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Founded in 1993, Hotel Chocolat has been in the spotlight recently as it overtakes rival Thorntons’ profit figures for the first time ever.
Hotel Chocolat originally set out as a small brand which aimed to provide consumers with a better choice of chocolate than those available in supermarkets. Set apart as one of the world’s few chocolate makers to grow cocoa, the Hotel Chocolat vision was to connect this with luxury chocolate making and retailing. The brand has grown to include a restaurant, hotel, beauty range, and plantation spa in Saint Lucia. Such is its success, it now has a UK portfolio of 81 stores, 35 concessions in John Lewis and 10 cocoa bar-cafes.
In the six months to December 2014, Hotel Chocolat reported a 144% increase in profits, to £8.2m, arising from sales of £47.2 million which were up 9.5% on the previous year. This news came after Thorntons issued a shock profit warning for Christmas as two UK supermarkets significantly decreased orders for the brand’s products. In the six months to January 2015, Thorntons reported profits of only £6.6 million from sales of £128.2 million.
Hotel Chocolat co-founder and CEO Angus Thirwell commented that he believes the brand has tapped into Thorntons’ market share due to Hotel Chocolat’s strategic store locations, particularly in train stations where commuters feel inclined to treat themselves to and from work, especially if trains are delayed.
Thirwell has also vowed that despite Hotel Chocolat’s growing popularity, its products will not be sold in supermarkets, and instead will only ever be available at concessions in higher end stores such as John Lewis.
Hotel Chocolat’s promise to provide better quality chocolate and its positioning as the healthier luxury option against competitor chocolate brands has clearly resonated with UK consumers. Breaking into the US market however has proved difficult, and having closed its first stores in New Jersey and Boston, Hotel Chocolat is currently re-assessing its strategy in this market. With retail partnerships driving international expansion we will continue to monitor this brand with interest.
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