Tag Archives: ethics

A Crafty Future

There is a revolution going on in America.  It exists as almost a counter to the industrial revolution that drove this country forward a hundred years before it.  Craft artisans are taking over in the wake of a society that has been built by mass production.  As this revolution moves across foodstuffs, it is of no surprise that craft chocolate is currently on the rise.  However, it is important to understand why this revolution is taking place now, and some of the hurdles it must overcome to continue its success.

The Lay of the Land

Currently two chocolate companies, Hershey’s and Mars, account for over 50% of chocolate sales in the U.S. (Euromonitor, 2017). It should be of no surprise that these two particular companies own so much of the market share. They were both founded on the idea of bringing chocolate, which was previously a luxury treat, to the masses.  Milton Hershey was a pioneer in mass production, revolutionizing and streamlining much of the industrial process.  Hershey’s team discovered that by using condensed sweetened skim milk they could create a product with longer shelf life and that blended easily with cocoa powder.  This meant that not only could he ship his chocolate bars further, but lasting longer on the shelf meant less profit losses due to spoilage.  Hershey also looked at supply chain optimizations, investing in his own dairy farms and even building a sugar mill operation in Cuba, complete with its own railroad.  This allowed Hershey to control both the costs of commodities for his chocolate bar and the quality.  Mars, on the other hand, was more successful due to marketing than anything else.  His Milky Way bar (which originally sourced chocolate from Hershey) was more nougat than chocolate, making it larger on shelf and seem a comparatively good value to the Hershey bar. That said, both had the same result, taking an indulgence that was once almost exclusive to the wealthy and middle classes and democratizing it for every day enjoyment.

chocolate sizingMass production allowed for chocolate to be produced cheaper, allowing those savings to be passed on to the consumer – or more importantly, from a marketing sense, for them to outprice their competitors.  But while price is important, so are the products themselves.  While it may have taken a while for consumers to acclimate to the flavor of Hershey’s and Mars bars when they first came on the market, the particular blend of milk, sugar and other ingredients insured that they were universally palatable and they now exist as the template for what we expect chocolate to taste like.  Similarly, both companies have hero products that are specifically designed for easy consumption.  Both Hershey’s Kisses and M&Ms were made for portability (individually wrapped/ melts in your mouth, not in your hand) and their small, poppable size makes it easy for consumers to lose track of mindfulness and eat large quantities in one sitting. These products have other advantages, as they are easily adaptable to innovation.  As consumers are desiring more variety and novelty across the board, these products have proven to be the most flexible in introducing new flavors – and easily acceptable to consumers who are familiar with their form and have built brand trust.  These companies have leveraged seasonality, larger cultural trends, and limited time offers to drive new product news and sales.

pumpkin(wait.  Is she wearing an infinity scarf and hipster glasses?)

So, if big chocolate is designed for palatability and companies are responding to consumers desires for more interesting, topical flavors, why are we seeing a proliferation of craft chocolate providers? When we look at the numbers, the story becomes more telling.   When looking at sales growth, mass chocolate has remained flat year over year (CSP daily news, 2016).  This despite their innovation and the fact that chocolate consumption overall is growing.  Instead, the growth seems to be predominantly driven by premium and craft chocolates, suggesting not just changing tastes, but a changing attitude about where our food is actually coming from.

Big Food Backlash

There is growing negativity towards giant corporations and conglomerates, particularly when it comes to food. From an economic standpoint, consumers have watched as these corporations get massive tax breaks which have translated into bonuses for the executive suite, while the working class continues to struggle.  While this issue impacts most major corporations, it is of particular concern when it comes to the chocolate industry and growing awareness around fair labor practices, forced labor, child labor and the ethical price people pay for their chocolate.  There is a lot of skepticism that these companies will make ethical choices when given the opportunity, particularly when people see so many examples in the news of them pursuing profits over people, such as Nestle bottling drinkable water in the middle of the Flint, Michigan water crisis (the guardian, 2017).  More and more often, buying in to big brands feels like an investment against your own interests.

The Big Middle creates more space for differentiation

The sheer nature of big brands as they fold in to one another may be working against them. “When you have increasing concentration of producers in the center, you leave room on the periphery for specialization,” says Elizabeth G. Pontikes, associate professor at the University of Chicago’s Booth School of Business. (Shanker, 2017) In other words, these multinational conglomerates are creating their own sea of sameness.  In a society that is increasingly valuing individuality, particularly when it comes to the millennial and younger generations, brands and products that lack differentiation also lack appeal.  We can see this even in the most famous of branding cases, Coke vs. Pepsi with beverage drinkers now migrating to new choices like LaCroix and energy drinks.

The obvious choice might be for these mass chocolate brands to create verticals that touch these periphery spaces, but they have struggled breaking in.  Hershey’s introduced their Cacao Reserve premium line in 2006.  The brand lasted three years, suffered several price drops and the need for mass market advertising support, before they dropped it from store shelves. (Thompson, 2007) Their next move was to build their premium line using borrowed equity.  At the same time they launched Cacao Reserve, they purchased Scharfeen Berger, a premium line of chocolates out of California. As they pushed to mass market the brand, they switched suppliers, using cheaper beans from West Africa.  The result was severed relationships with brands like Whole Foods, who were concerned that Hershey’s could not guarantee that the beans weren’t sourced through child labor (Bloomberg, 2017).  The brand has somewhat rebounded, but the initial loss is still being recovered, and leaves the question as to whether or not big brands can ever play credibly in the premium/ craft space.

A wake up call for food

The obesity crisis in America was a wake up call about the food we consume and how it is being produced.  A series of films, articles and exposes, while at times misleading and ignores the true labor of food, caused people to rethink what they are getting out of processed food.  The consumer take-away was that mass produced food lacks quality and nutritional value, is predominantly artificial fillers, and is potentially detrimental to your overall health. Quality, whole ingredients, and care has become increasingly synonymous with healthfulness, regardless of traditional markers like fat and calories.

While all of these things make craft chocolate more appealing, it still has hurdles to overcome to convince people to pay the enormous price tag that comes along with it.

As noted, industrial chocolate is the baseline for people’s orientation to what chocolate should look and taste like, as well as what it should cost.  For Craft chocolate to succeed, they don’t just need to overcome the shift to premium pricing, they need to overcome expectations set by mass market chocolate.  There is a need to educate people on to the true value of the chocolate they are consuming and the difference that craft chocolate provides. There are four key ways in which craft offers a point of difference that both provides a difference that supports craft’s value proposition and requires consumer education: process, taste, ingredients and sourcing and ethics.

Understanding the process

Over time, manufactures have swapped out real ingredients for cheaper artificial substitutes such as vanillin instead of vanilla.  (Martin-Sampeck, 2016). This has impact on the flavor, consistency and mouthfeel of the chocolate itself. Craft chocolate’s smaller production model in of itself creates a different end product, but some companies have gone further, focusing on minimizing the process.

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Taza chocolate, a bean to bar company located in Somerville, MA, takes great pains to educate consumers as to their process.  They describe their bars as “chocolate with true grit.” Their mission is to return chocolate to its pre-industrial roots.  They believe that less processing allows for more complexity in flavors. Their chocolate is stone ground on hand carved molinos (mill stones) with little refinement between that and the end product.  The result is, to their description, a chocolate bar that lacks the smoothness that consumers have come to expect, but with a stronger chocolate flavor and more complexity in experience overall.

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Expanding your palate

“When most people eat a piece of chocolate we want that pleasure immediately: boom!  That’s the music of mass-market chocolate.” (Williams, 2012)

Historians have theorized (incorrectly) that when chocolate came to the old world, that it was appropriated to suit Europeans’ tastes (Norton, 2016).  In fact, chocolate’s evolution from its new world form to the substance we know today was a process that took over a century of innovation.  The chocolate that Europeans first enjoyed was a fairly close recreation of how it was consumed in Mesoamerica.  The Europeans had just acquired a taste for it.  That said, they had a lot of motivation to do so – chocolate was seen as exotic, a luxury (due to both its scarcity and use as currency), and had potential new health benefits.  Additionally, unlike today, there was no basis for comparison.  For today’s consumers, their palates have been educated in the world of mass produced chocolate – and what they have come to expect is a very sweet, creamy, almost single note experience.  Craft chocolate, on the other hand, leans in to chocolate’s bitter notes, and offers way more complexity.  Not only do consumers need to adjust to the new flavor profile, but they need help recognizing the flavor notes to truly appreciate the difference they are getting from craft.

Dick Taylor chocolates started in a small factory in Eureka, California by Adam Dick and Dustin Taylor.  They started their factory out of a love of craftsmanship and making things with their hands (both worked in woodworking and boat building).  In addition to educating consumers on the sourcing of their beans, they seek to educate consumers on how craft processing changes the flavor and experience of their chocolate.  From their website “by not cutting corners or taking shortcuts in our process we are able to leave out vanilla, additional cocoa butter or other emulsifiers, in hopes of capturing and highlighting the subtle flavor nuances in the cacao we source from around the world.”

In this they set expectations that their chocolate will be less sweet and have more complexity of flavors.  To further support that, their packaging calls out the specific flavor notes that the chocolate bar offers, much in the way that wine and craft beers call out tasting notes.

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XOCOLATL, a “micro-factory” chocolatier out of Atlanta similarly looks to highlight chocolate’s natural flavors.  Their bars are blended with spices and other elements that call out chocolate’s flavor components.  For example, their Americana bar contains no apples, but uses familiar pie spices to highlight that quality within the chocolate.

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Origin/ localization

While mass chocolate uses the blending of not only several different types of beans, but beans from multiple locations, there is a rising trend in single origin chocolate.  This has arisen both out of an increased interest in food provenance and small chocolate purveyors interest in highlighting the different unique flavor profiles of the beans.  (Norton, 2013) By doing so, they are able to not only show off the different flavor varietals, but capitalize on the exotic locales to add a sense of rarity and uniqueness to their product lines.

Amedei Chocolates, a craft company out of Tuscany, Italy, builds their sourcing education in to their product offerings.  Each of their bar product lines serves as an exploration in the difference that cacao content, origin and the beans themselves can make.  Their Toscano Black line offers three different (though relatively close) percentages of dark chocolate – 63%, 66%, and 70%.  Their cru product line is all single origin dark chocolate – allowing consumers to taste the subtle differences between each region.  But where they go one step further than many bars is to focus and educate consumers on the strains of cacao available.  They offer both a Blanco de Criollo and a Porcelana bar.  The external packaging on each features a botanical drawing of the bean.  The inside explains the history, origin and flavor notes.  For the Porcelana bar, it notes the Venuzuela plantation, it’s small production of only 3,000 kilos of beans, and the rarity of this particular strain. Tasting notes are described as “toasted almonds that alternates with pressed olives.” This reinforces the specialness of the bar and the unique experience that it offers, while simultaneously pushing the consumer’s palate to recognize more subtleties in flavor.

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Ethical Sourcing

One of the major challenges in the chocolate industry overall is the issue of labor practices and sourcing.  Even setting aside the more dire problems of forced and child labor, very little of the profits made from chocolate sales actually makes its way back to the farmers that grow it.  While there are a variety of certification schemes (i.e. Fair Trade, UTZ Certified, IMO Fair for Life), the cost of participating is high, and consumer demand has yet to drive a higher price in goods that can be translated back to the farmer. (Martin-Sampeck, 2016)  Additionally, there are those who don’t think that programs like Fair Trade go far enough, and result in a minimal profit increase for the farmer.

Companies like Taza and Askinosie chocolates instead have focused on direct trade, which cuts out middlemen and insures that more profits go back to the hands of the farmers.  Askinosie notes on their website “we hold the craft and quality of our chocolate in almost equal balance with doing as much good as we can in the world.”  As part of educating consumers at to the importance of direct trade, their bars feature the actual farmers that they work with on the front.  The back label tells that person’s story, how they became acquainted with Askinosie chocolate, and how their contribution insured the quality of the product you are holding.  It also features the following guarantee:  A stake in the Outcome. We guarantee to our farmers more than fair prices, open books and a share in our success.   In the way that they tell the story of their trade relationships, Askinosie doesn’t just insure the consumer of the ethics of their bar, they humanize it and translate that in to a real value to the consumer in the quality and craft of the final product itself.

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The future of craft

Craft still has some educational and orientation challenges to overcome, but as more and more people migrate away from big food and big chocolate, the opportunity to create a wider variety of chocolates leveraging ethical sourcing and quality ingredients remains as promising and sweet as the product itself.

Sources used:

Brenner, Joel. 2000. The Emperors of Chocolate: Inside the Secret World of Hershey and Mars.

Coe, Sophie D., and Michael D. Coe. 2007 (1996) The True History of Chocolate.

CPS News (September 15, 2016) Premium Chocolate Driving US Sales Growth.  CPS Daily News. Retrieved from:http://www.cspdailynews.com/category-news/snacks-candy/articles/premium-chocolate-driving-us-sales-growth

D’Antonio, Michael D. 2006. Milton S. Hershey’s Extraordinary Life of Wealth, Empire, and Utopian Dreams.

Glenza, Jessica. (September 29, 2017) Nestle Pays $200 a Year to Bottle Water Near Flint Michigan.  The Guardian. Retrieved from https://www.theguardian.com/us-news/2017/sep/29/nestle-pays-200-a-year-to-bottle-water-near-flint-where-water-is-undrinkable

Laudan, Rachel (May 5, 2015) A Plea for Culinary Modernism. Jacobin Magazine Retrieved from https://www.jacobinmag.com/2015/05/slow-food-artisanal-natural-preservatives/

Leissle, Kristy. (2013) Invisible West Africa: the Politics of Single Origin Chocolate. Gastronmics: The Journal of Food and Culture, Vol. 13. No. 3 (Fall 2013)pp.22-31

Martin, Carla and Sampeck, Kathryn. 2016. “The Bitter and Sweet of Chocolate in Europe.” pp. 37-60.

Norton, Marcy. 2006. “Tasting Empire: Chocolate and the European Internalization of Mesoamerican Aesthetics.”The American Historical Review 111 (3): 660-691

Shanker, Deena (February 7, 2017) The Rise of Craft Chocolate. Bloomberg News. Retrieved from https://www.bloomberg.com/news/features/2017-02-07/the-rise-of-craft-chocolate

Terrio, Susan J. 2000. Crafting the Culture and History of French Chocolate. pp. 1-65

Thompson, Stephanie. (March 6, 2007) Reservations about Reserve Haunt Hershey. Adage Magazine. Retrieved from: http://adage.com/article/news/reservations-reserve-haunt-hershey/115326/

Trout, Jack. Differientate or Die: Survival in our Era of Killer Competition. New York. Wiley, Second Edition 2008

Williams, Pam and Jim Beer. 2012. Raising the Bar: The Future of Fine Chocolate. pp.141-209

Yu, Douglas. (March 29, 2018) Lindt Will Most Certainly Come Back to Growth in US. Confectionary News. Retrieved from https://www.confectionerynews.com/Article/2018/03/29/Lindt-will-most-certainly-come-back-to-growth-in-US-says-Vontobel

 

Mindo Chocolate Makers: A Leader in the Ethical Bean to Bar Supply Chain

Mindo Chocolate Makers (2018) is a bean to bar chocolate company based in Mindo, Ecuador and Dexter, Michigan.  Their company values not only have the potential to change the chocolate supply chain for the better, but to change chocolate itself.  In order for bean to bar chocolate companies to pay fair wages throughout, not use forced labor, and be environmentally friendly, the company has to be willing to worry about the quality of product they are producing opposed to the amount of product they are producing.  This is exactly what Mindo Chocolate does and if other companies begin to follow their business model, it could drastically impact the chocolate industry for the better.

