Sweetness

Kristy Goodrow and Chris Goodrow, from Edmonton, Alberta, asked for $300,000 for 10% of their company Sweetness. The business sells edible-ink printed sugar cookies paired with edible food-colouring markers for mess-free cookie decorating, made in a 3,000-square-foot Edmonton facility. A six-cookie box with five markers retails for $20. Sales to date are $630,000, with a projected $700,000 by fiscal year end and $2 million the following year, but the company is not profitable, running an EBITDA loss of about $45,000, and carries about $450,000 in debt owed to family. Products are sold through retailers including Party City, Canadian Tire, Metro, and Indigo.

Robert Herjavec went out over concerns about a lack of proprietary advantage and high marketing costs, Vincenzo Guzzo cited in-house manufacturing as a costly mistake and doubted the $3 million valuation given the losses, Wes Hall was concerned about the emotional strain of family debt, Manjit Minhas wanted more refinement of the numbers, and Arlene Dickinson advised the founders to build more sales first. All five Dragons declined to invest, and the founders left without a deal.

Sweetness is still operating and sells through its website.