The amazing story of how small scale cocoa farmers in Ghana came to own 45% of Divine Chocolate Ltd.

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The amazing story of how small scale cocoa
farmers in Ghana came to own 45 of Divine
Chocolate Ltd.
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Social Enterprise
The Observer Ethical Business 2008
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Social Enterprise

• SOCIAL ENTERPRISE MISSION DRIVEN BUSINESS
• Mission
• The heart of what they do
• It is what gives them their reason to be
• It makes them good at what they do
• It gives them their competitive edge
• It defines where the money goes

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Divine Chocolate ltdMission

• Founded in 1998 to
• Improve the lives and opportunities of
  small-scale cocoa farmers in West Africa by
  establishing a dynamic, branded fair trade
  chocolate marketing company in the large UK
  chocolate market thus putting the farmers higher
  up the value chain.

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The Chocolate market

• Average person in the UK eats 16kg
• Very mature and competitive market
• Dominated by 4 companies
• 3 companies share 80 of the market
• UK Chocolate market worth 3.6 billion
• World Cocoa market only 2.14 billion

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Divine Chocolate LtdObjectives

• To take a quality and affordable range of fair
  trade chocolate bars into the mainstream market.
  
• To raise awareness of fair trade issues among UK
  retailers, consumers of all age groups
• To be highly visible and vocal in the chocolate
  sector and thereby act as a catalyst for change
• To pay a fair trade price for all the cocoa used
  in products

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Fairtrade Cocoa

• Guaranteed - Independent International Guarantee
  giving consumers confidence in the claim Annual
  audit monitoring
• minimum price of 1,600 per tonne providing long
  term security
• Social premium of 150 per tonne to be invested
  in community projects Long term contracts
  providing security
• Guaranteed minimum health and safety conditions
• Education and training

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Kuapa KokooFarmers Union

• A Co-operative of Ghanaian Cocoa Farmers
• Established in 1993 in response to liberalisation
  
• 2000 members in 22 village societies
• Work with the cocoa farmers to ensure quality
• Now 45,000 members in 1,200 village societies
• Democratically organised
• Voted in 1997 AGM to set up a chocolate
  
• company in UK

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Divine partners

• TWIN TRADING
• Founders of cafédirect, Coffee traders
• Working with producers to develop new products
  for new markets
• PSD, Agricultural Business advice
• THE BODY SHOP INTERNATIONAL
• Significant customer base sympathetic to the
  message
• Good products with strong values
• Community Trade partnership traceable
  sourcing

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Divine partners

• CHRISTIAN AID
• 200,000 committed supporters
• Fantastic access to community networks and
  supporters
• COMIC RELIEF
• History of support for Kuapa Kokoo
• Incredible brand awareness
• Celebrity endorsement
• DFID
• Bi-lateral support for Ghana
• Guaranteed a bank loan

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Kuapa kokoo recorder
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How Kuapa kokoo is structured

• Kuapa Kokoo Farmers Union
• Kuapa Kokoo Ltd
• Kuapa Kokoo Farmers Trust
• Kuapa Kokoo Credit Union
• Divine Chocolate Ltd

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Kuapa Kokoowater well
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Kuapa KokooSchools
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Kuapa Kokoo Womens empowerment
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Divine Chocolate
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Divine marketing

• First ever Fairtrade TV advertising campaign
  featuring Ben Elton
• Covermounted on BBC Good Food magazine and Party
  magazine
• Ongoing womens monthly magazine coverage, Elle,
  Eve, She
• Stoc the Choc with Christian Aid
• Innovative activity with key Fairtrade
  audience,e.g Divine poetry competition
• Farmers Tour of UK to engage with
  
  
  
  consumers, supermarkets
  and media
• www.divinechocolate.com
• National Consumer Advertising

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• 40g smooth milk chocolate crispy crunch countline
  bar with added Comic Relief
• Real cocoa butter and GM ingredients free
• Affordable price
• Money cant buy promotions Celebrity Big
  Brother
• Dubble Vision Competition Nickleodeon, Samantha
  Mumba
• Award winning Teachers pack www.papapaa.org
• Dubble Agents unique Fairtrade fan club with
  over
• 55,000 members signed up through
• Latest campaign MISSIONPOSSIBLE
• www.dubble.co.uk

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What Divine Chocolate Ltd success looks like

• Turnover Profit Sales Growth
• 2005/06 8,988,071 453,091 18
• 2006/07 10,702,500 434,554 19
• 2007/08 12,376,340 330,184 16
• PROFITABLE WITH GOOD GROWTH

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What Divine Chocolate ltdsuccess looks like

• Purchase of Kuapa Kokoo Fairtrade cocoa beans
• Tonnes FT Price Social
  Premium PSD
• 2005/06 1165 1,864,000 174,750 125,832
• 2006/07 1420 2,272,000 213,000 149,835
• 2007/08 1665 2,664,000 249,750 214,050
• April 2007 Divine announced its first Dividend
  500 a share
• SIGNIFICANT BENEFITS TO FARMERS

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2007 Highlights

• FY2005/06 - Divine Chocolate announced its first
  dividend. As co-owners Kuapa Kokoo benefited by
  sharing in the profits.

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True to Your Mission

• Recognising that you want to diversify your
  income streams
• Trade can really help you deliver on your mission
  but it can also be a distraction.
• Create a governance structure that can help you
  assess the opportunities while delivering on you
  mission.
• Select partners carefully, they need to share
  your mission.
• Contract any relationship so you all agree
  contributions outcomes
• Its good if any products you develop can be core
  to what you do.
• Dont do something just for the money, if it
  doesnt work it will leave a bad taste in your
  mouth!

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No one really thought it was possible

• But, they would like to live in a world where it
  was
• so through
• Partnership
• Passion
• Persistence
• The Divine Chocolate has established a market for
• a company co-owed by small holder cocoa farmers
  in one
• of the most competitive and mature markets in the
  world.

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