Here is the story: Hotel Chocolat, a specialty chocolatier in Britian, has raised $7 million to buy new equipment and expand its cocoa estate in the Caribbean with an innovative “chocolate bond”.
The company offered its 100,000 mail order customers a sweet deal — Lend us $3000 and we’ll pay the interest in boxes of chocolate.
“I’m a customer, and I’m buying the chocolate anyway. And then to get paid almost a 7 percent return in chocolate — when you stick the money in the bank you barely get 3 percent — just seemed like a great idea,” says customer Anne Avis.
It’s an even better deal for Hotel Chocolat. The bond may yield almost 7 percent for the investor, but the costs of making the boxes of chocolate is much less.
Listen to NPR’s Marketplace Podcast about Hotel Chocolat’s innovative financing solution. Then, learn more about funding and cash flow, and how to creatively meet market dynamics with one of Celemi’s simulations.
Cash is the top subject of our customers right now. It is all about how to get it, spend it, reduce the flow, cash in, cash out. For every new groth strategy there needs to be a cash strategy. Play the story with your people and learn.