Mon 27th Nov 2023 - Knoops raises £8.3m as it aims for 200 UK sites Knoops raises £8.3m as it aims for 200 UK sites: Luxury hot chocolate shop brand Knoops is planning to more than double in size in 2024 following a milestone £8.3m fundraising that leaves the fast-growing business debt-free and positioned for higher profit next year. The fundraising, led by a £5.5m investment from the London-based retail and property group Morleys Stores, allows Knoops to meet “the booming demand for expertly-crafted chocolate drinks” through an expanded network of UK stores – as well as enhancing a multi-channel offer “that gives fans the chance to create ‘Knoopology’ with their own drinks at home with Knoops chocolate flakes”. Knoops currently has 15 branches, including seven in London, with plans in place to take the number of outlets to 20 nationally by March, including new openings in Edinburgh, Leeds and Exeter. The business will now press ahead with its pipeline of an additional 20 openings from March 2024, targeting major cities and university towns, with medium-term ambitions for 200 stores across the UK. The firm has also just launched a new app allowing customers to tailor their own drinks. The company was founded by the company’s self-taught “master distiller” Jens Knoop in 2013 in Rye, East Sussex, creating a range of expertly crafted chocolate drinks with sustainably sourced ingredients. Knoops executive chairman and chief executive William Gordon-Harris – a regular customer of the Rye branch – spotted the potential of the business and in 2019 began a major expansion of the brand with Knoop. Despite the initial impact of the covid pandemic lockdowns, the business won over a host of new customers to high quality drinking chocolate at home, “creating a legion of new customers of all ages and demographics”. Gordon-Harris said: “When I first went into Jens’ shop in Rye five years ago, I knew he was on to something. The business clearly had amazing potential and now thousands of customers are enjoying their ‘Knoops moment’ every single week thanks to Jens’ vision. Our stores are doing a roaring trade at all times of the day and are hugely popular with customers of all ages. Following this fundraising, Knoops is in a fantastic position to grow from a position of real financial strength. We have a huge market to shoot for and an easily scalable business – we’re still on the runway when it comes to how far Knoops can go.” John Egan, a non-executive director for both Morleys and Knoops, added: “Bernard Dreesmann, the chairman of Morleys Stores, spotted the Knoops brand in High Street Kensington and he was incredibly impressed by Jens’ concept and the vision and strategy for the business set out by William. Our significant investment in Knoops is part of the group’s diversification away from the core department store business. We are delighted and excited to be part of the Knoops journey, and see the business creating a new category in the hot drinks market.” The brand offers customers a range of barista-prepared hot chocolate, chocolate milkshakes and iced chocolate from a menu of more than 20 different strengths and styles of chocolate to create bespoke drinks. Knoops features in the Propel Multi-Site Database, the latest edition of which was sent to Premium subscribers on Friday (24 November). The comprehensive database, which is produced in association with Virgate, now features 3,060 companies. Companies can now have an unlimited number of people receive access to Propel Premium for a year for £995 plus VAT – whether they are an operator or a supplier. The single subscription rate is £495 plus VAT for operators and £595 plus VAT for suppliers. Email kai.kirkman@propelinfo.com to upgrade your subscription.