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Dragons' Den pitch labelled 'not right' is worth £30m & one of most successful investments

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Levi appeared in the Den in 2007 asking for £50,000 for a 20 percent stake in the homemade sauce. Despite the lack of faith from Duncan Bannatyne, Reggae Reggae sauce is now sold worldwide and is now worth more than £30million.

In 2006, he sold 2,500 bottles of the sauce at £1.49 per bottle. This amounted to a turnover of approximately £4,000.

It was a family run business to start out with, made in his kitchen, but for the number of volumes needed for orders, he needed a proper production space. He estimated needing £25,000 for equipment.

After looking at the order letter, Theo Paphitis had some concerns.

He said: “I thought you said you had an order for 2.5 million litres, but that’s not what this letter says. It says if the company was going to try and market your product, that’s the level they would have to produce it at.”

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However, Levi reassured Theo that the company said that if he can supply this amount of sauce, they will pay him royalties of five percent.

The company believes the order would create 390,000 packs of sauce which would retail at £1.7million. Levi would then take five percent of this and make around £85,000.

Levi explained that if sells the sauce for £6.50 a litre, he would be making around £16.5million.

Despite the huge turnover predicted, Richard Farley spotted another flaw in Levi’s calculation.

However, the company agreed that if Levi can meet their initial requirement of 2,500 litres, they would potentially buy 500 litres every week, which would be 25,000 a year.

Richard worked out that if Levi charges £6.50 per litre, it could make a potential annual turnover of £130,000 rather than the £16.5million Levi had previously said.

This miscalculation casted doubt amongst the Dragons.

Duncan immediately dismissed the pitch saying “there’s not business in this”. I’m not going to invest. I’m out.”

Theo and Deborah Meaden also decided they would not commit to the sauce.

Deborah said: “It’s not going to be on a big enough scale for me, so I’m out.”

Peter Jones and Richard both expressed interest in the sauce. They both offered him half of the money with 20 percent each. This meant Levi would get the whole £50,000 for 40 percent equity.

Hesitantly, Levi accepted the offer saying, “the deal is not ideal for me but at the same time it will do fantastic for the sauce so I will accept it gladly”.

Reggae Reggae Sauce is available in all major UK supermarkets, and according to Sainsbury’s, it even outsells Heinz Tomato Ketchup. A follow-up episode of Dragons’ Den, aired in 2007 revealed that Sainsbury’s had expected the sauce to sell 50,000 bottles in its first year but instead it sold 40,000-50,000 bottles per week.

Peter has since classified the product as one of his most successful investments from the show.