>> 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,

decades.

>> 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

sleep.

>> Kevin: What?

>> Joseph: Let's take a moment

and get comfortable and I'll

explain.

>> 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

Sheep.

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

relax.

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

relax.

>> 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

root.

>> 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

basis.

>> Bruce: Very familiar with

Valerian.

>> 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

day.

>> Arlene: Third generation

what?

>> 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

100.

>> 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

store.

>> 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

ones.

>> Kevin: Bed Bath and Beyond?

>> Arlene: That's good.

That's actually a very good

retailer.

>> Kevin: Do they sell coffee

now?

>> 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

equity?

Why the 5%, 10 K, what's with

that?

>> 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

realistic.

>> Bruce: Who owns the company

now?

>> 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,

actually.

>> 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

dad.

>> 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

it.

>> Arlene: Nice.

>> Bruce: This has got a real

feel-good thing to it, you know?

>> Deland: Yeah.

>> Kevin: I'll give you what you

want.

Uh, 10 K for 5%, so I get some

equity.

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.

Uh--hmmm.

>> 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.