Big George (@bigg.mastodon.africa.ap.brid.gy)

South Africa’s largest independent **chocolate manufacturer** , Beyers Chocolate, has entered liquidation following a breakdown in its long-standing relationship with retail giant Woolworths. The dispute, centred on supply exclusivity, brings an end to a 34-year partnership that once saw Beyers produce up to 80 tonnes of chocolate weekly across dozens of product lines for Woolworths. At its peak, the retailer accounted for roughly half of Beyers’ R300 million annual turnover. The fallout began when Beyers acquired a second factory that was already supplying competitors like Checkers and Pick n Pay. The move, intended to expand production capacity and improve efficiency, was not disclosed to Woolworths beforehand. > _**Cape {town} Etc Discount Alert!**_ > > _Unlock Cape Town’s best experiences for half the price! From unforgettable adventures to hidden gems and mouthwatering restaurants, these limited-time deals won’t last long._**_Snag your discount before they’re gone!_** Tensions escalated when Woolworths discovered the arrangement and raised concerns about shared expertise benefiting rival retailers. Despite Beyers arguing that its products for different retailers were distinct, Woolworths reportedly demanded the closure of the second facility. Beyers refused, citing significant investment and job preservation. In response, Woolworths gradually reduced its orders—first by R100 million, followed by a further cut placing severe financial strain on the manufacturer. A key point of contention was an exclusivity agreement. Beyers maintained that the agreement had expired in 2019, while Woolworths argued it remained in effect. With no guarantees on volumes or pricing from the retailer, Beyers’ financial position deteriorated rapidly. Efforts to stabilise the business, including plans to consolidate operations into a single facility, were not enough to restore the relationship. By early 2026, the company’s bank opted for liquidation after determining that recovery risks were too high. A complaint lodged with the Competition Commission questioned Woolworths’ market influence. However, the commission ruled that Woolworths did not hold sufficient market share to be considered dominant under competition law. Since the split, Woolworths has expanded its chocolate offerings, including products from global brands like Lindt, while scaling back locally produced lines. The collapse of Beyers Chocolate reflects broader challenges in the confectionery sector. Rising cocoa prices, supply shortages, and increased competition from imported premium brands have placed pressure on local producers. Beyers is not alone. Several boutique chocolatiers and bean-to-bar producers in South Africa have either closed or scaled down in recent years, citing similar challenges. While the global chocolate market continues to grow, local manufacturers face a tougher road—balancing rising costs with consumer demand for premium products. * * * _Be the first to know – Join our WhatsApp Channel for content worth tapping into!**Click here to join!**_ * * * **Also read:** > May 4 national shutdown raises alarm in South Africa **Picture:** Hrushi Chavhan / Unsplash https://www.capetownetc.com/finance-money/beyers-chocolate-collapses-after-woolworths-dispute/