Tag Archives: mondelēz international

The Sticky and Complicated Future of Chocolate

the modern mocha is a bittersweet concoction of imperialism, genocide, invention, and consumerism served with whipped cream on top.”[1] ― Sarah Vowell

Humorist Sarah Vowell captures much of the history of chocolate (and coffee) in this little quip. However, the history of chocolate is long and its social, economic, and political implications are vast. Putting the positive impacts of invention aside, the negative impacts of imperialism and consumerism more than linger. They have resulted in gross economic inequities and lasting environmental and social damage, particularly in the production end of the cocoa supply chain. It’s going to take the force of consumerism and capitalism to right these inequalities and bring about sustainability.

Approximately 70% of the world’s cocoa is produced in West Africa by small farms spread out across the area. In the 1980s cocoa farmers received approximately 16% of the chocolate profits, today this percentage has been greatly reduced to 3%.[2] Cocoa farmers are not organized and have little bargaining power against more organized buyers.

Profit shared on cocoa supply chain
Figure 1: Farmers share of chocolate profits is small and has been in decline since the 1980s when global cacao prices were regulated. In the 1980s farmers were receiving around 16% of the chocolate profits. Martin, Carla D. “Introduction.’” Chocolate, Culture, and the Politics of Food. Harvard Extension School: Cambridge, MA. 24 Jan. 2018. Class Lecture. [3]
The 2018 Cocoa Barometer highlights the many challenges for cacao farmers, including volatile pricing. From September 2016 – February 2017, farmers experienced a 30%-40% decline in income (Ghana farmers were protected by this price drop through government subsidies). Although prices are on the rise again, the overall trend the past 60 years is a decline in prices (see figure 2). With farmers having little, to no, protection from their governments they are hardest hit by market fluctuations, while others on the value chain will see an increase of their profit margins, even if only temporary.[4]

2018 Cocoa Barometer Long-term cocoa price trends
Figure 2: The average production of Ivorian cocoa in the seasons 2010/11, 2011/12, 2012/13, 2013/14, 2014/15 and 2015/16 was around 1,600,000 metric tonnes (mt). Cocoa production in 2016/17 and 1017/18 is around 2,000,000 mt, an increase of about 400,000 mt. (ICCO Quarterly Bulletins) The overproduction in 2016/17 was around 300,000 metric tonnes, according to the ICCO Quarterly Bulletin, Volume XLIV no 1, page 50, table 1.[5] Fountain, A.C. and Hutz-Adams, F. Cocao Barometer Report. 2018.http://www.cocoabarometer.org/Cocoa_Barometer/Download_files/2018%20Cocoa%20Barometer%20180420.pdf
Farmers in West Africa make well below a living wage of $2.51 per day, averaging $0.78 per day (FairTrade).[6] The Cocoa Barometer asserts that the price drops are directly related to improved production due to new farming areas created from deforestation. More than 90% of West Africa’s original forests are gone.

An estimated 2.1 million children work in West African cocoa fields. Structural issues such as poverty, lack of schools, and infrastructure also contribute to the high levels of child labor.[7] Efforts in the past few decades to end child labor, preserve the environment, and to balance these inequities have been challenging and difficult to measure. Currently, third party certification bodies have been the only levers toward implementing and measuring sustainability efforts as well as signals to consumers as to where, and how, their chocolate products are sourced.

Major Certification Bodies
Three major certification bodies associated with cocoa. Note Utz and Rainforest Alliance has merged and will announce new standards in late 2019 for the New Rainforest Alliance.

The three main certification entities are Fairtrade, Utz and the Rainforest Alliance. Fairtrade Standards are designed to support the sustainable development of small producer organizations and agricultural workers in the poorest countries in the world.[8] Similarly, Utz certification was created to show consumers that products were sustainably sourced. Rainforest Alliance certification meant farmers met rigorous environmental and social standards.[9] In January 2018, Utz merged with the Rainforest Alliance. The New Rainforest Alliance plans to publish a singular program at the end of 2019.[10]

Certification and bean-to-bar efforts in the specialty chocolate market have many success stories, but compared to the global consumption of chocolate, these efforts have only made a dent.[11] The Fine Cacao and Chocolate Institute (FCCI) reports, with caveats intended to illustrated the challenges of obtaining this data, that there are 481 specialty chocolate makers and manufacturers worldwide that represent approximately 6% of the annual global production of cacao.

International Cocoa Organization, ICCO, ultrapremium cacao, fine cacao, bulk, certified
Figure 3: Ultrapremium fine and Fine cacao comprises 246,000 tonnes (6%) of the 4,031,200 tonnes of cacao produced annually (ICCO 2015). [12]
The FCCI defines this market segment as those chocolate makers and manufacturers that choose to purchase specialty cacao at a premium price for purposes of taste quality and/or sustainability reasons.[13] Within this small group, sustainability is but a factor in paying the price premium, but not necessarily a primary factor. In order for sustainability initiatives to have any meaningful impact to cocoa farmers the major chocolate manufacturers need to take the lead and invest in best practices throughout their supply chain that address the environmental, social, and economic challenges their farmers face.

Cocoa Barometer, Certified Cocoa, 2017, Mondelez International, Nestle, Mars, Hersheys, Ferrero, Lindt und Sprungli
Figure 4. Data kindly provided by the companies. Fountain, A.C. and Hutz-Adams, F. Cocao Barometer Report. 2018. http://www.cocoabarometer.org/Cocoa_Barometer/Download_files/2018%20Cocoa%20Barometer%20180420.pdf

Recent Commitments by the Majors / Certifications & Goals

Mondelēz International (a subsidiary of Kraft)
Chocolate Brands: Cadbury, Alpen Gold, Côte d’Or, Toblerone, etc.
Certification provided by FLOCERT through a private labeling partnership.

In 2012 Mondelēz International invested $400 million to create its Cocoa Life program. The program plans to empower 200,000 cocoa farmers and one million community members by 2022. In April 2018 Mondelēz International reported that they have reached 120,500 cocoa farmers, in a variety of programs and they reached 35% certified cocoa.[14]

Mondelēz  International, Cocoa for Life, 2017 Progress
Figure 5: Cocoa Life infographic showing Mondelēz 2017 Progress in Numbers. Includes increases in sustainably sourced cocoa and reach to farmers and communities from previous year.[15]
Cocoa Life is tied to the UN Sustainability Development Goals (SDGs), with an emphasis on Goals 1 (no poverty), among others. Cocoa Life has partnered with local governments and NGOs to build community-centric Child Labor Monitoring and Remediation Systems (CLMRS), which educate farming communities on the dangers of child labor, identify children at risk, and remediate cases with its local partners. Cocoa Life CLMRS programs have started in Ghana and continue to increase. Roll out of CLMRS in Côte d’Ivoire will begin in 2018. Nestlé has also implemented CLMRS program into its sustainability programs.[16]

Mondelēz, CLMRS, 2017
Figure 6: Child Labor Monitoring and Remediation Systems (CLMRS) deployed by Mondelēz International in 2017 with plans to ramp up in 2018.[17] Mondelēz International. Cocoa Life 2017 Progress Report: From Cocoa Farmers to Consumers Connection Both Ends of the Supply Chain. P. 21. April 2018. Web. April 2018. https://www.cocoalife.org/~/media/CocoaLife/en/download/article/Cocoa_Life_Progress_Report_2017.pdf

Nestlé
Chocolate Brands: Smarties, Nestlé Crunch, Butterfinger, KitKat, etc.
Certifications: Utz and Fairtrade

In their detailed, first report (2017), co-authored with the International Cocoa Initiative (ICI), Nestlé asserts that certification is not enough and that additional support for the farmer is needed. In fact, Nestlé asserts that certification drove the issue of child labor “underground” as farmers would hide any child laborers when inspectors came around.[18] While Mondelēz set up CLMRS in Ghana, Nestlé set up its CLMRS in Côte d’Ivoire and report a 51% reduction of child labor in a recent sample of 1,056 children over a two-year period. [19]

Nestle, Child Labour, Child Labor, 2017 Corporate Responsibility Report
Figure 7: Nestlé targets child labor by its Child Labor and Monitor Remediation Systems (CLMRS) in Côte d’Ivoire. Nestlé hopes to scale the successful parts of the program to meet the goals of its Cocoa Plan.[20]
Nestlé is also investing in Community Liaison People (CLPs) to educate the community of the dangers of child labor. They are targeting women and mothers as they are more likely to invest their income and education into their family. The CLPs are local young people who are paid to train and the cost of the CLPs are split between Nestlé and the farmer. Remediation is highly individualized, but these activities are ones Nestlé continues to invest.[21] Nestlé hopes to scale their more successful initiatives to meet the goals of its Cocoa Plan, which is set to reach 57% cocoa certification by the end of 2020.

