- Investment: £50,000
- Investor: No deal was made
- Equity Offered: 15%
- Business: Gasm Drinks - a premium cocktail-in-a-bottle combining Prosecco Fizz and fruit gin
- Target Audience: Cocktail enthusiasts and premium drink consumers
- Challenges: Branding issues, high pricing, lack of sales traction, and financial sustainability concerns
Dragons' Den Pitch Recap: Gasm Drinks
Deal Status: No deal was made
Investment Requested: £50,000 for a 15% equity stake
Summary:In the latest episode of Dragons' Den Season 19, Richard Davis, his wife Samantha, and stepson Tommy Ladds from Mid Wales pitched their unique drinks business, Gasm Drinks. They sought a £50,000 investment in exchange for 15% of their company, which offers a premium cocktail-in-a-bottle that combines Prosecco Fizz and fruit gin in three flavors: sloe, plum, and raspberry.
The Pitch
The team presented GasmDrinks as a one-of-a-kind product in the market, emphasizing its uniqueness and potential to stand out. The product retails for £20 per bottle, reflecting its premium positioning. They aimed to use the investment to set up their own bottling plant to ensure consistent quality and reduce costs.
Dragons' Reactions
The Dragons appreciated the taste and quality of the drinks but expressed significant concerns:
- Branding Issues: The name "Gasm" and its playful suffix were deemed too immature for a premium brand, which could alienate their target market.
- High Pricing: The £20 price point was considered steep, especially given the competition from high-quality champagnes and other premium beverages.
- Financial Viability: The business had low sales (£24,000 in 2020, £21,000 in 2021) and was operating at a loss, raising doubts about its financial sustainability. The proposed bottling plant, costing around £500,000, was seen as a premature and risky investment.
Outcome
Despite the positive feedback on the product's taste, all five Dragons opted out of investing. They cited the need for a rebrand, a more robust business strategy, and significant sales improvements before seeking further investment.
Moving Forward
Although they left without a deal, Richard, Samantha, and Tommy remained optimistic. The feedback provided valuable insights into their branding and business strategy, which they plan to refine for future growth.
Stay tuned for more updates as Gasm Drinks navigates their entrepreneurial journey, armed with constructive advice and a passion for their unique product.