Tag Archives: West

Confronting Gender Inequality in West African Cocoa Production Through Chocolate Advertisements

Chocolate has been a fascination in the West since its discovery in Mesoamerica centuries ago. Early in the history of the Western consumption of chocolate, it became feminized. Chocolate was associated with luxury and leisure in the eighteenth century, but as it became more accessible to the working class in the nineteenth century, women were charged with providing wholesome cocoa for respectable consumption in the family (Robertson, 2009). Due to the persistent feminization of chocolate, women have been the focus of marketing campaigns to sell chocolate. Cocoa adverts have fetishized images of western housewives, mothers, and women in heterosexual relationships to sell their products (Martin, 2019a). These women are often depicted as becoming irrational, narcissistic, or excessively aroused due to chocolate. However, these advertisements reveal the underlying prejudice and stereotyping that exists in the cocoa supply chain. Chocolate largely originates from the cocoa farmed in West Africa, which produces 75% of the world’s cocoa. Although this arrangement began in the 1800s, West Africans only consume 4% of the world’s chocolate (Martin, 2019b). This is due to the fact that most African-grown cocoa is exported abroad for production and the primary markets for these chocolate producers are thus outside of Africa. The romanticized image of chocolate in Western advertisements neglects the labor that goes into farming cocoa and the challenges that cocoa farmers in West Africa face. Furthermore, the dilemmas within the cocoa supply chain are exacerbated for women cocoa farmers, who are often denied privileges their male counterparts are afforded and are especially susceptible to certain dangers. Rather than focusing on Western women, who are not involved in the production of chocolate, a newer campaign has emerged to empower West African women cocoa farmers and bring light to just how integral they are in the production of chocolate.

It has been documented that women have been involved in the cocoa industry since its inception in West Africa, specifically Ghana (Robertson, 2009). Cocoa farming would not have gotten to where it is today without the labor of women, as it was central in almost every aspect of cocoa production and sale (Robertson, 2009). However, these contributions have not been met with the appropriate amount of recognition and credit. This blog will highlight women farmers in Ghana and Côte d’Ivoire, which are two of the world’s largest cocoa-growing countries and both are found in West Africa. In Ghana, women cocoa farmers earn 25%-30% less than their male counterparts and in Côte d’Ivoire women cocoa farmers earn up to 70% less than their male counterparts (Pacyniak, 2014). Also, in both countries women are met with more obstacles, such as lower farm productivity, smaller farms, and less access to financing and farm inputs. Gender gaps beyond cocoa income and productivity plague women cocoa farmers in Ghana, as women have a 25% lower level of training, a 20% lower receipt of loans, and 30%-40% lower access to critical farm inputs (e.g. fertilizer). According to women cocoa farmers, they lack the funds necessary to hire labor, making it difficult to produce cocoa (Odoi-Larbi, 2008). Gender inequality in Ivorian cocoa farming manifests in almost none of the 4% of women in cocoa co-operatives having leadership positions. Furthermore, in Côte d’Ivoire 86% of men had legal rights to their plots, while in 67% of cases, the land accessed by women was not owned by them. Although Fairtrade is an institutional arrangement designed to help producers in developing countries achieve better trading conditions, not all West African cocoa farmers benefit equally from Fairtrade (“Does Fairtrade mean a fair deal for female cocoa farmers?”, 2016). For instance, even though Fairtrade is a positive force in Ghana, women cocoa farmers are not benefitting from Fairtrade to the same extent as their male counterparts. It was found that many of the poorest and most marginalized cocoa farmers in Ghana are excluded from participating in such co-operatives, and most of these farmers are women.

The previously mentioned trials and tribulations of women cocoa farmers are addressed in the video below. As was mentioned earlier, the global cocoa supply comes from small farms in West Africa, but these farmers are often paid poorly for what they grow. Typically, women take on the heavy lifting when it comes to their share of the work, but they see minimal profits. The women in this video are from Ghana and Côte d’Ivoire and although they do most of the work, only a quarter of the cocoa farms are owned by women. The women explain this disparity, as they discuss the patriarchy that prohibits them from inheriting land. More recently, however, Fairtrade has made strides to ensure that support exists that helps women raise their income and their voices. This includes eliminating women’s dependency upon their husbands and giving women their own land on which they can produce their own cocoa. With their own farms, these women are more independent and can flourish with the right resources available to them. The video ends by urging consumers around the world to choose Fairtrade chocolate in order to support these women cocoa farmers. Other efforts have been started to raise awareness about these farmers, as the injustice of women working for nothing to produce the chocolate that we love must end.

