1. Cocoa Potential to Prosperity A Cluster and Value Chain Approach Indera Sagewan-Alli Executive Director Caribbean Centre for Competitiveness UWI

3. Bean to Bar to Spa An Artisanal Destination Approach:

4. Cocoa Economic Development Board of Trinidad and Tobago An industry for active revitalization “Our cocoa should be treated in an analogous way to that of Champagne, low volumes, high quality, high price, high profit and having a growing global demand.” “future of the industry should focus on the processing of the beans for high quality chocolates, rather than the sale of the beans as this adds significant value, 10 to 15 times the raw material on the open market. Consideration should be made to partnership with experienced international processors of the beans, to rapidly provide the technical expertise as well as the customer base for exports.” “..Fairtrade should replace the current model which would ensure that cocoa farmers receive the best price for their produce.”

5. Shared farmer Perspective “Cocoa has now become an uncompetitive commodity due to volatile prices, perennial labour problems within the agricultural sector as a whole and climate change.”

6. The Cluster/Value Chain Approach

7. Positive Trends Demand for cocoa increase 30% by 2020 fine flavor cocoa is 5% to 7% market share but increasing Chocolate $131.7 billion by 2019 Growth in demand for ‘healthier chocolates’ (Dark)now account for 20% of US market Demand Growth for specialty/premium chocolates in high end segment of mature markets in US and Europe Product innovation driver of demand for gourmet chocolates Chocolate prices increasing (45% increase in US market 2013)

8. Negative Trends Increase in suppliers of Fine Flavor Cocoa as countries aggressively seek certification to secure higher prices. Large Chocolate Producers are capitalizing on the growing demand for “healthier” “fair trade” “single origin” dark Chocolate Country of Origin bean processing dominated by a few MNCs Growth led by the milk chocolate segment, estimated to grow at about 2.4% between 2014 and 2019

9. Cluster Map

10. Business Models: Attractiveness Fine Flavor Beans for Export….Power/Value with buyer Fine Flavor bean Branded……..Value marginally increased Cocoa Derivatives…………………..Added Value to local/MNC processor Chocolates/beauty products for local/Export consumption………limited growth potential/Highly competitive Product + Experience ……………..Most Attractive Value creation and retention

11. Local Monetary Value Chain

12. International Monetary Value Chain Notes: Gourmet 250g baking bar Lindt * Tourism Accommodation the Chocolate Boutique Hotel, UK * The Chocolate Museum, Canada * Chocolate prices based on 100g bar * Chocolate SPA, Hotel Hershey

13. Bean to Bar to Spa An Artisanal Destination Approach:

14. Advanced Purchase Criteria A different/unique Quality experience Authenticity of product and experience (process/flavors/personalities) On-line accessibility Mix chocolate with other sight seeing experiences Security and trust

15. Target Market Market: US, Canada, South America Age/Income: Middle aged and older/higher Income Gender: Balance men and women