Key Points:
- Investment: No deal was made.
- Investor: N/A
- Equity Offered: 10%
- Business: British Cassese, a company producing a British version of French Creme de Cassese and other fruit liqueurs.
- Target Audience: Consumers in high-end retail, whole foods, and supermarkets.
- Challenges: Reluctance to disclose figures of the primary business, concerns over branding, and valuation disagreements.
The Pitch
Joe Hilditch, a fourth-generation fruit farmer, presented her business, British Cassese, which produces a British version of Creme de Cassese and other fruit liqueurs like Framboise, Fraise, Poire, and Mure. Her company already has listings with Fortnum & Mason, Whole Foods, and Waitrose. Joe sought £50,000 for a 10% share in her business, highlighting the potential market size and her ambition to capture even a small percentage of it to achieve significant sales growth.
Financials and Offer
Joe's agribusiness is already profitable, turning over £8 million annually by supplying major brands like Heineken and Ribena with cider apples and blackcurrants. However, she was reluctant to disclose specific profit figures, which created tension with the dragons. Joe projected that her British Cassese business could reach a turnover of £600,000 to £700,000 within five years. She valued her business based on these future projections, which did not sit well with the dragons.
Challenges Highlighted by the Dragons
- Reluctance to Disclose Financial Figures: The dragons were concerned about Joe's reluctance to discuss the financial details of her existing agribusiness. They felt this information was crucial to understanding her overall business acumen and financial stability.
- Branding Concerns: Sarah Willingham, in particular, criticized the use of French names for a British product, suggesting it might confuse consumers and dilute the British branding Joe aimed to achieve.
- Valuation Issues: Joe's business valuation, based on future projections rather than current performance, was a sticking point for the dragons. Tuka Suleiman explicitly stated his discomfort with investing based on speculative future values.
Conclusion
Despite receiving offers from Peter Jones and Sarah Willingham, Joe Hilditch left the den without securing investment. Her steadfast adherence to the advice of her accountant and refusal to offer more equity resulted in the dragons walking away. While Joe's commitment to her vision and valuation was clear, it ultimately led to missed opportunities for collaboration with experienced investors who could have provided significant market advantages.