Presentation on theme: "Case History - The Delvas Story Of Bringing Organic and Fairtrade Together Thierry Noesen, Managing Director A Start-Up in Fairtrade www.delvas.be."— Presentation transcript:
Case History - The Delvas Story Of Bringing Organic and Fairtrade Together Thierry Noesen, Managing Director A Start-Up in Fairtrade
Delvas - our adventure Starting up Industrial aspects 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
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, great cocoa for great chocolate. = Link with cocoa farmers + Link with Belgian chocolate (taste) competence Delvas - our adventure Image
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
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
Double price-premium? Need for specific offering Organic and Fairtrade Together