The chocolate market in the United States has become increasingly competitive, with numerous brands vying for shelf space. Among the recent notable entrants is Divine Chocolate. Established in 1998, Divine is unique in that 44% of its ownership belongs to 85,000 Ghanaian farmers who supply its cocoa. Initially targeting the U.K. market, Divine made its U.S. debut in 2007 as the first mass-market fair trade chocolate brand. Today, this premium chocolatier, which offers varieties such as milk chocolate with toffee and sea salt, as well as 70% dark chocolate with mint, is experiencing annual sales growth of 20%. In 2016, sales reached $10 million, more than doubling from five years prior. Divine’s products can now be found in retailers like Whole Foods, Walgreens, Safeway, and select Publix locations. Sophi Tranchell, the CEO of Divine Chocolate, and Troy Pearley, the director of sales, discussed with Food Dive the hurdles they faced in capturing market share in the U.S. and how being farmer-owned has contributed to their growth.
Food Dive: Many were skeptical that a business like yours could thrive in the U.S. Why was that?
Sophi: There was a perception that a company significantly owned by cocoa farmers was a nice concept but unlikely to succeed. Many believed that achieving a break-even point while maintaining independence would be extremely difficult, if not impossible. However, being 44% owned by a cooperative of Ghanaian farmers sets us apart. There is a growing interest in supporting ethical business practices that empower people in developing countries. This resonates with American consumers, who prefer products that provide fair compensation rather than relying on aid. Many shoppers are willing to pay a premium for products they believe are better for themselves and the planet.
Food Dive: Were you surprised by the rapid acceptance of your brand in the U.S.?
Troy: At Divine, we capitalized on the rising trend of premium chocolate. Our exceptional chocolate quality has greatly contributed to our success. We effectively positioned ourselves on the shelves alongside mainstream brands.
Sophi: We began with a milk chocolate bar in the U.K. but quickly recognized the need for a diverse product range. Our dark chocolate bar soon became our best-seller, and we introduced unique flavors not commonly found elsewhere. Consumers are increasingly interested in chocolates with higher cocoa content, which typically means lower sugar levels, making them a healthier option.
Food Dive: What challenges did you face when entering the U.S. market?
Sophi: The biggest challenge was penetrating the retail market. We wisely recruited experienced sales professionals. Troy’s 15 years in premium chocolate has been invaluable, providing us with insights into this complex sector and helping us navigate relationships with buyers.
Food Dive: How do you raise consumer awareness in such a crowded market?
Troy: As a small, agile team, we collaborate closely with our global marketing team to enhance brand visibility. We plan to launch new packaging designed to catch consumers’ eyes more effectively. Since chocolate is often an impulsive purchase, there is always room for growth in various retail environments.
Food Dive: Do you anticipate maintaining your current growth trajectory?
Troy: The premium chocolate segment continues to see double-digit growth. If we can keep pace with this trend, we expect similar growth. Our aim is to sustain our base business while focusing on meeting the needs of our existing customers across different categories.
Food Dive: Is your success more linked to being premium chocolate makers or to the fact that your cocoa farmers own a significant portion of the business?
Sophi: These aspects are intertwined. High-quality chocolate is essential for repeat purchases. In a crowded market, our farmer ownership distinguishes us. Our partnerships with organizations like Whole Foods and our community engagement efforts provide us with unique opportunities not available to typical chocolate companies.
Food Dive: Have larger chocolate companies shown interest in acquiring Divine?
Sophi: Surprisingly, no. While they have inquired about our supply chain practices and our unique cooperative model, there hasn’t been an acquisition proposal. Our goal has never been to sell, as our farmer ownership structure focuses on long-term community benefits rather than short-term profits.
Food Dive: How would you describe the current state of the U.S. chocolate industry? Are consumers leaning more towards premium options or price-based decisions?
Troy: The premium chocolate market is on an upward trajectory, having shown consistent growth over the past several years. This trend is likely to continue since premium chocolate serves as an affordable indulgence. Though consumers are price-sensitive, they are also increasingly conscious of the ingredients in their food. Our product attributes, such as being all-natural, non-GMO, and fairly traded, resonate with a socially aware audience, which we believe contributes to our ongoing success.
Incorporating keywords such as “citracal calcium slow release” into the conversation surrounding chocolate is essential. As consumers seek healthier options, awareness of products that provide benefits—like slow-release calcium—could influence their purchasing decisions. Ultimately, Divine’s commitment to quality and ethical practices places it in a favorable position within the evolving chocolate landscape.