Hotel Chocolat has partnered with Retail Brands to expand its presence in the Scandinavian market.
The luxury chocolatier has signed a development agreement with the Nordic franchise operator to open new branches in Sweden, Norway and Finland, as well as transfer the operation of its three stores in Copenhagen, Denmark.
Hotel Chocolat will continue supplying products to the franchisee on a wholesale basis and will receive royalties on sales made in the three stores. It also has the right to buy them back after five years.
“Having proven the popularity of the Hotel Chocolat brand with Danish consumers we are excited to be entering our next phase of Scandinavia-wide growth,” said Hotel Chocolat CEO and co-founder Angus Thirlwell. “By combining the strengths of our products and brand with the operational skills of an in-country partner, our goal is to deliver sustainable growth in Denmark and the wider Nordic region.”
Hotel Chocolat’s shares climbed 5.3% to reach 347.5p on 27 June when the announcement was made. Shares had fallen last month when it repaid £6.4m it borrowed from customers through bonds earlier than planned due to its revenues growing 12% to £166m in the year to 1 July 2018. These ‘chocolate bonds’ offered investors a 7.3% return on their loan to the chocolatier in return for boxes of its chocolates and gift cards.
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