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Chocolat opened its first store in 2004 in North London. Today, the brand has 131 stores in the UK and a presence in Japan.
London
CNN
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Mars is buying Hotel Chocolat in a deal that values Britain’s largest independent chocolate maker at £534 million ($661 million) and could boost its growth prospects outside the UK.
News an agreement That sent Hotel Chocolat shares soaring 164% on Thursday to within striking distance of the offer price of 375 pence ($4.65) per share. The March cash offer represents a roughly 170% premium to the stock’s closing price on Wednesday — an amount one adviser described as “stunning.”
“The cash offer is… a ridiculous premium for what is essentially a business with limited future growth in the UK, and questionable performance internationally,” Jonathan de Mello, who runs UK-based retail consultancy JDM Retail, wrote on X. The platform formerly known as Twitter.
Hotel Chocolat was founded in 1993 by entrepreneurs Angus Thirlwell and Peter Harris who were “on a mission to make chocolate exciting again,” according to its website.
The brand opened its first store nearly 20 years ago in north London and has since grown to 131 stores in the UK, as well as cafés and restaurants. It also has stores in Japan and a working cocoa farm, complete with a luxury eco-hotel in the Caribbean.
In its most recent fiscal year, Hotel Chocolat posted what it described as “disappointing” financial results. The company’s revenue fell 10% to £205 million ($254 million) and reported a loss of £6.2 million ($7.7 million). CEO Thirlwell, who will remain under Mars’ leadership, said the acquisition would boost the brand’s growth prospects.
“We know our brand resonates with consumers abroad, but operational supply chain challenges have held us back,” he said in a statement. “By partnering with Mars, we can grow our international presence much more quickly,” he added, calling Mars “an excellent long-term steward of the Hotel Chocolat brand.”
The end of another British brand
The British are less convinced. The deal sparked a wave of comments from X users who lament the acquisition of another British chocolate brand by a large American food company.
Some have drawn parallels with Kraft Foods’ multibillion-dollar purchase of Cadbury in 2010 – which later became Mondelez International.MDLZ) – in a deal that ended nearly two centuries of independence for The famous Birmingham-based company.
“Oh no. When Kraft bought Cadbury, the quality went down. books @sianreed93. “Hotel Chocolat, although expensive, is proper chocolat. Please don’t change anything (except lower the prices a bit now you have more purchasing power).”
Mars, which makes Mars chocolate, Snickers, Twix and M&M’s, has been operating in the UK since 1932 and employs around 10,000 people in the country.
“Mars believes the acquisition will strengthen its commitment to the UK market, bring a beloved brand to its portfolio and deepen its relationships with consumers,” Hotel Chocolat said in the statement. “The UK has been an important market for Mars.”
Susanna Streeter, head of finance and markets at Hargreaves Lansdowne, said Mars “clearly sees a great opportunity” to expand Hotel Chocolat “into other markets, particularly in the airport retail sector”.