Mindo prides itself on being “a small business, and no matter how big we grow, we’ll always have a small business mentality that relies on great people coming together –  our growers, our employees, our customers –  to create the most delicious chocolate experience possible” (Mindo, 2018, para. 8).  By creating a sense of community from the moment the beans are harvested, all the way through the time chocolate is served to consumers, this already differs greatly from vast companies such as Hershey.  Mindo also has a goal of putting “more money into the hands of cocoa farmers and their farms, while providing our customers with superior quality, direct-trade, organic cocoa products” (Mindo, 2018, para. 1).  They do this by being a community supported chocolate company, in which their farmers are presented with upfront capital so they can harvest the maximum amount of product during peak season instead of losing income and product due to a lack of funding during harvest season.  One of the main ways Mindo has the potential to change the chocolate industry is by “paying two to three times the fair trade price for cocoa beans” (para. 6).  Doing this “encourage[s] the farmers to resist the hybrid and deforestation trend” (para. 6).  All of Mindo’s beans are from Nacional varieties of cocoa, which is an heirloom variety of cocoa bean, and they will, under no circumstances, accept diseased or hybridized beans (para. 6).

One of the main points that Mindo makes abundantly clear is their focus on community.  When consumers feel a connection to a product and its maker, they are more likely to actually consider the origins and production of the product, in contrast to faceless companies that mass produce chocolate in less than tasteful ways.  For “nine tenths of its long history, chocolate was drunk, not eaten” (Coe & Coe, 2013, p. 12).  The act of drinking is often a communal activity (e.g., tea, alcohol, coffee, etc.).

Ecuadorian Drinking ChocolateEcuadorian drinking chocolate (Mindo, 2018).  Description: A creamy intensely flavorful chocolate. Natural cocoa, single origin, organic, shade grown, ethically sourced, made from Nacional cocoa beans.  Ingredients: 77% dark chocolate (organic cocoa beans, organic cane sugar) , natural cocoa powder, organic cane sugar.

 In that, for most of its history, chocolate was actually consumed as a beverage, Mindo is committed to preserving the integrity of chocolate, though it is now more often consumed in solid forms; they are maintaining a sense of community even without it being in liquid form.  While companies like Hershey produce vast quantities of chocolate, they are a brand whose main goal is to make money.  They do not strive to be the highest quality and most community involved chocolate company.  By interacting with the community, Mindo is promoting an inquisitory attitude towards the bean to bar process, thus bringing ethics into play.

The question of ethical practices in the food industry is of utmost importance.  With the rising world population, more food is needed, and with this increase in food production, a rise in unfair labor practices is a major risk.  Fair trade is one of the combatants for the practice of unfair production in the food industry:

When you see a product with the Fair Trade Certified™ seal, you can be sure it was made according to rigorous social, environmental, and economic standards. We work closely on the ground with producers and certify transactions between companies and their suppliers to ensure that the people making Fair Trade Certified goods work in safe conditions, protect the environment, build sustainable livelihoods, and earn additional money to empower and uplift their communities. (Fair Trade Certified, 2018, para. 2)

Unfortunately, their claims of a seemingly impeccable system do not exactly hold up.  Some of their critiques include “Little money reaches developing world; [l]ess money reaches farmers; [l]ack of evidence of impact; [c]ost of Fair Trade certification, shouldered by farmers, is quite high; [i]nefficient marketing system (corruption); [q]uality concerns (no incentive); [f]air Trade never meant to be a one-stop shop for solving all social problems” (Martin, 2018a, slide 11).  While on the surface, Fair Trade seems to be an ideal system for bean to bar chocolate production, these issues prevent it from being so.

Mindo is not Fair Trade certified, and is taking fair practices into their own hands.  By paying farmers three times the fair trade value directly, they are ensuring that funds actually reach the farmers themselves and do not get lost in a system instead.  By not being Fair Trade certified and, instead, being independently, extremely dedicated to fair conditions throughout their bean to bar practice, they are able to avoid the hefty fee for Fair Trade certification and invest in fair practices themselves.  Their involvement in Community Supported Chocolate (CSC) (Mindo, 2018) is one of the main components of their upstanding practices.  As a customer you can “[make] a one-time payment that covers three months of a CSC share.  This one-time payment provides [their] farmers with the upfront capital required in cocoa production” (Mindo, 2018, para. 3).  Not only does this benefit the farmers themselves, but those that help fund the farmer’s harvest receive chocolate for being a CSC member.  This reinforces the feeling of community that Mindo strives to accomplish.  Members get the opportunity to actually taste their ethical practices.

By putting the CSC program into action, Mindo has the potential to change the bean to bar supply chain.  The Spaniards viewed “Emperor Moctezuma II drinking frothed chocolate with a degree of ceremony clearly marking it as an exalted food” (Presilla,2009, p. 18).  Chocolate being viewed as an exalted food has become a notion of the past.  Today, chocolate is an everyday commodity and is not viewed as a food for the wealthy.  According to the Hershey Company (2017), in the fourth quarter of 2017 alone, they sold $1,939.6 million worth of products.  The industrialization of the chocolate industry is borderline nullifying the beauty of cocoa.  By having people fund cocoa farmers and then experience chocolate made with cocoa beans they helped to harvest, it promotes an appreciation of the product.  Promoting an appreciation of the cocoa could then lead consumers to shy away from commercialized products such as Hershey bars and Kisses, which are more sugar than cocoa.

Sadly, the sugar industry is a profoundly unethical world.  Throughout history, sugar plantations utilized slave labor as commonplace; now it is still utilized, but since condemned by modern standards, is hidden from the public eye.  Sugar became popularized as a result of “underlying forces in British society and of the exercise of power” (Mintz, 1986, p. 150).  Sugar was for the rich and powerful, which, in turn, made the masses want it.  In order to reach the masses, “England fought the most, conquered the most colonies, imported the most slaves, and went furthest and fastest in creating a plantation system.  The most important product of the system was sugar” (Mintz, 1986, as cited in Martin, 2018b, slide 10).  Sugar production today still often utilizes slave labor and exploits farmers in order to produce cheap products, and lots of them.  Mindo’s refusal to exploit workers in any stage of their bean to bar process is a step against this system.

Some of the main challenges with companies such as Mindo are price point and notoriety.  Mindo is at the higher end of price points for chocolate products because they refuse to use hybridized or unhealthy beans, and pay their workers fair wages.  They are also a small company lost in the sea of media attention for big name companies.  Hershey is able to spend hundreds of millions a year on advertising, enabling them to reach everyone, anywhere.  Smaller companies like Mindo are unlikely to make as much money in five years as Hershey spends solely on advertising in a year long period.  They have a high rate of face to face communication in their company, but not the level of product to consumer communication as Hershey.  A pure 77% chocolate bar from Mindo

Pure 77% Chocolate Bar Description: Pure 77% chocolate, stone-ground to optimal flavor. This is our “flagship” flavor and cacao percentage as it reflects what we do best: dark chocolate made from organic Nacional cocoa beans. Heirloom variety and only fine flavor beans. No milk, no soy, nothing added. Ingredients: organic cocoa beans, organic evaporated cane juice (vegan), Made with cacao (Mindo, 2018).

is seven dollars, whereas a Hershey chocolate bar (usually) is under two dollars.  To consumers, Hershey seems to be the obvious choice because it is far cheaper and more recognizable.  Consumers equate notoriety with trust. What they are unaware of, however, is that Hershey’s chocolate contains roughly the minimum amount of cocoa that can be in a product while still being called chocolate: 10%.  It is at a lower price point because it is mainly sugar and other additives instead of what consumers think they are actually paying for – chocolate.

Mindo pays a premium for their cocoa in order to maintain the integrity of the bean and preserve its true flavor profile.  One of the main reasons that they use the Nacional variety of cocoa is because it “grows intermixed with other plants and trees that promote habitats for midge pollinators, birds, and other animals” (Mindo, 2018, para. 5).  This illustrates their dedication to helping preserve the environment instead of participating in harmful practices of deforestation and hybridization that other companies use.  They are also concerned about consumer safety:  “[a]ll of our beans are dried on long beds at the farmers’ cooperative – a fact that you take for granted until you realize that much of the cacao in the world is dried on the ground or on the side of the road where gasoline and other pollutants can easily seep into the beans” (para. 8).  As a whole, Mindo seems to be doing everything right.  The problem that arises, however, is how do they spread their practices and make their product know to the masses?

In today’s technology driven society, big name companies such as Hershey dominate the advertising industry.  Luckily, of late, social media has been able to bring smaller name brands to the forefront of the sales industry.  There is beginning to be a shift in the consumer trend; people want to feel good about what they are purchasing.  For example, the company Sand Cloud (2018) donates 10% of all of its proceeds to saving marine life and makes ocean-safe sunscreen as well as clothing out of old plastic bottles.  Consumers are willing to pay a higher amount for these products because they feel like they are being socially conscious and actually see, via social media, how their purchase is helping the environment.  Mindo is in a special place in which not only can they take advantage of this new wave of marketing, but their business is founded on it.  Even their inside and outside packaging is made from recycled, compostable material from the bean to bar process – sugar cane pulp.

Pure 77% Chocolate Bar

Pure 77% Mindo (2018) Chocolate Bar – See text at bottom of wrapper.

When buying Mindo Chocolate, not only are consumers helping the environment, but they are helping real people.

The less people buy from commercialized companies and the more they buy from companies such as Mindo, cocoa will become a beacon of change.  Cocoa was originally “ranked with gold and gems in records of solemn offerings to the dead, and [the Spaniards] gathered that its use was restricted to certain prestigious classes” (Presilla, 2009, p. 18).  Thus, cocoa went from being viewed as something reserved for the wealthy to something you can buy for a couple dollars at a convenient store.  Though the masses should be able to enjoy cocoa, it deserves to be respected, and everyone involved in the bean to bar process deserves to be as well.  Mindo is respecting the beans, the people growing them, creating a high quality product, and is inviting consumers to enjoy their community of respect for cocoa in the process.

Mindo is a brand not focused on sales, but on ethics.  It is a passionate company that not only takes pride in their product every step of the way, but is improving the chocolate industry while doing so.  This seemingly small company is utilizing methods that are drastically improving farmers’ lives, helping to preserve the environment, not utilizing slave labor, and still managing to please taste buds in the process.  If quality comes into question, it cannot be disputed that Mindo follows extremely rigorous standards to insure that their cocoa products are of the highest quality and are not diluted with sugar and additives in order to mass produce.  They treat every aspect of cocoa processing with respect and if able to spread their methods and message, can bring the respect cocoa deserves back to the masses.

References

Coe, S.D., & Coe, M.D. (2013). The true history of chocolate.  London: Thames and Hudson  LTD.

Fair Trade Certified. (2018). Our global model. Retrieved from https://www.fairtradecertified.org/why-fair-trade/our-global-model

Hershey. (2017). Hershey announces fourth-quarter and full-year 2017 results; Provides 2018 outlook. Retrieved from https://www.thehersheycompany.com/content/dam/corporate-us/documents/past-presentations/2017/Q4_2017_Press_Release.pdf

Martin, C. (2018a). 20180404 Alternative trade and virtuous localization/globalization [PowerPoint presentation].

Martin, C. (2018b). 20180228 Slavery, abolition, and forced labor [PowerPoint presentation].

Mindo Chocolate Makers. (2018). Mindo chocolate makers. Retrieved from https://mindochocolate.com/pages/our-process

Mintz, S. W. (1986). Sweetness and power: The place of sugar in modern history.  New York, NY: The Penguin Group.

Presilla, M. E. (2009). The new taste of chocolate revised: A cultural and natural history of cacao with recipes. New York, NY: Crown Publishing.

Sand Cloud. (2018). Our mission. Retrieved from https://www.sandcloud.com/pages/our-mission

 

Askinosie Chocolate vs DOVE Chocolate

There are two chocolate companies that I am going to describe in detail. There’s Askinsosie and then there’s DOVE. Why am I comparing these two chocolate companies? For one, I work at a coffeeshop that sells Askinosie chocolate, and we use it in our ganache to make things like hot chocolates and mochas. Secondly, I chose DOVE because my grandmother, who is now passed, used to always have DOVE Chocolate in her apartment. As a young child I liked to snag a piece whenever I went to visit. I grew up certain that Dove Chocolate was the best!

When my grandmother first began purchasing DOVE Chocolate, she thought it was a luxurious chocolate brand. Now, there are more sophisticated chocolate brands like Askinosie. Within these chocolate brands are labels as well. These labels, such as Direct Trade and Rainforest Alliance, exist to intrigue customers, help producers market their product, and honor farmers, or so that is what these labels claim.

Within this blog post I will delve deep into what these labels really mean and address the social, economic, and environmental implications of these labels. I will look at the advertising that each company uses, and I will compare the two brands and explain which chocolate brand is more ethical than the other and why.

Let’s start off by describing the chocolate companies’ origins:

Askinosie Chocolate

Askinosie Chocolate was founded by Shawn Askinosie in Springfield, Missouri (“Our Story”). Before he began his chocolate-making career he had another career in law. He was a criminal defense attorney and he practiced law for 20 years (“Our Story”). At the time, he enjoyed his work and was good at it; however, the work he put into his job was causing him undue stress that he worried would eventually kill him (“Our Story”). So, in an attempt to “save his life,” he began looking into different hobbies he could enjoy (“Our Story”).

Five years into his introspective journey, it dawned on him to become a chocolate maker (“Our Story”). As soon as this revelation hit his mind, he quickly began using his industrious work ethic to research information about chocolate: How to make chocolate and where it originates historically, culturally, and botanically (“Our Story”). Shawn Askinosie wanted to create a great product that tantalized the tastebuds of his consumers (“Our Story”).

After his initial research, he realized that making chocolate from bean to bar, meaning making chocolate from the bean and controlling each stage of production to form chocolate, would be tough work (“Our Story”). At the time back in the early 2000’s, there weren’t many bean-to-bar or craft chocolate companies (“Our Story”). By the time he started the company in 2005, he was a pioneer in the world of Direct Trade chocolate as one of the first chocolate makers to buy beans directly from the source: farmers (“Our Story”).

 

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Pictured here are several of Askinosie’s chocolate bars. The string on the top of each chocolate bar comes from the string used in the bags carrying the cacao beans (Forbes).

 

 

DOVE Chocolate

DOVE Chocolate was founded by Greek-American Leo Stefanos in 1939 (DOVE). Originally, DOVE Chocolate was called “Dove Candies & Ice Cream” and resided in Chicago, Illinois (“Dove (Chocolate)”). By the 1950’s, 1956 to be more precise, Leo Stefanos created the DOVE ice cream bar (DOVE). By 1960, DOVE Chocolate reached the UK and there it was rebranded as the Galaxy brand (DOVE). Later in 1986, Mars Inc. bought out the DOVE and Galaxy companies (DOVE).

Since being acquired by Mars Inc., DOVE Chocolate has made amendments in regard to their ethics and sustainability. DOVE Chocolate now works with Rainforest Alliance to certify 100% of its dark chocolate. In addition, through Mars’ Sustainable Cocoa Initiative, the chocolate making producers claim to work more closely with the farmers growing the cacao beans (DOVE).

 

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Here’s a picture of DOVE Chocolate’s dark chocolate bar. All of DOVE’s dark chocolate is Rainforest Alliance Certified (DOVE).

 

 

Now that we know about the companies’ origins, let us discuss the meaning behind some of the terms used such as, “Direct Trade” and “Rainforest Alliance”.

 

What is Direct Trade and Fair Trade?

Fair Trade: Fair Trade is an international organization that has a US branch that certifies or ranks products, such as chocolate, to be categorized or classified as more ethical and sustainable than other products that aren’t certified (Martin). Fair trade prides itself on its principles and the criteria it uses, which include: (1) maintaining long-term relationships with farmers; (2) paying fair prices and wages; (3) lacking child or exploited labor; (4) lacking workplace discrimination; (5) safe working conditions; (6) environmental sustainability; (7) using resources synergistically to help the community at large; (8) and transparency (Martin).

