1. Divine Chocolate: A Fairtrade company co-owned by cocoa farmers
This presentation focuses on Divine Chocolate, as an example of a successful social enterprise. The presentation was created by Becca Rowland, at Trading Visions.
A Case Study in Social Enterprise

2. Have you heard of Divine Chocolate
Have you heard of Divine Chocolate? This is the amazing story of how small scale farmers in Ghana came to own 45% of a chocolate company in the UK.
The amazing story of how small scale cocoa farmers in Ghana came to own 45% of Divine Chocolate Ltd

3. Let’s look at conventional business first
A business is a legal entity that provides products or services to consumers.
Most are privately owned and exist to make money for their owners.
Businesses provide products and services that have to meet the needs of consumers.
Before discussing a social enterprise it is worth thinking briefly about what a business is as all social enterprises are also businesses; they just choose to do business differently.
Businesses are legal entities designed to provide products or services to consumers. Most are privately owned and exist to make money for their owners.
Most businesses are also small but the businesses whose names we are most familiar with are often large companies and corporations, often with operations in many countries. The legal rights they have are often similar to those that individuals have but they cannot be held to account for what they do in the same way as a person can. Very large corporations are often able to influence governments in ways that suit them, rather than the citizens of the country they operate in.
Businesses provide products and services that meet the needs of consumers. They may spend a great deal of money on marketing to make sure that people know that they need a product! Ultimately, if consumers do not want their products and services then a company will go out of business.
Divine Chocolate is a chocolate company. The starting point for its business is making chocolate that people want to buy.
Divine Chocolate is a chocolate company.
Making a good quality product that consumers want to buy is the starting point for everything Divine Chocolate does. 3

4. So what is a Social Enterprise One definition is…
“A social enterprise is a business with primarily social objectives whose surpluses are principally reinvested for that purpose in the business or in the community rather than being driven by the need to maximise profit for shareholders and owners.”
Source: UK DTI
So what is a social enterprise. One definition is:
“A social enterprise is a business with primarily social objectives whose surpluses are principally reinvested for that purpose in the business or in the community rather than being driven by the need to maximise profit for shareholders and owners.”
In other words, it’s a marriage between business drive and social mission.
Have you ever thought that there is a mis-match between the way a company presents its products through marketing and public relations (the ‘brand’ of the company) and the real values of that company behind the spin?
Divine Chocolate aims to ‘walk the talk’; in other words, the ‘brand’ values reflect the business as a whole.
Divine Chocolate is not just a company that sells Fairtrade chocolate, the cocoa farmers are shareholders in the company too. This takes fair trade to a new level, and is what makes Divine Chocolate a social enterprise. So making a profit for shareholders becomes a core element of meeting social objectives because the shareholders are some of the poorest people in the world.
Divine Chocolate has been a pioneer in the fair trade movement in the UK and is blazing a trail in its demonstration of how success can be achieved with an alternative model for business.
Finally, it's important to note that Divine Chocolate is first and foremost a company which sells delicious chocolate. No matter how eminent an example of a social enterprise model a company is, like any business, if it isn't providing something that people want and of a quality they expect, it will not survive. 
In other words, it’s a marriage between business drive and social mission
Divine Chocolate aims to ‘walk the talk’; in other words, the brand values reflect the business as a whole
At Divine Chocolate the farmers are shareholders too, taking social enterprise to a new level; making a profit becomes a core element of meeting social objectives
Divine Chocolate has been a pioneer in the fair trade movement, demonstrating how success can be achieved with an alternative model for business
Finally, Divine Chocolate is first and foremost a business that makes and sells delicious chocolate!

5. So What is Divine’s Social Mission
So What is Divine’s Social Mission? Improving the lives of cocoa farmers
Divine Chocolate’s mission is to improve the livelihoods of West African cocoa farmers by creating a branded chocolate proposition that puts farmers higher up the value chain
So what is Divine Chocolate’s social mission?
Divine’s mission is to improve the livelihoods of West African cocoa farmers by creating a branded chocolate proposition that puts farmers higher up the value chain.
For cocoa farmers, selling cocoa is not particularly profitable. The money isn’t in selling the raw material, it is at the other end of the supply chain where all the money is to be made, manufacturing the branded chocolate products that we see on the shelves. Because the cocoa farmers in Ghana co-own the company, they can share in the profits from making and selling branded chocolate products. This is what we mean when we talk about moving farmers up the value chain.
So Divine Chocolate benefits them by moving them up the value chain.

