Positioning Fine or Flavour Cocoa

Dr. Elizabeth S Johnson, IICA Representative in Jamaica

Presented at 5th International Seminar: Knowledge and Flavour of Cocoa, Aromas of Peace

Bogota Colombia, November 23 to 24

Distinctive Brands

Cars & Handbags

Communication – Right story for Target CustomerKnow your customer

Communication – Right story for Target CustomerKnow your customer

Bottom up approach to Niche Marketing Strategy

Source: European Journal of Marketing, Vol. 28 No. 4, 1994, pp. 39-55

Similarly for cocoa, address the needs of a few building up customer base ultimately aligning regulatory/government structure to facilitate growth of the niche created.

Some Key Guidelines to Niche Marketing of Fine & Flavour Cocoa

• Positioning – Know yourself - strengths and weaknesses, uniqueness, competitive advantages, distinctive competences, regional and traditional characteristics.

• Profitability – Know your customer – know your customers and their business; become a specialist in the business of your customers so you can meet their needs.

- Know your competitors; find out why customers use your competitors products but not yours

• Distinctive competences - offer significant benefits to your customers, determine what your customers real values are and appeal to these values based on your strengths

• Small market segments - If you have discovered one niche you’ll probably end up finding more, but make sure that you do not exceed your limit by over extending all your abilities and resources; stay flexible. Most importantly, don’t compete against yourself in the same market.

• Adherence to marketing principles – Create a corporate marketing strategy don’t develop your niche markets as stand-alone markets, link them to gain synergies and create efficiency. For cocoa this could entail linking the cooperatives of growers niche marketing plans into a country plan. In this way Regulatory framework supports the niche market plans of cooperatives

• Practice relationship marketing - Create high entry barriers through building a close relationship with your customers, patents, copyrights, alliances and relationship marketing. Cover all the bases to deter potential competitors.

Some Key Guidelines to Niche Marketing of Fine & Flavour Cocoa

80% of the Fine & Flavour Cocoa in the World is produced in LAC

Source: https://www.c-

spot.com/atlas/chocolate-flavor-profiles/

Source: Cocoa Beans Industry Quality Requirements Apr 2016_En.pdf

Main determinants of Flavour:1. Genetics2. Terroir3. Fermentation & drying4. Roasting and Conching

Cocoa Pricing Structure

-⅔ from Ecuador. Plans to increase export to USD 2 million with 3 var ; Miss Ecuador, Bacao, Sacha Gold (Trinitario hybrid)-Rest – Nacional Arriba – 33% & -CCN51 – bulk- 36%

Source: https://www.confectionerynews.com/Article/2016/05/10/Everything-you-need-to-know-about-fine-flavor-cocoa

Source: https://www.confectionerynews.com/Article/2015/08/04/Ecuador-to-boost-fine-flavor-cocoa-sector-with-cluster-plantations

Source: https://www.cbi.eu/market-information/cocoa/fine-flavour-cocoa/

ICCO Redefines Fine OR Flavour Cocoa

• 1As a working definition under the International Cocoa

Agreement, 2010, this definition does not consider beans

from modified or “artificial” fermentations with addition

of flavour material, fruit pulp or juices.

• 2A useful reference can be the Specialty Coffee

Association definition

https://en.wikipedia.org/wiki/Specialty_coffee.

• 3Defects in flavour include off-flavours such as: mouldy,

musty, dirty, smoky, or over-fermented notes such as

rotten and putrid.

• 4A useful and important document on cocoa quality can

be found at CAOBISCO/ECA/FCC Cocoa Beans:

Chocolate and Cocoa Industry Quality Requirements.

September 2015 (End, M.J. and Dand, R., Editors).

Available at http://www.cocoaquality.eu/.

• FFP/5/2/Rev.1 -21 Apr 2018

A WORKING DEFINITION OF FINE OR FLAVOUR COCOA

1. As the names “Annex “C”: Producing countries exporting exclusively or partially fine or

flavour cocoa” and the related Ad-Hoc Committee imply, there are two categories of cocoa

under consideration, “Fine Cocoa” and “Flavour Cocoa”1 . The following definitions2 are

meant to serve as clarifications in the effort to create a working definition that is part of an

ongoing process towards a more meaningful and impactful Annex “C”.

FINE COCOA

2. Fine cocoa is defined as cocoa that is free of defects3 in flavour while providing a complex

flavour profile that reflects the expertise of the producer and the “terroir”, or sense of the

particular environment where the cacao is grown, fermented and dried. Fine cocoa meeting

these basic criteria may also offer important genetic diversity, as well as historical and

cultural heritage.

FLAVOUR COCOA

3. Flavour cocoa is defined as cocoa that has little to no defects in flavour and provides

valuable aromatic or flavour characteristics that have been traditionally important in blends.

Flavour cocoa that meets these basic quality criteria4 may also offer important genetic

diversity, as well as historical and cultural heritage.

Take home message as suppliers• Know and maintain the genetics of your

cocoa trees that distinguishes your unique flavour profile

• It’s that genetics grown in the regions of your countries that’s special

• Optimize and develop the skills of farmers to ferment and dry your cocoa genetics to CONSISTENTLY get the best quality from your beans

• Develop your relationship with your chocolate maker so that both of you benefit

Main determinants of Flavour:1. Genetics2. Terroir3. Fermentation & drying4. Roasting and Conching

Is there space for all 24 Fine & Flavour Cocoa producing countries in LAC in the market?