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Hotel Chocolat have raised £3.7m after offering a three year, FSA-approved chocolate bond to its 100,000 members in May.
The bond, which closed at 5pm yesterday, raised £3.7m, which was £1.3m short of the target of £5m. The idea was for customers to invest £2,000 for a gross annual return of 6.72pc, or £4,000 for returns of 7.29pc. This was paid in bi-monthly deliveries of chocolate rather than money.
Expanding the company’s factory in Cambridgeshire, creating up to 250 new jobs, opening new retail outlets and building a sustainable factory at its existing cocoa plantation in Saint Lucia are some of the tasks to be financed with the money raised.
Angus Thirlwell, Hotel Chocolat chief executive, said: “This was prompted by our customers asking how they could get more involved with the company.
“We found a way of inviting them to invest in our development plans in exchange for a return paid in chocolate. And we have been bowled over by their response. We are now in a strong position to grow the business further using funds provided directly from our customers.”
Mr Thirlwell claimed he was “thrilled at the response” despite the large gap between the £5m target and the £3.7m raised.
He also claims that the success of the programme was down to a membership only approach as well as detailed plans of where the money would be spent. “We identified expanding our shop network in the UK and internationally; creating manufacturing jobs in the UK; and building a sustainable cocoa-growing and chocolate manufacturing enterprise in Saint Lucia. We’re offering a better return than the bank and providing complete transparency on what their funds will be used for.”
The bonds can be redeemed in full, subject to early repayment, after three years. The first return to bondholders will be delivered in the form of a Hotel Chocolat ‘chocolate tasting box’ during August.
Revenues of £52m currently serve Hotel Chocolat. The company continues to work on expansion plans for the Middle Eastern and US markets. |
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