6. Divine is a 100% fairtrade company
All Divine Chocolate’s products carry the Fairtrade Mark
The Fairtrade Mark is an independent guarantee that producers in developing countries get a fair deal
That means farmers get a fair price for their products and their communities receive a Fairtrade premium
As well as being a social enterprise, Divine is 100% committed to the Fairtrade movement.
All Divine’s chocolate products carry the Fairtrade Mark which is an independent guarantee that producers in developing countries get a fair deal. This means the farmers earn enough to cover their costs, feed themselves and send their children to school. There is a well defined audit process so that consumers can have confidence that the claims made by Fairtrade are true.
In contrast, most cocoa farmers grow their cocoa beans without knowing whether they will earn enough to cover their costs because the price for beans is always going up and down, and have little reliability of being paid at all.
By selling cocoa beans as Fairtrade, the co-operative of cocoa farmers is guaranteed a minimum price and long term contracts. This means the co-operative can plan ahead and invest in its business.
Fairtrade cocoa beans also earn the co-operative a ‘Fairtrade premium’ to be used on something which the community decides it wants or needs. For example, this may be a well for clean water, educational facilities for the children, computers to be better informed about world cocoa prices, improving the quality of production, or diversifying into another product to supplement incomes.
Divine Chocolate’s mission is about creating a branded chocolate proposition that puts farmers higher up the value chain. For cocoa farmers, selling cocoa is not particularly profitable. It is at the other end of the supply chain where all the money is to be made, manufacturing the branded chocolate products that we see on the shelves. Because the cocoa farmers in Ghana co-own the company, Divine Chocolate benefits them by moving them up the value chain. 6

7. Other threats to small scale farmers
Why cocoa farmers? Like other small scale farmers, cocoa farmers remain poor
There are 500 million small farms in developing countries which support 2 billion people – nearly a third of humanity
In Ghana domestic markets for crops such as rice and tomatoes are threatened because the EU, US, and even China, are importing their subsidised crops to Ghana
Crops grown for foreign markets (eg cocoa) provide export earnings but the farmers often see little of the value from the end product (i.e. chocolate)
Unfair trade is one of many factors which threatens the livelihood of small scale farmers, including cocoa farmers
Other threats to small scale farmers
Fluctuating oil prices
Rising food prices
Agrofuels
Climate change
Why do cocoa farmers in Ghana need help?
Like many other small scale farmers in developing countries, cocoa farmers remain poor.
There are 500 million small farms in developing countries which support 2 billion people which is nearly a third of the people living on the plant (source: International Fund for Agricultural Development “Food Prices: Smallholder farmers can be part of the solution”.
As in many developing countries, many people are dependent on agriculture to earn a living. But some of the crops they grow and sell locally, such as rice and tomatoes, are also being imported from rich countries which have surpluses, such as the US, European countries and even China. They can afford to sell them in Ghana for less than the local farmers. This undermines the livelihood of the local farmers and means they lack food security.
Selling crops which can be sold in other markets, i.e. exported to other countries, offers another way to earn a living for smallholder farmers. Cocoa farmers sell cocoa beans which are then used to make chocolate but the cocoa farmers see little of the value from the sale of chocolate bars.
Unfair trade is one of many factors which threatens the livelihood of small scale farmers, including cocoa farmers.
Other threats that are making life difficult for smallholder farmers are:
- wildly fluctuating oil prices,
- rising food prices,
- agrofuels – where food crops are grown for fuel in vehicles taking away food that could have been used to feed people,
- climate change – which is making farming more difficult in many parts of the world as weather patterns change.

