Rabbittown Beverage Co.

Stefanie Loukes and Cassidy Hilworth
Fredericton, NB

The pitch

Stefanie Loukes and Cassidy Hilworth from Fredericton, NB, pitched Rabbittown Beverage Co. in Season 17, Episode 3, asking the Dragons for $50K for 10% of the company.

Asked for$50K for 10%
Valuation$500Kimplied by the ask
OutcomeDealwith Vincenzo Guzzo
Final deal$50K for 20%valued at $250K

Offers in the Den

Dragon	Offer	Result
Robert Herjavec	Not for him, product positioning not his taste	Out
Arlene Dickinson	Believes founder will succeed but no offer	Out
Wes Hall	Likes the founder but too early	Out
Manjit Minhas	Sees market potential but doesn't think product is a winner yet, no offer	Out
Vincenzo Guzzo	$50,000 for 25%, willing to work with food scientists on flavours	Declined
Vincenzo Guzzo	$50,000 for 20%	Accepted

Stefanie Loukes, of Fredericton, New Brunswick, pitched Rabbittown Beverage Company, a maker of non-alcoholic craft beverages including cold-brewed peach and basil tea, blueberry and hibiscus sparkling cold-brewed tea, and a hopped tea, asking for $50,000 for 10%. The products are plant-based, non-GMO, and gluten-free. The company had grown sales from launch to $62,000 in year two, a 35% growth rate, with all sales concentrated in the Fredericton community of about 58,000 people. Dragons noted the drinks contain as much sugar as a can of Coca-Cola, around 30-34 grams per can.

Robert Herjavec, Arlene Dickinson, Wes Hall, and Manjit Minhas all went out, citing concerns about the product not yet being a winner, being too early stage, or not standing out enough in a crowded non-alcoholic beverage market. Vincenzo Guzzo offered $50,000 for 25%, contingent on the founder being coachable and working with food scientists on reformulating flavours; after negotiation he revised the offer to $50,000 for 20%, which Stefanie Loukes accepted.

Pitch details from CBC’s Dragons’ Den pitch page.