Tony’s chocolates have established a strong presence in the Netherlands and Europe, and have also expanded their reach in the United States in recent years.
The brand has now attracted the attention of Starbucks founder and former CEO Howard Schultz.
Schultz purchased a 2% minority stake in the Dutch chocolatier, Tony’s, on Wednesday.
The deal has been in the works for some time, coinciding with Tony’s significant growth in the U.S. market. Sales in the States have quadrupled since 2020, with plans for further expansion in mainstream retailers like Walmart.
“Tony’s rapid revenue growth, increasing popularity among U.S. consumers, and growing investor interest demonstrate the importance of building a company that prioritizes both financial returns and social impact,” said Tony’s CEO Douglas Lamont in a statement.
Tony’s focuses on social impact by raising awareness about exploitation in the cocoa industry through its packaging and marketing campaigns. The company has also criticized larger chocolate companies for not doing enough to address human rights concerns.
In addition to the U.S., Tony’s has seen significant growth in the UK, raising €20 million ($21.7 million) in equity capital last year to expand into multiple markets.
Given the increasing interest in socially responsible companies, Tony’s plans to allocate part of its 2023 capital injection to further develop its U.S. operations.
Schultz’s investment in Tony’s marks his entry into the fast-moving consumer goods sector, having previously invested in companies like Oatly and Cumulus Coffee.
The announcement of Schultz’s stake comes amidst rising cocoa prices, leading to higher chocolate prices for consumers due to factors like unfavorable weather conditions and supply shortages at cocoa hubs worldwide.
To address the cocoa inflation, Tony’s has raised prices in certain markets, with plans to ensure that farmers benefit from the price increases. However, navigating the industry’s middlemen has presented challenges.
Despite the higher prices, loyal customers of Tony’s Chocolonely remain committed to the brand, prompting the company to aim for a 20% increase in stores in the U.S. in the coming year.
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