Hotel Chocolat has promoted its UK managing director, Lysa Hardy, to the position of chief executive, indicating significant strategic changes post-acquisition by Mars.
Hardy, who served as a non-executive director at Superdry until July this year, will take over from co-founder and current CEO, Angus Thirwell, according to an update on LinkedIn, as reported by City AM. This appointment follows Hotel Chocolat’s delisting from the London market in November last year, subsequent to its £534 million acquisition by Mars, representing a 170 per cent premium on its share price.
Mars, one of the world’s largest food companies and the fourth biggest private firm in the US, has initiated an aggressive expansion strategy for Hotel Chocolat. This includes plans to open 25 new stores within the next 18 months and the recent opening of the company’s first bakery and hot food outlet. Additionally, there are plans to expand existing locations such as Nottingham and Chichester, West Sussex, alongside a £10 million investment to enlarge its manufacturing plant in Royston, Hertfordshire. These combined efforts are expected to create 250 new jobs.
Despite facing challenges such as weak consumer demand for premium products and rising cocoa prices, Hotel Chocolat remains optimistic about the future. Mars’ commitment to the company’s growth suggests that these issues are perceived as temporary setbacks. Over the last two years, cocoa bean prices have surged to record highs, driven by a severe supply shortage. Production is forecast to fall short of demand by 374,000 tons in 2024, marking the third consecutive year of deficits. However, Angus Thirwell mentioned in July that the price of cocoa has “come down quite a bit and it’s expected to keep doing that”.
The anticipated economic recovery and easing of the cost-of-living crisis are expected to boost consumer demand this year. Mars’ continued investment in Hotel Chocolat underscores a robust long-term strategy despite the current market challenges.
The appointment of Lysa Hardy as CEO signifies a strategic shift for Hotel Chocolat as it navigates post-acquisition growth and market challenges with the support of Mars.