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Beyers Chocolates, the South African confectionery manufacturer, has been placed under provisional liquidation following a dispute with the retail chain Woolworths. The company, founded by Kees Beyers, has been a supplier of private-label chocolates for the retailer for over 30 years.
According to reports from Moneyweb, Beyers Chocolates faced a liquidity crisis after Woolworths reduced its procurement volumes. The manufacturer is said to owe creditors approximately 300 million ZAR ($16.3 million). Beyers Chocolates is noted for its own brand portfolio, which includes the Sweetie Pie range.
Woolworths, the South African retail group that recently reported sales growth in its food division, commented on the development in a statement: “We are saddened by the situation at Beyers, which has been a partner for many years. However, we have a fundamental duty to our customers to ensure the consistency, quality, and commercial viability of our product offering”.
At its peak, Beyers Chocolates operated a manufacturing facility in Kempton Park, employing around 400 people. The liquidation follows a failed arbitration process intended to resolve the dispute over supply contract terms.
Source: Food Business Africa / Moneyweb / Daily Investor / Daily Maverick
