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(English) Best Practices

Sector
Food Sector

Keywords
Social Enterprise Farming Sustainability Decent Work Fairtrade Women Empowerment

From which SME is it?
Divine Chololate

Location
London, UK

Format
Physical, Electronic

Years of implementation
Since 1998

Website

Abstract

Divine Chocolate is a Fairtrade chocolate company that was established in the UK in 1998. The company has an interesting history and unique business model.

In the late 1990s, a group of cocoa farmers from the Kuapa Kokoo cooperative in Ghana joined forces with Twin Trading, a UK-based fair trade organization, to create Divine Chocolate. The vision was to establish a chocolate company that would empower farmers and challenge the inequalities in the cocoa industry.

What sets Divine Chocolate apart is its cooperative ownership structure. The cocoa farmers of Kuapa Kokoo own 44% of the company, giving them a direct stake in the business and a share of the profits. This cooperative model ensures that the farmers have a voice, receive fair compensation, and are actively involved in decision-making.


Relevance

Divine Chocolate became one of the first companies to achieve Fairtrade certification for its products. It also promotes environmentally sustainable farming practices and prohibits child labor. Its high-quality chocolates, made from sustainably sourced Ghanaian cocoa, garnered praise for their rich flavors and ethical credentials.

The company actively campaigns for a fairer and more transparent cocoa industry, working with partner organizations and consumers to promote sustainable and ethical consumption practices.


Concepts addressed within ESG

Transparency, environmental sustainability, social impact, decent work, gender equality.


Impact & Achieved Results
  • Empowering Cocoa Farmers
  • Sustainable Livelihoods
  • Community Development
  • Environmental Sustainability
  • Consumer Awareness
  • Industry Influence

* Divine Cholate's commitment to fair trade and cooperative ownership model has set an example for other companies and has made a significant difference in the lives of cocoa farmers and their communities.


Indicators of performance and success
  • Sales and Revenue Growth
  • Profitability
  • Farmer Impact
  • Consumer Awareness and Engagement
  • Industry Recognition
  • Supplier Relationships

Certifications
  • Fairtrade certification
  • Rainforest Alliance
  • B Corp Certification

Challenges and recommendations
  • According to Supply Chain Complexity: Managing a sustainable and ethical supply chain can be complex, especially when sourcing cocoa from multiple regions.
  • According to Price Competitiveness: Balancing fair prices for farmers with affordable prices for consumers can be a challenge.
  • According to Consumer Education: Increasing consumer awareness and understanding of fair trade and ethical sourcing can be challenging. Educating consumers about the importance of supporting ethical brands and the impact of their purchasing decisions requires continuous efforts.
  • According to Market Competition: Standing out and gaining market share against larger competitors can pose challenges, especially for smaller companies.
  • According to Innovation and Product Differentiation: Constantly innovating and introducing new products can help Divine Chocolate differentiate itself in the market.

Bibliography