Owned by cocoa farmers, made for chocolate lovers

The future of business is social

Why social enterprise now?

• ‘Business as usual’ isn’t working• It’s taken a banking crisis for more people to realise• It’s unaccountable, soulless, unfulfilling• It’s driven by the blind pursuit of growth

• We’ve forgotten what ‘enough’ is• Now more people dangerously overweight

(1.5bn) than dangerously underweight (925m)• Businesses have to take responsibility• Make your business part of the world you’d like

to see

enough is enough

Social Enterprise

SOCIAL ENTERPRISE = BUSINESS DRIVEN BY SOCIAL MISSION

The heart of what we doIt is gives us our reason to be

It makes us good at what we doIt gives us our competitive edgeIt defines where the money goes

Divine Chocolate Mission

Founded in 1998 to improve the lives and opportunities of

small-scale cocoa farmers in West Africa by establishing a dynamic,

branded fair trade chocolate marketing company in the large UK

chocolate market thus putting the farmers higher up the value chain.

The Market

• Very mature and competitive market• Dominated by 3 companies

• £6.2 billion = World Cocoa Market• £49.3 billion = World Chocolate Market

The amazing story of the cocoa farmers who voted to start their own chocolate company

Kuapa Kokoothe good cocoa farmer

A cooperative of Ghanaian Cocoa Farmers• Established in 1993 in response to liberalisation of the market• Set up on Fairtrade principles and democratically organised• Started with 2,000 members in 22 village societies• Now 65,000 members in 1,400 village societies• In 1997 Kuapa Kokoo farmers vote to set up their own chocolate company• In 1998, Divine Chocolate launched – the first mainstream Fairtrade

chocolate company

Fairtrade Cocoa

• Fairtrade Guarantees minimum price $2,000 per tonne

• Fairtrade Social Premium $200 per tonne

• Long term contracts

• Guaranteed minimum health and safety conditions

• Education and training

• Empowerment of women

• Independently audited, ISO65, 3rd party verification

WHAT FAIRTRADE DELIVERS

WHAT FAIRTRADE DELIVERS

WHAT FAIRTRADE DELIVERS

• The only Fairtrade chocolate company owned by cocoa farmers

• Fairtrade delivers reliable income and funds to invest in better living and working standards

• Company ownership delivers profits, knowledge and power

Fairtrade and beyond

What ownership means for the farmers

Profits• Sole supplier of cocoa

• Fairtrade price for their cocoa

• Additional income to invest in business development, skills, and democratic process

• 45% of the company’s distributable profits

• A share in the wealth they have helped create

• Collateral against which to attract loans

Knowledge• Understanding of the cocoa industry

• Firsthand experience of chocolate market

• Face to face communication with UK consumers, retailers, politicians and activists

• Knowledge they can share with other farmers (eg in Sierra Leone)

What ownership means for the farmers

Power• Seats on the Divine board

• Influence in the business development of Divine

• Status in the cocoa industry

• A voice in the chocolate market

What ownership means for the farmers

What success looks like

Kuapa Kokoo receives four income streams from Divine

SIGNIFICANT BENEFITS TO FARMERS

Minimum Fairtrade price

Fairtrade social premium

PS&D Profit dividend

2006/07 $2,272,000 $213,000 £209,500 £47,352

2007/08 $2,705,600 $253,650 £246,021 £44,602

2008/09 $2,558,400 $239,850 £235,335 £33,602

2009/10 $1,900,800 $178,200 £208,307 £25,352

How was it for me

• Early interest in who owns who• Campaigning for social justice• Can you tell your mum?• A really different chocolate company – what’s not to

like?• From boycotting to positive purchasing

The challenges and obstacles

• All the people who say things “aren’t possible”• Access to appropriate finance• Retailer power

What i have learned

• Chocolate opens doors• Amazing things are possible• The joy of collaboration

What makes a successful entrepreneur

• Innovation, risk, passion, persistence• What makes a successful social entrepreneur?

Learning i can share

• An excellent product or service and a gap in the market

• Driven by a social mission – not bolted on like CSR

• Pick good partners

What’s next?

• We’re all part of something global• There are great opportunity for business, but needs to be

approached responsibly• How is your business making money?• Who is getting the money?• How is your business creating a positive legacy?

Make it happen!

• Go forth and create the new businesses of the 21st century!

• Take your values into work with you • It’s not that radical to propose socially-driven

business (Cadbury’s started like that a century ago)

• Imagine it – and make it happen!

Great resources

• Pa pa paa – multimedia materials & lesson plans on cocoa farming, chocolate and Fairtrade www.papapaa.org

• Pa pa paa LIVE – webcasts linking Ghanaian school children in cocoa farming communities with schoolchildren here www.papapaaLIVE.org

• Trading Visions – lesson plans introducing students to social enterprise http://www.tradingvisions.org/content/social-enterprise

Thank you!