Hotel Chocolat boosted with £10 million investment for 25 new stores and 250 jobs
Bath, Somerset, UK, 22nd February 2019, Shop Sign for Hotel Chocolat
British confectionery brand Hotel Chocolat is reportedly set to make a major £10 million investment into its Royston manufacturing facilities in the UK, which will see another strategic move of opening 25 new stores across the country, writes Neill Barston.
As reported by Confectionery Production earlier this year, the business was acquired by Mars in a deal said to be worth £534 million, which came as the popular UK firm encountered financial challenges that was considered to have impacted on its ability to deliver long-term growth under its own terms.
The acquisition, which is forecast to create 250 new jobs, has enabled expansion plans to resume for the ethically-focused chocolatier, which has founded its success on creating its own cocoa plantation in St Lucia, and devising a strong pipeline of innovation across its chocolate bar and hot chocolate beverage portfolio.
Notably, the move is also said the fresh investment round will also involve revamping a number of existing stores throughout the UK, as the business seeks to regain its momentum, which had been affected
Co-founder Angus Thirlwell expressed his optimism at the latest move, which comes in the wake of considerable tests facing the wider industry, with mounting supply chain challenges from high cocoa and sugar prices, as well as constraints on consumer spending amid the cost of living crisis that has dented retail sales in recent years, as shoppers cut back on sales of luxury products. However, with the UK economy said to be showing tentative signs of renewed growth in recent forecasts, market analysts are hopeful of improved fortunes for the confectionery sector.
Angus Thirlwell commented on the store expansion. He said: “It’s definitely a signal of our belief in the British consumer. Demand for our products is greater than ever, and we’re opening stores across the UK, allowing us to bring more cocoa, less sugar products to those that love them.
“Pitching up, opening our doors, telling our stories, doing tastings – we find that’s the most effective.”
Speaking on the takeover earlier this year, Andrew Clarke, Global President of Mars Snacking, believed the deal would represent a strong development for both parties, with Mars believed to have taken on the British business as a marker of its intent to enhance its sustainable sourcing aspirations.
He said: “We are delighted to welcome Hotel Chocolat into the Mars stable of brands. Hotel Chocolat is a brand we have admired for many years, with its leading premium product offering, world-class quality and deep omnichannel retail expertise. We are incredibly excited to partner with Angus and the rest of the Hotel Chocolat team to achieve further growth and success in the years ahead, building on our shared commitment to quality, sustainability and purpose.”