Nestle, CLMRS, Child Labour Monitoring and Remediation System, ICI, International Cocoa Initiative
Figure 8: An overview of how Nestlé’s Childe Labour Monitoring and Remediation System (CLMRS) works by engaging the community, assigning monitors, monitoring, reporting, validation, analysis, recommends remediation, remediation carried out by partners, monitoring continues ensure remediation is carried out.[22]  Nestlé. Nestlé Cocoa Plan Tackling Child Labour 2017 Report. Web. P.23 April 2018. https://www.nestlecocoaplanreport.com/sites/default/files/2017-10/NestleCocoaPlanReport2017_EN_0.pdf
Nestle, Cocoa Plan, CLMRS, Certified Cocoa
Figure 9: Infographic on Nestlé Cocoa Plan Challenges and Ambitions in CLMRS program reach and tonnes of certified cocoa.[23] Nestlé. Nestlé Cocoa Plan Tackling Child Labour 2017 Report. Web. P.49 April 2018. https://www.nestlecocoaplanreport.com/sites/default/files/2017-10/NestleCocoaPlanReport2017_EN_0.pdf

Ferrero
Chocolate Brands: Ferrero Pralines, Nutella, Kinder Chocolate
Certification is conducted by Utz, Fairtrade, and Rainforest Alliance.[24]

According to its 2016 Social Responsibility Report Ferrero has made a commitment to 100% certified cacao by 2020 and 75% by the end of 2018.[25]

Ferrero, Sustainability Report, Certified Cocoa
Figure 10: Ferrero touts its success toward reaching its certification goals.[26] Ferrero. Sharing Values to Create Value Corporate Social Responsibilty Report 2016. Ferrero. Web. P. 170 https://s3-eu-west-1.amazonaws.com/ferrero-static/globalcms/documenti/2807.pdf
In its April 2018 Cocoa Barometer reports Ferrero is 70% certified (figure 4), and by its own reporting, on track to meet its goal of 75% cocoa certification (figure 10).

Ferrero reports partnerships with cacao cooperative ECOOKIM, the largest in Côte d’Ivoire, which takes part in the Fairtrade Africa program “It Takes a Village to Protect a Child.” Similar to CLMRS, the program establishes a Child Labor Committee to raise awareness about child labor, create child protection policy, and monitor activity at the community level. Ferrero reports that 9,413 children benefitted from this program. [27]

Ferrero also works with Save the Children to work toward ending child labor. It reports 1.2 million children are forced to work in hazardous conditions, however, Ferrero has set relatively modest goals of reaching 500 children, 7,500 members of 10 communities, and 100 representatives of local institutions.[28]

Ferrero, Save the Children, Cocoa, Sustainability, Community Development
Figure 11: Ferrero reports modest results on in their efforts to address child labor.[29]   Source: Save the Children, December 2016 – Protection des enfants vulnérables dans les communautés productrices de cacao dans le département de Soubré en Côte d’Ivoire – Ajournement pour Ferrero. Ferrero. Sharing Values to Create Value Corporate Social Responsibilty Report 2016. Ferrero. Web. P. 182 https://s3-eu-west-1.amazonaws.com/ferrero-static/globalcms/documenti/2807.pdf
In January Ferrero announced it planned to acquire Nestlé’s U.S. confectionary business for $2.8 billion in cash making Ferrero the third largest confectionary company in the U.S.[30] It is anticipated that Ferrero will realign their sustainability goals after the acquisition of Nestlé, but their goals are currently similar.

The Hershey Company
Popular Chocolate Brands: Hershey’s Chocolate Bar, Cocoa, Kisses, and Baking chocolates, Kit Kat, Almond Joy, Mounds, Reese’s, York.
Certification is conducted by Utz, Fairtrade, and Rainforest Alliance.[31]

Hershey, Open source map, cocoa farms, sustainability, transparency
Figure 12: Hershey Source Map for Reese’s Peanut Butter Cups. Pictured above is a zoomed in version of W. Africa. Users can zoom in and view the name of Cocoa Coop, educational location, or an area they obtain cocoa. The map also shows locations around the world for ingredients such as milk and sugar, plus other sources of chocolate in South American. Hershey also has a source map for its Hershey’s Milk Chocolate with Almond Bars. [32] https://open.sourcemap.com/maps/589e10c1e4bac0b357bc3d5f
Hershey, Sustainablity Goal
Figure 13: Hershey reports its on track to reach its goal of 100% certified cocoa by 2020.[37]   The Hershey Company. 2016 Corporate Social Responsibility Report. 2017. Web. April 30, 2018. p. 27. https://www.thehersheycompany.com/content/dam/corporate-us/documents/csr-reports/2016-hershey-csr-report.pdf
In its 2016 Corporate Social Responsibility Report, The Hershey Company highlights progress in their Learn to Grow agriculture and empowerment program, serving 48,300 farmers in West Africa.[33] The report also highlights its Energize Learning program, which provides Vivi energy bars to students improving overall nutrition. The program is a partnership with the Ghana School Feeding Program and Project Peanut Butter and 50,000 kids in Ghana receive 50,000 Vivi bars every day.[34] Hershey also partnered with The World Cocoa Foundation’s (WCF) Climate Smart Cocoa Program to address climate change impacts to cocoa growing regions. The partnership will pilot a series of programs to develop “climate-smart” best practices to inform the Learn to Grow curriculum and through Hershey’s CocoaLink program knowledge sharing between farmers will be allowed via low-cost mobile technology.[35] Hershey’s report indicates that it is on schedule to reach its 100% certified goal by 2020.[36] In April 2018 the Cocoa Baramoter reports Hershey reached 75% (see figure 4). Also in April 2018, Hershey announced the creation of its Cocoa for Good sustainability programs

Beyond certification, Cocoa for Good seeks to address the most pressing issues facing cocoa-growing communities. The strategy is to target four key areas: increase family access to good nutrition, elimination of child labor and increase youth access to education opportunities, increase household incomes for women and men, zero deforestation and increased agroforestry. The announcement came with a $500 million commitment by 2030 and like Mondelēz International and Mars, aligns its strategy to contribute to the goals of the United Nations Sustainable Development Goals.[38]

Mars
Chocolate Brands include: M&M, Snickers, Twix, Dove, Milky Way, etc.
Certification is conducted by Utz, Fairtrade, and Rainforest Alliance.

In September of 2017, Mars announced its Sustainable in a Generation Plan, with a pledge to invest $1 billion over the next few years to address threats such as climate change, poverty in its value chain, and scarcity of resources.[39] This is across all their raw products, not just cocoa. Oxfam will serve as an advisor to their Farmer Income Lab, which aligns with the United Nations Sustainability Development Goal 1 (no poverty). The Farmer Income Lab will seek to create solutions through research for farmers working in Mars’ supply chain in developing countries.[40] Other actions include improving cocoa farming methods, pests and disease prevention, and unlocking the cocoa genome.[41] Engagement with others actors in the cocoa industry is also key, such as the World Cocoa Foundation and CocoaAction. Mars’ Chief Sustainability & Health and Wellbeing Officer, Barry Parkin, also serves as Chairman of World Cocoa Foundation.

Mars, Cocoa Sustainability
Figure 14: Mars identifies that 5 million cocoa farmers are impacted, but focuses mainly on addressing technology issues in farmer in a belief it will fix the social challenges that farmers face, such as a extreme poverty, child labor, and infrastructure concerns included in other sustainability plans.[47]
Mars may lay claim as the first major chocolate company to commit to 100% certified chocolate by 2020, but its progress has lagged, reporting 50% of their cocoa being certified in 2016[42] and the same percentage being reported by the cocoa barometer in 2018 (figure 4). During this same time frame Ferrero and Hershey have demonstrated increases in certification of cocoa reporting 70% and 75% certificated cocoa, respectively (figure 4).[43] Their website lacks a corporate social responsibility report and the information available on their site appears to be written in 2016, except for recent press releases and Income Position Statement.[44] For example Mars’ claim to be the only major manufacturer to work with all three major certification organizations Utz, Rainforest Alliance, and Fairtrade International is outdated.[45] Hershey and Ferrero include these bodies in their 2016 sustainability reports.

Until the recent announcement of Sustainable in a Generation Plan, Mars’ approach, as described on their website, leans more toward improving farmer yield through technology (fertilizer, farming techniques, mapping the cacao genome) than increasing living wages and address child labor. A press release by Frank Mars in April 2018 urges collaborative scientific approach and extolls their work on breeding higher yield cocoa plants for improving farmer incomes.[46] However, higher yields do not always improve farmer incomes. As previously mentioned, the recent Cocoa Barometer report suggests that higher production results in driving down price, thus less income for farmers. Perhaps Mars’ real progress is tied to the progress of the World Cocoa Foundation.