Fair Trade Downsides: Unfortunately, Fair Trade doesn’t come out to be exactly as it advertises. For one, getting certified by Fair Trade is quite expensive (Martin). For the smallest of farms, the minimum certification price may range from 1,430 euros to 3,470 euros (Sylla). This is equivalent to approximately $1,730 to $4,200. Furthermore, not much money actually gets into the hands of local farmers (Martin). The producing company is in charge of purchasing the certification and money goes through the company before it gets to the farmers. Fair trade has little to no evidence supporting its efficacy, and there are no incentives for farmers to produce a quality product (Martin). These are some of the pitfalls to Fair Trade, however, no model is perfect as we will see shortly.

Direct Trade: Direct Trade is different from Fair Trade in that it isn’t a certification organization (“Fair Trade vs. Direct Trade”). Rather, it is a description that explains the relationships between farmers and producers (“Fair Trade vs. Direct Trade”). The Direct Trade model has a different mission statement to that of Fair Trade. Direct Trade addresses several points that are lacking within the Fair Trade model such as the lack of incentive for farmers to produce a quality product, the lack of flexibility within the Fair Trade model of certification, and the high enrollment fees (Martin). Fair Trade has a very particular model, and if one farm doesn’t fit within the model, then they can’t be certified. This is different for Direct Trade. Direct Trade attends to these differences by promoting premium prices for exceptional crops, establishing more direct communication and therefore more flexibility within the relationships between farmers and producers, and by eliminating a costly enrollment certification processes (Martin).

Direct Trade Downsides: Simply put, following the Direct Trade model is challenging. It is difficult to succeed at following this model due to the extra care and communication needed to make the model work (Martin). Furthermore, relationships between farmers and producers can be more fragile than those in the Fair Trade model, and there are social benefits that go along with the Fair Trade model that don’t exist for the Direct Trade model in its definition (Martin).

 

What is Rainforest Alliance?

Rainforest Alliance was founded in 1987 with a mission statement that includes the protection and preservation of ecosystems and biodiversity (Sylla). Rainforest Alliance endorses sustainable modes of production as well as improved working and living conditions for farmers (Sylla and “Factsheet Rainforest Alliance”). Critics of Rainforest Alliance argue that this certification method fails to provide adequate financial assistance to the farmers, fails to provide an adequate minimal price, and doles out certification with little true consideration (Sylla).

 

What is UTZ Certification?

UTZ certification has a goal to, “create an efficient sustainability program with effective certification and traceability tools for socially and environmentally responsible cocoa production that meets the needs of both producers and markets” (“Cocoa”). This essentially means that UTZ aims to create a sustainable means of production for products such as cocoa. UTZ certified products are in 108 countries, and five of the top ten chocolate manufacturers including Nestlé, Ferrero, Hershey, and Mars have committed to use 100% certified cacao (“Cocoa”). While they have made this commitment, that doesn’t mean that all of the chocolate produced by these companies is currently all certified, as is the case for Mars Inc. (“Cocoa: Caring for the Future of Cocoa”).

 

What’s Organic Certification?

Organically certified products are products that are free from use of pesticides, synthetic fertilizers, sewage sludge, genetically modified organisms, or ionizing radiation (Martin). Principles of organic farming include, “concerns for safe food production, for the environment, for animal welfare and for issues of social justice (Browne, A W, et al)”. Before a farm can be granted certification as organic, a government-approved certifier must inspect the farm to see where the crops are being grown to ensure the rules are being followed to meet organic standards (Martin).

 

The principles of organic agriculture are wide ranging and include concerns for safe food production, for the environment, for animal welfare and for issues of social justice

 

Working within their Models

 

www.youtube.com/watch?v=2kNfUa5VUKY

 

When Shawn Askinosie talks about chocolate in this video, he describes how he works within the Direct Trade model (Forbes). He discusses the importance of having a relationship with the farmers and working in their communities (Forbes). He talks about becoming friends with farmers in Ecuador, Tanzania, and the Philippines (the three places from which he sources his chocolate (Forbes)).  Shawn Askinosie furthermore discusses his open-book management style where he shares his numbers through his transparency report that he keeps available to everyone on his company website, askinsosie.comhttps://www.askinosie.com/learn/transparency-report.html (Forbes). These numbers include the yearly bean cost per metric ton, the total paid to farmers per metric ton, and profit share per metric ton (“Transparency Report”). This open book management style shows his internal transparency with sales expenses and net revenues while also sharing the profit outcome (“Transparency Report”). By sharing the numbers with his employees, suppliers, customers, and the general public, he is adding a thick layer of transparency to the cake that is his company. Most companies, like DOVE within Mars Inc., do not share these numbers with employees, suppliers, consumers, and the general public, as they likely worry that consumers will be astonished and turned off by their large profit margins and small prices paid to farmers (“Cocoa: Caring for the Future of Cocoa”). This contrast in value of transparency really sets Askinosie apart from DOVE Chocolate and tends to show that Shawn Askinosie really doesn’t aspire to make his company bigger as much as he aspires to make his product better (Forbes).

 

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Shawn Askinosie, the founder of Askinosie Chocolate is pictured here working with Tenende, Tanzanian farmers (Editor)”.

 

Shawn Askinosie makes it known to his consumers that he treats the farmers ethically and doesn’t use pesticides in his chocolate farming (Forbes). With that being said, his chocolate isn’t certified organic. The farms may be using other chemicals such as fungicides, for example. It’s also feasible that he simply doesn’t want to pay the fee to be certified organic. The chocolate Shawn Askinosie buys for his company is shade grown and bought through the Direct Trade model (Forbes). In contrast, DOVE does not buy its chocolate through the Direct Trade model. Instead, it buys its chocolate and certifies it through the Rainforest Alliance organization (DOVE). As learned earlier, Rainforest Alliance certification has the intention of branding environmentally friendly products, so by having this certification for its dark chocolate, DOVE is declaring that it has more ethically sourced chocolate than most brands of chocolate that do not have this certification. However, we also learned earlier that the ability for a company to be granted certification through the Rainforest Alliance can be superficial and hasty (Martin). Furthermore, it is known that DOVE Chocolate only has Rainforest Certification for its dark chocolate, not all of its chocolate.

DOVE Chocolate has made efforts to be more ethical through its collaboration with CARE, a global poverty-fighting organization (“DOVE® Chocolate & CARE® Continue Work To Empower Female Farmers In Cote D’Ivoire”). By May of 2017, almost 2,000 women and men in the cocoa farming industry in Cote d’Ivoire joined the CARE Village Savings and Loan Associations, or the VSLA (“DOVE® Chocolate & CARE® Continue Work To Empower Female Farmers In Cote D’Ivoire”). CARE and DOVE partnered together in 1991 to begin the VSLA in Niger with the intentions of establishing a place where people can save their money and be granted small loans (“DOVE® Chocolate & CARE® Continue Work To Empower Female Farmers In Cote D’Ivoire”). This was all in an attempt to broaden opportunities for business development within the farming communities (“DOVE® Chocolate & CARE® Continue Work To Empower Female Farmers In Cote D’Ivoire”). DOVE and CARE have made efforts to give women more equal opportunities in the business realm through the VSLA (“DOVE® Chocolate & CARE® Continue Work To Empower Female Farmers In Cote D’Ivoire”). By 2017, there were 70 VSLA groups established in Cote d’Ivoire (“DOVE® Chocolate & CARE® Continue Work To Empower Female Farmers In Cote D’Ivoire”).

Furthermore, DOVE Chocolate, as clarified on Mars Inc. website, has set a goal to have 100% of its chocolate certified by 2020 (“Cocoa: Caring for the Future of Cocoa”). These certifications include Rainforest Alliance, UTZ Certified, and Fair Trade (“Cocoa: Caring for the Future of Cocoa”). While this aspiration is promising for the Mars Inc. company at large and DOVE Chocolate specifically, it is an aspiration that has yet to be achieved (“Cocoa: Caring for the Future of Cocoa”). It seems likely that some large chocolate corporations will create their own certification organizations to certify their chocolate (Martin). Given the large corporation that is Mars Inc., it is very feasible that Mars Inc. will implement this new standard. Only time will tell whether or not this comes to fruition.

 

In Conclusion

It is evident that Askinosie Chocolate does a better job at being transparent in its processes of buying and producing chocolate when compared to the practices of DOVE Chocolate. Askinosie has a website page, https://www.askinosie.com/learn/direct-trade.html, about its Direct Trade model and how they put this into action (“Direct Trade”). While the Direct Trade model of Askinosie Chocolate has its limitations such as its difficulty in execution, the Direct Trade model is more comprehensive than Rainforest Alliance in regards to their ethics. Both companies make efforts to give farmers equal opportunities to some capacity – whether that is through attention to fair wages or access to loans. DOVE Chocolate, for example, was the first to start Cocoa Development Centers in Asia and Africa where they trained farmers to help them increase their wages and level of sustainability (DOVE). However, given the nature of a Direct Trade alliance between a producer and farmer, in the end, Askinosie Chocolate comes out to be more ethical than DOVE Chocolate.

The next question to ask is: Which chocolate would a consumer be more inclined to purchase when considering the history, ethics, and expenses, among other things, of the chocolate company? Since purchase price and taste motivate consumers possibly more than ethical production, perhaps this is something to chew on.

 

 

 

 

 

 

 

 

Works Cited

Browne, A W, et al. “Organic Production and Ethical Trade: Definition, Practice and Links.” Science Direct, Elsevier, Feb. 2000, http://www.sciencedirect.com/science/article/pii/S0306919299000755. 

Forbes, director. Askinosie Chocolate: Meet The Criminal Defense Lawyer-Turned-Chocolatier | Forbes. Youtube, Forbes, 10 May 2017, www.youtube.com/watch?v=2kNfUa5VUKY.

Editor. “Bean-To-Bar Chocolate Makers Dare To Bare How It’s Done.” KCUR, 14 Feb. 2013, kcur.org/post/bean-bar-chocolate-makers-dare-bare-how-its-done#stream/0.

“Cocoa.” UTZ, utz.org/what-we-offer/certification/products-we-certify/cocoa/.

“Cocoa: Caring for the Future of Cocoa.” Mars, Incorporated, www.mars.com/global/sustainable-in-a-generation/our-approach-to-sustainability/raw-materials/cocoa.

“Direct Trade.” Askinosie Chocolate, www.askinosie.com/learn/direct-trade.html.

DOVE. “Choose Pleasure.” DOVE® Chocolate, dovechocolate.com/tagged/dove.

“Dove (Chocolate).” Wikipedia, Wikimedia Foundation, 26 Apr. 2018, en.wikipedia.org/wiki/Dove_(chocolate).

“DOVE® Chocolate & CARE® Continue Work To Empower Female Farmers In Cote D’Ivoire.” PR Newswire, Mars Chocolate North America, 22 May 2017, www.prnewswire.com/news-releases/dove-chocolate–care-continue-work-to-empower-female-farmers-in-cote- divoire-300461025.html.

“Fair Trade vs. Direct Trade.” Goodnow Farms Chocolate, 22 Feb. 2017, goodnowfarms.com/blog/fair-trade-vs-direct-trade/.

Factsheet Rainforest Alliance. Forum, Nov. 2017, http://www.forumpalmoel.org/imglib/downloads/Factsheet_Rainforest Alliance_en.pdf.

Martin, Carla D. “Alternative Trade and Virtuous Localization/Globalization.” Chocolate, Culture, and the Politics of Food. Chocolate, Culture, and the Politics of Food, 4 Apr. 2018, Cambridge, Massachusetts.

“Our Story.” Askinosie Chocolate, www.askinosie.com/learn/our-story.html.

Sylla, Ndongo Samba. The Fair Trade Scandal: Marketing Poverty to Benefit the Rich. The Fair Trade Scandal: Marketing Poverty to Benefit the Rich, Ohio University Press, 2014. Translated by David Clément Leye

“Transparency Report.” Askinosie Chocolate, 1 Nov. 2017, www.askinosie.com/learn/ transparency-report.html.

 

The Fine Line of Cadbury Business Ethics

We are often reminded that it is wise to toe a fine line and adhere to a certain code of moral conduct; but at what cost exactly?  This is a question that Britain’s chocolate giant Cadbury wrestled with during the beginning of the 20th century.  They flourished when it came to business ethics in their own Utopian village, Bourneville, yet struggled to maintain the same integrity when dealing with the horrific slave labor producing its most precious cacao supply.

In Lowell Satre’s article entitled Chocolate on Trial: Slavery, Politics and the Ethics of Business, the trial of the Cadbury chocolate company begins when a young journalist by the name Henry Nevinson embarked on a field assignment for Harper’s monthly magazine of New York in 1904.  The focal point of Nevinson’s field research was centered predominantly in the Portuguese controlled Angola territory in Africa.

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Shortly after the United States of America had abolished slavery in 1865, Portugal had followed suit during the 1870’s by legally outlawing forced labor in all of its controlled colonies as well.  However, Satre writes “plantation owners still desperately craved workers” as this sweeping outlaw of slavery threatened the convenience of free labor by tipping the economic scale slightly out of their favor.  Satre continues, “To satisfy this constant demand for labor, a state-supported system of “contract labor” emerged, wherein government agents certified the natives could, or of their own free will, sign contracts committing themselves to five years of labor for a set wage” (Satre, pg. 2).  These “contract jobs” also came with the so called benefits of being treated humanely and having the ability to return to their homeland after their contract expired.  However, Henry Nevinson would soon discover, and corroborate an earlier tip that the Cadbury Company received in 1901, that these were empty promises and the idea of working voluntarily under humane conditions was clearly not the case.

The Cadbury Chocolate Company was located somewhere north of 4000 miles away from where Nevinson carried out his expedition.  This was a Quaker owned firm, which meant that they were very serious in regards to their Christian religious beliefs; abstaining from particular vices that could be frowned upon – such as alcohol.  The Cadbury Company in particular experienced a boom in business which warranted moving from the smaller shop that John Cadbury, founder and sole proprietor, operated out of in Birmingham; to a factory town that his son George Cadbury had designed himself.  After John’s first son, Richard passed away suddenly in 1899, George became chairman of Cadbury’s board of directors along with he and Richard’s sons serving as board members.  If you visit the Cadbury website, you can get their account of their story here:

The Story of Cadbury

            Interestingly enough, Lowell Satre reveals what the Cadbury Company site dared not mention; the 1901 trip, when William Cadbury (George’s nephew) visited Trinidad.  The company owned a small cocoa bean plantation there and he was told that slave labor was being used on the islands of Sao Tome and Principe.  Shortly after, this rumor was “given credence when the Cadbury company received an offer of a plantation for sale in Sao Tome that listed as assets two hundred black laborers worth 3,555 dobra” (Satre, pg. 18).  Despite the reports of slave labor and its corroboration by Henry Nevinson’s trip to Africa, the Cadbury Company began sourcing cacao from Sao Tome and Principe indicating that they needed to seek out additional confirmation that the laborers’ treatment there was indeed slavery.

William’s Cadbury’s uncle, George, had created a village called Bourneville in England with the intention for its portrayal to highlight what it meant to take care of company workers.  Bourneville had no pubs – further emphasizing the Quaker lifestyle that the Cadbury family believed in – and was “built upon George Cadbury’s vision of improved dwelling, light, space and air for his employees” (YouTube: Barton’s Britain: Bourneville).

The-Bournville-Cadbury-site

The contradiction was stark however, as the admirable gesture was tainted by the charges of knowingly benefiting from slave labor in Sao Tome and Principe.  It raised the eyebrows of the media as they began to question the integrity of the company for its blatant hypocrisy.  On one hand, they demanded further proof of people dying in Africa due to gruesome work conditions; while on the other hand politely fired female employees in Bourneville who announced they were pregnant so they can endure less stress and prepare for parenthood.

