Hotel Chocolat is set to significantly expand its presence in the United Kingdom with the opening of 25 new stores, made possible through backing from Mars Inc.
Purchased last year for £534 million, the chocolatier will extend its footprint to cities including Belfast and Glasgow as well as market towns such as Ilkley, West Yorkshire, and Morpeth, Northumberland. The company will also develop existing locations in Nottingham and Chichester, West Sussex. Additionally, Hotel Chocolat will invest £10 million to upgrade its manufacturing facility in Royston, Hertfordshire, creating 250 new jobs.
Co-founder and CEO Angus Thirlwell remarked, “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 our ‘more cocoa, less sugar’ products to those that love them.” Thirlwell stressed that physical stores remain the company’s most effective sales channel for acquiring new customers. “Pitching up, opening our doors, telling our stories, doing tastings — we find that’s the most effective,” he explained.
Initially launched as an online retailer in 2003, Hotel Chocolat now boasts over 120 outlets across the UK. The company also owns a 140-acre cacao farm and a boutique hotel in St Lucia. Despite a surge in online sales during the pandemic, the company reported an £800,000 loss last year due to inflationary pressures, restructuring costs, and a 10 per cent decline in sales amounting to £204.5 million. Since its acquisition by Mars, some customers have expressed concerns over potential changes to the brand. Addressing these anxieties, Thirlwell stated, “Our intention is to deepen our commitment behind all brand pillars, not to dilute them. Judge us by our actions, not by our words.”
Mars intends to leverage its global reach to expand Hotel Chocolat’s brand internationally. However, rising cocoa costs, driven by below-expected harvests and speculative trading, have also impacted the company. Thirlwell pointed out that while cocoa prices have recently decreased, they remain historically low.
Hotel Chocolat’s ambitious expansion, supported by Mars, reflects a strong belief in the enduring demand for its products and a significant commitment to the UK market.
