With more amazing mompreneurs featured on Dragons’ Den, it feels like Christmas around here! It was great to get introduced to Apple Cheeks Diapers on last night’s episode.
Founded in 2008 by BFFs Amy Appleton & Ilana Grostern from Montreal, Apple Cheeks offers reusable diapers for the modern parent. Made from bamboo and organic cotton, Apple Cheeks sell online and in boutiques. These mompreneurs came to the Den looking for $100,000 for 15% of their company.
This was the third cloth diaper pitch to be featured on Dragons’ Den. But unlike the past two pitches, Apples Cheeks has strong sales (just under $500,000 a year) and what Robert Herjavec referred to as “a better mousetrap.” That is to say, Amy and Ilana have cleverly designed the diaper to make cleaning and washing very simple.
In the end, however, as Kevin O’Leary said, this was a pitch “about poo poo and cash.” Apple Cheeks enjoys a healthy profit margin, but they are looking to produce overseas to bring down their costs. That way, they can effectively market to big box stores.
Jim – the franchise king – Treliving jumped in with an offer for $100,000 for 25% of the company. He knows about distribution and has relationships with the big box stores. Jim made Apple Cheeks an offer for two reasons. First, he liked that they were running their diaper company. (Doing all the dirty work, so to speak.) Secondly, he liked that they knew their numbers.
Arlene Dickinson just liked them. She struggled with their valuation, but Arlene often falls for the great pitchers. (She has impeccable taste.) And these women made a great case. So 25% of the company, Apple Cheeks landed a deal with Jim and Arlene.
Congratulations to another great pair of entrepreneurs. Check out what Apple Cheeks is up to now on their blog and on Twitter.
Printer-friendly version