World Cocoa Foundation (WCF) and CocoaAction

CocoaAction is a voluntary industry-wide organization that aligns the world’s leading cocoa and chocolate companies, cocoa producing governments, and key stakeholders on regional priority issues in cocoa sustainability run by the World Cocoa Foundation (WCF). The WCF member companies committed to CocoaAction include Mondelēz International, Nestlé, Ferrero, The Hershey Company, Mars, Incorporated, among others.[48] In November of 2017 a Framework of Action was announced by the WCF with the governments of Côte d’Ivoire and Ghana and major chocolate and cocoa companies to end deforestation, restore forest areas, and accelerate investment in long-term sustainable production of cocoa, and the development and capacity-building of farmers’ organizations and farmer’s income. Commitments also include participation of policy creation by farmers and extensive monitoring and reporting. The Framework of Action involves governments and companies that represent 80% of the global cocoa production and usage.[49] If implemented correctly, these commitments should go a long way in repairing the deforestation in West Africa. 

The Future of Chocolate

These efforts are welcome and it is promising that the majors can successfully  collaborate with governments, NGOs, and each other in the important effort to secure the future of chocolate and those that produce it. It is also encouraging to see the major manufacturers release sustainability reports, however, as barometer.org reports, many of their commitments fall well short compared to the actual scope of the problem. The commitment to reach 400,000 children by 2020 would only impact 18% of children in need (figure 15). Similarly meeting commitments to help farmers in CocoaAction would only reach 15% of farmers in need (figure 15). Regarding living income, farmers are only making $0.78 per day, 31% of the living wage of $2.51 per day (figure 15). The Cocoa Barometer report stresses that a living wage, among other factors, is a major component that these initiatives must include in their sustainability initiatives. From available data, all reports aspire to improve farmer income, either by improving productivity or identifying additional income generating activities. However, these plans do not set a living wage as a goal. As mentioned earlier in this article more production doesn’t always result in more income.

Cocoa Barometer, Scale of solutions vs problem, Cocoa Sustainability, CLMRS, CocoaAction, Cocoa Farmer
Figure 15: Scale of solutions vs. scope of the problem. The data for this infographic was publicly available in the case of CocoaAction and Fairtrade. The International Cocoa Initiative graciously provided their data. The authors of the Barometer do not wish to imply that these organisations are doing an insufficient job, but simply that the scale of the interventions chosen by the sector as a whole are dwarfed by the size of the challenges.[50]   Fountain, A.C. and Hutz-Adams, F. Cocao Barometer Report. 2018. http://www.cocoabarometer.org/Cocoa_Barometer/Download_files/2018%20Cocoa%20Barometer%20180420.pdf
The future of chocolate depends on the fate of cocoa farmers and their fate relies on untangling a mess of social and economic issues caused by imperialism, and exacerbated by free market capitalism and consumerism. The goals set forth in these reports are generally headed in the right direction, but their success is dependent on their ability to make their initiatives successful, then scale up on that success. Accountability and transparency among the industry and at the government level is also paramount to measure the effects of these initiatives. Consumers also have a role in making responsible purchases and applying pressure on corporations and governments to minimize inequality in the supply chain and certification plays an important role. If farmers continue to be marginalized, then there will be little incentive for a younger generation of farmers to take up the trade and chocolate may become a rare treat indeed.

 

Works Cited:

[1] Vowell, Sarah. The Partly Cloudy Patriot. Simon & Schuster. New York, New York. October 2002. p. 42

[2] Martin, Carla D. “Introduction.” Chocolate, Culture, and the Politics of Food. Harvard Extension School: Cambridge, MA. 24 Jan. 2018. Class Lecture.

[3] Ibid.

[4] Fountain, A.C. and Hutz-Adams, F. Cocao Barometer Report. 2018. Web. p. 11. April 2018. http://www.cocoabarometer.org/Cocoa_Barometer/Download_files/2018%20Cocoa%20Barometer%20180420.pdf

[5] Ibid. p. 52.

[6] Ibid. p. 6.

[7] Ibid. p. 3.

[8] Fairtrade. Aims of Fairtrade Standards. Web. May 8, 2018. https://www.fairtrade.net/standards/aims-of-fairtrade-standards.html

[9] The Rainforest Alliance. What Our Seal Means. Web. May 8, 2018. https://www.rainforest-alliance.org/

[10] Utz. Joining Forces: Utz and the Rainforest Alliance. April 24, 2018. Web. May 9, 2018. https://utz.org/merger/#QA_merger

[11] Fountain, A.C. and Hutz-Adams, F. Cocao Barometer Report. 2018. p. 6. http://www.cocoabarometer.org/Cocoa_Barometer/Download_files/2018%20Cocoa%20Barometer%20180420.pdf

[12] Martin, Carla. “Sizing the craft chocolate market.” Fine Cacao and Chocolate Institute (blog). August 31. 2017. Web. April 25, 2018. https://chocolateinstitute.org/blog/sizing-the-craft-chocolate-market/.

[13] Ibid.

[14] Mondelēz International. Cocoa Life 2017 Progress Report: From Cocoa Farmers to Consumers Connection Both Ends of the Supply Chain. P. 2. April 2018. Web. April 2018. https://www.cocoalife.org/~/media/CocoaLife/en/download/article/Cocoa_Life_Progress_Report_2017.pdf

[15] Ibid. p. 5

[16] Ibid. p. 21

[17] Ibid. p. 21

[18] Nestlé. Nestlé Cocoa Plan Tackling Child Labour 2017 Report. Web. P.24 April 2018. https://www.nestlecocoaplanreport.com/sites/default/files/2017-10/NestleCocoaPlanReport2017_EN_0.pdf

[19] Ibid. p. 22

[20] Nestlé. Introducing our first report on tackling child labour in cocoa. Web. April 2018. https://www.nestlecocoaplanreport.com/

[21] Ibid. 37

[22] Ibid. p. 23

[23] Ibid. p. 49

[24] Ferrero. Sharing Values to Create Value Corporate Social Responsibilty Report 2016. Ferrero. Web. P. 171 https://s3-eu-west-1.amazonaws.com/ferrero-static/globalcms/documenti/2807.pdf

[25] Ibid. p. 170

[26] Ibid. p. 170

[27] Ibid. 175

[28] Ibid. p. 181

[29] Ibid. 182

[30] Ferrero. Ferrero to Acquire Nestlé’s U.S. Confectionary Business. January 16, 2018. Web. May 9, 2018. https://www.ferrero.com/group-news/

[31] The Hershey Company. Our Certified Ingredients. Web. April 30, 2018. https://www.thehersheycompany.com/en_us/responsibility/good-business/responsible-sourcing.html

[32] Hershey. Hershey’s Milk Chocolate with Almonds Open Source Map. Zoom View. Web. April 2018. https://open.sourcemap.com/maps/589e10c1e4bac0b357bc3d5f

[33] The Hershey Company. 2016 Corporate Social Responsibility Report. 2017. Web. April 30, 2018. p. 11. https://www.thehersheycompany.com/content/dam/corporate-us/documents/csr-reports/2016-hershey-csr-report.pdf

[34] Ibid. p. 23

[35] Ibid. p. 12

[36] Ibid. p. 27

[37] Ibid. p. 27

[38] Hershey. Hershey Announces Cocoa For Good, the Company’s Half-billion Dollar Sustainable Cocoa Strategy. April 4, 2018. Web. April 30, 2018. https://www.thehersheycompany.com/content/corporate/en_us/news-center/news-detail.html?2340764

[39] Mars. Unveiling Our Sustainble in a Generation Plan. Sept. 5, 2017. Web. May 9, 2018. http://www.mars.com/global/press-center/newsroom/newsroom/unveiling-our-sustainable-in-a-generation-plan

[40] Farmers Income Lab. Challenges. Web. May 9, 2018. https://www.farmerincomelab.com/

[41] Mars. Income Position Statement: The Current Situation. Web. May 9, 2018. http://www.mars.com/global/about-us/policies-and-practices/income-position-statement

[42] Mars. Caring for the Future of Cocoa Out Approach. 2016. Web. April 2018. http://www.mars.com/global/sustainable-in-a-generation/our-approach-to-sustainability/raw-materials/cocoa

[43] Fountain, A.C. and Hutz-Adams, F. Cocao Barometer Report. 2018. http://www.cocoabarometer.org/Cocoa_Barometer/Download_files/2018%20Cocoa%20Barometer%20180420.pdf

[44] Mars. Caring for the Future of Cocoa Out Approach. 2016. Web. April 2018. http://www.mars.com/global/sustainable-in-a-generation/our-approach-to-sustainability/raw-materials/cocoa

[45] Ibid.

