Dragons’ Den pitcher left empty handed – now his business makes £5million in sales a year | Personal Finance | Finance
James never saw a penny of his family’s wealth, but still decided to start his own venture – Love Cocoa
James Cadbury is the great-great-great grandson of John Cadbury, who invented Cadbury chocolate in 1824 – now worth over £4.6billion.
Despite being linked to a billion-dollar chocolate empire, James never saw a penny of his family’s wealth, but still decided to start his own venture – Love Cocoa.
Love Cocoa is a luxury handmade chocolate brand which was set up in 2016. Mr Cadbury left his job as a city trader to pursue his dream.
He bootstrapped the business initially using the bonus from his previous job in finance. For the first 18 months, he also didn’t take a salary, ensuring every penny was reinvested back into the business.
Eight years later, Love Cocoa’s annual sales now surpassed £5 million, demonstrating their rapid growth with an impressive 300 percent increase over the last three years.
James entered the Den in 2018 seeking £75,000 for a five percent share of his business Love Cocoa
James always had an entrepreneurial spirit from early on in his life, for example, at university he ran an eBay shop selling various items, which helped him fund his education.
He wanted to build something to continue his family’s legacy and he saw an opportunity to innovate and bring something new to the market. The Cadbury ethos certainly inspired him, but financially, his journey has been completely separate.
A pivotal moment in Love Cocoa’s journey was appearing on Dragons’ Den in 2018, where they received an offer of £75,000 for 20 percent of the business. The Love Cocoa team ultimately decidedto turn it down, but the experience was invaluable for PR and served as a great life lesson.
James said: “This decision paved the way for us to secure a much larger investment of £4.25million later on. I believe strongly in bootstrapping and recommend securing market validation before seeking significant investment.
Love Cocoa aim to achieve £10 million in annual sales by 2025
“As the business grew, cash flow became a significant challenge, especially when it came to purchasing larger quantities of stock. We had to buy cocoa and other ingredients upfront, and produce the chocolate, but then often wait 30-60 days to get paid. This created supply chain issues, and at times, I found myself having to delay payments until we had the necessary funds, all despite being profitable.
“A particularly stressful incident occurred in the early days with a large online retailer, who mistakenly refunded £20,000 to customers in the UK for a one-off labelling issue in Germany. They incorrectly recalled stock and issued refunds for purchases made up to 12 months prior, none of which were actually affected.
“We never recovered this money, and the situation nearly drove us under. We struggled to get a response from the retailer, being passed around without resolution. That period was extremely challenging, but it taught us valuable lessons. Now, the business is better funded, and we have more robust systems in place to support our growth and avoid getting into similar situations.”
- Support fearless journalism
- Read The Daily Express online, advert free
- Get super-fast page loading
Last year, the business secured a B Corp certification and became a proud member of one percent for the Planet, with the ultimate aim of driving positive change across the chocolate industry.
They aim to achieve £10 million in annual sales by 2025 by opening physical stores, bringing the brand experience directly to British consumers, and expanding their product ranges with more innovative new offerings.
He added: “These steps, combined with our ‘Chocolate for Change’ mission, are key to reaching our ambitious sales goal while staying true to our values of sustainability and social responsibility.”
While his family’s legacy is in chocolate, Love Cocoa and H!P Chocolate (his vegan oat milk chocolate brand), were started independently with no financial support.
“In the case of H!P, we’re excited to announce an upcoming launch with another major supermarket, building on our successful presence in Sainsbury’s,” he said.
He warned that too often, early funding can lead to premature investor pressure, impacting key business decisions. By being prudent in the beginning, he was able to ensure a solid foundation for sustainable growth.
When asked about aspiring entrepreneurs, James said: “My key advice is to just start. Set daily goals and tasks; these small steps, however minimal, quickly accumulate.
“I’m a strong advocate for making one percent improvements every day – these lead to a significant compounding effect over time. Additionally, passion for your vision and business is crucial.
“The entrepreneurial journey is filled with highs and lows, but your passion will be the driving force that makes it all worthwhile. Embrace the challenge, and remember that every little step contributes to your larger vision.