It is my inclination to believe that William Cadbury did not want to swiftly back out of using these cacao plantations because he did not want to affect the bottom line of his family’s business.  So instead, he bided his time looking for a second voyager to travel to Africa and double down on Nevinson’s account to a) protect the company’s investment and b) not offend their Portugal partners overseeing the plantation operation.  While the Cadbury Company strategically dragged their feet with these goals in mind, pressure was mounting from activist groups such as the Anti-Slavery Society and the Aborigines’ Protection Society.  Along with the press, these entities were pushing for the relationship between the Quaker company and slave labor it employed to officially be brought to light.  Finally, William Cadbury elected Joseph Burtt to travel to Africa and confirm what everyone already knew.

In Catherine Higgs article entitled Chocolate Islands: Cocoa, Slavery and Colonial Africa, Higgs details how Joseph Burtt embarked on his journey to Africa and found that Henry Nevinson’s account of slavery occurring was more than accurate.  It was so accurate that Joseph Burtt’s initial report, in the interest of Cadbury needed to be edited multiple times to lessen the impact of the ugly truth and not upset their cacao supplier.  Higgs states that “Cadbury argued that publishing the report in the English press without first giving the Portuguese the opportunity to respond – which Burtt favored doing – would give them “every right to say, as they have done with Nevinson’s report, that they consider the whole attitude as unfriendly and unfair” (Higgs, pg.  134).  William Cadbury was more concerned with protecting his brand, along with his business partners interest that he’d go as far as sugar coating (no pun intended) the truth about their operation rather than taking a stand against what was morally unacceptable.

Shortly after Burtts report had circulated within media circles in October of 1908, William Cadbury had diligently tried to walk back the implications of his company being accused of hypocrisy.  In the end, the Cadbury Company backed out of Sao Tome and Principe, leaving the door wide open for the Hershey Chocolate Company of the United States to swoop in and assume the position of having no moral compass.  In 1839, British colonial administrator Herman Merivale wrote, “Every trader who carries on commerce with those countries, from the great house which lends its name and funds to support the credit of the American Bank, down to the Birmingham merchant who makes a shipment of shackles to Cuba or the coast of Africa, is in his own way an upholder of slavery: and I do not see how any consumer who drinks coffee or wears cotton can escape from the same sweeping charge” (Martin, Lecture #6).  While Herman’s words were about 60 years before the Cadbury controversy in Sao Tome and Principe, they eloquently capture the struggles William Cadbury and his company faced in attempting to tight rope the fine line of running a successful business while being an honorable one simultaneously.

 

 

 

Works Cited

“Barton’s Britain: Bournville.” Gaurdian.co.uk, 2009, http://www.youtube.com/watch?v=Qz6tyxHlRlA.

“The Bournville Cadbury Site.” The Manufacturer, 16 Jan. 2015, http://www.themanufacturer.com/articles/200-workers-take-voluntary-redundancy-cadbury-plant/.

Higgs, Catherine. Chocolate Islands: Cocoa, Slavery, and Colonial Africa. Ohio University Press, 2013.

Katz, Frau. “A Map of Angola.” Pinterest, http://www.pinterest.com/pin/345510602641044139/?autologin=true.

Martin, Carla. “Lecture #6.”

Satre, Lowell Joseph. Chocolate on Trial Slavery, Politics, and the Ethics of Business. Ohio Univ.Press, 2006.

http://www.iconinc.com.au, Icon.Inc -. “The Story of Cadbury.” Cadbury, http://www.cadbury.com.au/about-cadbury/the-story-of-cadbury.aspx.

 

Cadbury Ethics

In the early twentieth century, the Cadbury Brothers Limited was a prominent chocolate producer in Britain. In 1901, a member of the Cadbury company, William Cadbury, was exposed to the accusation of slavery in his company’s cocoa farms. The situation was such that “he was told that slave labor was used on the island of São Tomé. Shortly thereafter this unsubstantiated comment was given credence when the Cadbury company received an offer of a plantation for sale in São Tomé that listed as assets two hundred black laborers” (Satre 18). With the rumor of slavery existing and having a direct tie to the Cadbury company, William did not immediately conclude that slavery was going on because “he did not equate the labor of São Tomé to that of other forms of slavery reported in Africa” (Satre 19). Cadbury was not incorrect in observing that the labor conditions were different than the historical slavery in Africa, but it was still slavery and leads to the questioning of his ethics.

The slavery in São Tomé was different from other historical forms of slavery in Africa. “Portugal had abolished slavery in all of its colonies, including Angola, in the 1870s, but plantation owners and others still desperately craved workers” (Satre 2). “To satisfy this constant demand for labor, a state-supported system of ‘contract labor’ emerged. Wherein government agents certified that natives could, of their own free will, sign contracts committing themselves to five years of labor at a set wage.” The plantation owners abused these contracts, which lead to slavery. Nevinson, who was researching slavery in West Africa, described several reasons why people might become slaves, including the following:
“[s]ome had broken native customs or Portuguese laws, some had been charged with witchcraft by the medicine man because of a relative died, some sould not pay a fine, some were wiping out an ancestral debt, some had been sold by uncles in poverty, some were indemnity for village wars, some had been raided on the frontier, others had been exchanged for a gun; some had been trapped by Portuguese, others by Bibéan thieves; some were but changing masters” (Satre 7).
The exploitation of labor was in fact slavery, but William Cadbury wanted to be thorough in his obtainment of information because “he wanted to be absolutely fair to the responsible parties on the cocoa plantations and in Portugal” (Satre 19).
In order to come to a definitive conclusion regarding the possibility of slavery in the Cadbury cocoa farms, William Cadbury enlisted the services of Joseph Burtt, who would travel to São Tomé in order to uncover whether the rumors of slavery were true. Before Burtt could begin investigating, he had to first learn Portuguese. Cadbury might of had an expedited report if he had chosen someone who already knew Portuguese, but Burtt eventually found explicit evidence of slavery. When the time came for Burtt to publish his findings, he “added to the delays by pushing, in addition, for a ‘personal and private appeal to the planters’ to ensure they understood’ that the whole question has been taken up from a desire for decent conditions of coloured labour and not from English’ self-righteousness and hypocrisy” (Higgs 135). The delays in the report mounted to the extent that even though Burtt had been commissioned by the Cadbury family in 1905, he did not return to England till 1907. After William Cadbury read Burtt’s report and visted Africa, “he found a system he called ‘slavery in disguise’” (Vertongen).

Meanwhile, another party was uncovering the truth behind the working conditions. Henry Nevison was on an assignment to investigate the working conditions in West Africa. Nevison worked for Harper’s Monthly Magazine and would end up writing “a series of articles and a subsequent book describing slavery in Portuguese West Africa” (Satre 2). He witnessed explicit slavery and periodically published his findings in Britain. Nevison publically called for a boycott of the slave plantations.
With the information from Burtt’s report and the public scrutiny caused by Nevison’s exposure of the slavery conditions and pressure for change, William Cadbury came to the conclusion that a boycott was necessary. “1909, Cadbury Brothers wrote to Fry and Rowntree to recommend that all three firms ‘cease buying S. Thome cocoa’” (Higgs 147). All three firms began the boycott and were particularly effective in Britain because “[a]t the turn of the twentieth century, the British cocoa and chocolate business was dominated by three Quaker-owned firms-Cadbury, Fry, and Rowntree-although European companies continued to claim a large part of the British market” (Satre 14). The companies moved their cocoa farms to the Gold Coast in West Africa, where they knew slavery was not employed.

The ethics pertaining to William Cadbury’s actions in combating slavery need to be further examined. A substantial amount of time passed from when he first learned about the labor conditions in the cocoa farms and the action of the Cadbury company to boycott the slave labor being used. William is partly at fault for this delay. Although being prudent and securing a definitive report of the possibility of slavery may be wise, his choosing Burtt was problematic, since the latter had to learn Portuguese before beginning his research. The delays in the publishing of Burtt’s report were the result of Cadbury’s desire to not offend. Ultimately, William Cadbury can be criticized that the developments to end the slavery could have been conducted on an expedited time frame. Another reason for the delay was his not being convinced that the rumored conditions were in fact slavery, due to the differences between it and prior forms in Africa. He wanted more evidence of the exploitation as the Portuguese government even pledged to create better working conditions for the labors. Since “he obviously wanted to believe that the Portuguese government officials were sincere in their promise to enforce the new rules” (Satre 15), Cadbury’s delay in boycotting might be somewhat justified. In conclusion, enlisting Burtt to provide more evidence of slavery and allowing the Portuguese government time to correct the slavery problem are valid reasons for some of the delay in action, and given that the boycott of the slavery did ultimately occur, William Cadbury should not be regarded as unethical.

Works cited

Satre, L. Chocolate on Trial: Slavery, Politics, and the Ethics of Business

Higgs, C. Chocolate Islands: Cocoa, Slavery, and Colonial Africa

Vertongen, D. (Director), & Hargrave, G. (Producer). (2000). Extra Bitter: The Legacy of the Chocolate Islands [Video file]. Filmakers Library. Retrieved May 13, 2017, from Alexander Street.

Chocolate and Ethics

Quality of life and ethical life choices are important factors in everything we do. Chocolate is a frequent part of our lives as well, for some, a daily part.  Chocolate is a multi-billion dollar industry.  When consumers spend money in a business that supports ethical business practices, it can make a difference in lives around the world.  Taza Chocolate is one such business.

Taza Chocolate.

Taza Chocolate makes stone ground chocolate from organic cacao in Somerville, Massachusetts.  Taza has been in business since 2005, and is an example of an ethical and forward-thinking chocolate business (Taza, 2017).  Taza devotes much of their time and business planning to ensure their business practices and those of their suppliers, who they refer to as partners, improves the lives of farmers, while reforming the chocolate industry from the ground up.  Taza has a wide selection of chocolate, including chocolate bars, gift sets, and even bulk chocolate so people can bake or cook with stone ground, organic, Direct Trade chocolate.

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Photo of Taza Chocolate products in public domain by Johnny Lai.

The process of purchasing cacao beans.

Obtaining cacao beans direct from growers is an important part of fair labor practices.  Historically, the cacao industry has taken advantage of its workers, ignoring abuse and slavery to achieve a greater profit.  An example of this can be seen in São Tomé and Príncipe in the 1900s.  Slavery had been officially abolished in 1870, and the cacao industry needed workers, so they began using the system of contract labor, where workers would agree to work a set number of years for a set wage (Satre, 2006, Location 1603).  Workers traveling to provide contract labor were “coerced, repatriation was all but impossible, and the death rate was as high as twelve percent” (Satre, 2006, Location 1603).   In 1907, long after these abusive practices became public knowledge, “Cadbury still imported 7.4 million pounds of cacao beans from São Tomé, about thirteen percent of the island’s total exports” (Satre, 2006, Location 1603).  Today, the chocolate industry is attempting to improve working conditions and payment for cacao farmers through fair trade initiatives.  There are several certifications that ensure fair labor practices in the cacao industry, but Taza’s Direct Trade is the first cacao sourcing program that is third-party certified (Taza, 2017).  Taza purchases their beans directly from growers with no “predatory middlemen and abusive labor practices,” so that farmers and their families receive more money for the cacao they grow and harvest (Taza, 2017).  Every year all five of Taza’s Direct Trade claims are certified by “a USDA-accredited organic certifier” (Taza, 2017).

 

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Cacao beans, taken by me, 2017e846.

Direct Trade certified claims by Taza.

The five Direct Trade certified claims Taza makes improve quality of life for cacao farmers and their families while improving the quality of cacao beans used in Taza chocolate.  The first claim is that Taza develops “direct relationships with cacao farmers” (Taza, 2017).  By visiting Taza’s partners every year and reviewing how much of the money paid for cacao beans reaches the farmers directly, other benefits farmers receive besides monetary payments, and actually meeting and speaking to farmers, Taza develops direct relationships with farmers.  The second Direct Trade certified claim is that Taza pays “a price premium to cacao farmers” (Taza, 2017).  Invoices are reviewed to verify that Taza has met this claim by comparing the price paid for cacao to the NYICE price for cacao on the same date as the invoice (Taza, 2017).  Another important Direct Trade claim is that Taza sources “the highest quality cacao beans” (Taza, 2017).  Taza staff perform a quality assessment of every container of cacao beans purchased, and complete an evaluation form indicating the results of each assessment (Taza, 2017).  A further Direct Trade claim is that Taza requires “USDA certified organic cacao” (Taza, 2017).  This is important to ensure the quality of the cacao used, and Taza provides documentation to support USDA organic certification to the independent certifier (Taza, 2017).  The fifth certified claim is a self-imposed action on the part of Taza.  It includes publishing a yearly Transparency Report.  Taza publishes every year a Direct Trade Transparency Report, so that consumers or anyone else who wants to verify their claims, has all the information to do so (Taza, 2017).  Currently, there are links to the report for the past six years available on Taza’s website.  This level of transparency in the bean to bar operation is unique in the chocolate industry.

Link to a discussion by Taza Chocolate on the difference between Direct Trade and Fair Trade.

Fair compensation to growers and farmers.

To maintain an ethical and healthy cacao industry, growers need to receive fair compensation.  Although slavery has been abolished, cacao farmers in many areas do not make a livable wage.  As recently as 2008, in a Côte d’Ivoire cacao village, people “lacked clean water, health care, and decent schools” (Orla, 2011, Location 793).  The issue of child labor was brought to public attention in 2000, when it came forward that children were being enticed by traffickers with promises of riches, and brought to cacao farms in Côte d’Ivoire, where they “survived on little food, little or no pay, and endured regular beatings” (Orla, 2011, Location 807).   In fact, some officials were even “convinced that the farmers were paying organized groups of smugglers to deliver the children to their cocoa groves…and police were being bribed to look the other way” (Off, 2006, Location 1893).  In 2001, the Harkin-Engle protocol was signed to help address the problem of child labor (Orla, 2011, Location 807).   In 2015, cacao farmers in Ghana earned “as little as 84 cents a day, and Ivorian farmers, 50 cents” (Soley, 2015).  Taza visits farmers that they buy cacao from every year, and “only buy cacao from growers who ensure fair and humane work practices” (Taza, 2017).  Additionally, Taza pays “at least $500 above the market price…and never less than $2,800 per metric ton” for their cacao (Taza, 2017).  In 2016, Taza purchased 233 metric tons of cacao beans, equating to at least $116,000 dollars more in the pockets of growers and farmers in developing countries due to Taza’s forward-thinking labor practices (Taza, 2017).  In 2016, Taza paid its Bolivia partner a fixed price of $5,300 per metric ton, and the partner paid 76.4% of this amount to the farmers (Taza, 2017).  This set price is paid by Taza even though the price of cacao on the world market may be much lower.  As an example, the International Cacao Organization lists the average daily price of a metric ton of cacao in December 2016 at $2,287.80 (ICCO, 2017).  Despite this price, Taza would pay its Bolivian partner $5,300 per metric ton for any cacao purchased in December, protecting farmers from the price fluctuations throughout the market.   This process ensures higher income for growers and farmers, cutting out the middleman, so they may better support their families.  With “most of the world’s cacao farmers living at or below the poverty line of $2 per day” (Taza, 2017), the chocolate industry needs to follow Taza’s actions, and customers need to spend their money with companies that are encouraging humane labor practices.

Monetary compensation is supplemented by other benefits to farmers.  Taza’s partners, in addition to paying their farmers more, also provide other benefits that cut costs for farmers and increase profits.  For example, all of Taza’s partners “drive to producers’ farms to pick up the cacao in its unfermented form” (Taza, 2017).  This saves farmers money on delivery, fermenting, and drying costs, so their profit is greater.   Taza’s partners may provide high-quality cacao seedlings, loans to buy farms, food, housing, and many other types of assistance that are meant to help farmers become more successful and live better lives (Taza, 2017).

Chocolate ingredients other than cacao.

The other ingredients used in chocolate production need the same devotion to fair labor standards and wages as cacao.  Historically, some chocolate merchants added dangerous ingredients to chocolate, such as “brick dust, chalk, clay, dirt, paraffin, talc, and other items” (Grivetti, 2009, Location 10908).  Using organic ingredients that are held to higher ethical standards is important.  The sugar industry is tied to the chocolate industry in many ways, and has a similar history as cacao in terms of the treatment of slaves.  As of 2013, the Department of Labor cited problems with child labor in the sugar industry in the Dominican Republic (U.S. Department of Labor, 2013).  The submission found violations of labor law concerning wages, hours of work, occupational safety and health, child labor, and forced or compulsory labor (U.S. Department of Labor, 2013).  It is important for customers and corporations alike to work for better conditions and wages for all workers.

