Future outlook for the organic chocolate company
Theo Chocolate (Theo) announced its intention to merge with American Licorice Company (ALC). This announcement follows a strategic restructuring of Theo’s operations and a shift in its manufacturing approach.
“Like other businesses, we are contending with rising costs across all aspects of our manufacturing and supply chain, requiring us to change. We’ve had to make some tough but necessary decisions to ensure
Etienne Patout, CEO of Theo Chocolate.
the company’s long-term viability,”
Entering a new chapter
Theo Chocolate has grown over the past 18 years from a local Seattle-based company to a nationally distributed brand. As part of ALC, Theo will be included in a portfolio of organic brands such as TORIE & HOWARD® and ZING BAR®.
Strategic restructuring
Earlier this year, Theo commenced a restructuring plan, responding to rising costs across all aspects of their manufacturing and supply chain. This restructuring includes closing the Seattle manufacturing operation and reducing office staff.
Impact on Theo’s workforce
The restructuring process will affect about 60 Theo employees in the second half of 2023. Despite this, Theo’s presence in Seattle will continue through its headquarters, Flagship Store, and Confection Kitchen.
Support for affected employees
Impacted employees are being offered severance packages, including medical coverage and payouts of PTO balances, alongside access to mental health and job search resources. “We are committed to supporting those impacted by the transition ahead,” shared Patout.
Looking ahead: operations and transaction timelines
Operational changes are ongoing and the proposed transaction is slated to close in the third quarter of 2023.
Details from the press release
- Company: Theo Chocolate
- Announcement: Merger with American Licorice Company
- Operational changes: Restructuring plan commenced in Q2 2023
- Impact on workforce: Approximately 60 employees to be separated in H2 2023
- Timeline: Proposed transaction expected to close in Q3 2023
- Theo’s presence in Seattle will continue through its headquarters, Flagship Store, and Confection Kitchen.
Final thoughts
The merger between Theo Chocolate, with its commitment to fair-trade and organic practices, and American Licorice Company signifies an intriguing shift within the organic confectionery industry. While changes inevitably lead to periods of uncertainty and adjustment, they also provide opportunities for innovation and progress.
