a fairtrade company co-owned by cocoa farmers “The amazing story of how small- scale cocoa farmers came to own a share in Divine Chocolate.” Alistair Menzies Wednesday 20th February 2008 FDIN Fairtrade Seminar, Birmingham
Dec 17, 2015
a fairtrade company co-owned by cocoa farmers
“The amazing story of how small-scale cocoa farmers came to own a share in
Divine Chocolate.”
Alistair MenziesWednesday 20th February 2008
FDIN Fairtrade Seminar, Birmingham
65% of the worlds cocoa is grown in West Africa
38%
18%
5%
5%
65% of the worlds cocoa is grown in West Africa
Côte d'Ivoire
38%
Ghana
18%
Nigeria
5%
Cameroon
5%Source: ICCO
Cocoa from Ghana
• Cocoa grows best in the humid shady conditions provided by the rainforest canopy.
• It is one of Ghana's main exports where it is mainly grown by subsistence farmers on small-scale farms.
• The average income of a Ghanaian cocoa farmer is c.US$300 pa*,(less that $1 per day).
*Source: Transfair USA
Introducing Kuapa Kokoo…
• Kuapa Kokoo was established in 1993. A co-operative of Ghanaian small-scale cocoa farmers consisting of 22 village societies.
• The Kuapa Kokoo logo ‘Pa Pa Paa’ is Twi for the ‘best of the best’. The co-op is keen to ensure that their cocoa and their business practices are the ‘best of the best’.
• Through a reputation for efficiency and honesty Kuapa Kokoo has expanded rapidly.
Kuapa Kokoo
• Kuapa Kokoo now has over 45,000 registered members, organised at three levels:– Society / village level– Area / regional level– National level
• Today Kuapa Kokoo produces over 1% of the world’s cocoa.
• The average income of a Kuapa Kokoo cocoa farmer is c.US$400 pa*.
*Source: Transfair USA
Kuapa Kokoo’s Mission
• Increased power and representation within the market for the farmers.
• Social, economic and political empowerment.
• Enhanced women's participation in all itsaffairs.
• Environmentally sustainable production processes.
Divine Chocolate Ltd
• In 1997 the Kuapa Kokoo members voted to create a Fairtrade chocolate brand and The Day Chocolate Company was formed – now Divine Chocolate Ltd.
• Divine Chocolate’s mission statement:“Improve the lives and opportunities of small-scale cocoa farmers in West Africa by establishing a dynamic, branded fair trade chocolate marketing company in the large UK chocolate market”.
The Rationale Behind Farmer Ownership
• Divine are trying to address how poor people can access more of the value they have indirectly generated.
• Company ownership formalizes the relevant contributions and distribution of income. Kuapa Kokoo own 45% of Divine Chocolate and play an active part in the strategic direction of the company.
• This gives both Kuapa Kokoo and Divine Chocolate a greater understanding the trading-chain and the continued development of business skills.
Divine Chocolate’s Objectives
• To take a quality and affordable range of fairtrade chocolate bars into the mainstream market.
• To raise awareness of fair trade issues among UK retailers and consumers of all age groups
• To be highly visible and vocal in the chocolate sector and thereby act as a catalyst for change.
• To pay the fairtrade price for all the cocoa used in products.
Heavenly Chocolate with a Heart
Heavenly chocolate….
Delicious Smooth
Rich Intense
Natural Irresistible
Tempting Indulgent
…with a heart
Farmer-owned Fairtrade
Empowering Honest
Transparent Inclusive
Sustainable Challenging
Selling the Story
• The Divine story is unique and helps achieve the initial sale, but ongoing purchase needs good product quality.
• Good quality product has led to increased product listingsand volumes each year.
• Excellent consumer marketingaffirms the consumer’s purchase.
2007 Highlights
• Successful Divine re-brand
• Several new high profile customersincluding: Lakeland, Boots, Virgin Atlantic
• Sales exceed £10M (20+% growth)
• Divine USA launched – created on a similar model to Divine Chocolate Ltd.
2007 Highlights
FY2005/06 - social premium payments on cocoa used in Divine chocolate exceeded £125,000.
2007 Highlights
FY2005/06 - Divine Chocolate announced its first dividend. As co-owners Kuapa Kokoo benefited by sharing in the profits.
Increasing Opportunity…
• Seasonal products offer an excellent entry point for Divine onto the fixture.
• Increasing demand Out of Home and B&I sectors.
• Divine bakery allows brand extension as well as increased purchases of cocoa / chocolate.
Conclusions
• Engaging with consumers and raising awareness of fairtrade has delivered an ongoing and growing demand for Divine Chocolate. Consumers want fairtrade products.
• The success of Divine Chocolate demonstrates that a ‘North-South’ joint venture is a viable business model.
• Thousands have benefited within Ghana as a result of fairtrade social premiums being paid on Kuapa Kokoo cocoa: schools, healthcare, micro-credit, sanitation etc
a fairtrade company co-owned by cocoa farmers
Thank You