A COMPETITOR TO COCA COLA? | Dragons Den

[Music] hello dragons my name is John McFarlane with me today is my business partner George Murad well we are here today to introduce you to Norfolk cordial we are seeking a 50,000 pound investment in return for a 25% stake in the business norfolk cordial began in the summer of 2010 when we identified a need for a more adult orientated soft drink within the on trade sector last year we won the best drink producer award at Norfolk's largest Agricultural Show and we are proud to supply establishments such as Raymond Blanc's two Michelin starred lemon wah and we are the only UK cordial company to supply the food hall of Fortnum and Mason last year the UK soft drink industry was worth nine point seven billion pounds and a massive 22 percent of this market came from dilute Able's with the increase in public awareness for the negative effects of excessive alcohol consumption combined with the stringent enforcement of the drink driving laws we can only see an increase in demand for products such as Norfolk audio we thank you for your time we'd like to take this opportunity to invite you up to our bar for a drink and then we're happy to answer any questions you may have [Music] you have a vodka I find edge to go very well with vodka all of it a smooth and assured pitch from the Norfolk couple they're looking for 50,000 pounds for 25% equity in their high-end cordial business flavor-wise we do raspberry this is a red currant and grapefruit strawberry and lime rhubarb orange and ginger and wild elderflower the first to question the East Anglian entrepreneurs is piers Lenny very nice thank you why did he get into this business and have you got to where you are how he got into it was Georgie made all the flower Corps do like people do at home she was selling it to the pub she worked at when I met her it was doing very well and when I looked at what the turnover for that one little pub in the middle of Norfolk could do with with the syrup I saw that there was a gap in the market for for something that was geared towards that sort of market sector said it did cordial bring you together in some ways you can say that yeah exactly at the time I was pretty much homeless living in a static caravan I borrowed five thousand pounds with that money I bought the equipment and mitts raw materials required to get the business started I probably made in the region of around three thousand bottles of all the flower of that summer and setoffs trying to sell them once I'd made them to all the pubs in Norfolk as many as I could convince to purchase them so who would you say your competitors are what we've done is we've chosen to go into the on trade sector you use this term on trade what do you mean on trade within the hospitality sector more than a retail product things like coca-cola and Fanta the syrup that comes out of a post mix but we actually do come in cheaper than a serving of coke the point of difference is the fact that we are catering for a more sophisticated adult palate when you have the person who's not drinking whether they don't drink alcohol they're driving their choices are coke from the gun or what's in the fridge generally they're quite high sugar children orientated drinks so we also see growth very much into a spar environment where ladies are concerned about the amount of sugar they take so they it appeals to them so you'd sell that in spas that we've just taken on ragdale hall spa and then we have a small spot know somebody that's got spas yeah be signed up for it 34 spires and the ladies committed drink red wine you know they're not really looking for a non-alcoholic don't sugar drink is that because you don't offer a good enough one Duncan Bannatyne skepticism is coolly deflected by a confident Georgie but does Deborah Medan share her vision for the future of the product when you say you're competing against Coke I completely get that because I actually don't drink very very rarely now did don't anymore and actually it's dull as ditchwater when you go out because you just get the same old same old I don't think anybody Diet Coke and I don't like buying road now here's the bad news it's okay can I just ask everyone else what do you think of your core deals I think it's not terrific the taste actually what do you think piers to me seem to be quite safe there's nothing there in terms of I'm gonna taste rose but not in realms be tastes like thank you very much I've tasted elderflower but is this a place for being braver in terms of your flavors in your range to begin with we needed to play it safe in order to get our product out there and we know that we can push the boundary we have pushed it to a certain extent because you don't get a strawberry in lime and generally what we find is with with a majority order being or an elderflower to begin with all the flower starts to fall away and other flavors start to take over on the orders a persuasive response to criticism of their range but will Duncan Bannatyne find their grasp of the company's figures just as convincing what share projections gone forward just turnover and net profit okay this year to March 2014 our projected turnover is 150,000 with a net profit of 30,000 pounds the following year the turnover is 500,000 with a net profit of 90,000 and the following year a turnover of two million with a net profit of 500,000 and we also see growth very much into the middle eastern market is well we're obviously there looking for a quality soft drink product we've just had an order now from Dean & Deluca for q8 and guitar first order was 24 cases