You Can Pay Me in Chocolate

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Exchange-traded derivatives. Market-neutral hedge funds. Yield curves, indexed annuities, and currency swaps.

Can’t we just eat some chocolate?

A U.K. chocolatier that’s looking for expansion capital is issuing bonds that pay chocolate dividends.

Hotel Chocolat is looking to raise £5 million (about $7.2 million). The amount is too small for a traditional bond issue, and a bank loan would carry stiff fees and interest. So the company has come up with an innovative plan for raising funds: three-year chocolate bonds will be issued in values of £2,000 and £4,000. Instead of the standard cash coupons that bonds usually pay, these yield a dividend of monthly Tasting Boxes. The value of the chocolate dividends is equivalent to an annual yield of around 6%– well above typical market returns. After the initial three-year term, the bonds can be redeemed for a full return of the initial investment.

Hotel Chocolat ethically grows its own cocoa for its luxury chocolates. The company has more than 40 chocolate shops in the U.K. and Middle East plus 2 recently-opened outlets in the U.S. The funds raised from the offering will be used to increase manufacturing capacity and expand global retailing.

If you are interested in an investment that pays a sweet dividend, you can find complete details on the Hotel Chocolat website.

Read about other creative funding models in the food industry.

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3 Responses to You Can Pay Me in Chocolate

  1. Elijah Sinka says:

    Infographic – Mobile Social Media Intelligence

  2. i always visit food blogs because i always like to do some home cooked meals ~**

  3. Fascinating post…

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