Family run UK chocolate factory opened in 1920 closes after Rachel Reeves' tax hikes

A UK family-run chocolate-maker has closed its doors after 105 years due to the "unsustainable" rise in cocoa prices - and Rachel Reeves' tough tax hikes. Beech's Fine Chocolates has been making artisan chocolates including truffles, fondants and luxury chocolate bars from the same factory on Fletcher Road, Preston, since 1920.

But chairman Andrew Whiting said last week's shock closure followed string of unsustainable costs that have hit their business all at the same time. Firstly they said the cost of a tanker of cocoa has risen from £24,000 last year to a staggering £78,000.

But the firm said this was compounded by the Government's increase of National Insurance and minimum wage, as well as a sharp rise in energy costs.

Beech's passed on a 20 percent price rise to customers, but could not cover the increase in cost in the run up the Christmas.

In a statement, it said: "Trump would say that was equivalent to a 300 percent tariff. It was sudden and worldwide."

Beech's said they asked for financial help from Preston Council and Lancashire County Council, but there was no scheme available to support an older business.

A Lancashire County Council spokeswoman said: "An offer was made to help source funding via Rosebud Business Growth, however the business did not provide further information in order to progress this."

The Whiting family, which owns Beech's Confectionery Group, funded the start-up and development of the brand.

Andrew added: "There will be a lot of people in Preston with fond memories of relatives having worked at Beech's or themselves in more recent times and we all said a fond 'au revoir' to each other on the day we closed."

In a letter to staff, managing director Peter Whiting wrote: "I have to advise you that as a result of the company's insolvency it is no longer in a position to continue your contract of employment."

Many of the staff losing their jobs have worked for Beech's for decades. They will be supported by the government's redundancy scheme with taxpayers left to pick up the redundancy payments bill.

Michael Whiting, who was key account manager at Beech's, said: "I was employed at Beech's for almost ten years. I was made redundant on Tuesday this week along with all of my other colleagues.

"It's really really sad because it was a great company to work for and Andrew and Peter were the best bosses ever. It really was just like a big family.

"But it was the increasing cost price of chocolate that made the operation unsustainable - a four times increase in one year. Many other raw materials also went up along with energy prices.

"As a brand Beech's never compromised on the quality of the ingredients and I think, in the end, we as a team just ran out of time to make the business work.

"I just want to thank all of our loyal customers and stockists and also my fellow colleagues and my bosses. It was a real pleasure to serve the community. I will always cherish my time at Beech's."

Beech's was founded in 1920 by a family named Collinson, importers of tea and coffee in the early part of the century and added chocolate to their portfolio of products on sale.

Preston was a busy port and this was the perfect location for importing raw materials. The factory has been on the same site in Preston for 100 years.

Throughout the early days, Beech's staff would skilfully pipe the chocolate decoration onto the chocolates by hand and then pack them into silk lined boxes for the consumption of only those who could afford these expensive luxuries.

During the sixties and seventies the business went through decades of public limited company ownership, but returned to family ownership when Andrew and his son Peter Whiting, took over respectively as chairman and managing director in 2017.

Since then, Michael Whiting has also joined the business in sales to increase the family involvement in day to day operations.

Dozens of people worked at the factory which produced artisan chocolates, including a special range in collaboration with African royalty.

Beeches produced chocolate using cocoa beans from Eti-Oni province in Nigeria. His Royal Majesty Oba Dokun Thompson Gureje IV and Queen Angelique-Monet visited Preston to launch the bars in 2024.

Money made from the bars went back into the Eti-Oni province, home to Nigeria's oldest cocoa plantation.