RE: Oversold6 Sep 2023 13:10
I'm Still a LTH here, as a family we've been buying HOTC chocolates since the original phone ordering days..... and bought a fair few of shares over the years for my wife... so I'm a fan of the company...
I dont really follow the logic of each store being a % of the mcap. The company has a reach far bigger than its own retail stores, ie concessions and online. That said, I think being a niche operator, which HOTC is, makes expanding the brand tricky. They failed at cosmetics and the rabot restaurant sadly died. Ive stayed at the St Lucia Hotel and its superb but not much room for growth on that side of the business as its only got a handful of rooms.
I'm not sure what the target of vodka is all about?
So, they start hot chocolate for home use via the velvetiser sachets and Hot chocolate and ice cream in stores- all ok.
But what will drive this company back upto £5? Enter the snack bar mass market?? I doubt they could compete on price with Mondalez etc and I very much doubt they have the advertising budget of the bigger rivals.
Maybe its time for Angus to enter the magical world of Wonka and start a chocolate factory tour via the golden ticket... otherwise I see a buyout at some point by the Americans.
One final point- shareholders are not rewarded in any way for our loyalty- about time we got a voucher to use in store!
Chocs Away!