Vegan ice cream manufacturer Coconuts Naturally has secured a six-figure private investment after walking away from financial backing secured on Dragon’s Den.
Cecily Mills, who started the dairy-free ice cream business in 2015, secured a £75k investment from Jenny Campbell for 30% equity on an edition of the BBC show aired on Sunday 16 September.
However, weeks after completing filming the entrepreneur decided to walk away from the deal after new contracts led her to reconsider the company’s value.
The startup supplier, which also received an offer from ‘Dragon’ Tej Lalvani, secured financial backing from a private investor soon after for a “more significant” six-figure sum.
The cash injection will be used for NPD and branding as the company seeks to increase listings, Mills said. “We are looking to use the funding to develop the product and to develop the branding. We have lots of ideas regarding new flavours so really want to propel the brand forward.
“The new investment is worth significantly more. We had more contracts come online soon after filming and a wealthy private investor got in touch to help us.”
The brand is planning a phased investment and hopes to to launch a crowdfund in 2019.
“The response we had from the Dragons regarding the quality of the product was great. They said what consumers do - that it really is exceptional product. Although it’s dairy free, we don’t see it as health brand, but more as a high-quality brand.
“Because of this we really think it has the capacity to grow and grow. We therefore obviously want to get it into more major retailers and expand internationally as well.”
The ice cream skus are currently listed in Ocado, as well as regional Morrisons and Asda stores. In 2017 it achieved a turnover over £100k, reflecting 150% sales growth.
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