Children’s baking company BKD raises £80,000 from Peter Jones on Dragons’ Den
Mumtrepreneur Adelle Smith, who appeared in episode 5 of this season's Dragons’ Den, parted with 35% equity in exchange for the investment
Children's baking company BKD has successful raised £80,000 after securing investment from Peter Jones on BBC Two's Dragons' Den.
Parting with 35% equity, founder Adelle Smith appeared in episode 5 of series 15 – which aired on 24 September 2017 and was the only business featured to walk away with the backing of a Dragon.
Originally from Newport in Wales but now based in Shoreditch in East London, Smith's business BKD offers creative baking kits for kids that be bought online, in selected retailers or via a subscription service called the Mini Bakers Club.
Each month, subscribers or ‘the mini baker' receives a personalised box through their door containing an “exciting themed baking and craft activity”.
Prices start from £9.99 a month with options to save for a three or six month subscription.
Entering the Den looking for a £80,000 investment for a 20% equity share, Smith pitched her business as a more premium offering than standard cake mixes and this is reflected in her product's price tag – with BKD cupcake mix selling at a retail price of £5.99, compared to a standard competitor price of £2.99.
Dragon Jenny Campbell also offered investment of £80,000 for a smaller equity stake of 30%, however Smith opted for Jones due to the investments he has made in serveral food businesses, including Levi Roots and for his connections with key UK retailers including Sainsbury’s.
Having her products stocked in over 160 stores across the UK and Ireland including John Lewis, Lakeland and Moonpig, Smith launched her first book ‘BAKED’ in the summer of 2016, with a US launch expected this month.
A family baking guide, BAKED contains recipes, children's anecdotes and party ideas.
Leaving behind a corporate career, mumtrepreneur Smith, who is also pregnant with her second child, was inspired to start her own business after her passion for baking was reignited after her she made a cake for her son Cai's first birthday.
Smith explained how she will use the fresh injection of cash, and input from Jones, to drive her subscription service and expand across Europe:
“Our subscription club is an area we see huge growth potential in, with this being a highly scalable part of our business and is a best seller on our website month on month.
“I’m absolutely ecstatic to have Peter on board and the investment will allow us to massively escalate our growth. We plan to continue expanding within the UK and Ireland, via direct customer sales, retailers and supermarkets, as well as looking into European export opportunities.
“BKD has had a lot of interest from countries all over the world. We also intend to spend the investment on digital marketing, PR, website and technology improvements and extra machinery.”
“I'm absolutely delighted with my investment in Adelle and her company BKD. I'm sure that both she and the business will benefit from the explosion in interest in the baking category over the last few years.
“I've already tried out the kits with my own family and we had great fun sharing the experience so I'm confident about the company's future.”