Fairtrade and gender inequality in West Africa

Several efforts have commenced to promote corporate social responsibility, which would aid in the fight for equality for women in the cocoa supply chain. One such effort is Cocoa Life, which began in 2008 and is empowering women in Ghana’s cocoa growing communities (Amekudzi, 2013). Cocoa Life was created by Mondelēz International, a company looking to advance the rights of women cocoa farmers by increasing the emphasis on gender equality in Ghana and Côte d’Ivoire and advocating for industry-wide action (Pacyniak, 2014). To address the aforementioned challenges women cocoa farmers face, Mondelēz International presented new action plans to build upon its Cocoa Life program. This plan was a $400 million, 10-year effort set in motion in 2012. In Ghana, this project is farmer centered and based on Cocoa Life’s Cadbury Cocoa Partnership in Ghana. Specifically, Cocoa Life encourages entrepreneurship among women cocoa farmers through farmer education on cocoa agronomy and farmer training at the village level. The video below, produced by Cocoa Life, involves interviews of women cocoa farmers in Ghana who recount the times when they were excluded from the ins and outs of cocoa farming. They have been encouraged to mobilize and learn how to manage their own farms. Their situations have been improved and they have set the stage for future women cocoa farmers to prosper in their communities.

Mondelēz International, Cocoa Life, and Ghanaian women’s rights in cocoa farming

Another example of an attempt at corporate social responsibility to help women in West African communities is The Cargill Cocoa Promise. Cargill recognized that women are forced to balance household work with cocoa farming, in conjunction with having unequal access to training, inputs, and education (“Empowering women cocoa farmers in Côte d’Ivoire”, 2014). The Cargill Cocoa Promise aims to understand how gender barriers limit access to skills, information, and inputs amongst women cocoa farmers. This project kickstarted inclusive training sessions and raised awareness of gender issues. Practical steps were proposed to improve the day-to-day activities of these farmers. The people in the video below discuss how this project was conceived and executed in Côte d’Ivoire. Researchers found that culture was a driving force that exacerbated the issues plaguing women cocoa farmers, as culture determined who got to own land. They encouraged discussions within the communities in order to facilitate change and overcome the cultural biases. Also, this project increased financial literacy among women cocoa farmers, as the organizers established village savings and loan schemes, which would aid in entrepreneurship efforts.

The Cargill Cocoa Promise, corporate social responsibility, and women empowerment in West Africa

As was preliminarily mentioned, a newer campaign has emerged to shed light on the West African women who make large contributions to the production of chocolate. Divine Chocolate Limited is a purveyor of Fairtrade chocolate and although it was originally established in the United Kingdom, it is co-owned by the Kuapa Kokoo cocoa farmers’ co-operative in Ghana. In order to emphasize to UK chocolate shoppers that Ghana is a cocoa origin site, Divine Chocolate released a set of advertisements that feature women cocoa farmers from Ghana, and these advertisements appeared in British editions of women’s magazines, such as Elle, Cosmopolitan, Red, and OK! (Leissle, 2012). As is shown in the images below, the women cocoa farmers are depicted as glamorous business owners who participate in transnational exchanges of raw materials and luxury goods, and as beneficiaries of these exchanges. These women are a part of the Kuapa Kokoo co-operative, which makes them co-owners of Divine Chocolate. The advertisements emphasize the women’s position as co-owners, as they state each woman’s name along with her position. Also, Ghana’s adinkra symbols appears on Divine Chocolate’s bar wrappers and this is shown in the photographs. Furthermore, the background of each advertisement shows ‘Africa’, which is represented by images of Ghana’s agricultural economy. This includes cocoa drying tables, plantain trees, coconut trees, mud buildings, and dusty roads. Each woman appears in the foreground holding pieces of chocolate, which is a luxury food made from the fruit they farm. These images are paired with titles such as ‘Equality Treat’, ‘Decadently Decent’, and ‘Serious Chocolate Appeal’ in order to suggest to consumers that their own enjoyment of Divine Chocolate bars should come not only from the joy of eating chocolate, but from the fact that the women who farm the cocoa also enjoy it. This implies that the Kuapa Kokoo women cocoa farmers not only grow the raw materials, but they also consume the chocolate. This is a far cry from the statistic reported earlier that said only 4% of West Africans consume the world’s chocolate.

