK
And make our own version And we named it off that incredible Park Where we first tried the drinks berksey The result is three award-winning drinks We're on track to record 260 000 pounds Worth of sales uh this year we have International Ambitions and plan to move Into the US early next year we'd Absolutely love for you to try our Drinks and we'd really welcome any Questions [Music] A new alcoholic drink category called Hard Seltzer is the trend on which Nick Johnson and Nick Graham are hoping to Capitalize you'll find three flavors Lemon and lime Peach and raspberry And passion fruit and turmeric They're asking for a hundred and twenty Thousand pounds in return for a 10 share In their business Peter Jones has sampled the pair's Products so has the all-important taste Test left him fizzing with enthusiasts Mick and Mick yes yes hi that's good I Can just say Nick and you're gonna be a Good answer yeah I mean I've had the First one which is the passion fruit and Turmeric and it tastes like an alcoholic Baraka well I think that's positive Feedback this one I might be slurring by the time I get to The third one but this one the Peach From raspberry yeah it's your favorite
That's my favorite well that's your best One yeah in my opinion it's our best Seller actually is it yep look I think Your products are really good Um and I do think this sort of stuff Will Catch there's no doubt about it no it's Good to hear thank you what's the Demographic profile of your current Customers Typically 60 of our customers between The ages of 27 and 35 years old 60 Female skew I'm not a a drinker of this Drink but one of my colleagues is and And she is in the exact demographic You've described and she always goes for Vodka lime and soda yes and that tastes Like that yeah it's an interesting one Of vocal I'm soda we get asked that Question a lot and I think one of the Main distinguishing features of vodka Lime soda you get the taste of the Vodka We use a completely neutral spirit so That's really interesting because that Would be my thing about that sure I Can't taste the alcohol you can add a Shot of gin if you like Yeah I think I think I think I'll Evaluate the business before you give me An extra shot I think it's a good idea Um but what was the thinking about Removing the taste of alcohol so that's Actually kind of what defines the hard Salsa category it's more about the light
Fruit flavorings than it is tasting that Kind of you know the Botanicals with a Gin or the you know when you're trying a Vodka you just know it's a vodka with Hard salsa it's more about appreciating The fruit flavorings basically Nick and Nick's distinctive new addition To the alcoholic drinks category has Raised interest as well as glasses in The day Now Tuka Suleiman wants to get a flavor Of the Duo's numbers So let's just go back to the first Year's figures you're on target to turn Over 260 000 yeah we'll be a gross Profit 60 to 70 000 pounds profit if any Um there'll be a loss of around 200 000 Pounds Whoa okay and when do you think you'll Actually make a profit so in year four We do turn a profit Although we are spending very hard on The marketing side in our first three Years so we're turning negative net Profits and then in year four we're About a hundred thousand pounds in net Profit My immediate concern with this business Is the fact that you've said quite Honestly you're going to lose quite a Large amount of cash yeah I worry Because the growth that you're Forecasting is Tiny compared to the Losses you're going to consume I'm not
Sure you're going to have two to three Years of building this sure to Demonstrate this model is going to be Successful products like this when they Enter the market if you look at all of The main drinks companies they watch People like yourselves and they follow Whichever path that takes if you're Going to take two to three years of Losing cash that's a dangerous thing Because that's when your Market can be Swiftly taken away from you Unfortunately we're in a bit of a Difficult position with the market Because we're reliant on the market of This product which is Hard Sell to Really taking off in the UK so if it Goes anything like the US which is now a 4.1 billion dollar market the growth Could be quite aggressive all of the top Five or six biggest distilleries Breweries whatever you want to call them Have all launched their own heart Salsas Here in the UK they all have shelf space In all four of the major supermarkets But it's important to note you know They're spending the money now to make The category huge and we're hoping to Kind of ride the wave At the top [Music] The two Nicks intend to remain in the Slipstream of drinks industry Giants Before taking advantage of the growth
And demand that those companies create It's a strategy that's fraught with risk And Sarah Davies wants to know if the Pair have the credentials to pull it off Can I just understand a little bit more About your background and What's led to This this point I've always been in Retail actually worked across Canada in The UK for a range of different Retailers for third-party Logistics Providers have you ever considered being A Robbie Williams impersonator Earlier today yeah from there up you Look like Robbie Robbie's a friend of Mine unless a far less good-looking Version So your Logistics sales and marketing I Never wanted to do Logistics again Really right you're just from a Logistics background yes yeah absolutely More operations Finance side for me so You are the numbers guy I was looking to Find that out and also which one was the Sales guy yes and actually a bit Disappointingly I was looking to find Out which was the drinks guy I mean I've Invested in drinks businesses before in The den but it's always been some sort Of credibility in the industry sure They've been then done that and now They're going there and doing that Themselves and I'm just backing them in An area they've already had success I think it's worth noting we're
