The chocolate market in the United States is becoming increasingly competitive, with numerous brands vying for space on retail shelves. One notable player is Divine Chocolate, a company that is 44% owned by 85,000 Ghanaian cocoa farmers. Established in 1998 as the first fair trade chocolate bar aimed at the mass market, Divine initially focused on the U.K. before entering the U.S. market in 2007. This premium chocolate maker, known for products like milk chocolate with toffee and sea salt and 70% dark chocolate with mint, is experiencing impressive growth, with U.S. sales increasing by 20% annually. In 2016, sales reached $10 million, more than double the amount from five years prior. Divine’s products are now available at various retailers, including Whole Foods, Walgreens, and Safeway. Sophi Tranchell, the CEO of Divine Chocolate, and Troy Pearley, the director of sales, discussed the challenges they have faced in capturing market share in the U.S. and how being farmer-owned has contributed to their success.
Food Dive: Some were doubtful that your business model could thrive in the U.S. What were their concerns?
Sophi: Many believed that a company significantly owned by cocoa farmers was a noble idea but would struggle to succeed. They felt that maintaining independence while achieving the necessary scale would be nearly impossible. However, Divine stands out because it is 44% owned by a cooperative of Ghanaian cocoa farmers. There is a genuine desire to conduct business differently, supporting people in developing countries by providing them with market access and fair compensation. This aligns with the American ethos of helping individuals lift themselves up, rather than relying on aid. Shoppers at Whole Foods illustrate this trend; they are willing to pay a premium for products they perceive as beneficial for themselves and the planet.
Food Dive: Were you surprised by how quickly you’ve gained acceptance in the U.S. market?
Troy: We leveraged the growing interest in premium chocolate. Our exceptional product quality combined with our business model has driven our success. We’ve managed to secure shelf space and compete with mainstream brands.
Sophi: Our product lineup has always been strong. While starting in the U.K. with a milk chocolate bar, we soon recognized the need for a diverse range. Our dark chocolate bar quickly became a best-seller, and we’ve introduced unique flavors that appeal to consumers, particularly those seeking lower-sugar options. Higher cocoa content naturally leads to reduced sugar, making our products healthier.
Food Dive: What hurdles did you encounter entering the U.S. market?
Sophi: The main challenge was penetrating the retail sector. We made a strategic decision to hire experienced salespeople. Troy’s 15 years in premium chocolate has been invaluable, enabling us to navigate the complexities of this market without starting from scratch.
Food Dive: How do you increase consumer awareness in such a crowded market?
Troy: Our nimble team works closely with global marketing to enhance brand visibility. We’re launching new packaging designed to be more eye-catching on shelves. The chocolate category thrives on impulse buying, so there’s always potential for growth, especially as we pursue partnerships with national retailers where we currently lack distribution.
Food Dive: Do you expect your current growth trajectory to continue?
Troy: The premium chocolate sector is still experiencing double-digit growth. If we keep pace with or exceed industry trends, we anticipate sustained growth. While doubling sales every five years would be ideal, our priority is to nurture our existing customer relationships and develop various product categories.
Food Dive: Is your success attributed more to your premium chocolate or to the fact that cocoa farmers own nearly half of your company?
Sophi: The two factors are intertwined. Without high-quality chocolate, we wouldn’t thrive. However, in a crowded market, our farmer ownership sets us apart. Our unique story resonates with consumers and opens doors we might not access otherwise. Engaging with Whole Foods and policy offices in D.C. is easier because we are not just another chocolate company; we embody a mission.
Food Dive: Have larger chocolate companies shown interest in acquiring Divine?
Sophi: Not really. While some have inquired about our supply chain practices, they haven’t approached us for acquisition. This isn’t our goal; our focus is on creating long-term benefits for cocoa farmers and their communities, rather than selling to a corporation.
Food Dive: How would you describe the U.S. chocolate industry? Are consumers leaning more toward premium options or prioritizing price?
Troy: Premium chocolate continues to show positive growth, and I expect this trend to persist. Chocolate is largely an impulse buy, so effective shelf positioning is crucial. While price sensitivity exists, consumers are becoming more aware of what they consume, seeking products with no artificial ingredients, all-natural components, and fair trade certifications. This awareness aligns with our brand values and will likely contribute to our future success.
In conclusion, Divine Chocolate’s unique position as a farmer-owned premium chocolate brand, combined with its commitment to quality, aligns with growing consumer preferences for socially conscious products. As more people recognize the importance of ethical sourcing and taste, brands like Divine are well-placed to thrive in the evolving chocolate market—much like how bariatric advantage calcium citrate chewable tablets 500mg have become a go-to for health-conscious consumers seeking effective dietary supplements.