What's behind Woolworths Beyers Chocolate Dispute

After nearly 40 years, chocolate maker Beyers closes shop because of a dispute with Woolworths. Woolworths Beyers Chocolate Dispute has emerged this Saturday as one of the stories drawing attention in South Africa.

Key facts

• After nearly 40 years, chocolate maker Beyers closes shop because of a dispute with Woolworths.
• South Africa’s largest independent chocolate maker, Beyers Chocolate, has entered liquidation following a dispute over supply exclusivity that ended a 34-year relationship with Woolworths.
• Kees Beyers told me how Woolworths, in particular, had treated him and his chocolate company, after he sought partnerships with other retailers. ….
• On Tuesday evening Kees Beyers, the founder and owners of Beyers Chocolates told me on The Money Show about how Woolworths, in particular, had treated him and his company (I’m indebted to the kind After The Bell reader who hit the email button and provided Beyer’s contact details).
• He supplied Woolworths with chocolates for 34 years, and in particular, made the Chuckles brand.

What we know

Going deeper, South Africa’s largest independent chocolate maker, Beyers Chocolate, has entered liquidation following a dispute over supply exclusivity that ended a 34-year relationship with Woolworths.

On the substance, Kees Beyers told me how Woolworths, in particular, had treated him and his chocolate company, after he sought partnerships with other retailers. ….

Beyond the headlines, On Tuesday evening Kees Beyers, the founder and owners of Beyers Chocolates told me on The Money Show about how Woolworths, in particular, had treated him and his company (I’m indebted to the kind After The Bell reader who hit the email button and provided Beyer’s contact details).

More precisely, He supplied Woolworths with chocolates for 34 years, and in particular, made the Chuckles brand.

It is worth noting that At its peak it produced 80t of chocolate weekly across 75 product lines for Woolworths, including cherry liqueur truffles, Cutie Pies and chocolate-coated nuts.

By the numbers

At this stage, Woolworths accounted for about half of Beyers’ R300m annual turnover at the time.

On a related note, Beyers declined, pointing to 75 employees at the second site and R200m recently invested, saying Woolworths’ exclusivity remained intact because of product distinctions.

Going deeper, Discussions centred on an exclusivity agreement, which Beyers said expired in 2019, while Woolworths said it rolled over automatically.

On the substance, In 2022/2023, Beyers planned to consolidate its four factories into a single Bedfordview facility with a dedicated Woolworths packing hall

The wider context

On a related note, On his telling, after Woolworths had been quite aggressive with him, he came across a smaller chocolate factory that was for sale and decided to buy it.

Going deeper, Under normal circumstances I would expect something like “Woolworths is saddened to hear Beyers is facing liquidation but we cannot be held responsible for this”.

On the substance, And of course they say that while Beyers was told in September 2024 that they would terminate their relationship that only happened three months later in January 2025.

Beyond the headlines, Beyers presented samples: one for Woolworths and one for Checkers, noting differences in shapes, fillings and formulations.

More precisely, According to Beyers, Woolworths insisted the second factory close, citing concerns over competitors benefiting from shared expertise.

The bottom line

• In 2022/2023, Beyers planned to consolidate its four factories into a single Bedfordview facility with a dedicated Woolworths packing hall — a project Woolworths knew about and had engaged in.
• Beyers’ legal counsel notes that Woolworths had guaranteed neither volumes nor pricing and had made no capital investments.
• With revenue from Woolworths collapsing and debts from the new facility mounting, Beyers approached its bank.