South Africa’s largest independent chocolate maker, Beyers Chocolate, has entered liquidation following a dispute over supply exclusivity that ended a 34-year relationship with Woolworths.
Beyers, based in Joburg, has operated for nearly four decades. At its peak it produced 80t of chocolate weekly across 75 product lines for Woolworths, including cherry liqueur truffles, Cutie Pies and chocolate-coated nuts. The scale was unmatched by other local independents. Woolworths accounted for about half of Beyers’ R300m annual turnover at the time. The company won supplier of the year in Woolworths’ long-life category in 2015.
The unravelling began about four years ago when Beyers acquired a second factory, which was already supplying Checkers and Pick n Pay. Founder Kees Beyers describes the purchase as a strategic expansion to boost volumes and support mechanisation for its multi-product model. The acquisition was not disclosed to Woolworths beforehand.
Woolworths later learnt of the arrangement and called a meeting. Beyers presented samples: one for Woolworths and one for Checkers, noting differences in shapes, fillings and formulations. According to Beyers, Woolworths insisted the second factory close, citing concerns over competitors benefiting from shared expertise.
Beyers declined, pointing to 75 employees at the second site and R200m recently invested, saying Woolworths’ exclusivity remained intact because of product distinctions. Woolworths reduced orders, cutting R100m at first, followed by another R100m months later. Discussions centred on an exclusivity agreement, which Beyers said expired in 2019, while Woolworths said it rolled over automatically. Beyers’ legal counsel notes that Woolworths had guaranteed neither volumes nor pricing and had made no capital investments.
In 2022/2023, Beyers planned to consolidate its four factories into a single Bedfordview facility with a dedicated Woolworths packing hall — a project Woolworths knew about and had engaged in. However, the retailer cited a breach of trust because of the undisclosed supply to competitors from the separate site.
With revenue from Woolworths collapsing and debts from the new facility mounting, Beyers approached its bank. In December 2025, the bank proposed converting debt to equity for a three-year recovery. By February 2026 it opted for liquidation, deeming risks too high and recovery via sale more viable.
A complaint was filed with the Competition Commission (Beyers denies it was from him). The complaint said Woolworths’ dominance in premium retail — estimated at 70% market share in segments such as smoked salmon — affected supplies disproportionately. The commission ruled that Woolworths held only 9% of the overall retail market, insufficient for dominance under competition law.
Beyers said other Woolworths food suppliers provided branded and house-brand goods to rivals, and he questioned what he felt was inconsistent application. Woolworths did not comment, citing confidentiality.
At its peak, Beyers employed 700 workers, rising to 1,000 in a season. Of its 75 Woolworths lines, about 28 were replaced. Woolworths has since expanded its chocolate section, emphasising Lindt and some overseas-sourced products, resulting in a reduced overall offering.
Checkers considered acquiring Beyers’ assets, but the process stalled. The factories are closed, retail shops will shut and the bank is managing a sale process. Interested parties exist, though the business is no longer operational. Kees Beyers continues overseeing administration, including staff UIF payments and legal closures. He is open to re-engaging with buyers under suitable terms.
The global chocolate industry is under pressure but is still growing. Demand remains strong, especially for premium products. The global market, valued at about $127bn last year, is projected to grow to $184.7bn by 2033, according to Grand View Research.
High cocoa prices have pushed up retail costs. The biggest challenge has been cocoa supply — soaring costs and scarce beans have forced producers to raise prices and has seen volumes fall. A supply recovery is expected as weather improves and new plantings mature. To stay relevant, brands are leaning into premiumisation, functional ingredients and sensory-driven experiences.
Beyers Chocolate is not the only local chocolate maker to have come unstuck. De Villiers Chocolate closed in 2023 after 13 years. It was hit by Covid, load-shedding, cocoa price increases and a factory fire.
There is talk that a number of local bean-to-bar producers and boutique chocolatiers have closed shop or scaled back production. The market is small and has to deal with high input costs and competition from imported premium chocolate.
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