A UK couple who set up their chocolate business 18 years ago are celebrating after selling a majority stake in the company.
Helen and Simon Pattinson began Montezuma’s with a single store in Brighton in 2000. Following a sticky start – their main supplier went bust shortly after they signed their first lease – they have grown to employ 130 staff. They now operate five stores in London and the south-east, as well as a subscription chocolate club sending products through the post each month.
Inverleith LLP, the Edinburgh-based private equity company, has now acquired a majority interest in Montezuma’s, whose premium flavours include chilli and lime and organic dark chocolate orange and geranium.
Helen Pattinson compared creating the business to raising a baby. “Getting to 18 years and doing this deal is a bit like letting go, and seeing where it leads,” she said.
The Pattinsons were inspired to break into the chocolate business after a visit to South America in 1999, where they saw many small chocolate outlets. Having already given up their jobs as City lawyers, they decided to set up their own chocolate shop in the UK.
They swiftly became manufacturers, too, when their key supplier went under before their launch. Helen said this was the making of the business, allowing them to test “wacky flavours” in their store and see what was popular.
The deal with Inverleith will allow Montezuma’s to open more stores, expand its range and sell its chocolate bars, buttons and truffles via more retailers.
“It means we can take a few more risks. As you get bigger, you become more risk-averse as you don’t want to lose it all,” she added.
Despite these new responsibilities, chocolate is still rather more fun than the law: “We’ve grown beyond recognition, but we still have a laugh every day.”
Montezuma’s was committed to keeping its chocolate manufacturing in the UK factory in Chichester, she said.
Pattinson said she and her husband were “very proud of the British factory we’ve built up in the last 18 years”. They try to promote from within where possible; the female senior manager in charge of the factory operations started as a temporary packing worker 11 years ago.
However, Brexit is making it harder to recruit new employees at Montezuma’s, which has partly relied on European staff to grow the business.
“It’s no coincidence that we’ve struggled to find staff in the last 18 months [following the triggering of Article 50 in March 2017],” Helen said. She added that it was “laughable” to suggest that Brexit would create more opportunities for UK workers.
The value of Inverleith’s investment has not been disclosed, but the Pattinsons are understood to be receiving several million pounds for the chunk they are selling.
