Dragons’ Den deal adds heat to Rude Mama Hot Sauce growth strategy

It hit her the moment she stepped off the CBC stage. Viet Anh Nguyen had not only slayed Dragons, but she had also secured a deal to grow Rude Mama Hot Sauce for years to come.

“This means everything to me and my business,” said the Founder and CEO about her Dragons’ Den appearance on Nov. 20.

Accepting the challenge: Pitching on Dragons’ Den

Now in its 20th season, Dragons’ Den continues to provide aspiring Canadian entrepreneurs pitch business and investment ideas to a panel of venture capitalists – known as Dragons – in the hope of securing business financing and partnerships.

For Nguyen, it was a challenge she couldn’t pass up, but also one she wasn’t counting on.

“I might get it. I might not get it. Who cares?” she laughed. “It was one of the things on my bucket list that I wanted to cross off. As soon as I finished my audition with producers, I walked out and knew I had that checked off my list. I tried. It was great. I was happy.”

But the Dragons’ interest in Rude Mama was just heating up. A few weeks later, a follow-up email arrived. That quickly transitioned into an invite to a filming date in Toronto.

“When they invited me to come in, I lost my mind. I started screaming, and then I didn’t remember a single thing to say after. Just a blur. I sent a message to 10 of my friends, and then I went to lay down because I couldn’t stand up anymore.”

Entering the Dragons’ Den: Inside the pitch

When filming day arrived, she was prepared – “super nervous” – but prepared.

Sure, she didn’t know exactly when to walk on, or where to stand, or even when to begin speaking. She forgot all about things like EBITA (earnings before interest, taxes and amortization).

“Standing there in front of these people who you have only seen on TV is the more nerve-wracking thing,” she said. “I wanted to ask to make an entrance again. Can we do that over, right?”

But none of that mattered. Nobody can sell Rude Mama Hot Sauce like Nguyen.

“What helped set me apart was having worked with Canada Post, having already told my story as part of the Tales of Triumph contest. So, when it came to the Dragons, the story I had already told got their attention.”

Despite dreams of an every-Dragon-for-themselves fight over her company, she knew which Dragons would be interested in her brand.

“I had a feeling who might want to invest in me and who would not. Those who bowed out, I took no offense, although I did make them promise to be an ally for me and cheer me on from the sidelines.”

Going in, Nguyen was clear that hot sauce would be a difficult sell.

In Canada, sauce consumption increased by 5% year-over-year, with much of the growth fired by hot sauces. Across the country, seemingly everyone from chain restaurants to local artisans have crafted their own sauce. That means it takes more than a great sauce and sassy label to stand out.

“Over my business journey, people have told me that hot sauce is a very saturated market. Because of that, I can get a lot of ‘no.’ People don’t even want to try to see the difference I offer. When I went to the Den, the executive producer pushed me to be myself, don’t hide my spirit.”

With an initial ask of $100,000 for a 10% stake, Rude Mama did the impossible – left Dragons speechless. Much of that was thanks to her product’s flavour and the heat, including Dragon and legendary venture capitalist Arlene Dickinson who had visible tears in her eyes.

“If you wanted to see Dragons breathe fire, you just helped with that,” Dragon and home design guru Drew Scott said.

“I would have fed this to some of my exes,” Dickinson laughed.

As her segment progressed, Dragons politely dropped out one by one. After tech entrepreneur Michele Romanow passed, Manjit Minhas was alone in negotiating a deal.

In hindsight, however, Minhas was not just the last Dragon standing, she was also a perfect fit for Rude Mama.

As the co-founder of Minhas Breweries, Distillery and Wineries, Manjit is a global player in the beverage industry with a vast network of manufacturing and warehousing hubs around the world. Though trained as a petroleum engineer, the Calgary-based Dragon has become a specialist in brand development, marketing, sales management and retail negotiations.

As Minhas likes to say, she knows how to find, bottle and sell good ideas.

“You figured this out and you haven’t had the easiest path which is amazing in so many ways. It shows your resilience. You’re still smiling through all of this. It’s incredible,” Minhas said. “I am willing to back a founder like you.”

When the deal was struck, Nguyen produced a money gun that fired out bills almost as fast as she was talking. It was a wonderful moment of pure joy that CBC viewers saw on promotions for the season.

Beyond her story: Scaling up with a Dragon’s investment

While her story got the Dragons’ attention, Nguyen hopes it’s her product that sustains her growth into the future.

“I choke up a bit telling my story. The Dragons mentioned that not a lot of female entrepreneurs make it into the Den, and even fewer Vietnamese entrepreneurs present in the Den. They asked me what I wanted people to remember about me when they try the hot sauce?” she said.

“Right now, my story is the strongest point. It draws people to try my hot sauce. But in 60 years, when I’m no longer here, it will be nice if they remember me, but I would expect them to come to my hot sauce first. I want people to love our hot sauce because they love the hot sauce.”

Since the episode filmed in May, Minhas and Nguyen have been finalizing the deal. The final $150,000 for 15% offer equates to a $1 million valuation for her business – a game-changing amount for the brand.

“The investment means a lot. I will be able to add people – and not just be one woman doing everything. I will have a great team supporting me with marketing, packaging, production, distribution, logistics. Manjit was one of the Dragons I aimed for because I knew with her help, we could solve a lot of the problems I have as a small business.”