Divine Chocolate advertisement featuring Beatrice Mambi.
Source: Reprinted with permission from Divine Chocolate. Photograph by Freddie Helwig and St. Luke’s advertising agency.
Divine Chocolate advertisement featuring Priscilla Agyemeng.
Source: Reprinted with permission from Divine Chocolate. Photograph by Freddie Helwig and St. Luke’s advertising agency.
Divine Chocolate advertisement featuring Rita Nimako.
Source: Reprinted with permission from Divine Chocolate. Photograph by Freddie Helwig and St. Luke’s advertising agency.

Divine Chocolate’s advertisements are revolutionary in that they do not rely on the stereotypical and romanticized images of Western women to sell their chocolate. Instead, this company is knocking down two birds with one stone: they are empowering West African women cocoa farmers while challenging the notion that Africa is not modern. Leissle states that “the Divine images pose a challenge to narratives that cast Africa as continually on the losing side of harmful dualisms and reframe Africa’s role in modernity” (2012). In Binyavanga Wainaina’s “How to Write About Africa”, he challenges Western literature that persistently refuses to disperse a picture of a “well-adjusted African” (unless he or she has won a Nobel Prize), neglects the fact that the continent is dynamic in that it is full of deserts, jungles, highlands, and savannahs, and depicts the African woman as starving, nearly naked, and waiting for the aid of the West (2006). However, the Divine Chocolate adverts pose the Ghanaian women cocoa farmers as “attractive, socially mobile beneficiaries of their own development efforts” (Leissle, 2012). The videos previously discussed highlighted that West African women are commonly held back in their farming endeavors by the patriarchal notion that women are only instrumental in uplifting the family. However, the Divine women are not tethered to their responsibilities as wives and mothers and are not viewed as reproductive laborers in these advertisements. These women are framed as “active agents of a self-gratifying transnational business arrangement” (Leissle, 2012). Overall, the combinations of the Divine women’s playful, yet strong, poses, the invitation to enjoy chocolate, and the text present West African women cocoa farmers as savvy luxury consumers and implies their individual participation in the privileged aspects of modernity narratives (Leissle, 2012).

One way to address and combat the gender inequality that exists in the cocoa supply chain is to draw attention to West African women as primary contributors. The fetishization of Western women in chocolate advertisements only exacerbates the issue at hand because it masks the labor that was invested into producing the chocolate. In looking at the origins of the chocolate, one will find that West Africa as the world’s primary cocoa growing region is faced with many critical challenges, such as volatile income, unfair farm economics, and lack of laborers (Martin, 2019b). Women cocoa farmers are especially harmed by these challenges as the patriarchy in West Africa makes it difficult for them to overcome these obstacles. However, some solutions have gone into effect to empower these women. Additionally, Divine Chocolate’s campaign presents “a fresh visual reframing of the exchanges of goods and capital between Africa and Europe” (Leissle, 2012). Other purveyors of chocolate should follow in Divine Chocolate’s footsteps when it comes to advertisements and give credit to the people who make eating chocolate possible.

References

Amekudzi, Y. P. (2013, February 28). Cocoa Life- the project empowering women in Ghana’s cocoa growing communities. Retrieved April 30, 2019, from https://businessfightspoverty.org/articles/yaa-peprah-amekudzi-cocoa-life-the-project-empowering-women-in-ghanas-cocoa-growing-communities-2/

Does Fairtrade mean a fair deal for female cocoa farmers? (2016). European Union News.

