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♪ ♪
>> Dianne: Next in the Den: a
pair of entrepreneurs who say
they've brewed up the kind of
business the Dragons could only
dream of.
>> Deland Jessop: Good day,
Dragons, my name is Deland
Jessop and I'm from Vancouver,
B.C., and this is my business
partner, Joseph Fernandez.
And we're here to ask for
$10,000 for 5% of our business.
And we're here to talk to you
about what we believe is truly
the most revolutionary thing to
happen to coffee in, perhaps,
>> Joseph Fernandes: First and
foremost, let's try the coffee.
>> Bruce: All right.
>> Jim: Can't wait.
>> Arlene: All right.
>> Bruce: Thanks, Joseph.
>> Deland: Sir.
>> Jim: Thank you.
>> Deland: There you go, that's
for you as well.
>> Bruce: That's good coffee.
>> Deland: Thank you.
>> Bruce: It's no Balzac's, but
it's good coffee.
>> Deland: My dad owes you a
thank you too, by the way.
>> Bruce: Oh really?
>> Deland: Yes he does.
>> Bruce: Love it.
>> Jim: It's got a nice taste to
it, I like the taste.
>> Joseph: Now stop drinking
that coffee!
Unless you all want to go to
>> Kevin: What?
>> Joseph: Let's take a moment
and get comfortable and I'll
>> Jim: Oh oh.
♪ ♪
>> Joseph: Ahhh.
Dragons, the coffee you just
tasted, it was developed and
engineered to put you to sleep.
>> Bruce: Oh, my God, I just
drained it!
You kidding me?
>> Joseph: It's truly a
revolutionary product.
>> David: Good night, Bruce.
>> Bruce: Ohh!
>> Joseph: And the brand we're
developing is called Counting
It's seriously coffee that
seriously puts you to sleep.
>> Deland: That might seem
counter-intuitive when you think
about it.
But there's been a lot of market
research out there indicating
that women in particular, the
number-one reason why they drink
coffee is to actually help them
And I've got a wife at home who
is a terrible sleeper.
>> Bruce: She's not going to
like the fact you're sleeping
with this guy.
[Kevin laughs]
>> Arlene: Okay so women drink
coffee because they want to
>> Deland: They want to relax.
My wife, she can't touch decaf
after 3:00 in the afternoon
because even the decaf will keep
her awake.
>> Bruce: It's true.
>> Deland: So, I turned my house
into a laboratory for a year,
like mixing everything:
"Honey, try this.
Honey, try this."
And when she started asking for
it on a regular basis, I knew we
had something.
>> Kevin: So, I can taste a sort
of a nuttiness, hazel nuttiness
to this.
>> Arlene: What's in it?
>> Kevin: Is that the drug
inside that puts you to sleep?
>> Deland: It's not a drug.
>> Bruce: Melatonin?
>> Kevin: What is it?
>> Joseph: No.
Well, the coffee itself is
actually a unique blend.
I've been in the coffee business
my whole life.
>> Kevin: You don't want to tell
me what's in it.
>> Joseph: Well--I--I--I--
>> Kevin: Do I have to come down
there and strangle you?
What do you want to do?
>> Deland: What's in it is
Valerian roots and valerian
roots, it's a bitter-tasting
>> Kevin: Valerian roots.
>> Arlene: Valerian roots?
>> Bruce: Yeah, very much.
>> Deland: Valerian roots.
So it's a bitter tasting root
that actually works really well
with the taste of coffee.
>> Bruce: It's a natural--
>> Deland: Valerian roots'
completely natural.
It's okay to take on a regular
>> Bruce: Very familiar with
>> Arlene: Are you the only
coffee on the market that's got
that in it?
>> Deland: There's nothing like
this that exists.
>> Arlene: I've got to tell you,
like sometimes you hear those
ideas, you go, "Why didn't
somebody think of that?
That seems so logical to me."
>> Joseph: You know what it is?
I've been doing this for so
long, I'm third generation.
I drink 30--40 cups of coffee
for quality control every single
>> Arlene: Third generation
>> Joseph: Coffee roaster.
>> Bruce: Really?
>> Joseph: My whole family's
been coffee roasting.
I do the technical side of--
>> Kevin: You drink 30 cups of
coffee a day?
Do they peel you off the roof
with a spatula?
>> Joseph: Well, it's
approximately 30, sometimes it's
>> Kevin: I bet you you're--"I'm
okay, are you okay, everything's
OK with you? Wow!"
>> Deland: So it's brand new
business and the timing with you
guys isn't great because we
literally just launched this
three weeks ago.
But at Coffee Fest in New York,
there was only one retailer
there, but they want us.
Right now we're doing a trial
this month and if it works out,
1,000 stores, 50 to 60 bags per
>> David: That's a good order.
>> Arlene: Here or the U.S.?
>> Deland: It's in the U.S.
>> Arlene: Who is it?
Can you say?
