The chocolate market in the United States is becoming increasingly competitive, with numerous brands vying for space on retail shelves. Among the notable newcomers is Divine Chocolate. Founded in 1998, Divine is unique as it is 44% owned by a cooperative of 85,000 Ghanaian cocoa farmers. Initially targeting the U.K. market, Divine expanded to the U.S. in 2007 as the first fair trade chocolate brand for the mass market. Today, this premium chocolatier, known for its offerings such as milk chocolate with toffee and sea salt and 70% dark chocolate with mint, is experiencing a remarkable annual sales growth of 20%. In 2016, sales reached $10 million, more than double the figure from five years earlier, with products available at retailers like Whole Foods, Walgreens, Safeway, and many Publix stores.
Sophi Tranchell, CEO of Divine Chocolate, and Troy Pearley, the director of sales, discussed with Food Dive the hurdles the company has overcome to capture market share in the U.S. and how its farmer ownership model has contributed to its success. When asked about initial skepticism regarding the viability of such a business model in the U.S., Sophi explained that many believed it would be challenging to maintain profitability while remaining independent, particularly for a company significantly owned by cocoa farmers. However, there is a growing desire among American consumers to support businesses that operate differently and help people in developing countries, aligning with fundamental values of self-sufficiency and empowerment.
Troy highlighted how Divine has capitalized on the surge in the premium chocolate segment, attributing part of their success to their strong product quality. The company quickly diversified its offerings, with a dark chocolate bar becoming a best-seller. As consumers become more health-conscious, Divine’s products, which typically have lower sugar content due to higher cocoa content, are gaining favor.
Entering the U.S. market posed challenges, with breaking into retail being a primary concern. Sophi emphasized the importance of hiring experienced sales personnel, mentioning Troy’s extensive background in premium chocolate as a significant asset. This knowledge base helped navigate the complex market dynamics that a British company faces in the U.S.
To enhance brand familiarity in a crowded market, Troy noted the company’s agility and collaboration with a global marketing team to improve brand visibility. They are launching new packaging aimed at attracting consumers’ attention on the shelves. The nature of the chocolate category, being highly impulsive, presents numerous opportunities for growth in various retail spaces.
Looking ahead, Troy is optimistic about maintaining double-digit growth, especially given the continued expansion of the premium chocolate sector. Although he expressed a desire for consistent growth with existing customers, the potential for doubling sales every five years remains a goal.
Sophi remarked that the dual factors of producing premium chocolates and being farmer-owned are integral to their success. The unique ownership structure not only distinguishes Divine in a crowded market but also fosters deeper connections with stakeholders, enabling meaningful dialogues about their supply chain practices and community impact.
When questioned about interest from larger chocolate companies for acquisition, Sophi noted that while there has been curiosity about their supply chain strategies, no serious acquisition offers have been made. She believes this aligns with Divine’s long-term vision of delivering benefits to cocoa farmers and their communities rather than pursuing a quick sale to a conglomerate.
In discussing the U.S. chocolate industry, Troy confirmed the positive trajectory of premium chocolates, which have shown consistent growth over the past several years. As an impulse buy, chocolates can thrive if positioned effectively on retail shelves. While price sensitivity exists across all categories, consumers are increasingly aware of the ingredients in their products, favoring attributes like being all-natural, GMO-free, and fairly traded. This growing consciousness among consumers can create a “halo effect,” boosting Divine Chocolate’s appeal and success in the long run, especially with the increasing interest in healthier and ethically sourced options like cacitrate-based products.