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“ The amazing story of how small scale cocoa farmers in Ghana came to own 45% of Divine Chocolate Ltd.”
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Social Enterprise Divine Chocolate Limited The Best Social Enterprise 2007
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Social Enterprise SOCIAL ENTERPRISE = MISSION DRIVEN BUSINESS Mission The heart of what they do It is what gives them their reason to be It makes them good at what they do It gives them their competitive edge It defines where the money goes
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Divine Chocolate ltd Mission Founded in 1998 to 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 thus putting the farmers higher up the value chain.
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The Chocolate market Average person in the UK eats 16kg Very mature and competitive market Dominated by 4 companies 3 companies share 80% of the market UK Chocolate market worth £3.6 billion World Cocoa market only £2.14 billion
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Divine Chocolate Ltd Objectives To take a quality and affordable range of fair trade chocolate bars into the mainstream market. To raise awareness of fair trade issues among UK retailers, 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 a fair trade price for all the cocoa used in products
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Kuapa Kokoo Farmers Union A Co-operative of Ghanaian Cocoa Farmers Established in 1993 in response to liberalisation 2000 members in 22 village societies Work with the cocoa farmers to ensure quality Now 45,000 members in 1,200 village societies Democratically organised Voted in 1997 AGM to set up a chocolate company in UK
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Divine partners TWIN TRADING Founders of cafédirect, Coffee traders Working with producers to develop new products for new markets PS&D, Agricultural & Business advice THE BODY SHOP INTERNATIONAL Significant customer base sympathetic to the message Good products with strong values Community Trade partnership & traceable sourcing
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Divine partners CHRISTIAN AID 200,000 committed supporters Fantastic access to community networks and supporters COMIC RELIEF History of support for Kuapa Kokoo Incredible brand awareness Celebrity endorsement DFID Bi-lateral support for Ghana Guaranteed a bank loan
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Latest News July 2006 Body Shop International donated their shares to Kuapa Kokoo, 14 ordinary shares and 250,000 preference shares. Sept 2006 Oikocredit invested £500,000 for 15 shares Sept 2006 Divine Chocolate Inc USA incorporated 14 th February 2007 Divine Chocolate Inc launched April 2007 Divine announced its first Dividend £500 a share
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Divine Owners Ordinary PreferenceShares Kuapa Kokoo 55 shares283,605 Twin Trading 52 shares379,375 Oikocredit 15 shares Christian Aid150,000
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Fairtrade Cocoa Guaranteed Independent International Guarantee giving consumers confidence in the claim – Annual audit & monitoring minimum price of $1,600 per tonne providing long term security Social premium of $150 per tonne to be invested in community projects Long term contracts providing security Guaranteed minimum health and safety conditions Education and training
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Kuapa kokoo recorder
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How Kuapa kokoo is structured Kuapa Kokoo Farmers Union Kuapa Kokoo Ltd Kuapa Kokoo Farmers Trust Kuapa Kokoo Credit Union Divine Chocolate Ltd
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Kuapa Kokoo water well
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Kuapa Kokoo Schools
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Kuapa Kokoo Women’s empowerment
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Divine Chocolate Creamy smooth milk chocolate developed to appeal to British palate First mainstream Fairtrade chocolate bar Natural ingredients and certified GM Free 7 Divine varieties of 100g and 4 Divine 45g bars First ever Fairtrade chocolate advent calendar Divine Mini Eggs and Divine chocolate coins and Divine drinking chocolate Stocked in Tescos, Sainsbury’s, ASDA, Waitrose, Co-op, wholesales and Independent and Wholefood shops
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Divine Chocolate
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Divine marketing First ever Fairtrade TV advertising campaign featuring Ben Elton Covermounted on BBC Good Food magazine and Party magazine Ongoing women’s monthly magazine coverage, Elle, Eve, She Stoc the Choc with Christian Aid Innovative activity with key Fairtrade audience, e.g Divine poetry competition Farmers Tour of UK to engage with consumers, supermarkets and media www.divinechocolate.com National Consumer Advertising
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40g smooth milk chocolate crispy crunch countline bar with added Comic Relief Real cocoa butter and GM ingredients free Affordable price Money can’t buy promotions – Celebrity Big Brother Dubble Vision Competition – Nickleodeon, Samantha Mumba Award winning Teachers pack www.papapaa.orgwww.papapaa.org Dubble Agents: unique Fairtrade fan club with over 55,000 members signed up through Latest campaign MISSION:POSSIBLE www.dubble.co.uk
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What Divine Chocolate Ltd success looks like TurnoverProfit Sales Growth 2004/05£7,673,298£497,48136% 2005/06£8,988,071£453,09118% 2006/07 £10,702,500£434,55419% PROFITABLE WITH GOOD GROWTH
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What Divine Chocolate ltd success looks like Purchase of Kuapa Kokoo Fairtrade cocoa beans TonnesFT Price Social PremiumPS&D 2004/05996$1,593,600$149,400£107,426 2005/061165$1,864,000$174,750£125,832 2006/071420$2,272,000$213,000£149,835 April 2007 Divine announced its first Dividend £500 a share SIGNIFICANT BENEFITS TO FARMERS
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2007 Highlights FY2005/06 - Divine Chocolate announced its first dividend. As co-owners Kuapa Kokoo benefited by sharing in the profits.
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What we are trying to address through ownership We are trying to address how poor people can access more of the value they have indirectly generated Alternative is charity which is arbitrary Ownership formalizes the relevant contributions and distribution of income
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Benefits of ownership to the farmers Sole supplier of cocoa A Fairtrade price for their cocoa Share of the profits, Kuapa Kokoo own 45% of Divine Seats on the Board Influence over the end product in the market place Status - every member owns shares in a UK Company Capacity Building – understanding the trading chain Develops business skills & reputation
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No one really thought it was possible But, they would like to live in a world where it was … so through Partnership Passion Persistence The Divine Chocolate has established a market for a company co-owed by small holder cocoa farmers in one of the most competitive and mature markets in the world.
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