8. The Divine Story Begins with cocoa farmers in Africa . . .
Ghanaian cocoa farmers typically earn less than £1 each day
Farmers have little control over the price they receive for their cocoa beans
Wanting to gain more control, farmers pooled resources to create a co- operative of cocoa farmers, known as the Kuapa Kokoo Farmers Union
Kuapa Kokoo means ‘good cocoa farmer’ in Twi, the language of the cocoa farmers
The story of Divine begins with the cocoa farmers in Ghana. Cocoa farmers in Ghana have always been vulnerable to being cheated by unscrupulous government or private company cocoa buying agents.
Farmers grew tired of unethical bean weighing practices and wanted more control over the price they got for the beans. Ghanaian cocoa farmers typically earn less than £1 a day1 and they have little control over the price they receive for their cocoa beans.
So the farmers pooled resources to create a co-operative of cocoa farmers, known as the Kuapa Kokoo Farmers Union. Together they found they had a stronger negotiating position with the big chocolate companies.
Kuapa Kokoo means ‘good cocoa farmer’ in Twi, the language of the cocoa farmers
The picture shows the Kuapa Kokoo co-operative scales for weighing sacks of cocoa beans. One of the first things that Kuapa Kokoo did to establish their good reputation with farmers was to invest in good scales. A local member of the co-operative is appointed in every village to do the weighing and the farmers know these scales are accurate because they have the right to check them with a 25kg weighing stone. This way they can be sure they not being cheated of their income.
More information about the origins of Divine Chocolate can be found on the Divine website under the heading ‘About Divine’.
1. Based on an average small-scale cocoa farmer in Ghana in 2009/10 producing 5 sacks of cocoa a year, being paid £65 a sack, i.e. £325 a year. £325 divided by 365 days a year = 89p per day.

9. The Divine Story The Kuapa Kokoo Farmers Union
Together the farmers of Kuapa Kokoo provide nearly 1% of world cocoa output
In 2009/10 around 70% of beans were sold to Fairtrade buyers
The Fairtrade market is not yet large enough for them to be able to sell 100% of their beans this way
As demand for Fairtrade products rise farmers are able to sell more of their crop through Fairtrade channels
The Kuapa Kokoo slogan, Pa Pa Paa, means “best of the best”
Kuapa Kokoo produces almost 1% of world cocoa output.1 Around 70% of beans sold by Kuapa Kokoo were sold to Fairtrade buyers in /102; although the Fairtrade chocolate market is growing it is still not yet large enough for them to be able to sell all their beans this way.
As demand for Fairtrade products rises, farmers are able to sell more of their crop through Fairtrade channels.
Kuapa Kokoo is democratically organised with elected representatives from village to national level. Initially there were 2,000 members in 22 village societies, but this has now grown to 45,000 members in 1,200 village societies.
In 1997, Kuapa Kokoo took the major – and innovative – decision to create a chocolate company in the UK so that they would get a proportion of the money earned from a chocolate bar.
In 2009/10, 3.6m tonnes of cocoa produced globally and 28,643 tonnes produced by Kuapa Kokoo.
In 2009/10, Kuapa Kokoo sold 21,800 tonnes on Fairtrade terms, out of 28,643 tonnes in total.
In 1997 Kuapa Kokoo made the major and innovative decision to set up a chocolate company in the UK in order to get more value from their cocoa

10. The Divine Story …Then moves to the UK where Divine is created
Divine produces and sells chocolate sourced solely from Fairtrade cocoa beans bought from Kuapa Kokoo
The better Divine performs the more it can spend on improving the supply chain, paying dividends to shareholders and on education
The Divine story then moves to the UK where Divine Chocolate Ltd was created, although it was called the Day Chocolate Company at first and only changed to Divine Chocolate Ltd in January 2007 to more closely align the company with its leading brand chocolate bar.
In the Autumn of 1998, Divine, the first ever Fairtrade chocolate bar aimed at the mass market was launched onto the UK confectionery market.
Using this exciting new business model, the co-operative of cocoa farmers in Ghana owned shares in the company making the chocolate bar.
This means that in the UK Divine produces and sells chocolate sourced solely from Fairtrade cocoa beans bought from Kuapa Kokoo, and the better Divine performs the more it can spend on improving the supply chain, paying dividends to shareholders and on education for cocoa farmers and about Fairtrade here in the UK.
It also means that in Ghana the more Fairtrade beans are sold to Divine, the more the income of the farmers increases and the more Fairtrade social premium is earned for the benefit of the whole community. 
The more Fairtrade beans are sold the more the farmers income increases and the more social premium is earned to the benefit of the community
Farmers sell Fairtrade cocoa beans to Divine Chocolate

