Dragons’ Den success Rheal is set to launch in the US after securing more than £1m in investment through crowdfunding - and a private deal with a former TV dragon.
Sean Ali and Charlotte Bailey set the Den alight last year when they told how they created superfood blends firm Rheal, formerly known as SuperU, on the back of their own personal health struggles. After securing offers matching their investment request from all five millionaire Dragon, they negotiated a joint deal with Tej Lalvani and Peter Jones, but both parties later mutually walked away from the deal.
Instead, the South Shields couple launched a Seedrs crowdfunding campaign which topped £1m from an initial target of £550,000. Now the pair have revealed how they have moved to Los Angeles ahead of this month’s US launch for Rheal, which has seen sales rocket in the UK in the last year, leading to job creation and expansion of its main base in Gateshead.
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Mr Ali, who will now split his time between the UK and the US with co-founder Ms Bailey, also revealed that they have secured six-figure investment from former dragon Tej Lalvani to help drive their plans forward.
He said: “After Dragons’ Den, the deal initially broke down but six months later when we were crowdfunding Tej’s team approached us and were keen to get onboard with Rheal still. We got a much more favourable deal and we’re excited to have him onboard.
“Following our episode being aired in April and the buzz around the brand and the crowdfunding investment we were raising, he wanted to get involved in a private investment deal outside of the Den. Our series was actually his final series in the Den, so this gave him the opportunity to do this.
“We’ve met up with him quite a few times already this year. He’s a great sounding board for us, especially for launching our bars into retail. He has some good contacts and a great internal team which are happy to advise us. We’ve just hired a head of sales too, who’s coming from 12 years as sales director for Nakd and Trek Bar and we’re really excited about him joining our team.”
Rheal has seen triple digit growth year-on-year and is on track to smash its forecast for 2021/22, while forecasting £12m-plus turnover for next year - impressive growth from the £500,000 it recorded for 2019.
The workforce has also grown to 24 staff across its two facilities in Gateshead, and it will soon be opening a third warehouse nearby on the Saltmeadows Trade Park, near Gateshead Stadium, which will lead to the creation of at least another four people.
Their superfood blends – such as Shroom Coffee, Berry Beauty and Clean Greens – can be blended into smoothies and shakes, mixed into salads and yoghurts, and turned into drinks with hot water or nut milks. All are certified organic, gluten-free and plant-based with zero sweeteners flavourings or fillers.
Mr Ali said new products have also been launched including Balance Tonic, a blend specifically created to support women, and snack bars.
He said: “We have always wanted to launch an on-the-go product, that could see our brand branch out into retail stores. Whilst we will remain a predominantly direct-to-customer brand through our website, we loved the idea of having a snack that people could purchase in stores to keep them fuelled. The snacking market is quite saturated with protein bars and fruit/cereal bars, but no one is providing a healthy source of caffeine in snack form.”
He added: “Charlotte and I will be splitting our time between the US and the UK now, as we’re basing ourselves in LA. We’re currently working towards and October launch. Manufacturing is ready to go, so we’re almost there now.
“We couldn’t be happier with what we’re building and the amazing team we have driving Rheal forward. It’s quite surreal but exciting! We’re grateful that we get to experience this journey together too.”
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