Scandi noir: Hotel Chocolat signs new partnership in Denmark
Hotel Chocolat shares are climbing this morning after the company announced a new franchise agreement in Scandinavia to expand its presence in the region.
The company has partnered with Retail Brands, which will now run its existing three stores in Denmark and expand the brand throughout the Scandinavian market.
Hotel Chocolat retains the right to buy back the business after five years. It will supply products to the franchisee and receive a royalty on sales.
Read more: Will a new cocoa cartel force up chocolate prices?
âHaving proven the popularity of th e Hotel Chocolat brand with Danish consumers we are excited to be entering our next phase of Scandinavia-wide growth," commented Hotel Chocolat co-founder and boss Angus Thirlwell.
"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.â
Retail Brands also operates the Swarovski brand in the Scandinavian market. Tobias John Toft, the business's chairman, said plans for expansion were already "well advanced" and openings in Aarhus and Roskilde planned for this year.
Hotel Chocolat's share price has been slipping since it repaid its Â£6.4m 'chocolate bonds' to customers early.
But this morning's announcement gave the shares a 5.3 per cent boost to 347.5p in early trading.
Read more: Hotel Chocolat on course for sweet year as revenue rises 12 per centSource: Google News Denmark | Netizen 24 Denmark