11. The Divine Story objectives combine business drive and social mission
To make and sell delicious chocolate
Divine aims to sell a quality and affordable range of Fairtrade chocolate bars in the mainstream market
Competing in the mainstream market is a challenge but also gives credibility
To act as a passionate advocate for a trading system that brings dignity and respect to all its participants
To be vocal, acting as a catalyst for change
To be visible in the debate about fair trade
Includes paying a Fairtrade price for all the cocoa used in products
We started by saying a social enterprise combines business drive with social mission. How does this translate into objectives for Divine?
First, Divine aims to make and sell delicious chocolate, and make money doing so. It is a business, after all, and not a charity. The company aims to sell a quality and affordable range of Fairtrade chocolate bars in the mainstream market. Competing in the mainstream market is a challenge but also gives credibility.
However, Divine also aims to be a loud voice in the UK to tell people that successful businesses can be run with fair trade principles so that everyone involved in producing a chocolate bar, including the farmers, are treated fairly. So the second objective listed is to act as a passionate advocate for a trading system that brings dignity and respect to all its participants. Divine aims to be vocal, acting as a catalyst for change; it aims to be visible in the debate about fair trade. This includes paying a Fairtrade price for all the cocoa used in products.
Thirdly, because Divine is committed to fair trade practice, the company also has an objective to be a bridge between consumers and producers, raising awareness of fair trade issues among UK retailers and consumers in all age groups, as well as a wider audience including Government and other companies in the supply chain.
To be a bridge between consumers and producers
Raising awareness of fair trade issues among UK retailers and consumers of all age groups

12. The Divine Story the chocolate market is…
…VERY BIG!
A very mature and competitive market
Globally dominated by five companies
Global chocolate market worth £62 billion
Global cocoa market worth £5 billion
The average person in the UK eats 10kg each year which is the highest per capita consumption in the world
The average UK family spends more in a year on chocolate in a year than a cocoa farmer earns in a year
This slide says a bit about the chocolate market itself. First, the market is VERY BIG, and is a very mature and competitive market dominated by just a five companies. These companies are Kraft/Cadbury, Mars, Nestlé, Ferrero and Hershey. Between them they controlled 55% of the global chocolate market in
In 2010, the global chocolate market was worth £62 billion2, while the global cocoa market is worth only £5 billion.3
In a ferociously competitive chocolate market, being a relatively small company can be a daunting prospect. But as so many people adore delicious chocolate, the potential for Divine's success is huge. There are hundreds of chocolate brands available in the UK, and the biggest companies spend up to 10% of their profit margins – tens of millions of pounds – in their fight to retain their brands' positions in the Chocolate Top Ten. Divine has been developed to appeal to the British public's palate, and it tests favourably against all the market leaders.
The UK has one of the highest per capita levels of consumption of chocolate in the world as the average person in the UK eats 10kg each year4 and therefore, capturing even a small proportion of this market translates into real benefits for cocoa farmers. A very good thing too, as the average UK family spends more on chocolate in a year than a cocoa farmer earns in a year.
In the UK itself, the Kraft takeover of Cadbury has led to a highly consolidated market with just three companies dominating 83% of the market: Kraft/Cadbury, Mars and Nestlé.5
Source: Euromonitor (2009)
Source: Euromonitor (2011)
Source: ICCO (September 2009) Personal communication.
Source: Datamonitor (2006)
Source: Mintel (2010) Chocolate confectionery report.
Three companies control 83% of the £3.7bn UK chocolate market 12

