Woolworths defends move to cut ties with Beyers
Woolworths has rejected accusations that it was responsible for the demise of Beyers Chocolates, saying it only cut ties after discovering the chocolate producer was supplying competitors with products similar to Woolworths-exclusive items.
As previously reported, Beyers Chocolates supplied Woolworths with confectionery, including its popular Chuckles products, for more than 30 years, until the relationship ended in January last year.
News24 reports that Kees Beyers, CEO of the independent chocolate maker, says the ending of the retail giant’s longstanding contract triggered a financial crisis that forced it into liquidation in February and left 700 permanent employees without jobs.
Woolworths finally decided to end the contract last year, just as Beyers Chocolates was investing millions to consolidate its four factories into a single facility to streamline its operations.
The Woolworths move triggered a cash crunch at Beyers Chocolates.
It could not complete this consolidation project and entered into liquidation.
However, Woolworths denied these allegations and said it more than doubled its business with Beyers Chocolates between 2018 and 2023, even though the company continued to supply a broad range of retailers during that time.
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