Taza purchases certified USDA organic cacao and sugar from farmers “who respect the environment and fair labor practices” (Taza, 2017).  The country of origin of the cacao beans is listed on many of Taza’s products, and the partners are specifically listed in the Transparency Report, so individuals can research and verify fair labor practices.  Customers can buy a product with ingredients from a specific country, and support the practices of that supplier by choosing to do business with them.  The sugar that Taza purchases for their chocolate is organic, non-GMO, and the supplier is committed to sustainability and fair labor practices (Taza, 2017).  Not only are the mills that produce the sugar energy self-sufficient, the “organic farming system has resulted in 20% higher productivity than conventional sugar cane production while reducing Native’s carbon footprint and saving water, soil, energy, and promoting human welfare” (Taza, 2017).   Although Native Sugar uses a mechanical harvester, it has retrained its workers for “other positions within the organization” adhering to the commitment to fair labor and making workers lives better (Taza, 2017).   Business practices that promote environmental sustainability are important in today’s world.  Not only is this good for future generations, it is also benefiting the company economically.

Labor in the production process. 

The production process has become highly mechanized for many chocolate companies.  Historically, laborers produced chocolate using basic tools.  Some cacao farms, like Hacienda Buena Vista in Puerto Rico, began using hydropower to increase production and change the roles of workers.  It is impressive to see, with one pull of a lever, water rushing down and causing large equipment to start processing cacao, or coffee, or corn.  The process of making stone ground chocolate keeps the historic element alive, while mechanizing chocolate production.  Taza uses “traditional Mexican stone mills, called molinos, with hand-carved stones that turn inside” the mills (Taza, 2017).  Workers pay close attention during the process to ensure quality that cannot be achieved through high production automation.

Hacienda water run equipment
Machinery run by hydropower at Hacienda Buena Vista, taken by me 2017e846

 

Chocolate recipes.

Recipes for chocolate are an important component of a chocolate company.  Many of today’s chocolate recipes contain ingredients traditionally used in different cultures.  Cinnamon has been used traditionally in cacao recipes, and Taza uses it in some of its chocolate recipes (Taza, 2017).  Chili is also an ingredient to some of Taza’s products, similar to the “ancient Mesoamerican tradition of adding chili to chocolate” (Coe and Coe, 2013, Location 3828).  Additionally, vanilla, various nuts, sea salt, coconut, coffee and other ingredients are used today to make a chocolate bar that is both traditional and current.

20170309_150602
Traditional chocolate ingrediates.  Taken by me, 2017e846.

Value of the product.

For consumers in developed countries today, and some developing countries, chocolate is an affordable luxury.  Taza’s chocolate is reasonably priced given the quality and commitment to the cacao community of growers that encompasses its business model.  A Taza chocolate bar or disc are for the most part between $5.00 and $7.50 (Taza, 2017).  That is a reasonable price for organic chocolate, at least given prices for organic chocolate in the Caribbean.  An artisan chocolate bar made here in Puerto Rico is approximately $10.00, and they are small bars.  Organic chocolate is a relatively affordable luxury that enriches our lives.

Conclusion.

The chocolate industry as a whole is making strides towards incorporating more humane practices into its business model.  However, large companies are slow to change.  Small, independent chocolate businesses have the ability now to make positive changes in the lives of farmers and their families, showing larger businesses a better way to operate and improving the lives of those they do business with.  Taza Chocolate is one such company who appears to look at every aspect of their business in trying to improve the lives of others while growing a successful chocolate company and delivering a high-quality products.

Works Cited

Coe, Michael D., and Coe, Sophie D.  The True History of Chocolate.  Kindle ed., Thames & Hudson, 2013.

Grivetti, Louis E.  “Dark Chocolate:  Chocolate and Crime in North America and Elsewhere.”   Chocolate:  History, Culture, and Heritage, edited by Louis Evan Grivetti and Howard-Yana Shapiro.  Kindle ed., John Wiley and Sons, Inc., 2009.

International Cocoa Organization website.  Retrieved from: https://www.icco.org/statistics/cocoa-prices/monthly-averages.html?currency=usd&startmonth=12&startyear=2016&endmonth=12&endyear=2016&show=table&option=com_statistics&view=statistics&Itemid=114&mode=custom&type=1

Off, Carol.  Bitter Chocolate:  Anatomy of an Industry.  Kindle ed., The New Press, 2006.

Orla, Ryan.  Chocolate Nations:  Living and Dying for Cocoa in West Africa.  Kindle ed., Zed  Books, 2011.

Satre, Lowell J.  “Chocolate on Trial:  Slavery, Politics and the Ethics of Business.”  Journal of British Studies, vol. 45, no. 3, 2006.  Retrieved from:  https://oup.silverchaircdn.com/oup/backfile/Content_public/Journal/ahr/111/5/10.1086/ahr.111.5.1603/2/11151603.pdf?Expires=1494532181&Signature=Bktk0Wtwlcjwcjdb8gNc0UvvCVDVd8BNVD8Z4iKlCR9HALBUWSYbk55G2xWUJaxbqlN4Zvxkhe6860o3tEN~-8IS7dCLOuIUwFuh5pyob2uamoCVT~W-mzPbaBebkCVoWo1ywvI4HCJBf-fHA9k2e2bmNLlrGL0BxhqnMblaLW2HuEJWqY1lTAtB-4m60OXMHRyDWrsajBcFPLbHyQ8erLkEQelz2yZBq5lumwXYQ3m2M8so1i6LVviTHWrgXuokMQfgIlMrrjy6XKxoH71bHKuMAu20Ph8wNY3Rd70Q6yOIobiKhaBV6xhRrC8kjzuWuB6SCIqGldwX3B1006WE~w__&Key-Pair-Id=APKAIUCZBIA4LVPAVW3Q.

Soley, Allison.  “Cacao Farmers Still Aren’t Making enough money:  Cocoa Barometer review shows young farmers no longer replacing older farmers due to extremely low wages.”  1 July 2015.  Candy Industry website.  Retrieved from: http://www.candyindustry.com/articles/86817-cocoa-farmers-still-arent-making-enough-money.

Taza Chocolate website. Last accessed 10 May 2017.   https://www.tazachocolate.com/pages/about-taza.

United States Department of Labor, “Dominican Republic Submission Under Central America-United States Free Trade Agreements.” (7 September 2013).  Retrieved from:  https://www.dol.gov/agencies/ilab/our-work/trade/fta-submissions#DR

 

There is No Pleasure in Guilty Chocolate!

Why do you love chocolate? Because it is good! It tastes good and makes you happy. It is all that is good in the world wrapped in a beautiful candy bar. What if you learned that your delicious candy bar is a by-product of something bad, the output of someone else’s suffering?  A child’s suffering? Would you enjoy it just the same? Eating is not just a means to satisfy hunger; it is also an emotional and psychological experience.  We like to eat, and we like to eat good food without any negative connotations. Chocolate does not taste as good when it is served with a side of guilt. Chocolate tastes better when you wholeheartedly know that it came from a good place and produced in an ethical and social responsible manner.

Did you know that the global chocolate industry is nearly $100 billion dollars a year? The United States alone spends a little over 18 billion dollars in chocolate (2015), and that the average American consumes approximately 4.3 kilograms / 9.5 pounds of chocolate a year (2015). In comparison, beating the Americans at chocolate consumption are the Swiss who consume approximately a little over 9 kilograms / 20 pounds per person, then tied for second place are the Germans and the Austrians who approximately consume 3.6 kilograms / 7.4 pounds per person (Satioquia-Tan). Chocolate can be found anywhere around the world and is affordable to the masses especially to those who live in the developed world. Chocolate can be found in candy bars, truffles, fudge, cakes, muffins, biscuits, breakfast cereals, pancakes, health bars, sauces, drinks, in your café mocha, and anywhere you can sprinkle chocolate syrup. You can buy it in a specialty shop, supermarket, mini-market, drugstore, or any corner street gas station.

The majority of chocolate eaters are rather naïve in knowing the history and the current nature of the chocolate-making business. They simply eat it because they love chocolate without really knowing what it is, where it comes from, who makes and how; or any related social issues. For those consumers who are more aware of the social and economic impacts of the chocolate industry are a little more selective in choosing and enjoying their chocolate. To fully appreciate food is to experience it through all the possible senses, the physiological and psychological (Stuckey 13). Only twenty percent of what we physiologically taste happens in our mouths, the rest of the tasting experience happens through our remaining senses of sight, smell, touch, and sound. We, also, want to psychologically feel good about what we are eating. We want to know about the origins, the farming practices, and the ethics of what we are tasting (Stuckey 14). We want to know the context, the beautiful story, of what we are eating so we can enjoy it fully. The other option is to choose to remain a little ignorant of the subject as not to sour our chocolate taste, however this pleasure would be more superficial and would not represent the fullest appreciation of what we are eating. To fully appreciate today’s chocolate, we will have to fully experience it with the body and mind in full awareness of its origins, present journey and social impacts.

  1. What is Chocolate?

Cocoa is the main ingredient for all chocolate recipes.  Cocoa derives from cacao seeds, or more commonly referred to as cacao beans, which grow on the Theobroma Cacao tree.  Cacao trees are finicky trees that can only bear fruit in hot and humid tropical climates,twenty degrees from the equator at a specific altitude. These trees are highly dependent on midges, an insect, for its flowers to pollinate and bear fruit (Coe and Coe 19-21, 27). Cacao beans grow inside a fruity, pulp filled pod, approximately 30-40 beans grow inside one pod. Unlike most trees, where fruit grow dangling down from branches, cacao pods sprout directly from the tree trunk. In raw form, cacao beans constitute half its size in fat, cocoa butter. When cocoa butter is extracted from the cacao bean, what remains is the cocoa (or cocoa powder), the main ingredient of all chocolate (Coe and Coe 27). Before cacao beans turn into chocolate, cacao fruit is first farmed.  Upon harvest, fruit pods are removed from trees and cracked open to extract its beans with machetes. Cacao beans are then fermented, dried, sorted, roasted, transported, winnowed (deshelled), ground to a liquor, pressed (to remove the cacao butter), conched, and then what remains is added to chocolate-making recipes. Chocolate is the result of a labor intensive and highly processed food.

  1. Where Does Cacao Come From?

Cacao is native to the New World, the South American’s amazon basin region (Coe and Coe 25), and the Mesoamerican native cultures of the Mayans and Aztecs and predecessors were the first peoples to ever make chocolate dating back as far as 1500 BCE (Coe and Coe 33). Cacao was precious and a sacred food reserved for the elite, special occasions, and sacred rituals. Mayan and Aztecs Gods often appear alongside or in the form of cacao trees in their native hieroglyphs and surviving art (Coe and Coe 42). So precious, cacao beans were even used as a means of monetary currency. In 1545, documented is the commodity price of a tamale: one tamale equals one cacao bean (Coe and Coe 98-99). Upon colonizing Mesoamerica, the Spanish conquistadors were the first Europeans to discover and spread the taste of chocolate to Europe starting in the 1500’s (Coe and Coe 108). At the beginning of the chocolate history in Europe, chocolate was rare, expensive, and for the upper class.  Then as time passed and soon after the industrial revolution, chocolate became relatively common and affordable to the masses.

Amazon Basin
Amazon basin (based on Wikipedia, Amazon basin article, by Kmusser, using Digital Chart of the Word and GTOPO data)

After the end of the American colonial period, in the late 1800’s, the Spanish and the Portuguese introduced cacao to West Africa. Due to favorable climate conditions, cacao flourished in West Africa.  Today, approximately seventy percent of the world’s cacao comes from West Africa (Wessel and Quist-Wessel 1). The Ivory Coast and Ghana are the two major countries that supply cacao.  There are 2 million, small (3 hectares acres in size), independent farms (Ryan 52) in West Africa that supply three million metric tons of cacao per year (World Cocoa Foundation).

2000px-Ghana_Côte_d'Ivoire_Locator.svg
West Africa, Ivory Coast depicted in orange and Ghana  depicted in green (based on Wikipedia, Ghana-Ivory Coast Relations article)
  1. What Are the Social Issues Involving the Chocolate Industry?

Since the first Europeans, the Spanish conquistadors, landed in the New World, the cacao industry has been tainted with slavery and forced labor since 1650’s (Berlan 1092). Upon colonizing Mesoamerica, the Spanish forced the natives to pay tribute in labor and cacao to their new Spanish Crown.  After millions of natives died of diseases, the Spanish, like other colonists in the Americas, resorted to using chattel slavery from Africa to extract New World resources (Presilla 24, 33). Chattel slavery officially ended in 1884, however it continued in disguise in Portuguese West Africa well into the 1900’s in the cacao industry and some reports state that it persisted until 1962 (Berlan 1092).

Today, cacao farmer incomes are very volatile for it depends on operating profits, and since cacao is a commodity, the market price.  Farmers need to sell their cacao at a high enough price in order to pay off their operation expenses which includes labor, a major expense, just like most businesses. Unexpected operating expenses and / or a fall in market price can be devastating on farmer revenues/incomes. Cacao farmers, per capita, constantly live without the security of a reliable living wage. In 2015, cacao farmers earned 50 to 84 cents on the American dollar a day (Cocoabarometer). As it is, cacao farmers barely break even, and there is little economic incentive for them to stay in the cacao farming business.  Due to local poverty and lack of other options, farmers continue to grow cacao under pressure to lower operating costs and often resort to desperate means to make a profit, break even, or just enough to pay for rice and cooking oil (Off 5).

In more recent history in the 1990’s and early 2000’s, a wave of newspaper stories and documentary films exposed the existence of child labor, trafficking, and slaves in West African cacao farms which caused much consumer outrage. The media graphically showed the world the extreme poverty and hard lives of cacao farmers in West Africa and the desperate measures farmers take to lower operating costs by using child slave labor (Berlan 1089).

The documentary, Slavery: A Global Investigation (2000), especially shocked viewers by showing how easy it was to find child slaves working on cacao farms and how the local people seem to accept the practice as a way of life. On camera, journalists were able, with relative ease, to overtly interview real child slaves and get first-hand testimony about their hardships, a farm owner who openly admitted to having slaves and in how to get them, and a local official who confirmed as matter of fact that at least 90% of the Ivory Coast farms use child slave labor.  Ninety percent implies the existence of hundreds of thousands of slaves (Ryan 118). A 2000 US State Department report estimated that 15,000 Malian children worked on Ivory Coast cacao farms and that many of were under 12 years old and sold into indentured service (Off 133). Two of the local documentary crew even demonstrated how easy it was to buy slaves, posing as buyers, they went to the marketplace and were able to purchase two boys for the total of forty British pounds (approximately $40) within thirty minutes. Economics, low cacao market price, was credited as being the main reason why these farmers resorted to using slavery.  With such low cacao market prices, farmers cannot afford to pay employee wages and still make a profit, and they have no other income options. In contrast, in a free and mature economy, if a business is not profitable it goes out of business, and one can start a new business or find a new job, this is not the case for the West African cacao farmers.

Since the West African child labor scandals, there has an increased awareness and legislation attempts to eradicate forced and most hazardous child labor. Child labor in general is so embedded into the West African culture, not all children who work on farms are slaves or working with hazards. Most children work as part of the family on their family farms. It was deemed impossible and impractical to create a law that would abolish all form of child labor, however a voluntary agreement, The Harking-Engel Protocol, was signed among the Ivory Coast and the International Chocolate and Cocoa Industry in accordance with the International Labor Organization to end the worst forms of child labor in 2001 (Ryan 44, 47). Because of extreme poverty and lack of options, there are children who are better off working for they will at least have access to some food. Today, consumers are more aware, corporations have put efforts in demonstrating social responsibility in self-certifications, and nonprofit/advocacy organizations, have emerged and increased advocacy. There is still much poverty among cacao farmers, and many children  are still working on farms and some are still suspected of being forced to work against their will.  The child labor problems still exist today.  We, the world, hoped for that the state of child labor in West Africa would be better, however it could be worse.