13. The Divine Story The Mixed blessings of success…
In Autumn 2009, Cadbury switched Dairy Milk to Fairtrade with cocoa sourced from Kuapa Kokoo
Kuapa Kokoo Fairtrade cocoa sales tripled
But increased competition for Divine
Ironically, Cadbury could not have made the switch if Divine had not worked with Kuapa Kokoo for over a decade to create a Fairtrade cocoa supply chain with sufficient capacity
In September 2011 Mars announced its first foray into Fairtrade with the switch of Maltesers to Fairtrade in 2012
As part of the Fairtrade campaign in the UK, Divine has helped drive forwards a movement that has seen sales of Fairtrade certified products grow rapidly. Rising consumer demand has meant that other companies became interested. A number of large well known brands have now switched whole product ranges to Fairtrade – Tate & Lyle’s sugar, Starbuck’s espresso-based coffees, Sainsbury’s own brand tea, and many others.
In 2009 Cadbury, whose roots are in the Quaker movement and whose reputation used to be as a more ethical company, decided to switch Dairy Milk worldwide to Fairtrade. Subsequently Cadbury’s Chocolate Buttons have also switched to Fairtrade.
Aside from consumer demand, a major reason for Cadbury switching Dairy Milk to Fairtrade is that they understand that cocoa farming is not an attractive option for young Ghanaians, who are leaving cocoa farming to their aging parents. Cocoa farming needs to become more sustainable by paying cocoa farmers for the work they do if there is to be cocoa available in the future.
To make the switch to Fairtrade required a large source of Fairtrade cocoa and Cadbury turned to Kuapa Kokoo. Although all Kuapa Kokoo cocoa was certified as Fairtrade, until then only 20% was being sold as Fairtrade.
This means that Kuapa Kokoo can now sell a majority of its cocoa as Fairtrade.
This highlights a crucial difference between a social enterprise like Divine Chocolate, and a mainstream company like Cadbury. Over the last decade, Divine has steadily invested in strengthening the Kuapa Kokoo co-operative, growing supplies of Fairtrade cocoa and building a market among the UK public for Fairtrade chocolate. Cadbury has come on board at a point where the hard work of investing in the Fairtrade cocoa and chocolate supply chain has all been done for them.
Kuapa Kokoo would not be where it is today without Divine but, ironically, this is what has enabled Cadbury to enter the Fairtrade market and create an even more prominent competitor for Divine in the UK market.
In September 2011 Mars also announced a switch to Fairtrade for it’s bestseller, Maltesers. This is the first time Mars has had a Fairtrade product. Fairtrade Maltesers will be available in 2012.
For more information on UK chocolate companies, see the Chocolate Scorecard from Trading Visions. 13

14. The Divine Story How is the Divine business model different?
Partnership based
Committed to Fairtrade
Ownership
How is the way Divine does business different to most other companies?
Firstly, you could say it is partnership based. This means that long term relationships are valued, giving the farmers more sense of security for their future. Ensuring the farmers have guaranteed minimum health and safety conditions and access to education and training are part of how Divine does business. Divine allocates a percentage of turnover (2%) to producer support and development.
Equally, relationships with retailers, consumers and other parties are based on shared social objectives. Divine has worked closely with the Co-operative supermarket to produce the Co-op’s own brand chocolate, which is made with cocoa from Kuapa Kokoo. The Co-op is a progressive business that shares similar values to Divine, so they are a good partner.
Secondly, Divine is committed to Fairtrade. All the products are sold with the Fairtrade Mark and Divine buys Fairtrade ingredients where possible. All the cocoa beans used in Divine chocolate are bought from Kuapa Kokoo. Furthermore, Divine works with the farmers supplying Divine to help them understand the trading chain and improve their own business skills. This actively strengthens the farmers position in world markets.
Finally, in addition to the usual benefits of Fairtrade, because the Kuapa Kokoo farmers are also part-owners of Divine chocolate, they also benefit when the company makes a profit as they get a share. The farmers own 45% of Divine Chocolate Ltd and so they receive 45% of distributable profits. They also have seats on the Board of Divine Chocolate Ltd and so get involved in major decisions made by the company.

15. Since introducing the first mainstream Fairtrade chocolate bar into the UK market, the Divine product range has grown considerably. From the original Divine bar, it has grown to 36 products including the first ever Fairtrade chocolate advent calendar, Divine mini eggs, chocolate coin and drinking chocolate. Recently two new bars were launched; a dark chocolate with raspberry bar and a butterscotch bar.
The current ‘look’ of the Divine bar wrapper uses symbols which are traditional west African adinkra symbols often used on hand-made crafts, and each with its own special meaning.
Divine products are stocked in a number of major supermarket stores including Sainsbury’s, Waitrose, Co-op as well as wholesalers and independent and wholefood shops.

