Introduction

Delicious but deceptive - the Cocoa market can be extremely volatile, susceptible to heavy swings in seasonal demand and debilitating weather conditions. For one family-owned UK chocolatier, Daniel’s Delights, recent seasons have been no different in their fair share of both risk and opportunity. Lenkie’s credit facility, which has supported their business for the last 15 months, provides an essential cash-flow ingredient to help them take advantage of seasonality amidst hefty supermarket contracts and eCommerce expansion.

Chocolate gains and growing pains

Since their home-cooked beginnings in 2007, Daniel’s Delights have grown to deliver chocolates on a global scale from their 17,000 sq ft factory in Stoke-on-Trent. Whilst factory automation and supermarket contracts proved huge steps forward, these required additional working capital investment to support growing payments to Cocoa farms in Columbia. Even with invoice factoring in play, a full cash conversion cycle could last up to four months before the business would see payments from their customers.

Anthony Copeland, Office and Accounts Manager, and Ken Harrison, Managing Director, came to Lenkie in summer 2023 for an instant cash-flow solution which could sit alongside existing finance facilities and satisfy their huge supermarket demand. Within days, the business had access to their credit facility and had begun closing the cash-flow gap.

How Lenkie helped

Now able to pay their suppliers instantly and easily, the team can prioritise their all-important Cocoa partners - a benefit which has become especially profound this year, as cocoa prices have trebled against low yields from global warming. Lenkie’s flexible and fixed-price credit facility means that, no matter the state of play in the market, the business can reliably purchase from their suppliers as little or as much as they need.

Moreover, with no monthly subscription or non-usage fees, they’re able to scale usage up and down without incurring additional cost. This provides Anthony and Ken with the peace of mind they need to develop the chocolate lines which fill the aisles and bring the smiles.

Rich futures

With the 2024 no.1 Amazon ranking for Easter Eggs under their belt, the chocolatier plans to take full advantage of the eCommerce sector in 2025. Whilst Amazon distribution will help to maximise outputs from their newly expanded factory, a mastering of seasonal sales algorithms will prove the key to success. For Anthony, Ken, and the rest of the family business, Lenkie’s working-capital facility proudly continues to drive this venture and many more to come.