It is natural that corporations would seek to do business with a poorer and less mature economies so to benefit from cheaper labor costs, but there should be limits when business practices violate human rights and the ability for workers to make a livable wage. It is evident that cacao farmers need more money so can they afford to hire farm workers to help cultivate their labor intensive cacao farms. In the least, the cacao market price needs to go up. It may mean that consumers would have to pay a little more for their chocolate treats. Would you be willing to pay a little more for your candy bar if it would end child and forced labor?

I realize that blindly throwing more money at the problem will not necessarily fix it if local corrupt governments and other stakeholders are still there to scheme away the extra money intended for the cacao farmers. This is a complex issue which requires multi-approach solution. We, the consumers, the governments, NGOs, the corporations, the media (or lack of media), the farmers, are all part of the problem, and we could also all be part of the solution. West African farmers and their children need special consideration for they are the most powerless demographic group in the chocolate food chain. The ones with the most power in the chocolate food chain by default have the most ability, and therefore the greater responsibility, to effect change. Wealthy companies and consumers are in the best position to invest and apply influence in the solution. We, the consumers, should expect that our chocolate companies to conduct business in an ethical and social responsible manner or make better consumer choices if they do not.

Here, in the first world, we would not accept the practice of child labor or slavery in our backyard, and we should not accept it elsewhere and in the products that we use and the foods we eat.  The West African modern-day slave issue is especially heartbreaking for it involves children in producing sweets that we all so enjoy so much. If we all knew that children were being kidnapped and forced to cultivate cacao, we would all enjoy the taste of our chocolate a little less. As consumers, we need to be more conscious about what we eat and learn as much as possible so we can make better consumer choices, maybe write a customer complaint to your chocolate provider or your congressman to influence change in law.  There is no better tasting chocolate than the one that is free from social guilt. In the end, we should all have the right to enjoy good and good-tasting chocolate.

Works Cited

Berlan, Amanda. “Social Sustainability in Agriculture: An Anthropological Perspective on Child Labour in Cocoa Production in Ghana. The Journal of Development Studies, vol. 49, no. 8, 2013, pp. 1088-1100. http://dx.doi.org/10.1080/00220388.2013.78004.

Cocoa Barometer 2015 report, USA Ed. Cocoabarometer.org. http://www.cocoabarometer.org/International_files/Cocoa%20Barometer%202015%20USA.pdf

Coe, Sophie D., and Michael D. Coe. The True History of Chocolate. 3rd ed., Thames & Hudson, 2013.

Off, Carol. Bitter Chocolate: The Dark Side of the World’s Most Seductive Sweet. The New Press, 2008.

Presilla, Maricel. The New Taste of Chocolate, Revised: A Cultural & Natural History of Cacao with Recipes. Ten Speed Press, 2009.

Ryan, Orla. Chocolate Nations: Living and Dying for Cocoa in West Africa. Zed Books, 2011.

Satioquia-Tan, Janine. Americans East How Much Chocolate? CNBC.com, 23 Jul. 2015, 7:41 PM ET.  http://www.cnbc.com/2015/07/23/americans-eat-how-much-chocolate.html

Stuckey, Barb. Taste What You Are Missing: The  Passionate Eater’s Guide to Why Good Food Tastes Good. Free Press, 2012.

Slavery: A Global Investigation. Produced and directed by Brian Woods and Kate Blanchet.  A True Vision Production in Association with HBO, 2000. TopDocumentaryFilms, topdocumentaryfilms.com/slavery-a-global-investigation.

Wessel, Marius, and Foluke Quist-Wessel. Cocoa Production in West Africa, a Review and Analysis of Recent Developments. NJAS – Wageningen Journal of Life Sciences., vol. 74-74, pp. 1-7, 12-2015. doi.org/10.1016/j.njas.2015.09.001.

World Cocoa Foundation, http://www.worldcocoafoundation.org/category/program-region/africa.

The Big Four In Contemporary Chocolate Marketing

When it comes to buying chocolate consumers are overwhelmed with choices. There are hundreds of different products available at just one store. Dark, milk, white, nutty, fruity, extra sweet, extra dark, candy bar, chocolate bar; all of these come crashing together in one space where the consumer is forced to decide which one will win out among the rest. There are multiple ways that chocolate marketers entice consumers. They use celebrity sponsors, flashy advertising, appeal to certain market segments, and tug on the consumer’s emotions; but all of these tactics can overwhelm the consumer and hide the truth about the products. An analytical investigation reveals that there are four themes that stand out in chocolate marketing.

Strategy #1: Target Your Biggest Market

The largest demographic segment of the chocolate market is women. It has traditionally been thought of as a typical treat for women, but one has to question if this market structure is a result of an actual desire for chocolate by this gender, or if it was socially constructed years before. As Emma Robertson notes in her book Chocolate, Women and Empire since the nineteenth-century women have been the focus for advertisers.[1] During this time, women were constantly told that cocoa was good and wholesome for their families through advertising campaigns. This began the long historical connection between chocolate and the housewife.

Today, mothers are still told that chocolate is what they should be giving their children. Advertisements from Nestlé’s Nesquik, specifically tell mothers that their chocolate milk is nutritious for children.[2] Unfortunately, they rarely disclose in their advertisements that their products contain about half of the recommended daily amount of sugar for kids.[3] Instead, mothers are shown having happy interactions with their children when they give them these chocolate products. This is a strategic move on the part of marketers because every mother wants to give their child something that they believe will make them happy and healthy. However, housewives are not the only segment of the female population that is targeted in chocolate marketing.

Single women are often the ones portrayed eating chocolate in advertisements. In a recent ad from Hershey’s they are selling two of their classic chocolate bars, but only women are shown enjoying the treats.[4] The fifteen-second ad is very revealing because it perpetuates the image that women are the ones who enjoy chocolate the most. It would have been very easy to have a man eat part of the chocolate bar but it was a clear choice by Hershey’s to exclude men. To a chocolate marketer, men constitute only a small portion of the chocolate market, thus they are rarely included in advertisements.

Most chocolate advertisements not only focus on women but also focus on the emotions of women. In the 2015 Super Bowl ad for Snickers, the actor Danny Trejo portrays a hungry Marcia Brady, from the classic American television show The Brady Bunch. Mrs. Brady informs her daughter that she can be hostile when she is hungry, but the Snickers bar turns Marcia Brady back into her chipper self after she eats it.[5] This idea that women will calm down if they have chocolate is another common theme used in marketing chocolate. Women are frequently shown to have their moods altered just by consuming chocolate. They are sold the idea that chocolate can provide you with an emotional or biological experience.

Strategy #2: Packaging Sells

Another strategy that marketers commonly use is creative packaging to make their product stand out among all of the other options. If one walks down the chocolate aisle at any store they will see that all of the chocolate is packaged very differently. Some use bright colors to grab attention, while others have artistic images or use creative fonts. This is important when marketing chocolate because the packaging also denotes who the target audience is. Products wrapped in gold or high-gloss packaging can signal that the company is trying to convey the message that this is a quality product and they are trying to target a luxury consumer. Companies understand that the consumers are not likely to research the quality of the product; therefore the quality of the packaging and the information on the packaging is what will sell the product.

2017e677 picture 1
Image Courtesy of 2017e677

 

A key segment of the chocolate market is the eco-friendly consumer, who will inspect the packaging of the product to make sure the company shares their values. This can involve looking at the packaging to see if it uses sustainable materials, checking the label certifications, or seeing if the company supports the same causes as they do. Purchasing a product is often an emotional experience. If the consumer is purchasing a chocolate without knowing how it tastes, their decision will also be based on whether the packaging grabbed their attention and made them feel a connection to the product.

 

Strategy #3: Play on Your Consumer’s Emotions

Emotions are a key factor when it comes to decision-making. Marketers know that people’s beliefs and feelings will sell products and subsequently, will support causes outside of their industry to make their product stand out among the competition. This is common in the chocolate industry that companies will support other causes in order to lure customers in to support their brand. The moist poignant example is Endangered Species Chocolate, who uses a social cause as their key marketing strategy.

“A snack that gives back”; Endangered Species Chocolate promises their customers that 10% of their net profits each year will be donated to their wildlife conservation partners.[6] They have had a wide variety of partners over the years, which include organizations that help animals in every ecosystem. This is a very clever marketing strategy because it connects their chocolate with a deeper purpose. The consumer feels like they are making a difference in the world if they are buying this chocolate, which is a compelling sales strategy. Endangered Species Chocolate further cements the emotional connection to the product by putting images of animals on every one of their products. While this is a very clear strategy to drive sales, the company is also transparent about the impact their donations have each year by publishing an annual impact report.[7]

Divine Chocolate also uses social causes as a marketing strategy to sell their chocolate. Their chocolate bars are branded as being owned by cocoa farmers and they seek to empower women. Cocoa farming has traditionally been thought of as mainly an industry for men and women have been overlooked.[8] Divine Chocolate changes this common chocolate dichotomy by emphasizing the important roles that women have in cocoa farming. Their advertisements often show African women as strong, well-dressed intelligent women, a stark contrast to the typical primitive images of women in Africa. As Kristy Leissle notes Divine’s advertisements, “reframe Africa’s role in modernity, creating an alluring female figure that envisions and promotes Africa’s contributions to industrial production and luxury consumption.”[9] By changing the typical narrative of chocolate, Divine Chocolate is creating social change. However, these advertisements that inspire change also play into the consumer’s emotions, which was created to highlight the company’s “unique selling point.”[10] Divine Chocolate understands that their ethical values as a company are a selling feature for their products, and as a result, they use these values as a marketing tool.

Strategy #4: Certify Everything

The final, and perhaps most contemporary, marketing tool that marketers use when selling chocolate are all of the different certifications that can appear on the packaging of products. Ideally, one would not have to be concerned about the treatment of farmers or the quality of the ingredients. If that were the case we would not need labels to tell us that this product is not harming the environment, but consumers do not automatically trust that a company will be ethical in their business practices. Consequently, there are many different certifications available: Fair Trade, Certified Organic, Non-GMO Verified, Direct Trade, Certified Vegan, Certified Gluten Free, among many others. For all of these certifications companies and farmers have to pay annual fees and meet certain standards to become a part of these organizations and as a result, they are allowed to use the corresponding label that they qualified for on their products. While the certifications have good intentions they have become a marketing ploy, and one could argue that the labels do not actually benefit the farmers or producers in the altruistic way that is intended.

The Fair Trade certification was created to help farmers improve their lives and ensure fair prices for their products, but these goals have not been realized.[11] It has been found that farmers are not earning more money, the quality of products has not improved, and they do not monitor standards in the way that was promised.[12] This is a significant problem for farmers because they spend a great deal of money to become Fair Trade certified but they are not receiving the benefits that were espoused.[13] Since the economic burden is so substantial many farmers opt out of the certification because they will make more money without it.[14] However, many consumers do not realize that certification labels like Fair Trade are failing to adhere to their promises.

Certifications labels were created to inform consumers that products were ethical in their origin. Nico Roozen and Frans van der Hoff created the first quality label called Max Havelaar.[15] Along with Albert Heijn, in 1988 they launched the first coffee brand that was labeled fair, Max Havelaar coffee.[16] The brand became so successful that more products began displaying the Max Havelaar label throughout Europe and North America.[17] As a result of the popularity of the Max Havelaar label, more certifications have been created. While these certification organizations have good intentions, they have also become an extremely successful marketing tool. Companies have seen large spikes in sales as a result of these labels, but there is the potential for this growth to stop.[18]

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The many certification labels on Theo Chocolate, Endangered Species Chocolate and Taza Chocolate. Images courtesy of 2017e677.

The average consumer does not know the requirements for certification for the majority of the programs that exists. They just assume that a Fair Trade or organic label denotes an ethical or high-quality product. But now that more certifications exist, companies will put multiple certifications on one product potentially confusing the consumer. As Ndongo Samba Sylla notes, companies run the risk of diluting the meaning of these labels by placing too many on one package.[19] By placing so many certifications on one product, the labels begin to be arbitrary and reveal their true purpose, which is a sales device.

Is Chocolate Marketing All a Façade?

With all of these marketing strategies, it begins to look like there is a lack of honesty in the marketing industry. As a result, consumers are left to wonder if they are simply being sold lies. It is true that chocolate marketers will exploit every angle they can in order to sell you a product but they are not necessarily acting unethically, they are just doing their job. Companies need to push boundaries in order to set themselves apart from all of the competition. Ultimately a company cannot be altruistic without selling their products, thus earning the additional money necessary to meet their charity goals. The chocolate industry is a highly competitive world and it is important as a consumer to not get caught up in the strategies that companies implement.

In order to be mislead by all of the marketing schemes, consumers need to do their homework when searching for the chocolate product they want to purchase. There are honest chocolate companies that are very transparent about their processes and openly publish company information. For example, Theo Chocolate is proud to share information about their passions for chocolate and changing the world.[20] On their website they are open about where their beans are sourced from and share their pricing structure publically.[21] In addition, Taza Chocolate publishes a direct trade transparency report that details where they are buying their cacao and from whom.[22] The reports often list farmers by name, giving the consumer more knowledge than is usually possible with the food industry.[23]

While both Taza Chocolate and Theo Chocolate still market their chocolate like any other business would, they also publish information about their respective business practices, which indicates that they are open to additional conversations about their methods. Their honesty is a refreshing change in the chocolate industry. Although transparency is not commonly employed in marketing chocolate, by clearly understanding the tools that companies use to sell their products a consumer can look past all of the sales techniques and find the chocolate product that is right for them.

 

 

 

Works Cited

[1] Emma Robertson, Chocolate, Women and Empire: A Social and Cultural History (Manchester University Press: New York, 2009), 20.

[2] “Postgame Nutrition”, Nestle Nesquik, accessed May 1, 2017, https://www.nesquik.com/postgame-nutrition/.

[3] “Sugar Recommendation Healthy Kids and Teens Infographic”, American Heart Association, accessed May 1, 2017, http://www.heart.org/HEARTORG/HealthyLiving/HealthyEating/Nutrition/Sugar-Recommendation-Healthy-Kids-and-Teens-Infographic_UCM_487755_SubHomePage.jsp.

[4] Hershey’s, “HERSHEY’S Love in Every Bite”, YouTube Video, 00:15, Posted February 6, 2017, https://www.youtube.com/watch?v=MxYHyZWaK2o.

[5] Wall Street Journal, “Super Bowl 2015: Snickers Ad”, YouTube Video, 00:32, Posted January 29, 2015, https://www.youtube.com/watch?v=3UO2A2p-19A.

[6] “Promise”, Endangered Species Chocolate, accessed May 1, 2017, http://www.chocolatebar.com/?page_id=18.

[7] Endangered Species Report, Impact Report 2016, Accessed May 2, 2017,

http://www.chocolatebar.com/docs/doc_2016_Impact_Report.pdf.

[8] Divine Chocolate, “Empowering Women”, accessed May 2, 2017, http://www.divinechocolate.com/us/about-us/TrainingWomen.

[9] Kirsty Leissle, “Cosmopolitan Cocoa Farmers: Refashioning Africa in Divine Chocolate Advertisements”, Journal of African Cultural Studies, 24:2, 123.

[10] Ibid.

[11] “Mission/Values”, Fair Trade USA, accessed May 2, 2017. https://fairtradeusa.org/about-fair-trade-usa/mission.

[12] Carla D. Martin, “Alternative Trade and Virtuous Localization/Globalization” (Lecture Slides, Chocolate Culture and the Politics of Food, Cambridge, MA, April 5, 2017), Slide 11, accessed May 2, 2017, https://docs.google.com/presentation/d/1CkKtJa-PLeSsmfsrheoSqdO2gT7yiizxE7x0DmcwcKA/edit#slide=id.g12aecdfb3_057.