16. The Importance of Great marketing Divine does advertising with ethics
Competing in the mainstream market means Divine needs really great advertising and marketing.
These pictures are from an earlier print advertising campaign. The women shown are members of the Kuapa Kokoo cooperative. Whereas these helped establish the ethical credentials of Divine chocolate, new advertising will focus more on the quality of the product. Divine has learnt from consumer research that whatever your values, people buy Divine first and foremost because it is delicious chocolate.
Divine has also used innovative activities with key supporter groups such as an annual Divine Poetry Competition with Christian Aid supporters.
Kuapa Kokoo farmers have toured the UK every year, most notably during Fairtrade Fortnight, to engage with and tell their story to supporters, consumers, supermarkets and the media.
The Divine website is used as a tool to promote the brand:

17. The Divine Story Marketing – tapping into key events
Divine is constantly exploring new ways of communicating with people.
In July 2010, when Ghana got to the quarter finals in the World Cup, and breathtakingly close to being the first African nation to make the World Cup semi finals, Divine placed an advert in Metro newspaper to cheer them on. The advert made the connection with Divine Chocolate being a brand co-owned by Ghanaian cocoa farmers: wishing the Ghanaian national team, the Black Stars, “good luck from one feisty Ghanaian player to another”! 17

18. Marketing Divine Use of Celebrity endorsement
Numerous celebrities have willingly lent their name and image to endorsing Divine products.
The pictures here show comedian Harry Hill visiting Ghana with Divine Chocolate and Doctor Who and Torchwood actor Freema Agyeman with a bar of Divine chocolate.
“Isn’t it funny how having a piece of chocolate can put a smile on your face – but wouldn’t it taste all the sweeter knowing that the people who made it were smiling too? Do justice to your tastebuds and do justice to the people who made it Divine! Keep it Fairtrade!” - Freema Agyeman

19. A Story Within a Story
The Dubble Bar … boldly going where no chocolate has gone before!
In 2000, Comic Relief joined forces with Divine Chocolate Ltd to make the first Fairtrade product for young people – Dubble!
Over 10 million Dubble bars have been sold and the Dubble family has also hatched an Easter egg and mini-eggs
Over 50,000 young supporters of Fairtrade have signed up as Dubble Agents to change the world, chunk by chunk!
is a source of fun and facts about Fairtrade for young people
In addition to the Divine range of products, Divine also produces the Dubble bar…. boldly going where no chocolate has gone before!
In 2000, Comic Relief joined forces with Divine Chocolate Ltd to make the first Fairtrade product for young people – a bar “by kids for kids”.
It was designed and developed with input from thousands of children from initial concept to the finished product and Dubble's “by kids for kids” ethos continues to drive its online developments.
Over 10 million Dubble bars have been sold since then and the Dubble family has also hatched an Easter egg and mini-eggs.
Over 50,000 young supporters of Fairtrade have signed up as Dubble Agents to change the world, chunk by chunk!
The Dubble bar website is a source of fun and facts about Fairtrade for young people. 19

20. But sales and profits are only one measure of success
What Success looks Like For Divine Chocolate
Profitable
Able to pay dividends to shareholders
Year
Turnover
Operating Profit
2009/10
£10,415,340
£22,286
Divine Chocolate Ltd wants to show that it really is possible to be a commercial success and still do business differently, putting social objectives at the heart of the company.
This slide shows that in commercial terms Divine Chocolate Ltd is a success. The company is profitable and able to pay dividends to shareholders. In 2009/10 the turnover was nearly £10.5 million and profits amounted to over £22,286. Profits would have been more if it were not for an exceptional item1.
Furthermore, the company has enjoyed double-digit sales growth for a number of years.
But sales and profits are only one measure of success.
1: Divine Annual Report 2009/10
But sales and profits are only one measure of success

