supermarket
Analysis
Green Chocolate - Maximizing Your Long and Short Term ProfitS
12/1/2007
As the holidays fast approach let's consider how we should present our chocolate to consumers. Should we go for the impulse buy, or try to hook some lifelong chocoholics? Can we accomplish both? And should we consider investing in a few emerging green chocoloate companies? Is chocolate in our future? It's budget season, let's consider investing.
We begin with the consumer. Let's review with you, (the supermarket executive), some quick facts. First, vanishing are the days when green is an interest only of the wealthy or educated. The politicians and green industry will make sure of that. What is your plan for incorporating this forthcoming wave of social and environmental consciousness?
SMGN suggests buying green intelligently, not just stocking it as it comes. You can't just think about what is moving. And you shouldn't make the mistake of thinking of green as a passing fad. You should be planning your investments strategically and selectively. The emerging green chocolate industry is one example. In this article, we will examine a variety of companies and make some suggestions.
Second, when it comes to chocolate, more so than most other products, we have to deal not just with organic farming, but fair and ethical trade practice. There are several reasons. Partly it is that West Africa is both a popular source for cocoa beans and a place famous for slave and child labor abuses. They have been and will be in the news. You, and your suppliers, will want to show that the industy as a whole has evolved from the trappings of the past.
As executives you wll take the lead, which begins with education. The Chocolate Manufacturers Association reports that The U.S. Dept. of Labor recently funded a Tulane University study called Responsible, Sustainable, Cocoa Farming. SMGN suggests supermarket executives and those competing in the industry become familiar with it.
The report includes suggestions for "ensuring that cocoa is grown responsibly, without the worst forms of child labor (ILO Conventions 138 and 182) or forced adult labor (ILO Convention 29)"; for "improving the economic return for smallholder cocoa farmers"; for "strengthening farming communities by addressing needs such as access to quality academic and vocational education"; and for "supporting efforts to manage responsibly the environment in which cocoa farmers grow their crops."
Once the executive is educated corporate vision will guide ultimate purchase decisions. This goes well beyond selection of merchandise. In budget season it involves consideration of corporate acquisitions, where the benefit is not just cutting out middlemen, but controlling unethical trade practices and working towards for sustainability of both the environment and net profits.
There is an old paradigm Derek Wall, one of thousands of green bloggers, embodies. He has as his motto "ecosocialism or death." He is a self-described "anticapitalist." But even Mr. Wall admits, "organic converts." But this is the problem. Like so many others, the models he turns to have everything to do with higher elite buyer prices that trickle down to farmers helping to justify increased organic farming costs. There is a market for organic, but it can only syphon luxury spending. It is a limited economic well.
SMGN points executives to a new way of thinking in which the organic food, and ethical food target is the entire market, not just the elite. Green grocers who reach this larger demographic will have a distinct advantage provided they learn how, especially if they own the channels of change.
Let's consider some possibilities. We start with the wrapper. Of course, a smooth outer wrapper and a larger bar always comes with a price tag. Packaging is everything.
But not all packagbing goes for slick. That brown paper look has "I love the environment" written all over it too, and maybe that has some value. Just ask Bloomsberry & Co., which just partnered with Terra Pass Inc. to produce the new"Climate Change Chocolate Bar."
Outer packaging definitely covers over a multitude of sins. On the inside we've got 16 grams of fat, 7 mg of cholesterol, 32 mg sodium, and 29 grams of carbs, with 560 calories in a bar. The "climate change" part is the 15 tips you can read, if your eyes are good enough, on the brown paper wrapping surrounding the ever-necessary layer of aluminum foil. It stays intact in a brown corrugated chocolate bar-shaped box, presumably recycled.
SMGN wonders whether this approach isn't a little insulting. The heart of green won't be sustained by blonde zombie captain planetettes voting for Al Gore. In the end it will be dominated by people who actually care about organics and understand the direct effect substances like recombinant bovine growth hormone can have on the body, not to mention prevenative antibiotics and the pesticide and fertilizer laden food supply of farm animals.
The question becomes "who is genuinely organic?" Fortunately for consumers, and for smart grocer execs, the US FDA has made making this determination fairly easy by making availble classifications, certifications and labels. When purchasing or leasing farms and farmland, plan ahead on the status of certifications and labels. You'll be on top of the game.
Next, spend some time studying your suppliers. Green Promise, a web site dedicated to green education offers up the following list of suppliers. Some may make great partners. Others you may simply wish to borrow some ideas from as you acquire your own companies. Maybe your grocery store can buy up a small private company and turn it into a franchise. The possibilities are endless. Why not get on the phone and find out about your prospects right now? ...
Allison's Gourmet (http://www.allisonsgourmet.com/)
This vegan bakery offers up cookies, brownies, coffe, tea, hot cocoa in addition to their award-winning organic vegan fudge and organic vegan chocolate truffles, caramels and toffee.
Callebaut (http://www.ecallebaut.com/)
Organic chocolate (white, milk, dark and chips) from a primarily conventional manufacturer. Wholesale only.
