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Market Overview - PowerPoint

VIEWS: 6 PAGES: 15

									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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