By Paul Sandle
CHICHESTER, England (Reuters) – Premium British chocolate maker Montezuma’s hopes the higher duties imposed on its European rivals could be an advantage for its U.S. export ambitions, after Britain escaped the steepest of President Donald Trump’s tariffs.
Britain was spared the most punitive treatment in Trump’s tariff announcement on Wednesday, when it was hit with the lowest import duty rate of 10%, and it is pinning its hopes on securing a trade deal with the U.S. to soften the blow.
The European Union was hit with a 20% rate, while Switzerland, a major exporter of premium chocolate, received more than triple Britain’s tariff at 31%.
“Part of our strategy is to move into export markets, so it was very disappointing to have any kind of trade block,” said Montezuma’s Managing Director Marlene Godwin, speaking at the company’s office and factory near England’s south coast, where it makes bars and truffles.
“However, the fact that it was 10%, and I’m not going to just say only 10% because it’s still a big deal, it gives us that tailwind over our European competitors.”
Montezuma’s, founded 25 years ago, had well over 1 million pounds ($1.3 million) of business in the United States until a few years ago, when it lost its listing with supermarket chain Trader Joe’s, Godwin said.
Loyal U.S. customers were still buying its top-selling Absolute Black 100% cocoa bars online, she said, and the country remained a big opportunity.
“It’s one of the few Brexit advantages that we will have,” Godwin said. “The American market imports so much chocolate and suddenly we’re a little bit more affordable.”
Other bars made by the company include the “Happiccino” coffee and cocoa nibs, “Black Forest” dark chocolate and cherry, and “Butter Nutter” peanut butter and truffle centre bars.
Godwin said the company, which will have a turnover of about 11 million pounds this year, would find a way to absorb some of the cost of the tariff for its U.S. customers.
“If you are someone that’s buying our product regularly, you will most likely still keep buying our lines, you just might buy a little bit less,” she said.
“So we’ll do some offers … we’ll do all we can to protect that business.”
Montezuma’s was already having to cope with the challenge of a 400% rise in cocoa prices over the last five years, a major ingredient in its premium bars, which do not contain palm oil.
The U.S. tariff will now impose another cost in paperwork, Godwin said, adding to the burden of bureaucracy that resulted from Brexit.
“Like every company, it’s one of the prices you pay to trade with our European partners now,” she said. “It’s more paperwork, more admin. But it’s one of those things. We’ll do it.” ($1 = 0.7587 pounds)
(Reporting by Paul Sandle; Editing by Alex Richardson)
