Awareness of child labour abuses in West Africa, where the Ivory Coast and Ghana produce nearly three-quarters of the global cocoa supply, has increased in recent years—along with global demand for chocolate.
Many consumers seek “more than just a product” – something that offers “one minute of pure delight – my daily luxury”. This trend is fuelling demand for luxury chocolate.
The appetite for luxury is reflected in a surge of single-origin products that equate simplicity with quality, naturalness and health. Yet major brands don’t monopolise the sector due to their lack of flexibility, pricing boundaries and sustainability problems.
And almost all the chocolate they sell is sugar suspended in milk. The more bitter dark chocolate is thought not to match consumers’ tastes. While that may have been true, once, and milk chocolate may still reign supreme – with 51% of adults listing it as their favourite type – dark chocolate is gaining. Sales of the dark chocolate grew 9% last year, as opposed to milk chocolate growth of just 6%. Furthermore, consumers are walking away from the products high in sugar and artificial fats towards more healthy options. And according to the latest research, dark chocolate is one of TOP50 health foods in the world[1].
Secondly, consumers of pretty much any product tend to become increasingly sophisticated over time. The low end of the market becomes commoditised, and the margins migrate to the high end. This kind of chocolate doesn’t scale to Nestlé or Hershey’s.
Finally, food prices in general have been making up a smaller and smaller proportion of household expenditures for generations now. The gap between food-price inflation against personal consumption expenditures just keeps on growing. And in that gap, there’s room for people to spend a little bit more on edible luxuries, without significantly increasing the proportion of their budget that goes to food.
Consumers are looking for just chocolates that are transparent in their production: from cocoa bean story to chocolate bar story and nobody is giving it to them!
Solution
Most dramatic change in consumer taste surged in popularity of premium chocolate. Perceived health benefits have fuelled a 93% growth in launches and premium chocolate now accounts for 20% of chocolate market. The main factors of transformation is that premium dark chocolate has multiple health benefits, and that is a source of appeal, but also I believe people’s palates are really becoming more sophisticated.
The new generation of chocolate eater will become increasingly influential as millennial drive shopping: by 2020, their share of consumer spending is expected to reach US$3trn. The new generation of consumers require new generation of products, especially orthodox products like chocolate.
With uncertain worldwide economy, growing awareness to sustainability and food quality, the new so called ‘hybrid consumer’ is born. A conflicted character who seeks to economize on groceries while brightening life with such everyday luxuries as premium chocolate. Usually ‘hybrids’ are female and they control 70% of household spending.
Innovation phenomenon from Wild Eastern Europe
The importance in innovation is not only defined who will succeed in the longer run but also defines who is the trendsetter in the market. Big chocolate corporations browse for acquisitions only in the context of innovation acquisitions so those companies who put emphasis on break through chocolate technologies have biggest opportunity to grow.
With traceability a growing concern for consumers, 4.8% of chocolate products featured an origin claim last year. MULATE uses only 100% pure, single-origin, fine-flavoured cocoa – are using this to give our brand an exclusive cachet appeal to connoisseurs and highlight the distinctive flavours, by identifying where their cocoa beans are grown.
The only way to exclude business from price competition is to compete in quality. Product, service and brand aura are three main compositions of quality in chocolate company. Higher quality products are capable to operate in higher margin levels.
The Company’s brand awareness and aura are critical for long-term business. Only the companies with the best reputation are capable to overcome competition, increase dependence and build long-lasting bonds with the eaters.
The Story of Chocolate Naive
Chocolate Naive is internationally multi awarded bean-to-bar chocolate manufacturer set in the centre of Europe. The Chocolate Naïve is one of only 250 producers worldwide, the production cycle starts with a dried cocoa bean. Top class cocoa beans are diligently selected from exceptional farms. They are directly transported via the old seaways to Europe and, finally, to Lithuania, home of Chocolate Naive.
At Chocolate Naive we follow two key principles. First, we only work with the best ingredients in the world. Secondly, we seek to become world-class craftsmen in working with this type of exquisite production. The Naive roasts, winnows, conches and tempers chocolate in ways that help to reveal the character of a particular region, such as Tanzania, Madagascar, Nicaragua or Honduras.
The chocolate is finally born after meticulous analysis of taste, colour, smell and texture. For some time already our products have put Lithuania on the foodie map as rising star of gourmet chocolate in the world.
Chocolate Naive belongs to humanity, hard work and the big dreams of a small man, which sometimes come true at the most unexpected time and in the most unexpected of places.
Back to the North Eastern Europe Origins
The Chocolate Naive has great pleasure to introduce the “Back to North-East Europe Origins“ collection. The unique creation made to represent Nordic and Baltic culinary heritage in chocolate bars. With every piece of chocolate made, we try to give away a piece of our philosophy, our land and our fresh countryside air.
Every chocolate bar is like a chapter in the Chocolate Naive storybook. Taking you through the wild forests of Lithuania, confessing first love, recollecting childhood memories, or gazing at bees.
Experience a piece of mystery for yourself.
Appraisal
After five years of creativity and innovation Chocolate Naive is one of few brands got recognized via numerous world famous retailers, such as “Selfridges” (UK), “Fenwick” (UK), “Harvey Nichols” (UK), “Planet Organic” (UK), “The Conran Shop” (UK), “La Grande Epicerie de Paris” (France), “Dean & DeLuca” (Singapore), “Found MUJI” (Japan), “KaDeWe” (Germany), “NK” (Sweden), “Woolworth” (South Africa) and others.
Chocolate Naive is granted with more than fifteen world wide awards, including Gold at “Academy of Chocolate Awards 2015”, Innovation award at “North West Chocolate Festival 2014” or Gold at “International Chocolate Awards 2014”.
Please visit www.chocolatenaive.com for more detailed information.
[1] http://www.huffingtonpost.com/2012/06/29/healthy-food-healthiest-list_n_1636409.html