HOTEL Chocolat has been sold to Celebrations and M&Ms owner in a huge £534million deal.
Confectionery giant Mars is buying Hotel Chocolat in a bid to help grow the luxury brand internationally.
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Mars is planning to expand the posh chocolatier in the UK and overseas.
Hotel Chocolat said it has reached an agreement with Mars Incorporated, which also owns the Celebrations, Dove, M&Ms and Snickers food brands.
The deal is expected to close in the first quarter of next year.
Mars, which employs around 10,000 people in the UK, says the deal will bring a “much-loved brand into its portfolio”.
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The luxury chain, which has been running for nearly 20 years, said that while its brand resonates with consumers overseas, supply chain challenges “have held us back” on expanding internationally.
Hotel Chocolat’s chief executive Angus Thirlwell said: “We know our brand resonates with consumers overseas, but operational supply chain challenges have held us back.
“By partnering with Mars, we can grow our international presence much more quickly using their skills, expertise and capabilities.”
The chocolate shop currently has a total of 131 stores across the UK, according to its website.
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It also has sites in Gibraltar, Ireland and St Lucia.
All shops are continuing to operate as usual and will remain open.
In September last year, it announced the closure of five shops in the US, but it still operates online, selling popular items like its Velvetiser hot chocolate maker.
Earlier this year, it announced a new venture in Japan with Tokyo’s Eat Creator to set up 21 Hotel Chocolat shops following the collapse of its initial deal.
Back in October, it was reported that Hotel Chocolat’s sales had declined 10% to £204.5million, with UK revenues falling 8% and a 24% drop in sales from digital and wholesale.
However, UK store sales jumped 8% over the year.
Hotel Chocolat had previously warned on profits back in June, blaming ongoing weakness in consumer sentiment and inflationary pressures for the fall.
The chocolatier is known for its upmarket treats, advent calendars and gifts.
One of its most sought-after items is its Velvetiser gadget which melts real chocolate into warm milk to create a hot chocolate.
The Hotel Chocolat Velvetiser can be pretty expensive though.
It’s currently on the website for £99.95.
This has led to B&M shoppers rushing to buy a dupe that’s £75 cheaper.
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The Heat and Eat chocolate drink maker costs £25 and gives “silky smooth hot chocolate every time”.
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