Empowering women cocoa farmers in Côte d’Ivoire. (2014, April 15). Retrieved April 30, 2019, from https://www.cargill.com/story/empowering-women-cocoa-farmers

Leissle, K. (2012). Cosmopolitan cocoa farmers: Refashioning Africa in Divine Chocolate advertisements. Journal of African Cultural Studies, 24(2), 121-139.

Martin, C. (2019). Lecture April 3: Race, ethnicity, gender, and class in chocolate advertisements. Harvard University.

Martin, C. (2019). Lecture March 27: Modern day slavery. Harvard University.

Odoi-Larbi, S. (2008). Female Cocoa Farmers Cry for Help. Africa News Service.

Pacyniak, B. (2014). Mondelez affirming women’s rights in cocoa-growing areas. Candy Industry, 179(6), 12-13.

Robertson, E. (2009). Chocolate, Women and Empire: A Social and Cultural History (Studies in imperialism (Manchester, England)). Manchester; New York: New York: Manchester University Press; Distributed in the United States exclusively by Palgrave Macmillan.

Wainaina, B. (2006, January 19). How to Write About Africa. Retrieved April 30, 2019, from https://granta.com/how-to-write-about-africa/

Multimedia sources

Cargill. (2016, March 7). Women in agriculture: empowering African cocoa farmers [Video file]. Retrieved from https://www.youtube.com/watch?v=sYeGiFHlDm4

Fairtrade Foundation. (2019, March 5). Meet the Women Cocoa Farmers Facing Adversity in the Ivory Coast [Video file]. Retrieved from https://www.youtube.com/watch?v=yP5NR3BbdKE

Mondelez International. (2013, November 12). Cocoa Life: Community leaders – Interview with Gladys and Vida in Ghana [Video file]. Retrieved from https://youtu.be/REMKY62MHno

Images retrieved from Leissle, K. (2012). Cosmopolitan cocoa farmers: Refashioning Africa in Divine Chocolate advertisements. Journal of African Cultural Studies, 24(2), 121-139.

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

 

East Meets West: Late 20th Century Competition for the Chinese Chocolate Market Among the Big Five

Globalization has created unique challenges for modern marketing, as companies must adapt to the completely different tastes and cultures of other civilizations. This is evident in the “East Meets West” culture clash, as Western companies navigate Eastern culture in order to market their Western products, especially apparent in the history of the global market for chocolate. Although the treat is extremely popular among consumers in the United States and United Kingdom, chocolate has been historically absent from the palate of Chinese peoples. However, after the overhaul of the Chinese economy from communism to market socialism in the mid-20th century, China began to open its economy to Western corporations in the 1980s.[1] This created the potential for one of the “Big Five” chocolate companies to capture the market and dominate Chinese chocolate consumption for generations to come. Despite competition from Cadbury, Hershey, Nestle, and Ferrero Rocher, Mars ultimately emerged as the champion of China’s chocolate market amidst the other companies’ failures due to its superior understanding of and total dedication to the Chinese consumer, demonstrated by Mars’s marketing of chocolate as an exotic delicacy and prized gift.

Chocolate was essentially a novel item in China, so the Big Five began competing for the palates of potential Chinese chocolate consumers in the early 1980s.[2] Because chocolate was essentially a luxury during at this time, a typical Chinese consumer justified their expense by giving chocolate as a gift.[3] Ferrero Rocher capitalized on this cultural perception. By keeping prices high and importing products to China through an independent distribution partner, Ferrero Rocher captured the gift-giving niche of the Chinese chocolate market. The golden, foil-wrapped, and elaborate containers successfully presented Ferrero Rocher’s chocolate as expensive, foreign, and luxurious.

Ferrero Rocher Chinese

Fig. 1. Ferrero Rocher Chocolate – Chinese New Year 2012 (http://www.scratchmarketing.com/ferrero-rocher-campaign-concept/)

Despite Ferrero Rocher’s success, the other four companies attempted to create and capitalize upon a sector of the chocolate market brand-new to China: the individual consumer.[4] By establishing a relationship with a new Chinese generation, one of these four companies could create a bond between Chinese citizens and chocolate lasting for generations.

