Key Points:
- Investment: £45,000
- Investor: None
- Equity Offered: 10%
- Business: Impossibrew, a non-alcoholic beer brand
- Target Audience: Initially 18-25 year-olds, later found to be 35-44 year-olds
- Challenges: High price point, market penetration, and competition from established brands
The Pitch
Mark Wong, a 24-year-old entrepreneur from Hong Kong, presented his business, Impossibrew, to the Dragons' Den panel. Mark developed a non-alcoholic beer inspired by traditional Asian medicinal teas. Seeking £45,000 for 10% equity, Mark emphasized the product's low calorie count (49 calories per bottle) and its health benefits. The beer, containing functional plants that promote relaxation, quickly sold out its initial batch and showed promising sales growth.
Financials and Offer
Mark reported revenue of over £10,000 in the first three months, with sales increasing each month. His forecast for the year was £55,000 in revenue with a £20,000 gross profit, aiming to break even by year-end. The valuation placed his company at £450,000.
Challenges Highlighted by the Dragons
The Dragons appreciated the product's taste but raised concerns about the 0.5% alcohol content labeling, which Mark clarified aligns with European standards. Financial scrutiny revealed that the beer’s price point (£3 per bottle) was significantly higher than competitors in the low-alcohol market (£1.50-£2). This raised doubts about its competitiveness in retail, particularly against established brands like BrewDog. Additionally, despite his clear passion and adaptability, the Dragons felt the business lacked sufficient traction and market presence.
Conclusion
Despite Mark’s compelling story and strong presentation, none of the Dragons invested. They cited high pricing and stiff market competition as significant barriers. Mark left the den without a deal but remained optimistic, valuing the experience and feedback received, confident in his potential for future success.