[13] Ibid.

[14] Carla D. Martin, “Alternative Trade and Virtuous Localization/Globalization” (Lecture, Chocolate Culture and the Politics of Food, Cambridge, MA, April 5, 2017).

[15] Ndongo Samba Sylla, The Fair Trade Scandal: Marketing Poverty To Benefit The Rich (Ohio University Press: Athens, 2014), 70-71.

[16] Sylla, The Fair Trade Scandal, 72.

[17] Ibid.

[18] Sylla, The Fair Trade Scandal, 91.

[19]Sylla, The Fair Trade Scandal, 133.

[20] “Mission”, Theo Chocolate, accessed May 2, 2017, https://www.theochocolate.com/mission.

[21]“Sourcing”, Theo Chocolate, accessed May 2, 2017, https://www.theochocolate.com/sourcing.

[22] “Taza Direct Trade”, Taza Chocolate, accessed May 3, 2017, https://www.tazachocolate.com/pages/taza-direct-trade.

[23] “Taza Transparency Report 2015”, Taza Chocolate, accessed May 3, 2017, https://cdn.shopify.com/s/files/1/0974/7668/files/Taza_Transparency_Report_2015.pdf?10448975028103371905.

 

Featured Image Courtesy of Flickr, https://www.flickr.com/photos/jeffanddayna/5126226571

Potomac Chocolate: a Closer Look at the Ethics, Marketing, and Intentions of Craft Chocolate Makers

Potomac Chocolate is a craft chocolate maker based in Woodbridge, Virginia. Ben Rasmussen is an award-winning chocolate maker who founded Potomac in 2010 and now has chocolate bars for sale across the country.  Potomac is often described as an “absurdly small” chocolate company, as it is truly a one-man show.  As I read more articles and blog posts from Ben Rasmussen, I quickly learned the truth behind that statement.  One blog post from June of 2013 simply said “Just a quick note that I’ll be traveling with my family from today until July 21st. Any orders placed will go out when I return” (Rasmussen, 2013).  Moreover, Rasmussen also wrote that he probably spends over half of the time that he is making chocolate on matters that have nothing to do with chocolate; he is everything from a “designer, custodian, accountant, salesman…and on and on.”  While he doesn’t love all of the these roles, they enable him to do what he loves, which is making great chocolate.  However, Rasmussen should be praised for far more than the taste of his chocolate. I have found that Potomac Chocolate is ethically sourced, modestly marketed, intended for all to enjoy, and made with a passion for great chocolate.

Sources of Cacao

The first thing I noticed when I looked at the catalog of Potomac bars was the variety of cacao sources.  Each Potomac bar is a single-origin bar, meaning the cacao beans used for each bar are from one particular region of a country.  Origin is particularly significant for chocolate production, as there is a long history of unethical cacao farming: some of which continues to this day.  In The True History of Chocolate, Sophie Coe writes:

“The gravest and most troubling issue confronting practically all of the major players in the chocolate business concerns child labor—usually unpaid—on the great West African cacao plantations. The countries most involved in this shameful practice are the Ivory Coast (Côte d’Ivoire) and Ghana. The former alone produces nearly 40 percent of the world’s supply of forastero cacao, the mainstay of the chocolate giants. Several million African children, many of them trafficked from neighboring countries such as Mali, work under terrible conditions throughout the year…” (Coe, 2013).

Moreover, Carla Martin, a leading expert on chocolate, explains that even in the 21st century there is still prominent evidence of the worst forms of child labor on various cocoa farms in West Africa (Martin, 2017).  As a result of this troubling issue, I wanted to take a closer look at Potomac’s cacao sources.  According to Potomac’s website, Ben is currently sourcing cacao from four locations.  However, at various times in Potomac’s short history, Ben has tested cacao beans from a wider variety of sources— he said no to some of these sources altogether, while others he adopted for a short while before moving on to sources he liked better.  Here are the current cacao sources used by Potomac:

Upala, Costa Rica (3 bars): Potomac offers three different bars using cacao from Upala, Costa Rica.  This is also the first source of cacao that Ben Rasmussen ever used in his marketed chocolate bars.  The 70% dark and 85% dark bars are both comprised of simply organic Costa Rican cacao and organic sugar.  The description found on the packaging for both of these bars says: “Pure dark chocolate made from cacao grown by Finca La Amistad, a small farm in northern Costa Rica. Rich and earthy with notes of caramel, cream, nut, and red fruit.”  Potomac also offers a 70% dark bar using the same cacao beans but with the addition of cacao nibs (nibs are the most raw, pure form of chocolate).  I took a closer look at Finca La Amistad to find that the farm prides itself on having “Best quality, fair working conditions, responsible management of natural resources and long-term partnerships based on mutual trust” (Amistad, 2017).

San Martin, Peru (3 bars): Next, Potomac offers three different bars sourced from San Martin, Peru.  However, there is a discrepancy between the bars in terms of the farms within San Martin providing the cacao.  The 70% dark bar as well as the same bar with the addition of salt are grown by the same farmers.  The description on the packaging for both of these bars says: ”Pure dark chocolate made from cacao grown by the Acopagro Cacao Cooperative in the Amazonian highlands of Peru. Bright and fruity with notes of banana, raisin and apricot.”  The Acopagro Cacao Cooperative sought Fair Trade Certification in order to meet important needs like raising income levels, educational opportunities for children, and adequate healthcare for employees (Acopagro, 2017).  The third bar from this source, the 65% dark milk bar, sources cacao from a different farm.  The description on the packaging for this bar says: ”Pure dark milk chocolate made from cacao grown by the Oro Verde Cooperative in the Amazonian highlands of Peru. Rich and creamy with notes of berries and caramel.”  I found that the Oro Verde Cooperative is so small that they explicitly mention each team member’s name and credentials on their website. Moreover, they pride themselves on healthy living conditions, quality, and transparency (Oro, 2017)

Duarte, Dominican Republic (2 bars): Rasmussen also offers two bars sourced from Duarte, Dominican Republic.  The 70% dark bar was my first encounter with Potomac Chocolate.  I said something to myself like, “that’s the best chocolate I have ever had,” and quickly became interested in learning more.  The packaging description for this bar says: ”Pure dark chocolate made from cacao grown in the Duarte province of the Dominican Republic by a collection of small producers and then carefully fermented and dried by ÖKO-Caribe. Rich cocoa with notes of red fruit.”  Potomac also offers a bar from Duarte with the addition of coconut.  This description presented the biggest challenge in determining ethical sourcing, but after more research, it seems that the ÖKO-Caribe provide transparent trade and high quality (Oko, 2017).

Cuyagua, Venezuela (1 bar): Lastly, Rassmussen’s most recent addition to his list of sourced cacao is his single bar from Cuyagua, Venezuela.  The packaging description for this bar says: ”Pure dark chocolate made from cacao grown by a small cooperative in Cuyagua, located on the northern coast of Venezuela. Deep cocoa notes with subtle citrus and spice.”  In The New Taste of Chocolate by Maricel Presilla, there is an entire page about Cuyagua.  Presilla writes:

“As on other cacao plantations, black ex-slaves eventually acquired the rights to the land. Today tourism is the main industry of Cuyagua, and it is hard to get people to work the farm. But a small cooperative still works a remnant of the old farm, carrying out fermentation and drying next to an old colonial house. The day-to-day work falls on only six men and eight women” (Presilla, 2000).

What I’ve gathered from taking a closer look at these sources is that while Rasmussen does not go into too much detail on his website about the cooperatives and farms he works with, he nonetheless explicitly mentions the farming sources for his cacao.  In general, there is a clear emphasis on cacao origin for Potomac bars, which seems to suggest that Rasmussen has given the topic fair thought.  Unfortunately, this can’t be said for the chocolate world at large.  Lastly, when asked about Fair Trade Certification on Potomac’s Kickstarter page, Rasmussen responded:

“All of my cacao is currently fair trade certified, although I pay a good deal more than the fair trade price…I am also working towards doing more direct trade with the farmers who grow the cacao I use, which results in the farmers making a lot more for their cacao than they would with only fair trade” (Kickstarter, 2017).

 

Marketing

Next, I have found that Potomac chocolate is modestly marketed.  To understand the marketing behind Potomac Chocolate better, I took a trip to three different retailers in the Boston area to see Potomac on the shelves.  My first stop was Formaggio Kitchen in West Cambridge, MA.

Formaggio Kitchen in West Cambridge, MA
IMG_2432Storefront of Formaggio Kitchen in West Cambridge, MA. Personal photo.

While Potomac Chocolate was first on the shelves at Formaggio Kitchen in Cambridge as early as June, 2011, Dan Rasmussen was finally able to visit the shop in March, 2017.  He wrote on an Instagram post:

“I finally got to visit Formaggio Kitchen in Cambridge MA and see my bars on their shelf! Best of all, I got to meet and chat with Julia Hallman who curates their chocolate selection. Julia and Formaggio have been great supporters of Potomac for a long time. They were one of the earliest shops to carry my bars” (Instagram, 2017).

Formaggio Kitchen responded to the post and said: “It was so great to finally meet you in person after all of these years! We love your chocolates and can’t wait to see what comes next!”

IMG_2439A section of the chocolate selection you can find at Formaggio Kitchen.  Personal photo. 

I was able to take a look at this chocolate curation for myself, and I then understood why there was a need for a “chocolate curator” in the first place.  Formaggio Kitchen had the largest chocolate selection of any of the specialty shops I visited.

IMG_2436Potomac Chocolate on the shelves at Formaggio Kitchen. Personal photo.

A closer look at Potomac’s packaging shows the simplicity in its marketing strategy.  Ben Rasmussen has always stood by the statement, “it’s all about the chocolate,” and this is evermore clear in his packaging.  Potomac Chocolate’s packaging is actually in fairly stark contrast to the packaging of other chocolates that you will find on the same shelves. Dick Taylor Craft Chocolate, for example, has a flashier marketing strategy on multiple levels.

IMG_2438A Potomac Chocolate bar next to a Dick Taylor bar in Formaggio Kitchen. Personal photo.

One of the most obvious differences between these two bars is the size.  After taking a measurement of the surface area of covers of each of these bars, I found that the Dick Taylor bar is approximately 47% bigger than the Potomac bar.  However, in terms of actual chocolate content, these bars are much closer to the same size than they appear. The Dick Taylor bar is 57 grams while Potomac bars are just 50 grams, a twelve percent difference.  The Dick Taylor bar obviously must compensate by being thinner than Potomac bars, which gives it the larger appearance.  This is not to say that Dick Taylor is attempting to falsely advertise to their advantage, but it shows that Ben Rasmussen is not concerned with the flashiness of his chocolate.  His initial goal is always to make chocolate that tastes the best, not make the chocolate that sells the best.  Furthermore, Potomac’s design is much simpler than Dick Taylor’s as well as many of the other chocolates found at Formaggio.  Rasmussen has changed his design over time, but it has always been minimal and clean, enough to represent the brand and the origin of the cacao.

potomacpackagingThe five-year evolution of packaging of Potomac’s 70% dark Upala bar. From http://www.potomacchocolate.com

Intended Audience

Dave’s Fresh Pasta in Somerville, MA

IMG_2516Storefront of Dave’s Fresh Pasta in Somerville, MA. Personal photo.

Dave’s Fresh Pasta in Somerville, MA is a specialty food, wine, and cheese shop that primarily specializes in their homemade pasta.  While not quite as glamorous as Formaggio Kitchen’s chocolate section, Dave’s chocolate selection is one of the first things you notice upon entering the shop.  I found many of the same chocolates at Dave’s that I did at Formaggio like Taza and Dick Taylor Chocolate.  However, Dave’s Fresh Pasta also included a wide variety of candy chocolates that I did not find at Formaggio.  As I looked more into Potomac’s marketing, this observation got me thinking about the intended audience for Potomac Chocolate.

IMG_2512The chocolate selection at Dave’s Fresh Pasta, where Potomac can be found in the upper right. Personal photo.

IMG_2546More chocolate found at Dave’s Fresh Pasta. Personal photo.

Potomac Chocolate is a craft chocolate.  This means that it is made on a smaller scale and is handmade from the bean to the bar.  Therefore, Potomac is automatically placed into a different category than the candy chocolates we are all familiar with like Snickers and Milky Way.  Who is Potomac for then?  I answer this question by taking a deeper look at Ben Rasmussen’s own story.  In a blog post from 2010, Rasmussen describes how he once ate almost exclusively Mars’ 3-Musketeers bar (Rasmussen, 2010).  He speculates that he has enjoyed hundreds, maybe even thousands of these bars, and he even remembers strongly disliking dark chocolate. One day, his family decided to have a fine chocolate tasting. Rasmussen realized that his preconception of dark chocolate was quite wrong.  After tasting a variety of dark chocolates, he tried a Hershey bar only to find that it “bore almost no resemblance to chocolate and tasted mostly like a chemical marshmallow.” Rasmussen was, as he put it, “converted to the dark side” from that point on.

Through this juxtaposition, Potomac’s presence in Dave’s Fresh Pasta feels just right. Potomac does not exist in spaces exclusive to craft chocolates, rather it can be found within a few feet of chocolates like the 3-Musketeers at shops like Dave’s.  This observation has salient implications for Potomac Chocolate’s target audience.  Perhaps someone will go to Dave’s Fresh Pasta with the intention of buying a box of Pocky and instead walk out with a Potomac bar, inspired and changed like Ben Rasmussen.  As Potomac was just getting off the ground in 2010, Rasmussen invites anyone to enjoy Potomac chocolate— he wrote:

“We’re really trying to build up a community around Potomac Chocolate Co. of friends and fellow chocolate lovers. We really want you to be a part of this crazy thing.”

Price

Wine Gallery in Brookline, MA

IMG_2535Storefront of Wine Gallery in Brookline, MA. Personal photo.

Wine Gallery in Brookline, MA is a shop for wine, beer, and spirits that strives to have something for everyone.  While 99% of the store is comprised of alcohol, it is hard to miss their Bean-to-Bar section at the checkout counter.

IMG_2532Checkout counter at Wine Gallery in Brookline, MA where Potomac Chocolate can be found in the upper right shelf. Personal photo.

IMG_2534Potomac Chocolate on the shelf at Wine Gallery in Brookline, MA. Personal photo.

At this point, I had seen Potomac Chocolate in three different shops and began to think more about the pricing at these different retail shops.  While there were discrepancies in the prices, Potomac Chocolate was always $8-$9 per bar:

Online price: $9.00 per bar, though there are savings if bought in bulk

Formaggio Kitchen: $8.95 per bar

Dave’s Fresh Pasta: $7.99 per bar

Wine Gallery: $8.50 – $9.00 per bar (as seen above)

Suppose we use the online price of nine dollars, for example.  At 1.76 ounces per bar, buying a bar of Potomac Chocolate costs over five dollars per ounce.  That’s some pretty expensive chocolate— is Ben Rasmussen just trying to make money?  Jennifer Rader with Prince William Living Magazine conducted an interview with Rasmussen, which cleared this question right up (Rader, 2013).  Not only is Potomac Chocolate Rasmussen’s second job, but he explains that finances, time, and production space have all presented challenges for the company.  The company originally got started using Kickstarter, a creative project funding mechanism that allowed supporters to help Rasmussen acquire the necessary equipment to make great chocolate.  Ben Rasmussen does want the company to grow, but he stated in the interview: “I will never allow it to grow too big that I am not involved in at least the flavor development steps…I don’t foresee a time that I’m not doing the roasting.”

In conclusion, I have found that Potomac Chocolate is a great example of a chocolate maker with ethical sourcing, modest marketing, and good intentions. It is my hope that Potomac can be a model for existing and future craft chocolate makers, as this can contribute to a bigger focus on the chocolate itself and a more ethical world.

