Dragons' Den: Mother Root Non-Alcoholic Drinks Pitch

Pitch for Mother Root

• 💡 Bethan and Alice, founders of Mother Root, seek £60,000 for 2% equity in their non-alcoholic drinks business.
• 🎯 They aim to provide a sophisticated, alcohol-free alternative for the 30 million UK adults moderating their intake.

Product and Market Position

• 🍹 Mother Root is described as a fiery ginger-flavored non-alcoholic apparatif, a "switchel," filling a perceived white space in the market.
• 📈 The brand has acquired 23,000 new customers in six months, became Amazon's #1 non-alcoholic bestseller in the UK, and achieved over 400% year-on-year growth.

Financial Performance

• 📊 The business is on track for £2.2 million in turnover this year, with a projected loss of £114,000.
• 📉 Previous years show turnovers of £247,000 (loss of £48,000) in 2022 and £525,000 (loss of £249,000) in 2023, with forecasts of profitability next year.
• 💰 The company has raised £1.1 million to date, with the current round raising £600,000 at an £8 million pre-money valuation.

Dragon Negotiations

• 🤝 Deborah Meaden offers all the money for 4% equity, while Steven Bartlett initially offers all the money for 5% equity, citing his expertise in scaling Direct-to-Consumer (DTC) businesses.
• ⚖️ Negotiations involve discussions around valuation and equity stakes, with entrepreneurs aiming for a deal that reflects their business's potential.
• ✅ A deal is eventually struck: Steven Bartlett offers £90,000 for 5% equity, which is accepted by the founders.