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Hotel Chocolat hands over Denmark stores to Retail Brands, signs development deal

Retail Brands, which operates international retail franchises, will use its “strong local knowledge” of the Scandinavian market to grow Hotel Chocolat in the region
hotel chocolat
Shares gained 3% in morning trading

Luxury chocolate maker Hotel Chocolat Group PLC (LON:HOTC) has agreed to transfer its retail stores in Denmark to Nordic firm Retail Brands.

Hotel Chocolat has also signed a development agreement with Retail Brands covering Denmark, Sweden, Norway and Finland.

The group said Retail Brands, which operates international retail franchises, will use its “strong local knowledge” of the Scandinavian market to grow the company’s brand in the region.

READ: Hotel Chocolat sees jump in revenue and expects trading to be ‘in line with expectations’

Hotel Chocolat will retain an option to buy back the business after five years. Goods will be sold to the partner on wholesale terms, and a royalty levied on sales, it said.

"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 Angus Thirlwell, co-founder and chief executive of Hotel Chocolat.

"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."

Shares rose 3.3% to 341p in morning trading. 

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