21. What Success looks Like Divine Chocolate income to kuapa kokoo
Year
Fairtrade sales
Fairtrade Premium
Producer support
Shared profits
2009/10
$3,856,248
$178,200
£208,307
£19,852
How does Divine’s business success translate into its social objectives?
This slide shows how Divine Chocolate sales have benefitted Kuapa Kokoo in Ghana. As you can see, Kuapa Kokoo receives four different income streams from Divine Chocolate.
In 2009/10, Kuapa Kokoo farmers sold 1,188 tonnes of cocoa beans to Divine Chocolate, with a sales value of approximately $3.2 million in
From these Kuapa Kokoo earned $178,200 in Fairtrade Premium, to be spent collectively by the co-operative on projects for their communities. (Fairtrade sales and the Fairtrade Premium are always calculated and paid in US dollars, for all commodities.)
In addition, Divine returns a percentage of its turnover (2% of wholesale sales) every year to Kuapa Kokoo for ‘producer support and development’, helping Kuapa Kokoo to develop as an effective cocoa buying business. In 2009/10 this amounted to £208,307.
As part owners of Divine Chocolate, with 45% of the company’s shares, Kuapa Kokoo receive 45% of distributable profits when a share dividend payment in made. The first ever payment was made in 2007, when all 45,000 farmers in the co-operative received $1 each. In 2009/10, the share dividend was just under £20,000.
This farmer ownership model not only delivers the two additional income streams – ‘Producer support and development’, and ‘Shared profits’ - but also delivers business knowledge and experience and a real voice in the chocolate industry.
The asset of co-owning Divine Chocolate has also helped Kuapa Kokoo by opening the door to additional finance. Kuapa Kokoo has to borrow a lot of money every year so that it can pay its members upfront for their cocoa, before it has been sold. As bank loan interest rates in Ghana are 25%-30%, this is very expensive. Kuapa have used their shares in Divine Chocolate as security to borrow hard currency at 5% interest, saving them £615,000 in interest charges in
Selling to the Fairtrade chocolate market ensures cocoa farmers get the Fairtrade price and the Fairtrade premium for their cocoa.  As they also own 45% of Divine Chocolate, the farmers of the Kuapa Kokoo cooperative are the only cocoa farmers in the world who are currently not only receiving the Fairtrade deal, but also receiving the major share of the profits from the chocolate they help create.
This is an approximate figure, derived by multiplying the volume of cocoa sold by Kuapa Kokoo to Divine by the average world market price for cocoa over this financial year, $3,246 per tonne.
See for more information on this.
Kuapa Kokoo sold 1,188 tonnes of Fairtrade cocoa beans to Divine Chocolate in
Four incomes streams altogether from Divine to Kuapa Kokoo
“For us, farmer ownership always made Divine Chocolate special. For the first time our members benefit as owners of a wonderful chocolate brand, and not only as suppliers of excellent fairly traded cocoa.”
Mr Ohemeng Tinyase, MD of Kuapa Kokoo Ltd until 2009

22. What Success looks Like for the community – water wells
As a consequence of the success of the Kuapa Kokoo co-operative, the community directly benefits. This water well was funded from the social premium earned by Kuapa Kokoo from Fairtrade cocoa sales.
A water well can have ripple effects beyond just having clean, readily available water in the community. Families experience the benefits of a reduction in water borne diseases. Because it is girls who usually go to fetch the water, the reduced walking time needed to fetch water means that girls have more time for education, which means they have better prospects and more power when they grow up.

23. What Success looks Like for the farmers’ children - schools
The picture on the left is Great Fammis School which is attended by the children of the Kuapa Kokoo farmers. The school is named after the founder of Kuapa Kokoo and was built with money earned from the sale of Divine chocolate. Kuapa Kokoo have been involved in the development of 8 schools across Ghana.
Online video webcasts are broadcast on a regular basis from Great Fammis School as part of the Pa Pa Paa LIVE educational programme. For more information about how schools in the UK can receive these webcasts and ask questions of the children attending Great Fammis School go to

