The “Chocolate Administration” crisis of February 2026 is a major turning point for the UK confectionery industry. It isn’t just about one company failing; it’s a systemic collapse of several heritage brands that have defined British luxury for decades.
Here is the full breakdown of what happened, why it happened, and what it means for the future of your favorite sweets.
1. The Timeline of the “Chocolate Collapse”
In early February 2026, three major pillars of the UK chocolate industry entered administration (a legal process where insolvency practitioners take over a failing company to pay off debts or find a buyer).
- Prestat (Est. 1902): The legendary brand that held two Royal Warrants and famously inspired Roald Dahl’s Charlie and the Chocolate Factory. It closed its historic flagship store in Princes Arcade, Piccadilly, after 124 years.
- Rococo Chocolates (Est. 1983): Known for its artistic packaging and King’s Road heritage, Rococo followed Prestat into administration just days later.
- Marasu’s Petit Fours: While less known to the public, this was the “engine room” of London luxury. As the city’s largest premium manufacturer, they produced over 300 tons of chocolate a year for Harrods, Selfridges, and Fortnum & Mason.
2. Why Did They Fail? (The “Perfect Storm”)
Global environmental factors and local economic pressures drove the crisis.
A. The Global Cocoa Price Spike
The most significant factor was the cost of raw cocoa. In 2024 and 2025, cocoa prices hit record highs (briefly exceeding $10,000 per tonne) due to:
- Climate Change: Extreme heatwaves and “Black Pod” disease decimated crops in West Africa (Ivory Coast and Ghana), which produce 60% of the world’s cocoa.
- Supply Chain Squeeze: While prices began to drop slightly in early 2026, they remained nearly double their historical average. Small, high-end producers like Prestat couldn’t afford the raw materials, unlike giants like Mars or Mondelez (Cadbury) who have more buying power.
B. The “Criollo” Risk
In an attempt to stay “premium,” Prestat and Rococo shifted toward using rare cocoa varieties like Criollo. While higher quality, these beans are more delicate and expensive. When the market crashed, their reliance on these luxury beans made their profit margins disappear completely.
C. The UK Economic “Pincer Movement”
- Retail Costs: Sky-high business rates and rents in London made physical shops (like the Piccadilly and King’s Road locations) unsustainable.
- Weak Consumer Spending: With the UK cost-of-living crisis persisting into 2026, many shoppers viewed a £30 box of truffles as an “unnecessary luxury,” leading to a sharp drop in foot traffic.
3. The “Pre-Pack” Rescue: What Happens Now?
The brands haven’t vanished, but L’Artisan du Chocolat (owned by the private equity firm Polus Capital Management) fundamentally changed and saved them through a “pre-pack chocolate administration” deal.
- The Pivot to Online: The new owners have confirmed that Prestat and Rococo will likely become online-only brands. The era of visiting their historic, gold-leafed boutiques is largely over.
- Manufacturing Consolidation: Production is expected to move away from the high-cost Park Royal facilities in London to more efficient, consolidated factories in Kent.
- Job Losses: Reports suggest that up to 100 specialized jobs in manufacturing and retail have been impacted by these closures.
4. The Fear for Other Producers
The industry now worries about a “domino effect.” Smaller independent chocolatiers are terrified that they can’t survive if brands with Royal Warrants and 100-year histories fail.
Many are now forced to choose between:
- Shrinkflation: Making bars smaller while keeping prices high.
- Ingredient Substitution: Using “compound chocolate” (replacing cocoa butter with cheaper vegetable fats)—a move that many artisanal makers refuse to do as it ruins the quality.
The Big Picture: We are seeing the “de-democratization” of chocolate. High-quality, real chocolate is becoming a “super-luxury” item for the ultra-wealthy, while the general public is being pushed toward cheaper, “chocolate-flavored” alternatives.