(Photo: Beyers Chocolates/ Instagram)
Woolworths denies it is responsible for the liquidation of Beyers Chocolates and says allegations about the nature of its relationship with the chocolate maker are “incomplete or factually incorrect”.
The retail group said in a statement that it would not normally comment publicly on a previous supplier relationship, but that it felt it was necessary to correct certain claims.
“We believe it is important to set the record straight for our customers and stakeholders,” the statement said.
Woolworths says it has worked with Beyers for more than three decades in what it describes as a “valued partnership”. According to the group, in 2019 the parties entered into an exclusivity agreement regarding certain Woolworths chocolate products and formulations.
However, the group says it later became aware that products that were “substantially similar” to Woolworths’ exclusive products were being supplied to competitors.
According to Woolworths, this did not appear to be a one-off incident, but rather a pattern. The group says it has raised concerns about the future of the commercial relationship and Beyers’ commitment to the existing contract.
“Several discussions followed in an attempt to find a workable way forward.”
However, the parties could not agree on the conditions under which the relationship would continue. Woolworths says this has led it to start using alternative manufacturing partners “to protect its intellectual property, maintain brand differentiation and protect long-term commercial interests”.
By January, Woolworths chocolate products were no longer manufactured by Beyers, according to the group.
Woolworths maintains that the move was not an abrupt termination and that it has more than doubled its business with Beyers in the period between 2018 and 2023. According to the group, this reflects its “long-term commitment” to the partnership.
Maroela Media previously reported that Beyers Chocolates, the manufacturer of, among other things, the iconic Sweetie Pie marshmallow and caramel treats for Woolworths, had to apply for liquidation.
Previous reports stated that Woolworths’ reduced orders were believed to have played a major role in the company’s financial problems.
Woolworths rejects this version and says it is “inaccurate” to claim that it is responsible for Beyers’ liquidation.
The group also sought to reassure customers about the future of its popular Chuckles line. Woolworths says it remains the sole owner of the Chuckles brand and that the quality and safety of these products remain unchanged.
According to Woolworths, Chuckles have always been manufactured in South Africa. Beyers apparently never produced the original Malt Chuckles sold in the red bag.
“Our Chuckles range is still produced locally, supports South African jobs and industry, and will continue to do so,” says the group.
Earlier, the fate of Chuckles also provoked a reaction from political ranks after, among others, Geordin Hill-Lewis, Cape Town’s mayor, and Helen Zille, federal chairperson of the DA, commented on the matter on social media.
Woolworths says it has a responsibility to its customers, employees, shareholders and the South African economy to create long-term value and manage its brands responsibly.
“What will never change is our commitment to act responsibly and with integrity,” says Woolworths.
The group says it is confident it has acted “fairly and in the best interests” of its customers, business and brand.