British confectioner Montezuma’s Chocolates, famous for its ethically sourced chocolate bars and truffles, joined investment company Paramount Retail Group in May 2023, joining Bristows of Devon under the Great British Confectionery Group.
From crumbling chocolatier to cocoa success story
Following the release of its most recent financial results, Montezuma’s is profitable for the first time since the acquisition, which the Grocer hailed as a confectionery rescue. The confectionery maker and retailer’s annual sales increased to £10.8m ($13.7m) by May 2024, a year after the buy-out.
Achieving earnings before interest, taxes, depreciation, and amortisation (EBITDA) of £1m ($1.3m) represents a significant milestone for Montezuma’s Chocolates. The brand is putting its turnaround down to focusing on operational efficiencies and targeted investments, such as digital marketing and customer engagement efforts.
“Montezuma’s transformation is a testament to the power of strategic investment and an engaged, forward-thinking culture,” says Paul Taylor, Chairman of Paramount Retail Group. “This is the kind of result that defines our hands-on approach to business, proving that with the right focus and effort, even distressed assets can become success stories.”
Managing rising cocoa prices
Like fellow chocolate competitors, Montezuma’s has had to take a proactive approach to managing increased supply costs, particularly eye-watering cocoa prices, which scaled to record highs of $10.75 kg on January 31, 2025. “There’s no denying that cocoa prices have been on a wild ride, and like everyone in the industry, we’re feeling the squeeze,” says Kate Whapshott, the firm’s head of marketing.
The cocoa crisis poses particular concerns for high-cocoa content bars like Montezuma’s Absolute Black. “The impact is more pronounced, but we are working closely with our suppliers to manage costs responsibly,” confirms Whapshott. “However, there were no two ways around it and we have had to put through some price increases in the last couple of years.”
There were no two ways around it and we have had to put through some price increases in the last couple of years
Kate Whapshott
But, as many confectioners have discovered, consumers still want quality, ethically sourced, and great-tasting chocolate. Montezuma considers these confectionery characteristics a core reason it has survived the cocoa crisis and returned to profitability following its dwindling pre-acquisition sales.
Innovating fan favourites
The firm, headquartered near Chichester in the south of England, has created a new product development team to support collaboration, handle private label opportunities and improve sourcing capabilities to maximise the brand’s ability to navigate the cocoa crisis.
Among its existing SKUs, the confectioner’s buttons remain the brand’s top-selling product and its built on this success with on-going multibuy opportunities in stores and online. “We are currently undergoing the biggest change to our button range yet,” shares Whapshott. Montezuma’s is evolving its sweet treat selection to meet customer demand by introducing new formats, including a non-organic option at a more affordable price point. Tapping into the gifting trend, the brand has also bought back its Button Jars, which strive to create a more giftable version of its range at Christmas and throughout the year.
Making chocolate consumption an experience
Premiumisation is another key strategy for Montezuma’s. “It’s about offering high-quality, beautifully crafted chocolate that feels special, whether as a treat for yourself or a gift for someone else,” says Whapshott.
Under Paramount Retail Group’s leadership, Montezuma’s is striving to maximise its marketing budget by focusing on creativity, authenticity and smart targeting. Embracing a bold personality, using eye-catching packaging, such as the Chocolate Library, which is a low-waste gifting option and engaging storytelling to stand out are among the brand’s strategies.
Montezuma’s in-house team is dedicated to making the most of organic social media and email marketing to build strong customer relationships without relying on big advertising spend. As it continues to eye up growth, Montezuma’s puts its support behind playful campaigns, immersive in-store experiences and unexpected collaborations. “We make sure every marketing move is as creative as it is effective,” shares Whapshott.
The 2025 Montezuma’s roadmap
Following the success of its profitable 2024, Montezuma is entering new categories, channels, and markets in 2025 to further its growth plans.
Here’s how:
1. Bricks and mortar
While Montezuma’s still has three brick-and-mortar stores, part of its 2025 strategy focuses on developing its pop-up potential. “The biggest opportunity for us is Christmas and Easter which makes it the perfect time to trial pop-ups in new areas,” says Whapshott. The brand currently has a pop-up in a key location on Regents Street, London, where it’s leveraging immersive experiences and encouraging chocolate consumers to build their own chocolate bar libraries.
2. Eco-conscious collaborations
Pursuing its position as an ethically sourced and sustainably made chocolate, Montezuma’s will explore collaborations and eco-consciousness in 2025. The brand will partner with the Bumblebee Conservation Trust, which monitors and conserves the insects and their habitats, and will progress licensing deals with other organisations.
3. Targeted marketing messaging
“Consumers care more than ever about where their food comes from, and chocolate is no exception,” says Whapshott. As an ethical chocolate business, Montezuma’s needs to carefully consider how they communicate sustainability messages and invest in understanding what concerns are important to its shoppers. “Cutting through all the noise and greenwashing in the market can be a challenge,” says Whapshott. “Shoppers are bombarded with labels and claims, so making sure our message is clear, credible and engaging is key.”
Front-of-pack labelling and claims provide a prime opportunity for brands to display core information that captures consumers’ interest. “Packaging space is always at a premium—there’s never enough room to say everything we’d love to, which means we have to get creative,” says Whapshott. Montezuma’s marketing efforts focus on storytelling through its website, social media and in-store messaging to give consumers more insights. “It’s about making ethical choices easy and accessible without overwhelming people with information at the till,” says Whapshott.
