AppleFlats

Glen Smyth and Alex Smyth, brothers from Shakespeare, Ontario, sought $200,000 for a 10% stake in Appleflats, a company commercializing crab apples into jelly and cocktail mixes, and supplying crab apple juice as an ingredient to other brands. They have been in business about four years, are stocked in roughly 600 accounts including Sobeys, Metro and Loblaws locations, and generated $185,000 in revenue in the last 12 months with a net profit of $16,000, though a new high-density crab apple orchard planted four days before filming would put them into a net loss. They harvest crab apples largely for free from homeowners and cities using a patented sorting machine, and only use 30-40% of available urban supply.

Vincenzo Guzzo said he could only do a deal at 45% for $200,000 and went out. Manjit Minhas went out citing multiple business risks including supply, seasonality, market education and dependence on brand partners. Michele Romanow went out saying the category was not for her. Wes Hall went out feeling the business was not yet developed enough to generate significant returns. Arlene Dickinson offered $200,000 for 30%, but the brothers countered with $200,000 on a $1.5 million valuation plus a 25-cent-per-litre royalty, which Arlene Dickinson declined, and no deal was made.

AppleFlats is still operating and sells through its website.