>> Deland: Bed, Bath and Beyond.
>> Deland: They were the only
>> Kevin: Bed Bath and Beyond?
>> Arlene: That's good.
That's actually a very good
>> Kevin: Do they sell coffee
>> Deland: Yes.
And, the other thing with them
is they're actually developing
coffee bars inside their stores,
like they're going to make a big
coffee push.
The buyer, she--she loved it.
She's excited about it.
It's exciting.
>> Arlene: [whispering] You want
Why the 5%, 10 K, what's with
>> Deland: 5% for 10 K?
Well, I--
>> Kevin: $200,000 value.
>> Deland: If we were to come up
a couple of weeks ago, I might
have offered you a bit more.
But, uh, we don't want to give
up too much of this business.
>> Kevin: You've got to be more
>> Bruce: Who owns the company
>> Deland: There's four of us
that own at 25% each.
>> David: Well, I'll give you an
offer: I'll give you $25,000 for
10%, so higher valuation than
you asked for, little bit more
capital to help you out to get
ready to go to market, and love
to work with you personally.
>> Deland: You were the first
business book I ever read,
>> David: Oh that's good, I hope
you enjoyed it.
>> Bruce: So, you've got the
Wealthy Barber, you're reading
his book.
You've got me hooking up your
>> Deland: Yeah my mother passed
away a number of years ago, and
he was very confused and I put
him on your site.
He stumbled through it a little
bit and I helped him out with
>> Arlene: Nice.
>> Bruce: This has got a real
feel-good thing to it, you know?
>> Deland: Yeah.
>> Kevin: I'll give you what you
Uh, 10 K for 5%, so I get some
But to make it interesting for
me, I want to make 5% in a
royalty so it incentivizes me to
go and open the doors you need.
>> Arlene: Um, I don't actually
want the equity because I think
you guys are going to work
harder if you keep your equity.
>> Kevin: What's the offer?
>> Arlene: I think a 5% royalty
feels real if we're going to
leave the equity in your hands.
>> Kevin: That sounds familiar.
>> Arlene: So, and Bruce, if you
want to come in with me, we're
in the coffee business already.
>> Joseph: Are you--are you
married to the royalty?
Would you be considerate of
equity in the company?
>> Bruce: One thing we've
learned about the coffee
business is it's not like you
can't afford it.
The margins are very healthy.
>> Arlene: 5% is reasonable.
>> Joseph: Is that a deal you
two are doing together?
>> Bruce: Yes it is.
And as one of your advisors, I
think we'd be amiss if we didn't
hear from Mr. Treliving down at
the end.
>> Deland: I was waiting to hear
back from him as well.
>> Jim: Well, we're in the
coffee business in a big way
right now, you know?
Uh, I don't know how many pounds
we go through in a year, but
it's tons.
>> Bruce: Jimmy, let me give you
some more coffee while you think
that over.
>> Jim: I've got lots.
>> Bruce: Seriously, you know
this helps.
No, this helps you think.
Keeps you snappy.
>> Jim: Yeah.
Hey listen, I've been up since
5:00, I don't want to be snappy.
>> David: It's the opposite, it
makes him drowsy.
>> Jim: This is too good a deal
to go to sleep on.
>> Bruce: Chili--shh.
He doesn't know that.
>> Jim: I don't know if the
royalty's the answer right now.
I'd have to double up on
your--on your, um, on your--
>> Deland: You want 10%?
>> Jim: 10%.
>> Deland: OK, 10%, uh--
>> Jim: $10,000 for 10%.
>> Deland: Do you want to ask
questions or anything?
>> Bruce: I like how you guys
work together.
>> Arlene: Yeah.
>> Deland: I think, uh, one
quick question, if we wanted you
two on board.
I don't mind the royalty, it's
just that we want you guys long
>> Arlene: If you're trying to
solve the fact that we'd be your
>> Deland: Long term, yes.
>> Arlene: We are your partners.
I'm telling you, there's no
one's going to work harder on a
royalty deal than I'll work on a
royalty deal.
>> Deland: OK, I--I think, I
think we're going to go with you
>> Arlene: Awesome.
>> Deland: We really appreciate
Thank you very much.
>> Joseph: Thank you, guys.
>> David: So what was it a 5%
>> Arlene: Yeah, so a 5% royalty
and we'll talk about the details
>> David: That is crazy.
>> Joseph: Thank you so much,
appreciate the offers.
Thank you.
>> Arlene: Partner.
>> Bruce: Thanks, partner.
>> Arlene: Yeah, in for a bean
in for a lot.
>> David: I still think it's
crazy they did that.
I cannot believe they just gave
you a third of their bottom line
for $10,000.
>> Deland: We were drinking a
little too much of that coffee
on set there, but really looking
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Dragon's Den season 8 episode 18 Counting Sheep Coffee

1053 Folder Collection
alexliu13483 published on July 23, 2017
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