It seems many of us discovered our sweet tooth over Christmas with Hotel Chocolat unveiling a trading update which has gone down as well with shareholders as a box of its luxury chocolates.
The company is literally firing on all cylinders – noting that its six key growth drivers are supporting the accelerated sales profile.
This includes initiatives like its Velvetiser in-home drinks system, which brings with it steady sales of accompanying consumable items, its VIP Loyalty reward scheme and its expansion into the US and Japan. The core market in the UK is performing well too.
The company has done well during the pandemic thanks to the investment in its digital arm and its push to add subscribers, creating a highly visible revenue stream,” ssaid AJ Bell’s Russ Mould.
“At the moment Hotel Chocolat’s physical stores and online sales seems to be complementing each other to reinforce the strength of the underlying brand, though there is some risk that the digital operation begins cannabilising in-store demand.
“The company has taken Thorntons’ place as the destination of choice for premium but still affordable chocolate-based treats. Continuing international expansion and an ongoing push into wholesale markets represent growth levers for the future.
“Its ‘gentle farming’ initiative to support cacao farmers shows it is aware of ESG considerations too.”