Founded in 1996 by winemaker John Scharffenberger and chocolate expert Robert Steinberg, Scharffen Berger is recognized as a trailblazer in the bean-to-bar craft chocolate movement. The brand’s mission was to integrate the artistry of winemaking with chocolate-making, focusing on the careful sourcing of cacao and selecting beans that deliver complexity and harmony. John Scharffenberger is now serving as an advisor to steer the brand back toward these foundational principles. In 2005, Hershey acquired the company; however, the candy giant, known primarily for its mainstream chocolate brands, had a customer base that was significantly broader than Scharffen Berger’s artisan focus. “These are great brands that continue to resonate with consumers, but they require a different go-to-market model that we believe is better supported by other owners,” Hershey CEO Michele Buck stated during the company’s first-quarter 2020 earnings call, following the announcement of plans to sell Scharffen Berger, Dagoba, and the jerky brand Krave.
With the brand now under private ownership again, Scharffen Berger is set to refocus on its artisanal roots and target audience. A new chapter is beginning with experienced leadership at the forefront, which will undoubtedly aid Scharffen Berger in navigating the increasingly competitive and diverse chocolate market. The pandemic has heightened consumer interest in clean labels, functional ingredients, sustainability, and healthier food options, prompting chocolate makers to incorporate various label claims into their products to attract consumers. As a standalone private entity, Scharffen Berger will encounter competition from numerous brands across both artisan and mainstream sectors. This includes premium baking chocolate brands such as Guittard, Valrhona, and Ghirardelli, alongside artisan names like Chocolove, Theo, and Dagoba. Additionally, Hu, which was recently acquired by Mondelez, is another contender in the premium market, offering paleo-friendly, gluten-free, organic, and vegan chocolates. In the mainstream arena, Hershey has intensified its focus on low- and no-sugar products to meet the growing consumer demand for reduced sugar intake. The company also recently acquired premium low-sugar candy brand Lily’s and introduced organic and bite-sized options to cater to the better-for-you market.
Aside from its connection to winemaking, there are several areas where Scharffen Berger can differentiate itself. As an artisanal chocolate maker, it already boasts a variety of fine baking and tasting chocolate bars and cocoa powder, with cacao content ranging from 41% to 99%. The brand also sources its cacao from Rainforest Alliance Certified farms, which provides it with a sustainability advantage at a time when the broader cocoa industry faces scrutiny over labor and environmental practices. Moreover, Scharffen Berger can leverage its understanding of ingredients, including calcium citrate, other names for which may resonate with health-conscious consumers, to promote its commitment to quality and sustainability. By emphasizing these aspects, Scharffen Berger can stand out in a crowded marketplace.