24. What Success looks Like For women - empowerment
Women also benefit. Kuapa Kokoo aims to encourage the active and effective participation of women in decision making throughout the organisation.
The Kuapa Kokoo constitution specifies that 3 out of 7 of the elected board members of local Kuapa village societies must be women. At the Kuapa Kokoo Annual General Meeting, every village sends one woman and one man to the meeting.
Over time this has ensured women have more influence and make more contributions to the organisation. In 2008, more women than men were voted onto the Kuapa National Executive, and women hold some of the most senior positions.
In 2010, Christiana Ohene Agyare, a cocoa farmer shown inset on the slide, was elected as the first female president of Kuapa Kokoo. So now we have a woman heading a farmers’ cooperative in Africa with 45,000 members in 1,300 village societies, buying 30,000 tonnes of cocoa and turning over just under $50 million a year.
As Christiana has said: “Being a member of Kuapa Kokoo has taught me that whatever a man can do, a woman can also do and even better.”
In addition, the co-operative has encouraged education about nutrition, child care, health and credit facilities and supported other income generating activities for women to supplement their incomes and to make them less dependent on the men as well as provide money for the family during the off season whilst the cocoa is growing.
Christiana Ohene Agyare
President of Kuapa Kokoo

25. What Success looks Like for the cocoa farmers themselves
Tangible benefits for farmers
Move up value chain
Sit on the Divine Board
Part of decision-making process
Profit share
Access to capital
Intangible benefits for farmers
Pride
Respect
Status
Reputation
Inclusion
Knowledge
A ‘seat at the table’
One of the main ways in which Divine is different from other companies, and even other social enterprises, is that the farmers are part owners of the company. The Kuapa Kokoo cooperative owns 45% of the shares of the company.
This provides benefits for the farmers in many ways; some are tangible while others are less so.
Among the tangible benefits is the way that ownership in Divine Chocolate allows them to move higher up the value chain, to use the industry jargon. This means they get a greater share of the money generated from chocolate production and sales than they would ever get from just selling the cocoa beans.
It also allows them to contribute to decisions made about Divine and, in the process, learn more about the chocolate market.
As they earn ‘hard’ currency they now have access to other sources of funds (i.e. capital) which allows them to expand and invest. Most small holder farmers in countries such as Ghana own almost nothing and only earn money in their local currency and this means they have almost no access to capital.
Aside from the tangible benefits of co-ownership, the farmers have been empowered and in so doing have grown in pride and reputation.
Ownership in Divine

26. in Summary
Divine Chocolate Limited has shown that it is possible for smallholder farmers from Africa to co-own a successful company in one of the most competitive and mature markets in the world
When Divine Chocolate was launched in 1998, no one thought it would be possible to start a social enterprise like this in the highly competitive UK chocolate market. But Divine has shown that it is possible for smallholder farmers from Africa to co-own a successful company in one of the most competitive and mature markets in the world.
It’s taken partnership, a lot of passion, and even more persistence, but Divine Chocolate is now a multimillion-pound company with cocoa farmers sharing the profits.

27. Now it’s up to you. . . . Why not…
Tell your family, friends and neighbours about Divine and Dubble chocolate
Sign up to be a Dubble Agent at
Hold a chocolate tasting event with Divine chocolate
Hold a Fairtrade cake stall and raise money for your cause of choice with Dubble’s ‘Bake & Sell’ kit:
Estimate what you spend on chocolate each year and what you could do with your ‘buying power’
Sign a petition asking local shops to stock Fairtrade chocolate
Watch videos make the children of Fairtrade cocoa farmers:
Divine Chocolate is a commercial brand that is a force for good, showing how business can be done in a fairer way. You can make yourself a force for good too!
Make sure you
Tell your family, friends and neighbours about Divine and Dubble chocolate
Sign up to be a Dubble Agent at
Hold a chocolate tasting event with Divine chocolate
Hold a Fairtrade cake stall and raise money for your cause of choice with Dubble’s ‘Bake & Sell’ kit:
Estimate what you spend on chocolate each year and what you could do with your ‘buying power’
Sign a petition asking local shops to stock Fairtrade chocolate
Watch videos make the children of Fairtrade cocoa farmers:
You can buy Divine and Dubble chocolate for your events from the Divine Chocolate shop: 27