[46] Mars. Frank Mars Calls for the Cocoa Industry to Take a Collaborative Scientific Approach to Cocoa. April 26, 2018. Web. May 9, 2018. http://www.mars.com/global/press-center/newsroom/frank-mars-cocoa-collaboration

[47] Mars. Cocoa: Caring for the Future of Cocoa, Our Approach. Web. April 2018. http://www.mars.com/global/sustainable-in-a-generation/our-approach-to-sustainability/raw-materials/cocoa

[48] CocoaAction. World Cocoa Foundation. Web. April 2018. http://www.worldcocoafoundation.org/about-wcf/cocoaaction/

[49] World Cocoa Foundation. Two-thirds of Global Cocoa Supply Agree on Actions to Eliminate Deforestation and Restore Forest Areas. Nov. 2017. Web. April 2018.

[50] Fountain, A.C. and Hutz-Adams, F. Cocao Barometer Report. 2018. http://www.cocoabarometer.org/Cocoa_Barometer/Download_files/2018%20Cocoa%20Barometer%20180420.pdf

Moving to Mars: Climate Change and Cacao’s Undying Lov

Two hours. That is the amount of time I spent scouring databases and newspaper articles attempting to find scientific (or non-scientific) evidence that would demonstrate the importance chocolate has in our world today. More specifically, I was looking for something titled Chocolate: The Most Significant Food in History. The best I could find was a TIME.com article titled “9 Weirdest Uses for Chocolate.” It was very insightful. However, when considering the amount of chocolate that is produced and consumed in the world each year, the picture of importance starts to become more clear. For businesses and consumers, chocolate and cacao is a great product, and in high demand. For producers and farmers, it is an important cash crop and essential to survival.

Figure 1.

Producing and Consuming

Source: http://www.oecd.org/swac/publications/39596493.pdf

The relevance and importance chocolate and cacao cultivation have on the world economy cannot be understated. According to the International Cacao Organization (ICCO,) the world’s top ten chocolate producing companies did $80 billion USD in sales in 2017. (https://www.icco.org/about-cocoa/chocolate-industry.html) Even beyond the money and global markets, there is a great deal of cultural significance that could never be quantified. The World Cocoa Foundation estimates that Cacao directly affects the livelihoods of approximately 50 million people (http://www.worldcocoafoundation.org/our-work/programs/). For chocolate lovers, the news that climate change could significantly impact our access to chocolate was devastating. Major players such as MARS Inc. have made significant investments for this eventuality, and are looking to be prepared for changes in the cacao marketplace. This will undoubtedly have significant impacts on the producers of cacao and encourages a deeper look at methods to adapt the farming and production practices.

Chocolate might go away?

Despite the fear-mongering on the internet, this is not totally accurate. It is important to point out that cacao will not be going extinct anytime soon. It will, however, face a potentially sharp and significant decline in production. This means that by 2050, you may have less access too chocolate than you do at this very moment. My advice is to stock up.

Cacao trees really depend on very specific criteria to be met in order for them to grow, thrive, and produce fruit (Lecture). Cacao can essentially only be grown when the right conditions are met. Those conditions apply to which areas in the world cacao can grow in, the temperature it prefers, and the surrounding plants that shield and shade it. The picky nature of Theobroma cannot be understated.

The challenge that the world’s cacao producers are facing is climate change. Those very specific conditions are projected to be harder to meet in the very near future. According to the National Oceanic and Atmospheric Administration (NOAA,) West African countries will experience an increase in evapotranspiration (Smith, 2016). Essentially, the amount of water plants will be able to retain will decrease due to higher temperatures. This will have an impact on what areas will later be suitable to grow cacao. Figure 2 highlights the estimated change in temperature in Africa’s top cacao producing regions according to research done by Peter Läderach and his team.

Figure 2.

Temp change

Source: Atlas on Regional Integration in West Africa

With 70% of the world’s chocolate finding its origin in western African countries like Cote d’Ivoire, a decrease in production from West Africa would have a worldwide impact. (http://www.oecd.org/swac/publications/39596493.pdf) For several countries that fall within the West African cacao belt, Cacao is the number one agricultural export. Any decline could potentially result in major economic impacts for those countries (Läderach, Martinez-Valle, Schroth, & Castro, 2013; Schroth, Läderach, Martinez-Valle, Bunn, & Jassogne, 2016). It would also result in consequences for the natural habitats and cacao growing regions of these states. The research that has been done in Ghana and Cote d’Ivoire has indicated that by 2050, almost 90% of the current farmland would be unsuitable to grow cacao, with only a 10% increase in suitability. This is alarming as the vast majority of cacao production in Africa, and worldwide, stems from this region.

Figure 3

cacao production

Source: Lecture slides

Additionally, this new farmland comes at a cost. That is to say, in order to capitalize on other areas that will be suitable to grow cacao, countries facing this challenge will have to sacrifice environmental conservation (Läderach et al., 2013). This still would not make up for the amount of farmland lost to the temperature increases, while contributing to the factors that influence climate change.

While a decrease in African production would have global consequences, it is unlikely that climate change will eliminate chocolate and cacao production. As cacao grows around the globe, we can expect it will continue to be around. One of the concerns currently is that it is very likely that other regions around the world will have to pick up the slack. And that is a lot of slack! With the top cacao producing countries losing close to 90% of suitable cacao growing areas, it is unclear at this point where it is possible to make up for this loss. Without an answer in the next 20-30 years, chocolate will likely be much less of a household item than it was the last 100 years.

Let’s move to Mar’s…Inc.

According to the Candy Industry’s 2017 Global Top 100 list, Mar’s Inc. is the world’s top-grossing candy company. In 2017, their net sales topped $18 billion USD! (https://www.candyindustry.com/2017-Global-Top-100-Part-4) With earnings like that, it is not difficult to understand the level of investment and commitment the company would have to the preservation of chocolate production.

mars

Source: https://pxhere.com/en/photo/794479

Mars Inc. has put their money where their mouth is…or rather, where the chocolate is. They have invested in a project run by the Innovative Genomics Institute, in an effort to ensure future production of cacao. So far they have pledged $1 billion USD to creating sustainability and reducing their footprint, and this includes the CRISPR project. The goal of the project is not to specifically save cacao production, but rather to combat diseases in humans and plants (IGI 2018). Lucky for us, Theobroma Cacao is a plant. Winning! Well, maybe. The CRISPR technology is aimed at altering the genes of plants in order to make them resistant to disease. So this might not really help West African farmers who will lose cacao growing areas. By investing in this technology, Mars Inc. hopes to expand the possible areas cacao can be grown in.

As it stands today, different diseases and insects make in very difficult to grow and produce cacao. It is estimated that about 40% of the crops in the Americas are lost to fungal infections like witches’ broom (Shapiro & Shapiro, 2015). By increasing the natural resistance of the fruit-bearing trees, the average yield would increase 3 fold. This means that places that have been traditionally very difficult to produce cacao in could now become production centers. This would effectively reduce the impacts on chocolate manufacturers if the climate predictions do create impediments to cacao production in West Africa.

In a recent story done on the use of CRISPR technology, scientists working with IGI explained the advancements they have made in changing the genes of many crops that are prone to disease. They explain that they have already used the technology to create a solution for the swollen shoot virus that plagues cacao trees. (Schlender, 2018)

Source: https://www.voanews.com/embed/player/0/4332190.html?type=video

The technology works so quickly that IGI can have plants develop the desired traits within one generation! This is very good news for chocolate lovers. Assuming everything works out. The plants that have and will undergo this process will need to be researched extensively before they can be consumed by the public. This will ensure that people eating these modified crops do not grow an extra set of toes afterward.

This past year, Mars Inc. also made a significant investment in addressing climate change, planning to cut its own carbon emissions by two-thirds. A big part of this investment will be assisting farmers in improving their yields while simultaneously reducing pressures underlying deforestation. The idea is that the more a farmer can produce from their crops, the less land they will need to do it (Madson, 2017). This investment totals $1 billion USD and has been proposed to be completed by 2050.

Other chocolate giants such as Cadbury and Mondelez have also become a part of developing solutions for creating sustainability in cacao farming. Mondelez International’s non-profit arm, Cocoa Life, is focused on improving the lives of farmers in cacao-growing regions around the world. (https://www.cocoalife.org/the-program/approach) With increased commitment from large organizations with vast resources, it is possible to combat the potential effects of climate change.

What about the little guy/gal?

While it appears that Mars Inc. has likely stumbled upon a viable solution to their future issue of supply, what about the small-holders. The potential to move cacao production elsewhere is not great news for all parties involved. It is possible that genetic modification could potentially change under what conditions cacao trees thrive. However, it is unclear if this route could help the trees overcome evapotranspiration in the projected West African environments. It is very probable that this cash crop could find a new capital in other region or regions in other parts of the world. For the millions of farmers who are vulnerable to this threat, this is a challenge they will be forced to adapt to.

