THORNTONS PLC

Thorntons plc

Thorntons plc

Company History

Thorntons plc is one of the United Kingdom's leading manufacturers and retailer of chocolate and other confectionery products. Founded in 1911, the company remains more than 30 percent owned by the Thornton family. Yet the company's day-to-day operations are led by chief executive Peter Burdon, who joined the company in 2000. Thorntons' products, which focus on chocolates, fudge, and toffee but also include other candies, target the high-quality, high-end market. This commitment to quality has gained the company a strong reputation throughout the United Kingdom and made it one of the country's most popular brands. Most of Thorntons' sales come through its network of more than 500 retail shops--some 400 or which are directly owned by Thorntons, while the rest operate as franchises. The company's products are also available through such large-scale department store chains as Marks and Spencers. In 2001, the company also began rolling out a line of products to be sold through the supermarket channel. In addition to its retail shops, Thorntons operates a growing number of Thornton Cafes, which sell coffee and other desserts in addition to the company's chocolates.

Many of these cafes are located within existing Thornton stores. The company also began pilot testing selling fresh coffee and other beverages and snacks at its retail stores, a program begun in 2000. Despite steady sales gains, Thorntons has been struggling with its profitability since the late 1990s. The company's difficulties have seen its share price plunge from a high of nearly 300 pence in 1998 to as low as 85 pence at the turn of the century. This development has in turn sparked suggestions that the company may be a strong takeover candidate. A more likely scenario, given the company's proud history as an independent chocolate manufacturer, may be a management buyout of the company. In the meantime, the Thornton family remains present in the company's direction, with John Thornton, formerly CEO with the company, serving as its chairman.

In Chocolate Heaven Since 1911

Thornton's was established in 1911 when Joseph Thornton, who had been working as a traveling candy and confectionery salesman, opened his own shop in Sheffield. Joining Thornton to help run the store was his eldest son Norman, then only 14 years old. The Thornton shop was a success, and in 1913 the family opened a second store. The new store included a kitchen where the family began making their own candies. By the time Joseph Thornton became ill in 1917, Norman Thornton had begun establishing a reputation for the Thornton name as a maker of quality sweets, while opening two more stores, plus a store selling fresh fruit, by the end of the decade. The younger Thornton took over the business's operations entirely after his father's death in 1919. Two years later, Thornton was joined by his younger brother, and together they began to expand the business, which was then incorporated as JW Thornton Ltd (Jane, 2000, 72).

The success of the Thorntons' chocolate and other confectionery ...