Blog: Hotel Chocolat's "chocolate bond"
Dean Best | 24 May 2010
Companies asking shareholders or members for funds for expansion is nothing new - but returns are not often paid in chocolate.
Upmarket UK chocolate chain Hotel Chocolat has set out its stall for expansion at home and abroad - and aims to fuel that expansion through the issue of "chocolate bonds".
Hotel Chocolat is looking to open more stores in the UK and in Europe, expand its manufacturing site in the UK, as well as invest in its plantation in St Lucia.
The company is aiming to raise GBP5m (US$7.2m) to fund its plans and, in what it claims is a UK first, has launched a "chocolate bond" available to its "chocolate tasting club" members.
Those members can invest GBP2,000 or GBP4,000 with a gross annual return of 6.72% or 7.29%. The difference is in the return, which will be paid in chocolate.
"We have ambitious plans for the future and, when it came to considering the funding of these plans, we decided to think somewhat differently," says Angus Thirlwell, co-founder and CEO of the Hotel Chocolat family of companies.
"Rather than borrow in the traditional way and pay interest to a big bank, we would much prefer to provide a return to our customers – in chocolate – through a chocolate bond."
Hotel Chocolat surveyed its members before launching the bond and insists it is "delighted" at the "positive reaction" it has received.
With interest rates so low, the move could prove a sweet return for Hotel Chocolat's members - although it may be an issue for their waistlines.
US fans of British chocolate imports have taken to social media to vent their frustration after Hershey earlier this week reached a settlement with an importer to stop distributing British-made candy ...
Ads are commonly a bone of contention in this industry, with food manufacturers regularly coming under fire for what they believe is creative use of media. ...
Singapore-based agribusiness giant Wilmar International is to publish more information on how it sources its palm oil, a move welcomed by environmentalists....
- Why Post is increasing its exposure to cereal
- Premier Foods CEO expects UK supermarket rebound
- Lacklustre sales see Hershey turn to snacking
- Comment: Tread carefully over payment terms
- Briefing: The risks and rewards of e-tail in China
- Post Holdings strikes deal to acquire MOM Brands
- Hershey to acquire meat jerky firm Krave
- Up & Go breakfast drinks set for UK launch
- Hershey linked to takeover of jerky maker Krave
- Crisp maker Sibell acquires Spain's Celigueta
- 10 Key Trends in Food, Health and Nutrition 2015
- Unilever - Strategy and SWOT Report
- The Sugar Backlash and its Effects on Global Consumer Markets
- Global Consumer Trend Framework: Understanding Attitudes and Behaviors that Influence Global Consumption Habits
- PepsiCo, Inc. : Consumer Packaged Goods - Company Profile, SWOT & Financial Report