There are organizations such as the Rainforest Alliance who are working toward preparing farmers, equipping them with new strategies to protect their crops. The strategy being used is called Climate-Smart Agriculture, and in principal focuses on the specific needs of the specific farm (de Groot, 2017). Cacao farmers using this tactic would conduct a needs assessment of their farm, and create a plan that directly corresponds to the challenges that are unique to them. Some of the strategies include planting shade trees, as well as developing water retaining systems to prepare for droughts. While these will improve overall yield from these farms, it is unclear at this point how these tactics will far against climate change.

The tactic of planting shade trees is, however, a recommended strategy for those who fall in the Western African cacao belt. Currently, the farming trend has been to reduce the shade on cacao farms, however, this may no longer be an option. By increasing the shade of the cacao trees, the temperatures of its leaves could drop up to 4 °C (Läderach et al., 2013). Not only could this help protect cacao cultivation in Western Africa, it also helps to increase crop diversification. If done correctly, this would make cacao farmers less vulnerable to changing temperatures and less frequent rainfall. A downside to this recommendation is the limitation on the amount of water available during the dry season. The increase in plant life means less water to satisfy the needs of the cacao trees, and potentially losing the entire crop.

Conclusion

Chocolate is important. It directly impacts the lives of people around the world, in ways that transcend taste. For some, it is a highly desired treat, and for others, it is a means of opportunity. The effects of climate change have given all sides of the cacao industry a wake-up call to the importance of sustainable farming and improving our carbon footprint. Large organizations have begun to change the way they operate in the world, by reducing their emissions and helping to improve farming practices. Climate change could result in significant impacts on the cacao industry the world over. Reducing the amount of product available for purchase, and decreasing the available wages that can be earned in regions that are the most affected. Scientists, chocolate companies, and cacao farmers are starting to come together in an attempt to better the practices in this very important industry. Each has a role to play to play in this improvement, as well as the preparation for effects climate change will play in cacao and other vital crops.

 

Sources:

de Groot, H. (2017). Preparing Cocoa Farmers for Climate Change. Retrieved May 9, 2018, from https://www.rainforest-alliance.org/article/preparing-cocoa-farmers-for-climate-change

Läderach, P., Martinez-Valle, A., Schroth, G., & Castro, N. (2013). Predicting the future climatic suitability for cocoa farming of the world’s leading producer countries, Ghana and Côte d’Ivoire. Climatic Change, 119(3–4), 841–854. https://doi.org/10.1007/s10584-013-0774-8

Madson. (2017, October 27). Climate change could hurt chocolate production » Yale Climate Connections. Retrieved May 10, 2018, from https://www.yaleclimateconnections.org/2017/10/climate-change-could-hurt-chocolate-production/

Schlender, S. (2018). New Gene Editing Tool May Yield Bigger Harvests. Retrieved May 10, 2018, from https://www.voanews.com/a/crispr-for-bread-chocolate/4330647.html

Schroth, G., Läderach, P., Martinez-Valle, A. I., Bunn, C., & Jassogne, L. (2016). Vulnerability to climate change of cocoa in West Africa: Patterns, opportunities and limits to adaptation. Science of The Total Environment, 556, 231–241. https://doi.org/10.1016/j.scitotenv.2016.03.024

Shapiro, H. S., Howard-Yana, & Shapiro, H. S., Howard-Yana. (2015). The Race to Save Chocolate. https://doi.org/10.1038/scientificamericanfood0615-28

Smith, M. (2016). Climate & Chocolate | NOAA Climate.gov. Retrieved May 9, 2018, from https://www.climate.gov/news-features/climate-and/climate-chocolate

 

Green & Black’s: Ethical Chocolate, Corrupt Connections

Green & Black’s, a popular bean to bar company offers a chocolate bar completely outside of the realm of the common candy bar. However, the company’s outward ethical stance is at odds with the practices of its parent company Mondelēz International. Green & Black’s believes in a bean to bar ethical standard, meaning they expect co-manufacturers, partners, and sources to uphold certain standards in terms of wages and labor expectations. Green & Black’s marketing centers on their ethics; this is emphasized by their grassroots origin story. According to their website, Green & Black’s, founded in 1991 by Craig Sams and Jo Fairley, launched with a mission to create chocolate with the finest and most sustainable sourcing principles (Green & Black’s: Our Story). Craig Sams, founder of organic food company Whole Earth, was sent a sample of 70% dark chocolate made from organic cocoa beans. He left the half-eaten bar behind, only for his wife Jo Fairley to try it. They fell in love with the taste and set out to sell it to others. Today, Green & Black’s has a wide collection of bars, which are “all expertly crafted with hand-selected, ethically sourced cocoa beans” (Our Story). Green & Black’s were the UK’s first Fair Trade chocolate bar and in 2012, they launched Cocoa Life, a “third party verified cocoa sustainability program” which they certify their bars with (Green & Black’s: Responsibility). The chocolate industry is inundated with bars from major manufacturers that do not offer ethical verifications, no not present an upscale image, and do not offer transparency in their sourcing. Thus, Green & Black’s stands out among  the  common cheap candy bar. However, the Green & Black’s ownership by Cadbury and Mondelēz International (formerly Kraft Foods) undermines the company’s brand. While Green & Black’s seems to offer an ethical choice to consumers, it’s ownership by major manufacturers cheapens it’s brand by tying it to chocolate companies with possible unethical practices.

 

Green & Black’s gourmet chocolate offerings are full of variety. They offer bars under the categories of “dark,” “milk,” “organic,” “white,” “salted,” “nuts,” “caramel,” “fruit,” “mint,” “toffee,” and “ginger.”  With around 17 different bars, Green & Black’s flavors extend from 70% dark to pure milk chocolate to dark with raspberry and hazelnut (Green & Black’s: View Chocolates). Promoting the quality of their products, Green & Black’s writes the green “symbolizes our commitment to always sourcing ethical cocoa” and black stands for “our high quality and the delicious intensity of our chocolate” (Our Story). With an organic line, Green & Black’s successfully creates candy that caters to the rising interest in organic foods. Organic foods are foods grown without pesticides, fertilizers, or other chemicals (Martin Lecture: Alternative Trade). Foods that do not carry the organic label may possibly use these products in agricultural production, or in other stages of manufacturing. These chemicals can be environmentally dangerous. Claire Williamson writes that “organic food has become an increasingly popular choice for consumer over recent years with salves of organic food increasing tenfold in a decade” (Williamson 231). Green & Black’s organic line thus targets specifically those consumers who buy in the interest of avoiding potentially contaminated food, despite the insufficient amount of studies to suggest that conventionally produced food have worse nutritional value (Williamson 234). However, Green & Black’s ensures that part of its audience includes organic food buyers through their products, which sharply contrasts the typical convenient store chocolate bar brand.

 

In addition to Green & Black’s variation in flavor and target demographic, the company further separates itself from traditional candy by its branding; Green & Black’s distinguishes itself through its narrative, advertising, and packaging. A Green & Black’s bar is a refreshing new take on chocolate, as the use of bright colors, intense flavors, certification stamps, and luxurious designs in its website and social media elevate the bar as a gourmet item and not simply a snack food. Green & Black’s achieves this image through its marketing. Packaging, in particular, relates to food intake (Argo and White 67). The colors and shape of a package influence a consumer’s decision to buy it, by making consumers believe it tastes better (Miller). For example “the yellow hue of a 7Up can make the soda taste more lemon-y” (Miller). Thus, Green & Black’s takes advantage of this psychological phenomenon. Their packages use bright colors with bold fonts. Some of the bars are packaged in paper rectangles, giving the bar a more upscale exterior. The look of a Green & Black’s bar is luxurious and high end, when compared to Snickers or M&M bag.

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Source:  blogspot

In chocolate packaging, visual cues and promotional cues have a “direct positive significant effect in the buying influence of chocolates” (Shekhar and Raveendran 55). Indeed, Green & Black’s takes advantage of the power of color – the most important too for “emotional expression of a package” (Shekhar and Raveendran 56). Shekhar and Raveendran argue that in chocolate packaging the size, shape, and color influence the consumer’s decision to buy. Green & Black’s stands out for its use of elegant black combined with bright colors that suggest refined taste but also gourmet flavoring. Shekhar and Raveendran conducted a study of chocolate buyers and found that students were influenced in purchasing chocolate based on visual cues alone.