The other three companies had difficulties with the Chinese chocolate market that Mars successfully navigated to become the winner. Cadbury began with the goal of selling one milk chocolate bar to every Chinese citizen. However, Cadbury failed to consider how hard it would be to get a regular supply of milk in China, as the Chinese are not avid milk drinkers. Unfortunately, Cadbury had to partner with a substandard milk supplier, leading to cheesy chocolate that did not at all appeal to Chinese consumers.[5] Next, although Hershey was initially successful with its bite-sized Hershey’s Kisses, bad management changes led to the 2004 collapse of Hershey’s Chinese organization. Within two years, this effectively eliminated the Chinese supply of Kisses. Hershey never recovered.[6] Finally, although Nestle aimed to use its reputation for producing safe and nutritious products to market their famous Kit Kat bar, their projections for Chinese demand were terribly wrong. In order to compensate for their lost costs, Nestle began using a cheap substitute for cocoa butter, lowering the quality of the chocolate bar. Chinese consumers noticed the change and would not buy the new Kit Kat bar, driving Nestle’s sales significantly behind those of the rest of the Big Five.[7]

Unlike the other companies, Mars succeeded by intensely focusing on both the culture surrounding Chinese chocolate consumption and the appetites of Chinese consumers. Mars became the first of the Big Five to build a chocolate plant in China in 1993 to market Dove Chocolate.[8] Dove was Mars’s high-end brand chocolate that captured both chocolate’s luxury for gift-givers and its superior taste for the individual consumer. By producing high-quality Dove chocolate, marketed as a mysterious and exotic luxury, Mars demonstrated a distinguished knowledge of and dedication to Chinese consumers. Mars spent more on advertising than the rest of the Big Five, and its chocolate has genuinely been consistently higher quality than that of its competitors.[9] The following commercial demonstrates Mars’s understanding of the gift-giving culture surrounding chocolate, as Chinese chocolate consumers rally Mars to support one man’s incredible present to his girlfriend on a lovers’ day. (https://www.youtube.com/watch?v=x9Yq-ASSc78)

By 2004, Mars had control of China’s retail chocolate market, dominating with a 39% share of the whole.[10] Current estimates put Mars’s share of China’s chocolate market at about 43.3%, as of 2013 (http://www.shanghaijungle.com/news/Chinas-Chocolate-Market-Dominated-by-Foreign-Brands). Mars’s continued preeminence in China stems directly from their capture of the Chinese chocolate market at the end of the 20th century. Although the other members of the Big Five continue to compete, Dove comfortably enjoys a place as the high-end and highly desired chocolate of choice among this first generation of Chinese consumers.

 

Works Cited

Allen, Lawrence. Chocolate Fortunes: The Battle for the Hearts, Minds, and Wallets of China’s Consumers.

“The Bitter and the Sweet: How Five Companies Competed to Bring Chocolate to China – Knowledge@Wharton.” KnowledgeWharton The Bitter and the Sweet How Five Companies Competed to Bring Chocolate to China Comments. Accessed March 22, 2015.

“China’s Chocolate Market Dominated by Foreign Brands.” China’s Chocolate Market Dominated by Foreign Brands. http://www.shanghaijungle.com/news/Chinas-Chocolate-Market-Dominated-by-Foreign-Brands. Accessed March 22, 2015.

“Dove Chocolate’s Chinese Valentine’s Day campaign.” YouTube video, 2:50. Posted by “Kestrel Lee,” January 9, 2012. https://www.youtube.com/watch?v=x9Yq-ASSc78. Accessed March 22, 2015.

Fig. 1. Ferrero Rocher – Chinese New Year Campaign Concept. Digital Image. Available from: http://www.scratchmarketing.com/ferrero-rocher-campaign-concept/. Accessed March 22, 2015.

[1] Lawrence L. Allen, Chocolate Fortunes: The Battle for the Hearts, Minds, and Wallets of China’s Consumers, 2.

[2] Allen, 24.

[3] Allen, 24-25.

[4] Wharton, n.p.

[5] Wharton, n.p.

[6] Allen, 202; Wharton, n.p.

[7] Wharton, n.p.

[8] Allen, 202; Wharton, n.p.

[9] Wharton, n.p.

[10] Wharton, n.p.