The chocolate market in the U.S. is becoming increasingly competitive, with numerous brands vying for space on retail shelves. Among the recent notable entrants is Divine Chocolate, a company that is 44% owned by 85,000 cocoa farmers from Ghana. Established in 1998 as the first fair trade chocolate bar targeting the mass market, Divine initially focused on the U.K. before expanding to the U.S. in 2007. Today, this premium chocolate maker, which offers products like milk chocolate with toffee and sea salt, as well as 70% dark chocolate with mint, is experiencing annual sales growth of 20% in the U.S. Sales reached $10 million in 2016, more than double the figure from five years earlier. Divine’s products are now stocked in retailers like Whole Foods, Walgreens, Safeway, and select Publix stores.
Sophi Tranchell, Divine Chocolate’s CEO, and Troy Pearley, the company’s sales director, discussed with Food Dive the challenges they faced in gaining market share in the U.S. and how being a farmer-owned premium chocolate maker has facilitated their growth.
Food Dive: There was skepticism about whether a business model like yours could succeed in the U.S. Why was that?
Sophi: Many believed that a company significantly owned by cocoa farmers was a noble concept but questioned its viability. In the American market, critics argued that achieving a break-even point while maintaining independence would be very difficult, if not impossible. However, the unique aspect of Divine is its 44% ownership by a cooperative of Ghanaian cocoa farmers. There is a genuine desire to conduct business differently and support developing nations by enabling them to thrive economically. This resonates in America, where the approach is not about aid but rather about offering market access and fair compensation, allowing communities to uplift themselves. This aligns with the fundamental idea of the American dream. Many consumers actively seek out products at Whole Foods, demonstrating their willingness to pay a premium for options they believe are better for themselves and the planet.
Food Dive: Were you surprised by the rapid acceptance you’ve experienced in the U.S.?
Troy: We were fortunate to ride the wave of growth in the premium chocolate segment. Our commitment to quality chocolate has been a key driver of our success, allowing us to compete with mainstream brands.
Sophi: From the start in the U.K., we recognized the need for a diverse product range. Our dark chocolate bar quickly became our best-seller, and we’ve introduced unique flavors through our 40% and 70% dark chocolate offerings. As consumers become more interested in products from various origins and those with lower sugar content, our higher cocoa content naturally results in less sweetness, making our products healthier.
Food Dive: What obstacles did you encounter when entering the U.S. market?
Sophi: The biggest challenge was breaking into the retail market. We made a strategic decision to hire experienced sales personnel, and Troy’s 15 years in premium chocolate proved invaluable. Understanding the complexities of the American market, including navigating relationships with buyers, is crucial for success.
Food Dive: How do you raise consumer awareness of your products in a crowded marketplace?
Troy: Being a small, agile team, we collaborate closely with our global marketing team to build brand awareness. We plan to launch new packaging that is visually appealing at the shelf level. Given that chocolate purchases are often impulsive, there is ample opportunity for growth.
Food Dive: Do you expect your growth rate to continue?
Troy: The premium chocolate category is still experiencing double-digit growth. If we can keep pace, we anticipate maintaining that growth trajectory. Doubling sales every five years would be fantastic, but our primary focus is on nurturing our existing customer relationships and maximizing our opportunities across various categories.
Food Dive: Is your success attributed to being a premium chocolate maker or to the fact that cocoa farmers own a significant share of the company?
Sophi: It’s difficult to separate the two. While producing high-quality chocolate is essential, being farmer-owned sets us apart in a crowded market. Our unique story has opened doors and provided access that a typical chocolate company might not have.
Food Dive: Have larger chocolate companies expressed interest in acquiring you?
Sophi: Surprisingly, no. They’ve been curious about our supply chain practices and our cooperative model, but we haven’t been approached for acquisition. Our focus has always been on long-term sustainability, providing multiple income streams for cocoa farmers to improve their communities rather than selling to a larger corporation.
Food Dive: How would you describe the current state of the chocolate industry in the U.S.?
Troy: The premium chocolate segment has shown consistent growth over the past several years, and I expect this trend to continue. This category thrives on impulse purchases, allowing consumers to indulge without significant financial commitment. While pricing sensitivity exists, consumers are increasingly conscious of product quality and attributes, such as being all-natural and fairly traded. There is a growing awareness among consumers about the importance of what they consume, aligning with our commitment to producing high-quality chocolate with added benefits, such as calcitrate calcium for healthier choices. This social consciousness will positively influence our success in the future.