 

Green & Black’s chocolate is thus a completely stand out brand. The offerings are diverse, have exciting colors, and their promotional websites and social media brand them as a fine chocolate. However, Green & Black’s packaging further works to attempt accurately represent their ethical stance as well, through certification stamps. The cocoa life and fair trade certification suggest the company engages in ethical practices and works to invest in community development projects (Fair Trade America). However, given the little knowledge consumers have about fair trade and other certifications, Green & Black’s packaging comes off as simply a lifestyle and aesthetic choice for consumers, rather than an ethical choice. For example, Green & Black’s’s Instagram page @greenandblacks has no posts referring it’s certifications or ethical processes. Instead, the Instagram is a lifestyle page of bright colors, coffee cups, fruit bowls, and plants next to chocolate bars. What the Green & Black’s’s Instagram page seems to be selling is not simply chocolate, but a way of life. The biography states, “Green & Black’s create delicious ethically sourced chocolate from the finest ingredients” (@greenandblacks). But a typical posts celebrates Easter or Father’s Day and suggests that followers buy Green & Black’s to celebrate the holiday. Indeed, the branding of Green & Black’s confuses the message of ethically-sourced and organic food by instead promoting a lifestyle full of bright colors and upscale food.

Screen Shot 2018-05-03 at 3.21.45 PM.png
Source: Instagram

 

In Raising the Bar: The Future of Fine Chocolate, Pam Williams and Jim Eber suggest that the finest part of fine chocolate is the packaging alone. This is because defining premium chocolate is a grey area (Willams and Eber 168). There is no expectation for cacao percentages bean quality, or location of the chocolate source. Truly, Green & Black’s premium label is a work of personal brand and not simply fact.

 

While Green & Black’s is distinct for its bright colors and certifications, the company holds ties to business that is not as ethical as Green & Black’s claims to be. In 2005, Cadbury bought Green & Black’s and it became part of Mondelēz International (formerly Kraft foods). Both Mondelez and Cadbury have a poor record in sustainable and ethical chocolate sources. NGO Might Earth found that Mondelez was using cocoa grown illegally in protected areas in the Ivory Coast and Ghana (Chocolate’s Dark Secret). In certain areas, the actions of the companies have led to massive deforestation – a study by Marius Wessel and Foluke Quist-Wessel found that the search for new land to accommodate the increasing cocoa production in Côte d’Ivoire and Ghana has led to “large-scale deforestation” as farmers establish new farms in the forest zone (Wessel and Quist Wessel). Since then, however, Mondelez has lead the private sector in forming initiatives to combat deforestation through a Cocoa Life program (Mondelez International). According to a 2015 press release on the Mondelez website, Cocoa Life is a “$400 million investment to empower 200,000 smallholder farmers and create thriving cocoa communities in Côte d’Ivoire and five other cocoa origins. Through Cocoa Life, Mondelēz International will participate in Côte d’Ivoire’s national REDD+ program to support the country’s bold ambition to reach zero-net deforestation in cocoa” (Mondelez International).

mondelez-international_416x416.jpg
Source: Forbes

 

Although Mondelez is acknowledging deforestation and working to fix it, it’s impact and practices in the region are a stain on the company that now connect it with Green & Black’s. In its report, Might Earth notes that “in West Africa, chocolate is rare and unaffordable to the majority of the population. Most Ivorian cocoa farmers have never even tried chocolate” (Chocolate’s Dark Secret). Mighty Earth underscores the biggest hypocrisy in big chocolate business – that the regions in which major companies create chocolate are the same ones that suffer from its worst environmental impact while simultaneously, the farmers there are not able to enjoy the products they create. Wessel and Quist-Wessel offer to companies proposing to make change: “take also into account aspects of the rural infrastructure such as education, health, and roads and access to credit and inputs” (Wessel and Quist Wessel). Additionally, their analysis pushes for companies to find advancements that allow more cocoa to be grown on less land as climate change and increasing demand for production will have a “negative impact on the size of the present cocoa growing area” (Wessel and Quist-Wessel).

 

Recently, Green & Black’s has also adopted the Cocoa Life stamp for their products. However stamps such as Cocoa Life, while they represent great investments in sustainable food sources, further confuse consumers. Increasingly, more companies are establishing their own forms of certification for their products.  However, this undermines Fairtrade through alternative certifications that simply confuse consumers. For example, Mars established a certification plan. Other certifications include Fair for Life, UTZ Certified, and Rainforest Alliance. However, customers who already don’t understand Fair trade, are negatively affected by this. More certifications lead to disinterest and an unwillingness to understand the differences between the certifications. In 2011, NPR Morning Edition argued that Fair Trade labels confuse coffee drinkers, particularly as what is “fair trade” evolves (Carpenter). The Guardian agrees that Fair Trade is confusing and broad, referencing a survey of 1,000 shoppers conducted by consumer group “Which?” (Smithers). According to the survey, “seven out of 10 UK customers “admitted they would pay more attention to the environmental impact of the foods they buy if labels were clearer and more meaningful” (Smithers).  Green & Black’s “Cocoa Life” only adds to this problem. Fair Trade labels are poorly understood and there are far too many of them for consumers to keep up. The survey also found that “Nearly half the respondents (47%) said there were already too many things to think about already without worrying about the environmental impact of the food they buy” (Smithers). Thus, consumers cannot be left to understand the growing landscape of Fair Trade certifications. It should be on Green & Black’sand Mondelez International to make it clear on their packages what exactly “Cocoa Life” means. At face value, the label looks promising to consumers who look for certifications, however, consumers do not actually understand what separates one form of certification from another.

Fair-Trade-logos.png
Source: MediaFairTrade.org

Ultimately, Green & Black’s stands out as a fine chocolate maker with ethically and sustainably sourced cocoa. Despite this, Green & Black’s suffers from many of the same failures of the major chocolate and candy sellers: they contribute to a business that confuses it’s buyers. Their marketing strategy is more of a lifestyle brand and their use of bright colors attracts buyers more interested in design than content. Additionally, Green & Black’s parent company does not leave them controversy-free; they must work to overcome environmental and economic damage that their products have caused in particular regions.

 

Sources:

Carpenter, Murray. “Fair Trade Labeling May Confuse Coffee Drinkers.” NPR, NPR, 30 Nov. 2011.

“Fairtrade America.” Fairtrade Certified Coffee – Fairtrade America.

“Chocolate’s Dark Secret: Investigation Links Chocolate to Destruction of National Parks.” Mighty Earth, 29 Mar. 2018.

Martin, Carla. Course Lecture: Alternative Trade AAAS 199x: Chocolate. 2018

“Mondelez International to Lead Private Sector Action in Côte D’Ivoire’s Program to Combat Deforestation.” Mondelēz International, Inc., ir.mondelezinternational.com/news-releases/news-release-details/mondelez-international-lead-private-sector-action-cote-divoires.

“Our Story | GREEN & BLACK’S Our Story.” Green & Black’s, us.greenandblacks.com/our-story.

Shekhar, Suraj Kushe, and P. T. Raveendran. “Chocolate Packaging and Purchase Behaviour: A Cluster Analysis Approach.” Indian Journal of Marketing, vol. 43, no. 6, 2013, p. 5., doi:10.17010/ijom/2013/v43/i6/36388.

Smithers, Rebecca. “Food Labelling Confuses Ethical Shoppers, Says Survey.” The Guardian, Guardian News and Media, 27 Sept. 2010.

Wessel, Marius, and P.m. Foluke Quist-Wessel. “Cocoa Production in West Africa, a Review and Analysis of Recent Developments.” NJAS – Wageningen Journal of Life Sciences, vol. 74-75, 2015, pp. 1–7., doi:10.1016/j.njas.2015.09.001.

Williams, Pam, and Jim Eber. Raising the Bar: the Future of Fine Chocolate. Wilmor Pub., 2012.

Williamson, Claire. “Organic Food: Is It More Nutritious?” Practice Nursing, vol. 19, no. 5, 2008, pp. 231–234., doi:10.12968/pnur.2008.19.5.29218.

Images:

http://w-duffy0912-dc.blogspot.com/2011/03/green-blacks-products.html

https://www.forbes.com/companies/mondelez-international/

https://www.instagram.com/greenandblacks/

http://stage.mediafairtrade.org/fair-trade/

Chocolate Lessons: Knowledge Gleaned from Chocolate Bars Sold in the Natural Foods Aisle

On average, Americans consume 12 pounds of chocolate per person each year or a little less than a quarter pound of chocolate per week. A typical chocolate bar ranges from 1.5-3.5 ounces. Therefore, 12 pounds of chocolate equates to enjoying 55-128 chocolate bars (depending on its size) per year! It is safe to say, for better or for worse, chocolate has become an integral part of the American diet.

Historically, chocolate was consumed for medicinal purposes, primarily as a source of nourishment and energy. Today, the developed world struggles with being simultaneously over nourished and malnourished from an imbalanced diet. Nevertheless, chocolate health claims persist, usually in reference to darker chocolates. Beneficial properties of cocoa include antioxidant, cardiovascular, and psychological enhancement, which are linked to its polyphenol, flavanol, and caffeine content (Castell, Pérez-Cano, and Bisson, 2013). These health claims are not present on chocolate bar labels, though.

In the last couple of decades, food packaging has actually become quite informationally dense. How can you sift through all of the information on chocolate labels to know what’s really important? Additionally, what can we learn from a chocolate bar’s packaging, besides its nutritional content? The goal of this blog post is to help decipher the various symbols, certification meanings, and key words that appear on chocolate wrappers.

