Smartly Dressed But 'Phrooti Water' Fails To Impress | Dragons' Den

Jerome Jacob pitched his unsweetened fruit water brand, 'Phrooti Water', seeking £75,000 for 15% equity. Despite a polished presentation and positive initial feedback on the product's taste, the Dragons ultimately declined to invest due to the business' low profit margins and the highly competitive market. The Dragons acknowledged the entrepreneur's skills but felt the business model was not viable for investment.

Business Pitch & Product

• 00:00:44 'Phrooti Water' is an unsweetened, low-calorie fruit water alternative to sugary drinks and smoothies. Jerome Jacob, the founder, sought £75,000 for a 15% stake in the company, aiming to become a global health drink sensation. The product was launched in Sainsbury's stores and on Amazon, with plans for expansion into other retailers.

Dragons' Feedback on Taste

• 00:02:22 While some Dragons found the mango-flavored water palatable, others were not impressed by the taste of the raspberry and blackcurrant flavors. The Dragons felt that these flavors were not yet perfected and needed further refinement before being considered market-ready.

Low Profit Margins & Business Model

• 00:04:35 Despite a projected £1.2 million turnover, the business was projected to generate only a £12,000 net profit due to marketing and promotional costs. The Dragons highlighted that the low-margin business would be under constant pressure due to retailer demands for discounts. This hindered investment interest, as the expected return was insufficient to justify the risk.

Dragons' Investment Decisions

• 00:06:30 The Dragons expressed concern over the low profit margins and the highly competitive market for fruit waters. Peter Jones, Deborah Meaden, Touker Suleyman, Jenny Campbell, and Tej Lalvani all declined to invest, citing the challenges of generating sufficient profits and the crowded market. Tej Lalvani, while acknowledging the entrepreneur's skills and the product's potential, ultimately decided not to invest due to the low margins and the lengthy time it would take to see a return.