Innovation That Matters

British retailer issues bonds with returns paid in chocolate


British high-end chocolate maker and retailer Hotel Chocolat, which currently operates over 40 stores in the UK, the Middle East and the US, wants to expand even further. But rather than turning to banks or big investors for money, they’re inviting customer to buy bonds. Bonds that will pay chocolate returns. Two values of Chocolate Bond will be issued: both with the return paid in monthly Tasting Boxes. Holders of a GBP 2,000 Chocolate Bond will receive six free tasting boxes a year worth GBP 107.70 per year, and those holding a GBP 4,000 bond will receive thirteen boxes, worth GBP 233.35 per year. Which comes down to a 5.38% return. After an initial term of three years, and on every anniversary thereafter, bond holders can redeem their bond for a full return of their investment. If they decide to continue to hold the bond, the monthly boxes will keep on coming. The company doesn’t have to worry about the logistics of interest payment in kind; it already operates a tasting club with home delivery to over 100,000 members, and the bond holders will neatly slot into that distribution system. Hotel Chocolat explains that the money will be used to expand their factory in Britain, to build out their plantation in Saint Lucia, and to open new stores in various parts of the world. (Related: Crowdfunding for creative endeavoursShares in New Zealand beehives help protect Manuka trees.)



Download PDF