Ultimately, you, as the consumer, have to decide what is important to you and what you are looking for in your chocolate purchases, not only in terms of taste but also social responsibility. Equipping yourself with the knowledge to know what to look for, and what symbols, certifications, and other words on chocolate packages mean, makes informed chocolate purchases a much smoother process and ensures you have the best chocolate buying experience possible. Before chocolate tasting can become embodied knowledge, it requires repetition in order to pick up on flavor nuances of single origin chocolate or to be able to tell if a chocolate bar was made with over-roasted cacao beans. In the same way, learning the stories and processes behind the chocolate you are eating requires some research, occasionally beyond the label itself.

I studied the chocolate bars in the natural foods aisle of a Stop & Shop grocery store in the greater Boston area to see what information could be gleaned from the chocolate labels within this section. I did not include enrobed chocolate candies within this aisle, “regular” chocolate bars (i.e., Hershey’s) in the main candy aisle or those present in the checkout lanes. I chose to focus on the chocolate bars within the natural foods aisle because, typically, these brands offer more information and stories about cacao procurement, processing, and its impact on people or the environment, whereas chocolate produced by most Big Five brands only provide nutritional information on the back of the wrapper. The Big Five chocolate brands include well-known companies: Hershey, Mars, Cadbury, Nestle, and Ferrero (Allen, 2010).

The type of consumer who shops for chocolate in the natural foods aisle is most likely not just looking for a sugar fix because there are cheaper ways to meet that need. The intended audience includes individuals who may be interested in supporting social or environmental causes, and who are probably health conscious, even though it is still chocolate. Additionally, he or she may have a sophisticated or informed palate, and prefer quality chocolate with nuanced flavors. The natural foods aisle typically offers products that are slightly more expensive than its conventional counterparts, so the consumer is not making his or her choice of chocolate based solely on price point. Rather, the consumer possibly has a higher disposable income and is able to spend two or three times as much money on a chocolate bar from this section than on chocolate from one of the large chocolate corporations previously mentioned.

The natural foods aisle in Stop & Shop offers eight different brands of chocolate bars: Chocolove XOXOX, Green & Black’s, Divine, Theo, TCHO, LILY’s, Endangered Species Chocolate, and Alter Eco. These bars are being sold for $2.50-$3.99, with Chocolove XOXOX being the cheapest because it was on sale. Divine, LILY’s, and Alter Eco lands at the upper end of the options. The TCHO 70% dark chocolate bar usually retails for $4.29, but happened to be on sale. Still, these are moderately priced “good” chocolate bars compared to other specialty chocolate companies and retailers who sell their bars for about double the price. The juxtaposition of these brands, with a $1.00 (or less) Hershey’s chocolate bar, provides an interesting comparison in both price and taste.

The eight brands offer bars in a variety of flavors ranging from 34% milk chocolate to 85% dark chocolate with the option of added fruit or nut pieces. The white chocolate selection was nonexistent in this section at this particular grocery store. However, just for informational purposes, one brand (outside of the eight focused on here) does contribute a white chocolate peanut butter cup.

Just a few of the brands provide chocolate bars made from single origin cacao, which might be a more common provision at specialty retail stores. Both TCHO and Divine use Ghanaian cacao, and Alter Eco sources its cacao beans from Ecuador. Chocolove XOXOX states on the back of the wrapper that their Belgian chocolate bars are crafted with African cocoa beans. This somewhat vague statement only alludes to the fact that their beans do not come from Central or South America, or Southeast Asia but could be sourced from one or more of the cacao producing countries within the large continent of Africa. Additionally, Green & Black’s credits Trinitario cacao beans for giving their chocolate a rich and unique flavor profile. Trinitario cacao beans are thought to embody the best qualities of its genetic parents, the Criollo and Forastero varieties, with the hybrid cacao being both hardy and possessing a nice flavor profile (Prisilla, 2009). Likewise, the purpose of brands specifying single origin or the use of a single cacao variety suggests an increase in quality or flavor characteristics that add value to the end product. Thus, the price of these types of bars is usually slightly higher compared to mixed bean origin or variety, and especially compared to bulk cacao.

There are a few things that stand out upon taking a closer look at the packages. First, Alter Eco is the only brand that uses a cardboard packaging to house its chocolate. All of the other brands wrap their bars in a glossy paper. In both cases, the chocolate is likely sealed in foil before receiving either the glossy paper or cardboard outer wrapper. While the outer cardboard layer looks visually appealing and feels nice to the touch, it also makes the bar appear larger than it actually is. The 2.8 ounce Alter Eco chocolate bar looks bigger than the 3 ounce LILY’S bar sitting next to it on the shelf, as the image shows below. Thus, most consumers probably believe they are purchasing a larger chocolate bar if they do not read the front of the package and realize the chocolate bar is smaller by weight than some other options.

FullSizeRender-2 2
Alter Eco 2.8 ounce chocolate bar

Like several other brands, Theo includes a brief description about the company and their procurement and processing practices on the back of the package. Here, Theo shares it is a bean to bar chocolate company, which means the company purchases the fermented and dried cacao beans, and then carries out each of the remaining processing steps (about 10) from roasting to packaging, according to their unique preferences. Thus, the company oversees the entire chocolate making process and can tweak each batch according to its needs and the desired outcome, making it a true craft.

Green & Black’s label does not readily offer information about the company’s processing practices other than it uses fair trade and organic ingredients. Interestingly, the backside of the label does say Mondelez Global LLC distributes Green & Black’s chocolate bars. Mondelez is one of the largest global snack food companies and now owns Cadbury, one of the Big Five chocolate companies. Last year, Mondelez even attempted to acquire the Hershey Company, but Hershey declined the offer (Bukhari, 2017). Thus, Mondelez is a significant player within the global food system. This association alone may deter some consumers from purchasing Green & Black’s chocolate.

Another unexpected but perhaps pioneering find is LILY’s, whose chocolate bars are sweetened with the natural sweetener, Stevia, and erythritol, a sugar alcohol. Additionally, LILY’s adds inulin, a fiber commonly used as a bulking agent. These are not traditional chocolate bar ingredients, but perhaps the fewer calories and grams of sugar allow individuals with specific dietary restrictions to still purchase fair trade chocolate. The bar also boasts that it is still “100% indulgent.”

Before dissecting the chocolate bars’ various certifications, I want to look at Divine’s commitment to its producers. In the West, chocolate consumption has long been feminized, associated with temptation and indulgence (Robertson, 2009). Women are important as both chocolate consumers and producers, something Divine has recognized. The two images above depict Divine’s pledge to support the female cacao farmers within Kuapa Kokoo (cocoa co-operative) in Ghana and make sure their voices are heard. In doing so, these female business owners are positioned as powerful actors within the cacao and chocolate industries, rather than being viewed as exploited workers in an underdeveloped country (Leissle, 2012). This has significant implications not only for the female producers, but also culturally, and for future standards within the chocolate industry.

This final section includes a brief discussion on food certifications. Fair trade certification is the most popular certification that the eight brands feature. Other certifications that appear on the chocolate wrappers include USDA Organic, Non-GMO Verified, Certified Gluten-Free, Certified Vegan, Kosher (dairy), Fair for Life, and rBST free. I was surprised I did not find the UTZ Certified symbol on any of the chocolate bars, since UTZ is the most common cacao certification related to sustainable farming practices.

Fair trade certifications can be represented in a variety of ways depending on the party providing the certification. The images above show several different certifications present on the different brands’ packaging that symbolize the employment of fair trade practices. In order for a product to be labeled “fair trade,” all members of the processing chain (including producers) must pay into the fair trade system. As a result, producers are promised better trading conditions including long term relationships with buyers, garner presumably higher wages, have better working conditions, and live overall improved lives. However, many question whether this system is as transformative as it claims to be. The terms “fair trade” and “sustainable” have become ubiquitous, and the commodification of the terms also threatens their legitimacy (Sylla, 2014).

When thinking about food certifications, it is important to remember these certifications are neither all encompassing nor meant to solve all social or environmental issues with one label. Companies are now starting to launch their own certifications rather than going through a third party certification. It will be up to the individual company to define the criteria for “fair” or “sustainable,” or any new term it deems important. Whole Foods already uses its “Whole Trade Certified” label. Consequently, continuing to be an educated consumer will be extremely imperative in order to know what the certifications represent and what the companies stand for. It is unclear whether these self-certifications will be viewed as legitimate certifications or just add to the confusion many consumers feel when reading food labels.