The Chocolate Alchemist (http://www.thechocolatealchemist.co.uk)
UK producer of organic and fair trade chocolates, including bars (milk, white, dark and flavored), truffles, chunks, spreads, drinks and seasonal chocolates. Everything is made from the finest quality organic Belgian chocolate
Cocoa Camino (http://www.cocoacamino.com)
Organic and fair trade chocolate sold off-line in Canada. Product line includes hot chocolate, cocoa powder, milk chocolate bars, bittersweet chocolate bars, dark chocolate bars with almonds, and mocha bars
CocoaVino (http://www.cocoavino.com/)
Bonbons (many infused with wine or liqueurs), fig caramels, drunken figs and monthly tasting subscriptions. Ingredients are sourced from regional, sustainable and, when possible, organic and/or fair-trade producers. Powered 100% by wind energy and uses environmentally sensitive packaging
Dagoba Organic Chocolate (http://www.dagobachocolate.com)
The first US chocolate manufacturer to produce exclusively organic chocolates. Some products also fair trade. Available in a variety of bars, baking essentials, drinking chocolates, specialty items and terrific gifts plus in bulk quantities for baking. Buy direct or from the following e-tailers: www.chocosphere.com, www.diamondorganics.com, www.mothernature.com
David Wolfe's Sunfood Nutrition (http://www.sunfood.com)
Raw organic cacao nibs and whole beans, raw organic cacao butter and raw organic vegan truffles and chocolates
Divine Chocolate (http://www.divinechocolate.com)
UK fair trade chocolate bars (white, milk, dark, flavored), gifts/seasonal items and cocoa
Endangered Species Chocolate Company (http://www.chocolatebar.com)
Organic and fair trade 'baby bars' and organic 'bug bites' along with flavored conventional chocolate 'animal' bars. Available in stores, at company Web site or at www.mothernature.com
Equal Exchange (http://www.equalexchange.com/chocolate-bars)
Organic and fair trade chocolate bars (milk, dark and dark with almonds) combine cocoa from three farmer cooperatives in the Dominican Republic and Peru; sugar from four cooperatives in Paraguay and Costa Rica; and milk (in the Milk Chocolate) from a cooperative in the U.S.
Functional Foods Company (http://www.functionalfoodscompany.com/)
Makers of SmartChocolate, using organic chocolate from the rainforest combined with naturally-occurring botanical extracts to provide additional energy, less stress and other benefits
Global Exchange Fair Trade Store (http://store.gxonlinestore.org)
Fair trade online store also carrying some organic chocolates. Fair trade and organic chocolates include Equal Exchange, Art Bar, Green & Black's, Divine, Sweetheart and Dagoba. Gift packs also available.
Green & Black's (http://www.greenandblacks.com)
UK organic and fair trade chocolate. Products include bars (dark, milk, white and flavored), cookies, ice cream and hot cocoa. Available online at: www.chocosphere.com or www.diamondorganics.com
Grenada Chocolate (http://www.grenadachocolate.com)
Organic chocolate bars and candies. Available direct or from www.chocosphere.com
Gysi AG (http://www.organic-chocolate.com)
Organic chocolate producer in Switzerland that offers private label organic chocolate confections
Kona Kava Farm (http://www.konakavafarm.com/)
Vegan chocolate chips from Hawaii
Lillie Belle Farms Chocolates (http://www.lilliebellefarms.com/)
Hand-made organic truffles. All chocolates are made with an organic single origin chocolate from Costa Rica
Nature's Flavors (http://www.naturesflavors.com/)
Organic chocolate flavor extract and concentrates, plus organic chocolate baking chips. Some products also Kosher, vegan, dairy free and/or gluten free
Neuchatel Chocolates (http://www.neuchatelchocolates.com)
Newly added fair trade and organic dark and milk chocolate bars
Newman's Own Organics (http://www.newmansownorganics.com)
Organic chocolate bars (milk, dark and flavored) available online or in stores. Buy online at www.diamondorganics.com or www.mothernature.com
Organic Garden Cafe Raw Megastore (https://www.organicgardencafe.com/)
Online e-tailer that carries organic raw chocolate beans and nibs
Plamil Foods (http://www.plamilfoods.co.uk)
UK manufacturer offering non-dairy and soy-free organic and fair trade chocolate bars (60%, 87% and flavored)
Rapunzel Pure Organics, Inc. (http://www.rapunzel.com)
Organic and fair trade chocolate bars (semisweet, milk, bittersweet, flavored), cocoa powder and truffles.
Rawganique.com (http://www.rawganique.com)
Organic e-tailer that also carries raw organic cacao nibs
Rococo Chocolates (http://www.rococochocolates.com/)
UK company selling flavored organic chocolate bars along with conventional chocolate. Buy online at www.seventypercent.com
Sweet Earth Chocolates (http://www.sweetearthchocolates.com)
Organic and fair trade chocolate chips, bars and truffles with bulk quantities available
Vital Choice (http://www.vitalchoice.com/)
Oddly enough, Vital Choice is primarily a seafood supplier. But they do carry their own label of 80% organic dark chocolate bars, with or without hazelnuts
Vivani Chocolate (http://www.vivani.de)
German manufacturer of only organic chocolates. Buy online at www.internaturalfoods.com or www.mothernature.com
Wilderness Family Naturals (http://www.wildernessfamilynaturals.com/)
Raw organic cacao nibs and ground organic chocolate. The ground chocolate product uses a centuries-old process that preserves the health benefits of cacao keeping the cocoa butter intact, sweetened only with natural unprocessed Muscovado made from sugar cane
Yachana Jungle Chocolate (http://www.yachanagourmet.com/)
All natural, fair trade, vegan cacao nib mixes. Also will sell nibs in bulk to manufacturers. Organic certification in process
The list goes on. On a typical WholeFoods chocolate section shelf you'll find Valor, Lindt, Vosges, Green&Black, SchauffenBerger, BlanxArt, Dagoba, Guylian and Chocolove.com . (Yes, even the ".com" name is on the label). Prices range from $2.99 a bar to $6.99.
How then to bring this down to the middle class and lower income groups? Suppose your stores are on the outskirts of inner cities. SMGN suggests gradual introduction (see our November 7 article Pricing Organics), combined with vertical marketing, acquisitions and good relations with the press. The very fact that you are a lower demographic store bringing healthier food to the common man makes you a super hero. And you may even find grant money to get your stores started.
Jeff Overbeck , Freelance Reporter