A TEASHOP threatened with closure during the foot-and-mouth crisis is now selling hand-made chocolates on the internet.

Mill Race Tea Shop at Aysgarth Falls in Wensleydale, is thriving after launching a web site and on-line sales service, thanks to a Rural Recovery Grant.

Owner Clare Gardiner decided late last year to diversify into chocolate manufacturing. She opened The Little Chocolate Shop in the teashop basement and sales of the chocolates, using the finest imported Belgian chocolate, soared, so she launched the web site, www.thelittlechocolateshop.co.uk.

With a catering background, she took over the teashop in July 2000, having run her own gardening business in Winchester.

She was trained in chocolate crafting at the Callebaut Institute in Aalst, Belgium, part of Barry Callebaut, the largest manufacturer of Belgian chocolate.

"I identified a niche in the market for quality, handcrafted chocolates but sales have rocketed way ahead of expectations," she said. "Initially, we plan to distribute them within the UK but we are going to suck it and see and, if things take off, we will also export them."

She believes the Rural Recovery Grant accelerated her business development by about 18 months. Without Business Link York and North Yorkshire's rural recovery adviser, Brian Woodhouse, to guide her through the application, she probably would not have secured it, she said.

Business Link York and North Yorkshire may be contacted on 01904 686000 or at www.here4business.co.uk