British confectioner pays less than its cheapest selection box for spin-off skin care brand
Luxury British chocolatier Hotel Chocolat has secured a sweet deal by buying out its beleaguered spin-off skin care brand Rabot 1745.
For just £4, the confectionary company has taken full control of the cocoa-powered business, which takes its name from the St Lucian cocoa plantation owned by Hotel Chocolat co-founder Angus Thirlwell.
The sum paid for the majority share of the beauty brand (53%), is less than Hotel Chocolat’s cheapest selection box, which retails for £5.
During the pandemic, Rabot reported losses of £400,000, but Hotel Chocolat is optimistic about its future, due to its ‘high-quality beauty products’.
“The group is well placed to leverage the value of the Rabot inventory and to further develop the brand’s intellectual property, which includes a range of high-quality beauty products which have attracted multiple awards and favourable customer reviews,” said Hotel Chocolat.
Following the acquisition, Rabot will be left owing £200,000 due to debts of £900,000 and assets only amounting to £700,000.
The announcement is a far cry from the beauty business' previous success under Andrew Gerrie, former Lush executive and Hotel Chocolat’s Non-Executive Chairman.
Andrew Gerrie and Sara Logie
In 2019, Gerrie, along with Global Managing Director Sara Logie, announced sales of just under £1m in its first two years of trading.
The brand was built on integrity with products and packaging presented as an indulgent yet responsible choice for the eco-conscious consumer.
Best-sellers include its Coffee Cup Body Scrub, which comes in three bases – Coffee, Salt and Sugar – as well as its Lip Balm, available in six flavours from Almond Chocolat to Honey Chocolat and Peach.