have you filled order it's going out next week yeah it's good brand but you're in Fortnum's who do you sit next to in Fortnum's on the shelf we sit next to ready to drink juices and we are the only cordial company on in the food hall these projections would be phenomenal if you could convince me that the true but how you can achieve those figures basically by becoming the market leader in on trade soft drink provision I've got into the drinks business and it is incredibly competitive we come up against serious competition where for example we want to introduce a syrup product and the competitors just really said the minute that they go into that marketplace will drop our cost by half we'll take our margin away from our distributor and all of a sudden you can't get in I think you're really up against it because for this business to succeed I think you need several hundred thousand pounds so I'm gonna have to say I'm out a skeptical Peter Jones walks away from a deal and now Deborah Medan is ready to have her say competition doesn't often worry me but this is a market that can and does respond very quickly and the way they respond is exactly as Peter says which is same if you stop that product I'm going to do a buy one get one free on my product and there are some big players out there who completely dominate that marketplace so I'm sorry guys but I won't be investing and I'm out the cordial couple a delta blow as two dragons make an abrupt exit peers Lily is the next to show his hand but he has some unanswered questions about the small print of their company structure any of the shoulders or just you - there are six other shareholders in the business and who are they one of them is Colton blackest in the mission and side chef in Norfolk all right the other two couples are friends of his okay and how much are they invested they have invested forty-five thousand pounds and what percentage did they get for that they currently have 48 percent for forty five thousand yes correct and they are willing to dilute their percentage shareholding in accordance to any agreement that's made in the den today a late and surprising development in the den as the entrepreneurs reveal they've already given away nearly half of their company to other investors will this wet or kill the Dragons appetite to jump on board now you said the investors would dilute did you mean you would older you included or did you mean just them no we were we are all happy all the shareholding is necessary right but you would dilute to the same amount understand percentage-wise so I mean that's the problem in if I offered you 50,000 for 30% mm-hmm your shield will come dirty with 36% mm-hm you know you're not going to work for nothing what 80 hours a week and a company where you and 36% where you would when it's your baby and you build up you and a hundred percent we do already yeah but you have 52 percent but III disagree in the sense that I fail 36 percent to something large is worth potentially more than something we have 52 or 100 yeah but we've done an a theory candy about a bad week and things haven't gone so well you're gonna think well why did have been that dragon and he hasn't actually achieved anything yet these are investors and we're doing all the work and they haven't actually contributed that because sometimes it doesn't work and sometimes it takes a bit of time I wouldn't take any money off anybody right now do you really really want to take this money off anybody in this room [Music] an unprecedented turn of events as peers lynnie advises the entrepreneurs to think twice about taking any further investment will kelly Hoppen agree I think you sell a good story it tastes great but my advice to you would be to grow it yourselves you know because it's to have to give away all these different percentages it's all a mess I really think that it's not for me so I'm sorry I'm out thank you I think you've done a fantastic professional presentation you've come in here you know the numbers you know your brands yeah I don't think that's the slips at once it's quite amazing it's fantastic but I still can't get over that structural issue so for that reason I'm out thank you I take it back my suggestion you wouldn't be further in shoes I think you would be both of you what we do a ton over two million pound in three years time over 500,000 firm profit because if you do I think one of the big posters just by you up and you walk away in at sunset well as low as the money and we'll all go crying because we never get any of it but I can't invest in it because they'd all think they might just big enough values I've got to say it very better awesome because I'd love to walk with you thank you the Dragons may have had a taste for Norfolk cordial for the complicated share structure of the business ultimately undermined any deal John and Georgie head home without an investment [Music] [Applause] [Music]

Channel: Wheeze

Views: 134,796

Rating: 4.7708149 out of 5

Keywords: netflix, clips, movie clips, learn, funny, hilarious, compilation, scene, tv show, movie, awkward, weird, actor, set, UK, england, famous, embarrass, dragon, dragons den, invest, investing, money, stock, share, company, business, create, sell, cash, entrepreneur, CEO, rich, wealthy, expose, britain, season, worst, 2019, 2018, fail, products, inventing, inventions, profit, pitch, promote, product, service, design, tips, best of, millions, deal, coke, fizzy drink, soda, alcohol, alternative, solution, drink driving, drunk, safety

Id: F0-QAn2faxo

Length: 13min 5sec (785 seconds)

Published: Sat Aug 17 2019