Crisps In Chocolate? 'Bar of Crisps' Divides In The Den | Dragons' Den

Summary

Maria presents her unique product, 'The Bar of Crisps,' a milk chocolate bar filled with crisps in three flavors: ready salted, salt and vinegar, and cheese and onion. Despite early skepticism and mixed reactions from investors, her product has gained traction, with over 8,000 bars sold since its 2022 launch. While some investors are hesitant about its high price point and niche market, others see its potential as a novelty gift or snack. Ultimately, none of the investors commit, but Maria receives valuable feedback and advice for the future of her business.

Takeaways

• 😀 Maria is seeking a £50,000 investment in exchange for a 20% stake in her business, which produces the unique 'Bar of Crisps'—a chocolate bar filled with crisps.
• 😀 The 'Bar of Crisps' is available in three flavors: ready salted, salt and vinegar, and cheese and onion, with the latter sparking controversy but increasing interest.
• 😀 Maria came up with the idea during lockdown, combining her love for chocolate and crisps, and found there were no similar products on the market.
• 😀 Since launching in January 2022, Maria has sold over 8,000 bars and the product is available in independent stockists across the UK.
• 😀 Investors are intrigued by the unique combination of sweet and savory in the product but raise concerns about its niche appeal and high price point.
• 😀 Maria is considering switching manufacturers to lower production costs, with the aim of reducing the current production cost of £1.85 per bar to improve profit margins.
• 😀 The retail price is currently £4.99, which some investors feel is too expensive compared to just buying a chocolate bar and crisps separately.
• 😀 Several investors, including Peter Jones and Sara Davies, admit they are initially skeptical but are pleasantly surprised by the product’s taste and uniqueness.
• 😀 Despite the positive feedback, all investors decide not to invest, citing the product's niche market and pricing issues as major barriers to widespread success.
• 😀 Investors suggest Maria could benefit from rethinking the packaging to make the product appear more premium or more suited to novelty gifting to boost appeal.

Q & A

What is the product Maria is offering to the dragons?

Maria is offering a unique chocolate bar called 'Bar of Crisps,' which is a milk chocolate bar stuffed with crisps. It comes in three flavors: ready salted, salt and vinegar, and cheese and onion.

How did Maria come up with the idea for the 'Bar of Crisps'?

Maria came up with the idea after eating a combination of chocolate and crisps during lockdown while binge-watching TV. She noticed there was no product on the market combining these two, so she decided to create it herself.

What were Maria’s sales numbers and figures for the business?

Maria's business had a turnover of £22,000 in 2021 with a net profit of £4,000. In 2022, turnover dropped to £19,000 with a net loss of £480. By the end of 2023, the turnover was just under £40,000 with a net profit of £1,500.

What were the challenges Maria faced in manufacturing the chocolate bars?

Maria's current manufacturer was charging £1.85 per bar to make the chocolate, which she felt was too high. She plans to change manufacturers to lower the cost and hopes to achieve a lower production price, with the new manufacturer offering a cost of £1.07 per bar.

Why do some investors think the product won't succeed in the long term?

Some investors, including Peter Jones, believe the product is too niche and that the price point is too high. They worry that consumers will not repeatedly purchase it like they would with regular chocolate or crisps, making it difficult to build a sustainable business.

How did the dragons react to the product during the tasting?

The dragons had mixed reactions. Some found the combination of chocolate and crisps to be surprisingly enjoyable, while others, like Peter Jones, found it a bit odd. Despite some negative comments, others were intrigued by the uniqueness of the product.

What was Maria’s strategy regarding the product’s pricing?

Maria aimed to lower the production cost and pass on the savings to the consumer. She felt the current price of £4.99 per bar was too high and wanted to make the product more affordable by reducing manufacturing costs.

What is the potential market for Maria's product, according to the dragons?

The dragons saw potential in markets like hospitality, the travel industry, and gifting. Some investors also suggested exploring premium packaging options or offering the product in smaller squares for a more upscale presentation.

What advice did the dragons offer Maria for the future of her business?

The dragons suggested that Maria rethink her product's packaging to make it more premium or visually distinct, as the current format makes it difficult to justify the high price. They also recommended finding ways to maximize margins and create a more compelling consumer experience.

Did any dragons decide to invest in Maria's business?

No, none of the dragons decided to invest in Maria’s business. While they acknowledged the product's uniqueness and potential, they felt the niche nature of the product and the high price point made it a risky investment.