‘It’s just added fuel to keep going’ No financial deal but Dragons’ Den appearance gives Cranked Energy founder confidence boost By: Aaron Epp Posted: 6:01 PM CDT Monday, Oct. 21, 2024

Hey there, time traveller!
This article was published 21/10/2024 (531 days ago), so information in it may no longer be current.

A Winnipeg entrepreneur is undeterred after failing to find an investor during her foray into Dragons’ Den.

Cheryl Zealand pitched her business, Cranked Energy bars, on the latest episode of the long-running CBC television reality show, which aired Oct. 17. Zealand sought $250,000 for a 15 per cent share of the company, which would help her expand the business nationally.

The show’s six venture capitalists praised Zealand’s product and business acumen, but none chose to invest in the company.

“Unfortunately, they weren’t the right partners for us, but that’s OK — I completely respect that,” Zealand told the Free Press on Monday. “I’m going to keep their kind words in my back pocket and refer back to them when we’re going through some tough times. These dragons respected me as a business woman.”

Cranked Energy produces six different flavours. The company’s products can be found in 150 stores throughout Manitoba and a few in B.C., Saskatchewan and Ontario. Sales reached $830,000 in 2023 and are projected to exceed $1 million this year, the company said.

Zealand flew to Toronto with her family in May to film her appearance on Dragons’ Den. The venture capitalists cited the competitiveness of the energy bar market and the fact Cranked Energy bars need to be refrigerated as reasons for declining Zealand’s offer.

“This is new to retailers — they’re not used to putting bars in refrigerators,” said “dragon” Arlene Dickinson, an investor in OHi energy bars. “I’m going to be out, but I think your product tastes delicious and there’s a real need for it.”

“You should be really proud of yourself,” Michele Romanow added. “It’s clear that you’re a hustler and that you know your numbers. I really like you, but I struggle with this being in the fridge.”

After Zealand left, the venture capitalists described her as “a fighter” who “has done all the right things.”

“You should be really proud of yourself … It’s clear that you’re a hustler and that you know your numbers.”–Michele Romanow

Zealand said she was happy with the pitch, valuation and numbers she presented during the eight-minute segment, which was edited down from a 45-minute visit with the six dragons.

She was heartened by their kind words and appreciates the increased exposure for her brand. Traffic on her website increased while the show was airing and 10 new retailers have reached out to her. She’s also received encouraging messages from friends, family and supporters from across the province.

“We certainly won’t stop,” Zealand said. “If anything, it’s just added fuel to keep going. The shelf space is crowded in protein bars like they said — I agree with that — but it’s not crowded in the fridge, which is where we sit.”

Cranked Energy bars are preservative-free and need to be refrigerated so they don’t go bad. They last six weeks if kept in the fridge and 12 weeks if frozen.

“I don’t want to put preservatives in them,” Zealand said. “I want you to feel like you’re eating your favourite protein oatmeal breakfast from your stove and not something that’s been sitting there for a year.”

The Business Research Company reported in June the energy bar market has experienced consistent growth, expanding from US$4.08 billion in 2023 to US$4.26 billion this year, at a compound annual growth rate of 4.4 per cent. The market is projected to reach US$5.09 billion by 2028.

Zealand was a full-time chartered professional accountant raising three children when she started her business in 2014.

The former swimmer, dancer and bodybuilder could never find an energy bar that satisfied her. In 2010, she hit the kitchen and started experimenting. Four years later, she settled on a recipe and started Cranked Energy — a name she chose after telling her children to “crank it up a notch” one morning.

After working out of a commercial kitchen, Zealand moved the company to a 1,200-square-foot manufacturing space on Portage Avenue. In 2019, she quit her job to focus on the business full-time. That same year, Cranked Energy moved into its current Sherwin Road headquarters, which is nearly four times larger than its former Portage Avenue locale.

The company employs a core team of six people and produces 15,000 bars a week. Zealand recently invested in capital equipment that, come the new year, will allow the company to produce 45,000-50,000 bars weekly. She’s also trademarked the company name so she can expand into the United States.

“We definitely are scaling, which takes time, step by step,” Zealand said, adding expanding the brand nationally remains a priority. “You’ve got almost one chance to do a big scale properly. You’ve got to be ready.”

Zealand has the confidence of 1-800-GOT-JUNK? CEO Brian Scudamore.

“You embody entrepreneurship in such an inspiring way,” he told Zealand on Dragons’ Den. “I know you’re going to kill it.”

The bottom line, Zealand told the Free Press, is she believes she has a great product.

“When you have a great product, you just keep going,” she said. “Don’t count us out. We’re doing really good things for food manufacturing in the middle of the Prairies here.”

aaron.epp@freepress.mb.ca