While the objective of self-certification is to offer more affordable fair trade items to consumers, it raises the question of whether that should be the ultimate goal of selling fair trade products, and what the tradeoffs are for making fair trade more affordable and part of the mainstream? If large food conglomerates begin to self-regulate certifications, rather than paying third party companies, who is to say the consumer will actual benefit from the money saved? Historically, when the price of goods has dropped, large corporations scoop up the difference and pocket the extra profits, rather than decreasing the cost for the consumer (Albrittion, 2013). However, consumers still have the power to vote with their dollars.

The next time you peruse the chocolate selection within a store, feel empowered to study the information provided on the packaging (and conduct further research if needed) rather than being overwhelmed by various symbols and industry jargon.

 

**All images were taken by the author

 

Works Cited

Albritton, Robert. 2013. “Between Obesity And Hunger: The Capitalist Food Industry”. In Food And Culture: A Reader, 3rd ed., 342-352. New York: Routledge.

Allen, Lawrence L. 2010. Chocolate Fortunes: The Battle For The Hearts, Minds, And Wallets Of China’s Consumers. New York: American Management Association.

Bukhari, Jeff. 2017. “Why Investors Are Bingeing On Snack-Maker Mondelez”. Fortune.Com. http://fortune.com/2017/02/22/why-investors-are-bingeing-on-snack-maker-mondelez/.

Castell, Margarida, Francisco Jose Pérez-Cano, and Jean-François Bisson. 2013. “Clinical Benefits Of Cocoa: A Review”. In Chocolate In Health And Nutrition, 1st ed., 265-276. Humana Press.

Leissle, Kristy. 2012. “Cosmopolitan Cocoa Farmers: Refashioning Africa in Divine Chocolate Advertisements.” Journal of African Cultural Studies 24 (2): 121-139. http://dx.doi.org/10.1080/13696815.2012.736194

Prisilla, Maricel E. 2009. The New Taste of Chocolate: A Cultural and Natural History of Cacao with Recipes. 1st ed. Berkeley: Ten Speed Press.

Robertson, Emma. 2009. Chocolate, Women, and Empire: A Social and Cultural History. Manchester: Manchester University Press.

Sylla, Ndongo Samba. 2014. The Fair Trade Scandal: Marketing Poverty To Benefit The Rich. 1st ed. Athens, Ohio: Ohio University Press.

Engineering Sustainable Pleasures: Cacao, Environmentalism, and Toblerone

“[Sustainability:] It’s the right thing to do, it’s the smart thing to do, it’s the profitable thing to do.”

— L. Hunter Lovins, founder of Natural Capitalism Solutions

The world of cacao production is no stranger to the trials and tribulations of sustainable yet profitable agricultural practices. Known as a particularly finicky species, cultivators of the Theobroma cacao have not only had to get creative in their farming practices in order to produce a sustainable and profitable yield of crops under less-than-ideal growing conditions, but are now feeling the brunt of climate change effects. With the list of ‘double-edged’ compensating agricultural controls (such as plantation-style (or bulk growing) farming, broad-spectrum pesticides, fertilizers, and deforestation techniques) used to equalize the rapidly changing environmental conditions continuing to grow (Martin, 2016), environmental best practices are anything but widespread in cacao producing regions. Recognizing the inseparability of sustainable agricultural and environmental practices and the financial security of cacao farmers, international chocolate companies are beginning to step-up to the social responsibility plate and take action to ensure the long-term success of the cacao supply chain in the global marketplace. Partnering with the Ivorian government’s Conseil du Café Cacao (CCC) and  non-governmental organizations such as CARE International and Cocoa Life in 2013, Mondelēz International, Inc. – home of multi-billion dollar chocolate brands such as Toblerone and Cadbury – launched a virtuous consumership initiative to “help farmers increase sustainable cocoa production and create thriving communities in Côte d’Ivoire” (Mondelēz International, 2013, para. 1).

What’s come to be known as “the world’s most successful triangle” (Meyer, 2015), Jean Tobler’s iconic, pyramid-shaped chocolate bar debuted in 1899, Switzerland, to instant consumer success, and has continued to be on the forefront of cutting-edge product marketing and consumer trends:

Toblerone has always been a unique product in terms of its shape and history. However, you can only be successful in the long term if you nurture brand values…anticipate trends…invest in the brand and understand that sustainability is a part of the brand. We also have to prove this year for year with Toblerone. And in the end this is the basis for our success. (Meyer, 2015, para. 5)

Despite the fact that even today, every single Toblerone bar exported throughout the world is still manufactured from the company’s single chocolate factory in Bern-Brünnen, Switzerland, the company’s virtuous consumership marketing strategy for increased environmental sustainability has had global reach with consumers looking to reduce their ecological footprint. In a 2008 advertisement released by Toblerone, the company’s marketing team rather ingeniously employed the bar’s legendary triangular packaging and similarly unique notched chocolate contents to seamlessly integrate with a classically engineered concrete bike rack.

toblerone_ad5jpg
(Toblerone Bike Rack, 2008)

Stationed in front of a bright green grassy plot outside a somewhat nondescript yet modern building of complementary identity/branding colors, the Toblerone bike rack  visually pops in the advertisement’s foreground, but fits comfortably and warmly within its setting. With its close framing, it’s difficult to get a true sense for the exact geographical location of the scene, but one could surmise it plays to a relatively affluent, modern and present-day, progressive and caucasian audience in Europe or North America, with the very presence of the bike rack playing to a consumer with a social conscience around sustainable transportation. The seamless incorporation of the Toblerone design to horizontally bleed into the bike rack’s actual functional design seems to directly lobby for the consumer to ‘support a company that supports sustainable environmental practices.’ With the bike slots both harnessing the likeness of the chocolate bar itself and bursting out directly from the chocolate packaging, Toblerone appears to be literally grafting its brand values via its branding to the larger conversation around climate change and aligning itself with the growing trend of sustainability (Martin, 2016) in cacao production.

It was with and in the same spirit of Toblerone’s 2008 environmentalist bike rack advertisement that the below chocolate advertisement was created.

SP-Toblerone-Solar-Farm

In looking to harness the same visual, stylistic, and marketing aims of Toblerone’s bike rack advert, the above scene depicts a farm utilizing solar panels, closely integrating and grafting the company’s packaging design into the functional element of the solar panels. Playing again on complementary branding colors of the red barn and lush green grass, the Toblerone tube visually pops in the advertisement’s layout, but fits comfortably and warmly within its setting. Also targeted toward a present-day, progressive audience, this ad sets itself more rurally, directly addressing both a farming/agricultural constituency, as well as the socially conscious consumer aiming to reduce their environmental footprint. Horizontally integrating the design of the product into the design of the solar panel also directly correlates Toblerone brand values via its branding to the larger conversation around climate change; the narrative urging the consumer to directly ‘invest in a company that invests in the planet.’

Never a stranger to thinking and thriving ‘outside the box’ since 1899, Toblerone and its parent company appear to be getting-in on the ground floor of the growing environmental sustainability and virtuous consumership trends in cacao, and their message is not only landing with the consumer, but having a widespread impact on the communities it was intended to aid: Mondelēz International’s February 2016 report on its Cocoa Life sustainability program shows a reach across “six cocoa-growing origins…Ghana, Côte d’Ivoire, Indonesia, Dominican Republic, India and Brazil…[totaling] 76,700 farmers in over 795 communities…[with] farmers’ incomes tripl[ing] since 2009…[and] cocoa yield[s] increased [by] 37 percent” (Mondelēz International, 2016, para. 1-2).

Bibliography:

Martin, C. D. (2016, February). Lecture 4: Sugar and cacao. E-119: Chocolate, Culture, and the Politics of Food. Lecture conducted from Harvard University, Cambridge, MA.

Meyer, D. (2015, February 26). The world’s most successful triangle. Retrieved from http://www.procarton.com/worlds-successful-triangle/

Mondelēz International. (2013). Mondelēz international launches cocoa life sustainability program in côte d’ivoire [Press release]. Retrieved from http://www.mondelezinternational.com/Newsroom/Multimedia-Releases/Mondelez-International-Launches-Cocoa-Life-Sustainability-Program-in-Cote-dIvoire

Mondelēz International. (2016). Mondelēz international reports strong progress in cocoa life sustainability program [Press release]. Retrieved from http://www.mynewsdesk.com/dk/mondelez-danmark/pressreleases/mondelez-international-reports-strong-progress-in-cocoa-life-sustainability-program-1324940

Toblerone. (2008). Toblerone Bike Rack [Online image]. Retrieved from http://ffffound.com/image/b74bb4a5230276175e6c54c83e9e0d4c25b9f722

Toblerone [Toblerone]. (2016, February 26). ‘Break the boundaries of your world’ #Allegiant [Tweet]. Retrieved from https://twitter.com/Toblerone/status/703157570014294016/photo/1

WestportWiki. (2013). Toblerone bars [Online image]. Retrieved from https://commons.wikimedia.org/wiki/File:Toblerone_Bars.jpg