Currently using a consultant who is the Ex-ceo of Carlsberg in the US actually Sold the business over there and he's uh Helping us out and and mentoring us so We definitely that's useful information To throw in there it's the it's those Sort of things that will alleviate that The two Knicks believe they can tap into A source of expertise capable of Transforming their drinks startup into Probably the best hard Seltzer company In the world Will Stephen Bartlett buy into the Duo's Vision for the future of alcoholic Sparkling water So this is really interesting for me Because my brain's been a bit frazzled Because here we have a product which I Think is great and when I asked about The Target demographic great answer That's exactly what I was expecting but Then I look back at the brand and it Also matches the Target demographic so It's all it's all there then I look down At my piece of paper and I look at what You're asking for you're asking for 120 Grand And it's like a balance a 120k is a lot Of money the chance that I'll get that Back in the next 10 years you know with A healthy multiple on it is probably Quite unlikely Um and for me the risk level here is Just
Just out of my reach so I'm going to say That I wish you the very best but um but I'm out and I I feel like I might regret That [Music] Nick and Nick have lost their first Dragon as risk outweighs reward for a Rueful Stephen Bartlett The Jones appears to have enjoyed the Pair's Tipple but will he demonstrate a Similar thirst to invest in their Company [Music] I like the product as you can see Because I've got empty glasses here and I want to say where I am before whilst I Can still speak of course Um I think the strategy of your burn Isn't isn't right I go back to what I Said which was your forecast that's not Traction you can't afford to do 260k Worth of sales you have to be 2 million Of sales yeah sure Um and then when you add to that I think It does come back to experience of Rolling this type of business model out You need somebody on your team that's Done this and been there and got the T-shirt because the speed at which you Get this out there is actually critical Otherwise you are going to lose money Slowly and I think that's not something As an investor I wanted to go on that Journey with you so I'm going to say
That I'm out okay thank you the product Is wonderful okay really enjoyed it Thanks very much You guys are two great producers in the Sense that you're creating a movie You've got the script Can you execute it that's my concern Because if you can't raise money the Next round you're finished because You're going to burn enough money you Know and unfortunately I don't like to Be in business that burn money unless There's a real big reward at the end and I can't see no big reward at the end of This one so for that reason I'm out Thanks anyway I I'm not keen on a strategy that says Me too because you've got the big Players who I completely understand Hopefully are going to kind of Forge Their way into that market but it means That to get yourself heard yoga have to Spend a lot of money and if you're if You get it wrong you you kind of State yourself as the me too and that's The only place people ever see you Um and it just leaves me feeling I I Don't know Can't invest thinking I don't know so I'm really sorry guys I I can't invest I'm out Treble trouble for the two Nicks as Tuka Suleiman Peter Jones and Deborah meaden
All declare time on the deal only Sarah Davies now remains Have the pair done enough to alleviate Her earlier concerns regarding their Lack of drinks industry expertise So guys On the product front you have credibly Explained to me today in a convincing Way that I think this is going to be the Next big thing Huge tick Um the bit that's not getting the tick From me you haven't lived in that Industry and experienced the ups and Downs of that industry neither have I so I you know I don't know if I'm the right Investor for you because it's not like I'd be the fourth spoken the wheel able To to bring that and and it it's Massively concerning me guys that that Is not A level of expertise in your wheelhouse So I can't invest today I'm out thank you good luck though good Luck thank you Sadly for Nick and Nick they must head Back down to the ground floor with Nothing but despite failing to shake any Cash out of the Dragons their drinks Businesses stirred up that rarest of Sentiments in the den That this might just be the one that got Away oh well Next time
From the moment I went out then I sat There and thought I think I might regret This we do think today there's been a Bit of a missed opportunity for the Dragons but hopefully we'll be one of Those brands in a few years they're all Looking at us and saying oh what could Have been
