The chocolate market in the U.S. is becoming increasingly competitive, with numerous brands vying for space on retail shelves. Among the notable newcomers is Divine Chocolate. Established in 1998, Divine was the first mass-market fair trade chocolate bar, initially targeting the U.K. market before launching in the U.S. in 2007. The company is 44% owned by 85,000 Ghanaian cocoa farmers, which distinguishes it in the premium chocolate segment. Divine’s product range includes milk chocolate with toffee and sea salt, as well as 70% dark chocolate with mint, and it has been experiencing a remarkable 20% annual sales growth in the U.S. With 2016 sales reaching $10 million—more than double what they were five years prior—Divine’s products are now available at retailers such as Whole Foods, Walgreens, Safeway, and select Publix stores.
Sophi Tranchell, the CEO of Divine Chocolate, and Troy Pearley, the Director of Sales, shared insights with Food Dive regarding the challenges they faced in gaining market share in the U.S. and how the company’s unique ownership structure has fueled its growth.
Food Dive: Many were doubtful about the success of a model like Divine’s in the U.S. What were their concerns?
Sophi: There was skepticism about whether a company significantly owned by cocoa farmers could thrive. Many believed it would be nearly impossible to reach a break-even point while maintaining independence, particularly in the American market. However, the unique aspect of our company—44% ownership by a cooperative of Ghanaian cocoa farmers—has tapped into a genuine desire among consumers to support ethical business practices. This resonates particularly well in the U.S., where people are willing to pay more for products they perceive as beneficial for themselves and the planet.
Food Dive: Were you surprised by the rapid acceptance you’ve experienced in the U.S.?
Troy: We capitalized on the rising trend of premium chocolate, and our commitment to quality has driven our success. We’ve successfully positioned ourselves alongside mainstream brands, thanks to our excellent range of products.
Sophi: We’ve consistently offered high-quality items. Starting with a milk chocolate bar in the U.K., we quickly expanded our range, developing a dark chocolate bar that became our best-seller. Consumers are increasingly interested in products with higher cocoa content, which naturally means less sugar and a healthier option.
Food Dive: What challenges did you encounter when entering the U.S. market?
Sophi: The primary challenge was breaking into the retail sector. To navigate this, we wisely hired experienced sales personnel. Troy’s extensive background in premium chocolate has been invaluable, allowing us to understand the complexities of the U.S. market and build relationships with buyers.
Food Dive: How do you enhance consumer familiarity with your products in such a crowded market?
Troy: As a nimble team, we’re collaborating closely with our global marketing department to boost brand awareness. We’re planning to launch new packaging that will grab consumers’ attention on the shelves. Chocolate is an impulsive purchase, which means there’s always room for growth.
Food Dive: Do you expect your current growth trajectory to continue?
Troy: The premium chocolate category is still experiencing double-digit growth. If we maintain our pace or exceed it, we can expect continued expansion. Ideally, we would like to double our sales every five years, but our focus is on nurturing our existing customer relationships and maximizing our opportunities within various product categories.
Food Dive: Is your success linked more to being a premium chocolate maker or to the fact that cocoa farmers own a significant portion of the company?
Sophi: It’s impossible to separate the two. While having exceptional chocolate is crucial for repeat purchases, our farmer ownership model sets us apart in a saturated market. We’ve hosted significant events, like one at Whole Foods’ headquarters, showcasing our unique business model and the impact we have on cocoa farmers’ lives.
Food Dive: Have larger chocolate companies approached you for acquisition?
Sophi: Surprisingly, no. Companies have expressed interest in our supply chain practices, particularly our cooperative model, but none have considered buying us. This aligns with our mission to create long-term benefits for cocoa farmers and their communities, rather than seeking a quick sale.
Food Dive: How would you characterize the U.S. chocolate industry? Are consumers leaning toward premium options or more price-sensitive choices?
Troy: Premium chocolate is on a positive trajectory, with growth over the past several years. It’s an impulse-driven category, making it essential to position ourselves effectively on the shelves. While price sensitivity exists, consumers are increasingly concerned about the quality and ethical implications of their purchases. Our product attributes—such as being all-natural, non-GMO, and fairly traded—resonate well with socially conscious consumers, enhancing our brand’s appeal and contributing to our ongoing success.
Overall, Divine Chocolate’s unique model and commitment to quality, alongside the growing consumer interest in ethical products, position the company for continued growth in a competitive landscape. The integration of values such as purity and sustainability further strengthens its market presence, making Divine a noteworthy player in the premium chocolate segment.