Beyers Chocolate enters liquidation after dispute with Woolworths
Beyers Chocolate collapses after a dispute with Woolworths, ending a decades-long partnership and highlighting growing pressures in South Africa’s confectionery industry.
SOUTH AFRICA – South Africa’s largest independent chocolate manufacturer, Beyers Chocolate, has entered liquidation following the collapse of its long-standing supply relationship with retail giant Woolworths.
The development marks the end of a 34-year partnership that once positioned Beyers as a key supplier to the retailer.
At its peak, Beyers produced up to 80 tonnes of chocolate weekly across multiple product lines for Woolworths, with the retailer contributing approximately half of the company’s R300 million annual turnover. However, tensions emerged after Beyers acquired a second production facility that was already supplying competitors, including Checkers and Pick n Pay.
The expansion, intended to enhance efficiency and increase capacity, was not disclosed to Woolworths. According to reports, the retailer raised concerns that shared expertise and production capabilities could benefit rival brands.
Beyers maintained that products manufactured for different retailers were distinct, but Woolworths reportedly demanded the closure of the second facility.
Beyers declined, citing the scale of its investment and the need to preserve jobs. In response, Woolworths began reducing its orders, first cutting approximately R100 million and later implementing further reductions that placed significant financial pressure on the manufacturer.
A central issue in the dispute was an exclusivity agreement. Beyers argued that the agreement had expired in 2019, while Woolworths maintained that it remained valid. With no clarity on future volumes or pricing commitments, Beyers’ financial position weakened rapidly.
Efforts to stabilise operations, including plans to consolidate production into a single facility, failed to restore the relationship. By early 2026, the company’s bank opted to place Beyers into liquidation after assessing the risks associated with continued operations.
A complaint filed with the Competition Commission challenged Woolworths’ conduct, but the regulator concluded that the retailer did not hold sufficient market dominance under competition law.
Since ending the partnership, Woolworths has expanded its chocolate portfolio, incorporating more global brands such as Lindt while reducing reliance on locally produced products.
The retailer stated that its offerings remain consistent despite the supplier change. “We can… share that Woolies chocolate – including Chuckles – is still the exceptional quality that our customers love and expect, and it is widely available across the country,” the company said.
Beyers Chocolate, founded in 1987 by Belgian confectioner Kees Beyers, had grown into a significant player in South Africa’s confectionery sector, also operating The Chocolate Factory in Bedfordview, Gauteng.
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