Thorntons is planning a move overseas, 13 years after pulling the plug on its last international venture, chief executive Mike Davies has told The Grocer.
The chocolatier has appointed a new finance director to develop an international expansion strategy (see Movers and Shakers, page 63).
"We want to improve and deliver on the long-term goals we have set ourselves, which are all about being the UK's most recognised premium chocolate brand," he said. "We want to improve our profitability and eventually start looking internationally to see where we can grow."
Thorntons briefly entered the Belgian and French markets in the early nineties but was forced to exit in 1996, blaming poor research into the target markets. Davies would not reveal which countries it planned to target this time.
Shore Capital analyst Clive Black warned that although international expansion could increase profits, it would not be easy. "Thorntons has struggled to become a totally UK dominant brand, never mind an international one. It's still probably regarded as a brand more in the Midlands and the north of England than the whole country. However, internationalisation will have some merits in terms of providing additional avenues for growth." The brand's Britishness could give it an edge, he added. "The chocolate market in Continental Europe is very well set, but the British chocolate market is distinctive to the European Continental market."
Thorntons, like other UK specialist manufacturers, would also try to develop an export business on the back of the current weakness of sterling, predicted another analyst.
In a separate bid to broaden its customer base, the retailer plans to boost its appeal with ethnic communities by launching a box of non-alcoholic chocolates for Eid and Diwali in the autumn.
The henna tattoo artist Ashkumar is working on the design for the lid. The chocolates will only be available online.
The chocolatier has appointed a new finance director to develop an international expansion strategy (see Movers and Shakers, page 63).
"We want to improve and deliver on the long-term goals we have set ourselves, which are all about being the UK's most recognised premium chocolate brand," he said. "We want to improve our profitability and eventually start looking internationally to see where we can grow."
Thorntons briefly entered the Belgian and French markets in the early nineties but was forced to exit in 1996, blaming poor research into the target markets. Davies would not reveal which countries it planned to target this time.
Shore Capital analyst Clive Black warned that although international expansion could increase profits, it would not be easy. "Thorntons has struggled to become a totally UK dominant brand, never mind an international one. It's still probably regarded as a brand more in the Midlands and the north of England than the whole country. However, internationalisation will have some merits in terms of providing additional avenues for growth." The brand's Britishness could give it an edge, he added. "The chocolate market in Continental Europe is very well set, but the British chocolate market is distinctive to the European Continental market."
Thorntons, like other UK specialist manufacturers, would also try to develop an export business on the back of the current weakness of sterling, predicted another analyst.
In a separate bid to broaden its customer base, the retailer plans to boost its appeal with ethnic communities by launching a box of non-alcoholic chocolates for Eid and Diwali in the autumn.
The henna tattoo artist Ashkumar is working on the design for the lid. The chocolates will only be available online.
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