Chocolate bonds raise millions

An upmarket chocolate chain store in the UK has raised £3.7 million ($7.8 million) through chocolate bonds offered to members of its tasting club.

Hotel Chocolat fell short of its £5 million target, but says it will invest the proceeds in operations, including expanding its chocolate factory in Cambridgeshire and adding 30 shops over the next three years, creating 400 new jobs.

In a world first in May, the company asked its 100,000 Chocolate Tasting Club members - who already pay for regular home deliveries - to put their money where their mouths are.

They were invited to invest £2,000 for a gross annual return of 6.72 percent, or £4,000 for returns of 7.29 percent - paid in bi-monthly deliveries of chocolate.

Hotel Chocolat chief executive, Angus Thirlwell, told the Telegraph newspaper: "This was prompted by our customers asking how they could get more involved with the company.

"We found a way of inviting them to invest in our development plans in exchange for a return paid in chocolate. And we have been bowled over by their response. We are now in a strong position to grow the business further using funds provided directly from our customers."

Despite failing to hit their target Thirlwell told the paper was "thrilled at the response".

He said the membership only approach and the detailed plans of where the money would be spent were behind the relative success of his scheme.

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