BEST PITCHES: Levi Roots' Reggae Reggae pitch lures Peter Jones! | Dragons' Den - BBC

Summary

Levi Roots, a musician turned entrepreneur, pitches his Reggae Reggae Sauce on a business show, seeking £50,000 for a 20% stake. With a background in music and catering, he presents a flavorful alternative to traditional barbecue sauces, claiming a potential order of 2.5 million liters. Despite initial enthusiasm, the dragons uncover a miscalculation in the order volume and question the scalability of his home-based production. After a series of rejections and a tense negotiation, Peter Jones and Richard Farley invest £50,000 for a 40% stake, believing in the product's potential despite the risks.

Takeaways

• 🎤 Levi Roots, a musician turned entrepreneur, pitches his Reggae Reggae Sauce on a business investment show.
• 🍯 The sauce is described as a jerk barbecue sauce that can replace ketchup and hot pepper sauce, offering a blend of flavors.
• 🎶 Levi has a background in music and food, having supplied his secret recipe sauce to Notting Hill Carnival for 15 years.
• 📈 He seeks £50,000 for a 20% stake in his business, aiming to scale up production to meet a large order.
• 📄 Levi presents a letter of intent from a meat company in Yorkshire for a significant order, which initially causes confusion among the investors.
• 🔍 The dragons, the show's investors, scrutinize the letter and uncover a misunderstanding about the order's volume.
• 📉 The potential order's size and financial projections are disputed, revealing a significant miscalculation by Levi.
• 🚫 Some dragons decline to invest, citing concerns over the business's scalability and Levi's initial overestimation of the order.
• 💸 Peter Jones and Richard Farley eventually agree to invest, but on the condition of a higher equity stake due to the revised valuation.
• 🔝 Levi accepts the revised offer, giving up 40% of his company for the £50,000 investment, securing both capital and business mentorship.

Q & A

What is the name of the sauce Levi Roots is pitching?

The name of the sauce Levi Roots is pitching is 'Reggae Reggae Sauce'.

What is the unique selling proposition of Reggae Reggae Sauce according to Levi Roots?

Reggae Reggae Sauce is described as a hot to mild jerk barbecue sauce that replaces the typical tomato ketchup and hot pepper sauce, retaining the flavors of garlic, peppers, coriander, scallion, and other herbs and spices.

How long has Levi Roots been in the music business?

Levi Roots has been in the music business for over 30 years.

What role does Levi Roots play in the Notting Hill Carnival?

Levi Roots has been supplying his secret recipe Reggae Sauce to most of the stalls at the Notting Hill Carnival for 15 years.

What is the initial order size Levi Roots claims to have received from a meat company in Yorkshire?

Levi Roots initially claims to have an order for 2.5 million liters of Reggae Reggae Sauce.

What is the actual size of the initial order from the meat company as clarified during the pitch?

The actual initial order size is 2,500 liters, not 2.5 million liters as initially claimed by Levi Roots.

What is the cost to produce one bottle of Reggae Reggae Sauce according to Levi Roots?

The cost to produce one bottle of Reggae Reggae Sauce is 32 pence.

How much equity is Levi Roots originally offering in exchange for the £50,000 investment?

Levi Roots is offering 20% equity in his company for the £50,000 investment.

What is the potential royalty Levi Roots could earn if the deal with the meat company materializes?

The potential royalty Levi Roots could earn is 5%, which could amount to approximately £390,000 based on the initial order size.

What is the final deal Levi Roots accepts in the Den?

Levi Roots accepts a deal for £50,000 for 40% equity, with the investment being split between two dragons, Peter Jones and Richard Farley.

What is the reaction of the dragons to Levi Roots' pitch and his potential to scale up production?

The dragons express concerns about Levi Roots' ability to scale up production and fulfill large orders, questioning the feasibility of his business plan and the accuracy of the initial order size.