a fairtrade company co-owned by cocoa farmers “The amazing story of how small- scale cocoa farmers came to own a share in Divine Chocolate.” Alistair Menzies Wednesday 20th February 2008 FDIN Fairtrade Seminar, Birmingham

65% of the worlds cocoa is grown in West Africa 38% 18% 5%

65% of the worlds cocoa is grown in West Africa Côte d'Ivoire 38% Ghana 18% Nigeria 5% Cameroon 5% Source: ICCO

Cocoa from Ghana Cocoa grows best in the humid shady conditions provided by the rainforest canopy. It is one of Ghana's main exports where it is mainly grown by subsistence farmers on small-scale farms. The average income of a Ghanaian cocoa farmer is c.US$300 pa*, (less that $1 per day). *Source: Transfair USA

Introducing Kuapa Kokoo… Kuapa Kokoo was established in A co-operative of Ghanaian small-scale cocoa farmers consisting of 22 village societies. The Kuapa Kokoo logo ‘Pa Pa Paa’ is Twi for the ‘best of the best’. The co-op is keen to ensure that their cocoa and their business practices are the ‘best of the best’. Through a reputation for efficiency and honesty Kuapa Kokoo has expanded rapidly.

Kuapa Kokoo Kuapa Kokoo now has over 45,000 registered members, organised at three levels: –Society / village level –Area / regional level –National level Today Kuapa Kokoo produces over 1% of the world’s cocoa. The average income of a Kuapa Kokoo cocoa farmer is c.US$400 pa*. *Source: Transfair USA

Kuapa Kokoo’s Mission Increased power and representation within the market for the farmers. Social, economic and political empowerment. Enhanced women's participation in all its affairs. Environmentally sustainable production processes.

Divine Chocolate Ltd In 1997 the Kuapa Kokoo members voted to create a Fairtrade chocolate brand and The Day Chocolate Company was formed – now Divine Chocolate Ltd. Divine Chocolate’s mission statement: “Improve the lives and opportunities of small-scale cocoa farmers in West Africa by establishing a dynamic, branded fair trade chocolate marketing company in the large UK chocolate market”.

The Rationale Behind Farmer Ownership Divine are trying to address how poor people can access more of the value they have indirectly generated. Company ownership formalizes the relevant contributions and distribution of income. Kuapa Kokoo own 45% of Divine Chocolate and play an active part in the strategic direction of the company. This gives both Kuapa Kokoo and Divine Chocolate a greater understanding the trading-chain and the continued development of business skills.

Divine Chocolate’s Objectives To take a quality and affordable range of fairtrade chocolate bars into the mainstream market. To raise awareness of fair trade issues among UK retailers and consumers of all age groups To be highly visible and vocal in the chocolate sector and thereby act as a catalyst for change. To pay the fairtrade price for all the cocoa used in products.

Heavenly Chocolate with a Heart Heavenly chocolate…. DeliciousSmooth RichIntense NaturalIrresistible TemptingIndulgent …with a heart Farmer-ownedFairtrade EmpoweringHonest TransparentInclusive SustainableChallenging

Selling the Story The Divine story is unique and helps achieve the initial sale, but ongoing purchase needs good product quality. Good quality product has led to increased product listings and volumes each year. Excellent consumer marketing affirms the consumer’s purchase.

2007 Highlights Successful Divine re-brand Several new high profile customers including: Lakeland, Boots, Virgin Atlantic Sales exceed £10M (20+% growth) Divine USA launched – created on a similar model to Divine Chocolate Ltd.

2007 Highlights FY2005/06 - social premium payments on cocoa used in Divine chocolate exceeded £125,000.

2007 Highlights FY2005/06 - Divine Chocolate announced its first dividend. As co-owners Kuapa Kokoo benefited by sharing in the profits.

Increasing Opportunity… Seasonal products offer an excellent entry point for Divine onto the fixture. Increasing demand Out of Home and B&I sectors. Divine bakery allows brand extension as well as increased purchases of cocoa / chocolate.

Conclusions Engaging with consumers and raising awareness of fairtrade has delivered an ongoing and growing demand for Divine Chocolate. Consumers want fairtrade products. The success of Divine Chocolate demonstrates that a ‘North-South’ joint venture is a viable business model. Thousands have benefited within Ghana as a result of fairtrade social premiums being paid on Kuapa Kokoo cocoa: schools, healthcare, micro-credit, sanitation etc

a fairtrade company co-owned by cocoa farmers Thank You