Works Cited

Acopagro Cooperative. “ACOPAGRO – COOPERATIVA AGRARIA CACAOTERA ACOPAGRO LTDA.” Fair Trade USA. Web. 02 May 2017.

Amistad, Finca La. “Finca La Amistad.” 2017. Web. 02 May 2017.

Coe, Sophie. Micheal D. Coe. “The True History of Chocolate 3rd edition.” 2013. iBooks. 02 May 2017.

Instagram. “Potomac Chocolate.” 2017. Web. 02 May 2017.

Kickstarter. “Potomac Chocolate — Handcrafted bean-to-bar chocolate!” Kickstarter. 2017. Web. 02 May 2017.

Martin, Carla. “Modern Day Slavery.” Lecture. 2017. 02 May 2017.

Oko Caribe. “OKO Caribe, DR – 2016 Harvest.” Uncommon Cacao. 2017. Web. 02 May 2017.

Oro Verde Cooperative. “Mission and vision.” Oro Verde Cooperative. Web. 2017. 02 May 2017.

Presilla, Maricell. “The New Taste of Chocolate.” Hardcover. 2000. Revised Edition. 02 May. 2017.

Rasmussen, Ben. “Potomac Chocolate.” Potomac Chocolate. 2010-2017. Web. 02 May 2017.

Rader, Jennifer. “BEN RASMUSSEN: POTOMAC CHOCOLATE.” Prince William Living Magazine. 2013. Web. 02 May 2017.

 

 

 

 

Does Good Chocolate Exist: an analysis of vertical product differentiation in the market for chocolate

The candy aisle in CVS features a colorful selection of sweet confections ranging from caramels to sour gummy candies. Of course, the most prominent appearance in the confectionery aisle is chocolate – chocolate in fact makes up more than 60% of US confection sales (National Confectioners Association). Within the chocolate category there is further variation in brand, flavor, and quality – marked by differences in prices. In the field of industrial organization (how firms make decisions), we call variation in a category of product that cannot be objectively determined as qualitative difference, horizontal differentiation. Variation that can be objectively determined as qualitatively specified is called vertical differentiation. Chocolate products exhibit both forms of differentiation – it is impossible to agree on the qualitative difference between one brand’s milk chocolate bar and dark chocolate almond bar (horizontal differentiation), but everyone can agree that a craft designed chocolate bar is qualitatively better than a generic Hershey’s bar (vertical differentiation).

In fact, the difference between chocolate candies and chocolate has become a source of great debate of recent, with eleven food producing associations, including the Chocolate Manufacturers Association, the Grocery Manufacturers Association, the Snack Food Association, and the National Cattlemen’s Beef Association, petitioning the FDA to expand the definition of chocolate to include products that use vegetable oils and fats instead of cocoa butter – products which currently must be called “chocolatey” or “chocolate-flavored” (May, 1). The debate speaks to an issue central to the commercial world of chocolate: what makes chocolate, chocolate, and what makes some chocolate objectively better than others? The factors that horizontally differentiate chocolate products simply cater to different tastes, and effectively offer separate subproducts. The vertically differentiated spread however, is more interesting because its factors are significantly more nuanced and shed critical light on the global chocolate industry. This paper will first discuss the chocolate industry’s vertical differentiation strategies, and then critique the assumption that more expensive chocolate is ethically and qualitatively better.

So what goes into the rise in price (upwards of double) from CVS’s chocolates in the candy aisle to those in the “premium chocolates” section just around the corner? First, we see a simple disparity in packaging. The recognizable brown and white Hershey’s bar, orange and yellow Reese’s Peanut Butter Cups, and colorful assortment of M&Ms is contrasted with the sleeker look of the premium chocolate bars. These bars are, impressively, all colored darkly, with gold lettering, or in the case of Ferrero Rocher individually wrapped in gold foil. Many of the bars are described with catch phrases, also in gold lettering, signaling to consumers that their products are superior to classic chocolate candies – Lindt’s “Excellence”, and Chuao’s “Gourmet Handcrafted Chocolate”.

image5

(The candy aisle  in Harvard Square CVS, showing Hershey’s Kisses and Reese’s Pieces in foreground)

image6

(Landscape layout of Hershey’s chocolate bars in candy section)

image1

(Premium Chocolates section around the corner from the candy aisle, notice gold lettering and clean portrait orientation of chocolate bars)

 

Brand/Product Name Price per ounce ($/oz) Motto/Catchphrase Additional Points
Hershey’s 0.47 Made with farm fresh milk “Cocoa is rich in antioxidants”
Reese’s (Hershey) 0.54 Filled with Reese’s peanut butter n/a
M&M’s (Mars) 0.53 Chocolate candies n/a
Lindt 1.14 Excellence, gourmet chocolate “Exotic Fruits” collection
Endangered Species 1.00 Indulge in a cause nonGMO, Fair Trade, gluten free, vegan
Ferrero Rocher 1.05 A tempting combination Individually wrapped in gold foil
Ghirardelli 1.14 From bean to bar Encourages use in cooking with recipes
Chuao Chocolatier 1.89 Gourmet handcrafted chocolate Chef name, master chocolatier’s message

 

Another tactic to show higher quality visually is the inclusion of diagrams, graphics, and special messages on the back of the bars. Ghirardelli bars include a four panel description of the production process “from bean to bar”, claiming that the company’s ability to control each of the steps causes their chocolates to have “ultimate quality”. Every Chuao chocolate bar is detailed with both an autograph from a particular chef, assumed to be involved in the specific flavor of chocolate bar, and a message from the “master chocolatier”. In comparison, the cheaper chocolates have essentially no additional information about the product – the classic Hershey’s Bar simply says “made with farm fresh milk”, Reese’s cups are “filled with Reese’s peanut butter”, and M&Ms are simply described as “chocolate candies”. The most subtle difference in packaging style is likely the orientation of the bar – while the candy chocolate bars are typically oriented landscape (so that when you read the front, the bar is wider than it is tall), whereas every bar in the “Premium Chocolate” section is oriented portrait (so that it is vertically longer than it is wide).

Beyond the fancy packaging, the most expensive chocolates justify their higher prices with claims to better ingredients. On each of the higher end chocolate brand’s websites, stress the importance of using “superior ingredients” in their chocolates. Asides from claiming that the ingredients selected for their chocolates are better than those used in cheaper chocolates, premium chocolates are marketed as having ingredients specifically selected from specific regions around the world. This is especially true for Craft Chocolates, a category of chocolates too luxurious to be included even in the premium chocolates section in CVS. Potomac chocolates for example, which sell at a whopping $5.11 per ounce, are sold in bars horizontally differentiated according to cocoa bean source. Consumers are essentially paying the extra dollars to taste specific regional cocoa beans in their chocolate.

Screenshot 2017-05-05 at 3.59.08 PM

Potomac chocolate bars differentiated according to source of cocoa beans (https://www.potomacchocolate.com/shop/ )

Some chocolates, including Endangered Species chocolate, also adhere to specific dietary demands by highlighting the use of gluten free or vegan ingredients. Although these specifications don’t objectively imply a change in quality of the product, they do appeal to consumers who have specific diets and can afford specific diets.

The final factor that plays into the quality difference across chocolates is the process of chocolate production. As aforementioned, Ghirardelli is especially proud of their control on the entire chocolate-making process “from bean to bar”, so much so that they include a diagram of it on each chocolate bar. The claim here is the same as with many craft chocolatiers – that with the ability to control each step, from roasting the beans, to grinding, to milling, and conching, comes the opportunity to create both a unique and elite product. Although not necessarily a factor into the flavor of the product, many premium chocolates also boast ethically sourced ingredients, organically farmed ingredients, and environmentally conscious processes. Frequent appearances include the simple use of the phrase “ethically sourced ingredients”, Fair Trade certification, nonGMO certification, and USDA Organic. Endangered Species chocolate is not only a brand that displays all of the above certifications, but is also a brand completely devoted to environmental conservationism – particularly the preservation of endangered species, as its name suggests. The company pledges to donate 10% of net profits from its chocolate sales, and each chocolate bar is dedicated to an endangered animal, including interesting information about the animal and its status. The video below describes the process of Endangered Species’ involvement in aiding the recovery of endangered species around the globe.

Though again, saving endangered species has no direct effect to the quality of the chocolate, it adds a side value to the product, so that consumers willingly choose to pay more for the double benefit of chocolate and saving endangered animals.

As presented, there are myriad factors that play into the price spread across chocolates of assumed differentiated quality. We will now evaluate these factors in order to cement whether the most expensive products are justifiably priced as better products than generic chocolate candy bars.

The most noticeable difference between cheap and pricier chocolates, at first glance, is packaging. Aesthetically packaging is obviously a marketing tactic, and to some degree, consumers are paying for a prettier box around the chocolate, with better sounding catchphrases. Although the flowery language may not actually provide useful information about the product, this kind of product differentiation could in fact be an effective method to signal, in an effort to combat market information asymmetry. Information asymmetry is an economic concept describing a transactional state where one or more sides of the transaction is not fully informed about the transaction or product – a market inefficiency that could result in no transactions taking place, even though the buyer and seller could feasibly form an agreement if the necessary information was fully disclosed. Signaling is a strategy that the supplier can utilize to signal to consumers that their product is in fact a high quality product – advertising, for example, signals to consumers that a firm is well-established enough to even afford advertising, and by extension their products must be trustworthy (Investopedia, 1). In the market for chocolate, unless consumers choose to try all chocolate products that exist on the market and determine, by tasting, which products are in fact the best (which is unlikely – consumer behavior tends to favor revisiting familiar products), it is up to chocolate makers to accurately reveal their value to consumers. Spending extra money per bar of chocolate to decorate the bar with fancy text, textured paper, diagrams, and heartfelt messages from the makers of the chocolate signals to chocolate buyers that these products took more effort, money, and care to create, and that thus they must be better than the less-aesthetically wrapped chocolates.

A second claim held by many of the most expensive chocolate brands is superior or specific ingredients. In terms of ingredients, the cheaper chocolates are surprisingly not particularly different from expensive chocolates, when the cheaper chocolate is simply chocolate. However, when a Hershey’s bar adds some peanut butter and becomes a Reese’s Peanut Butter Cup, suddenly ingredients like partially hydrogenated vegetable oil make an appearance – an ingredient which “distorts cholesterol levels, encourages obesity, causes inflammatory conditions, and can even be a cause of infertility” (Collier, 1). Contrarily, expensive brands have significantly shorter ingredients lists, and maintain healthier ingredients even when the flavors become more complicated; for example, Lindt truffles use vegetable oil, but avoid refined or hydrogenated oils. From a health perspective then, plain chocolate (milk or dark) is generally as healthy in cheap chocolates as in expensive chocolates when eaten in moderation, while the chocolates in the more interestingly flavored category are definitely healthier in expensive brands.

The focus on specific sourcing of cocoa beans is a particularly nuanced strategy for vertical differentiation of chocolate. The theory that contextualizing a food infuses the food with another layer of flavor is part of the “psychology of taste” discussed by Carla Martin in her April 19th lecture. In this lecture Martin described the particular contextualizing of a food’s origin as Terroir, or “the set of special characteristics that the geography, geology and climate of a certain place, interacting with the plant’s genetics, expressed in agricultural products”, or simply a “sense of place” (Martin, 4/19). Terroir is a legitimate factor that affects flavor, and products that are able to bring out the Terroir in the chocolate by single-sourcing, simplifying other ingredients or simply bringing the cacao source to attention arguably do in fact offer a unique (and justifiably more expensive) product. There is however an important caveat to the use, or abuse, of Terroir.

Social activist Bell Hooks writes of the problem of “Othering” in Western consumer culture in his work “Eating the Other”, a concept that can absolutely be related to many food industries in the US, including the chocolate industry. In her work Hook describes the use of ethnicity as spice – “when race and ethnicity become commodified as resources for pleasure, the  culture  of  specific  groups,  as  well  as  the  bodies  of  individuals,  can  be  seen  as constituting an alternative playground where members of dominating race […]  affirm  their  power-over  in  intimate  relations  with  the  Other.” (Hooks, 2). For the most part chocolate companies seem to be able to utilize Terroir without objectifying foreign culture, but the line between an appreciation for source and the commodification of other cultures is grey and difficult to clearly draw. It is important that chocolate firms don’t simply repeat the chocolate industry’s historical trend of cultural appropriation, slavery, and exploitation, by commodifying a region of the world and its inhabitants as a flavor.

The final category of factors that seem to affect chocolate quality is the use of ethically and environmentally conscious processes. The goals behind certifications like USDA Organic, Fair Trade and other ethical trade certifications are generally ethically fantastic goals, like environmental conservation and the abolition of child slavery in cacao farms. However the efficacy of each certification is not always straightforward. In an April 5th lecture Carla Martin described a list of problems with Fair Trade, including problems with product quality, issues with corruption and favoring richer farmers, harming farmers who don’t have access to Fair Trade, and ethical questions in marketing (Martin, 4/5). Other trade organizations like Direct Trade and the organizations to which Endangered Species Chocolate donate face similar critiques. In addition, a Fair Trade and USDA Organic certification does not necessarily imply that the entire product is completely fairly traded and organic, because they allow products to have categoric certifications with certain percentages of fairly traded or organic ingredients. These certifications then, don’t necessarily imply that a product is 100% ethically, environmentally, and economically conscious. Regardless of actual effect, products marketed as being certified by one or more of these organizations appeal to the goodwill of consumers, and take advantage of a “feel good” factor in consumer “taste” preferences.

Perhaps unsurprisingly, not all of the factors assumed to boost chocolate products’ value are as ethically conscious or environmentally helpful as they seem to be. However, in general, high-end chocolates are in fact healthier and better quality products, and are signaled as such with more extravagant packaging, leaving cheaper chocolate confections to rely on consumer familiarity to continue to sell. At first glance, attention to details in production processes, Terroir, and side goals (like animal and environmental concerns) seem to simply be added to “spice” up products; which would be horizontal differentiation and not justifying of higher prices. However there is some backing to added value in elements of taste idolized by haute cuisine, like Terroir and a sense of doing good in the world. Ultimately, prices are determined by consumer demand, and it seems consumers are becoming increasingly excited buyers of premium chocolates, as demand for premium chocolates is currently growing at 11% – the largest sector of growth in the confection market (Zhang, 1). Although preferences for the chocolate we find in the candy aisle will likely always exist, and the quality and ethical concern of the best chocolate is not quite perfect, the increased awareness for issues in the chocolate industry and higher expectations for product quality reflected in this consumer sector growth is encouraging. Chocolate can only get better.

Sources Cited

Collier, Andrew. “Deadly Fats: Why are we still eating them?”. Independent UK. 9 June 2008. Web. 05 May 2017. <http://www.independent.co.uk/life-style/health-and-families/healthy-living/deadly-fats-why-are-we-still-eating-them-843400.html&gt;

Hooks, Bell. “Eating the Other: Desire and Resistance.” Black Looks: Race and Representation. PDF. 1992.

Investopedia. “Signaling Approach”. Investopedia. Web. 05 May 2017.<http://www.investopedia.com/terms/s/signallingapproach.asp&gt;

Martin Carla. Lecture. April 5, 2017. Chocolate, Culture, and the Politics of Food. Harvard University.

Martin, Carla. Lecture. April 19, 2017. Chocolate, Culture, and the Politics of Food. Harvard University.

May, Cybele. “Hands off my chocolate, FDA!” Los Angeles Times. 19 April, 2007. Web. 05 May 2017. <http://www.latimes.com/la-oe-may19apr19-story.html&gt;

National Confectioners Association. “Data & Insights”. Web. 05 May <2017. https://www.candyusa.com/data-insights/>

Zhang, Yu. “5 Facts About the Chocolate Industry.” Reynolds Center. National Center for Business Journalism, 12 Oct. 2016. Web. 05 May 2017. <http://businessjournalism.org/2016/10/5-facts-about-the-chocolate-industry/&gt;.