VIEWS: 6 PAGES: 15 POSTED ON: 11/19/2012
Case History - The Delvas Story Of Bringing Organic and Fairtrade Together Thierry Noesen, Managing Director A Start-Up in Fairtrade www.delvas.be Delvas - our adventure Industrial aspects Starting up • Small lines = competitive advantage at start • Delvas has broad variety of equipment • HACCP & BRC certification = pre-requisite for export R&D • Process of selection of ingredients • Competent chocolateers + cooperation Université de Gembloux • Flexible & cooperative administration process at FLO Perfect fit cocoa - Fairtrade • Trend to « origin » (location) chocolates • Trend to « authentic » chocolate (70% and more) • Lower fit for « assorted » chocolates than for bars Perfect fit Belgium - Cocoa - Fairtrade • International reputation of Belgium as the chocolate country • Moral duty for the belgian industry?? Delvas - our adventure Starting up R&D • Obtain first trial by the concept Obtain repeat purchase thanks to the taste • Product development towards the original tastes of chocolates • Focus on high quality ingredients • All natural ingredients – No preservatives – No colourants – All natural flavours – No trans-fats 2006 2007 Delvas - our adventure B2B or B2C? First hypothesis was B2B • Hotel chains with flow-packs • Major companies communicating « second dimension » in activity towards personal & business gifts • Investment in machinery - but cultural change for workers B2C ? • Better fit with our original competence • Absolutely no success in our own « chocolate shops » • Different customers • Opportunity of differentiation in the very large chocolate market Delvas - our adventure Image Paradox: Chocolate = Luxury & prestige Assorted chocolates even moving towards jewellery in presentation Fairtrade = Basic,raw Rather no packaging than too much Delvas - our adventure Image = North & South reunion + Cocoa bean Delvas - our adventure Image Delvas, great cocoa for great chocolate. = Link with cocoa farmers + Link with Belgian chocolate (taste) competence Delvas - our adventure Image Delvas - our adventure Product design Year1 Year2 Year3 Delvas - our adventure Product design Year1 Year2 Delvas - our adventure Price premium? Our experience: A price premium of 20% is acceptable Theoretically this is reachable, while packaging & workload are a big portion of costs of goods. Problem - Production process is major cost driver Conclusion: Scale will be an important factor in the development of Fairtrade in the chocolate market in general. Organic and Fairtrade Together Organic and Fairtrade Together In common: Consumer attention on content of the ingredients Consumer non-acceptance of industrial-only practices Our experience: Different distribution channels Differences: Concept Ingredients/Receipes/production process Organic and Fairtrade Together Double price-premium? Need for specific offering Thank You!
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