Case History - The Delvas Story Of Bringing Organic and Fairtrade Together

Thierry Noesen, Managing Director

 A Start-Up in Fairtradewww.delvas.be 

Delvas - our adventure

Starting upIndustrial aspects

• Small lines = competitive advantage at start• Delvas has broad variety of equipment• HACCP & BRC certification = pre-requisite for export

R&D• Process of selection of ingredients• Competent chocolateers + cooperation Université de

Gembloux• Flexible & cooperative administration process at FLO

Perfect fit cocoa - Fairtrade• Trend to « origin » (location) chocolates• Trend to « authentic » chocolate (70% and more)• Lower fit for « assorted » chocolates than for bars

Perfect fit Belgium - Cocoa - Fairtrade• International reputation of Belgium as the chocolate

country• Moral duty for the belgian industry??

Delvas - our adventure

Starting upR&D

• Obtain first trial by the concept

Obtain repeat purchase thanks to the taste• Product development towards the original tastes of

chocolates• Focus on high quality ingredients• All natural ingredients

– No preservatives

– No colourants

– All natural flavours

– No trans-fats

2006 2007

Delvas - our adventure

B2B or B2C?First hypothesis was B2B

• Hotel chains with flow-packs• Major companies communicating « second dimension »

in activity towards personal & business gifts• Investment in machinery - but cultural change for

workers

B2C ?• Better fit with our original competence• Absolutely no success in our own « chocolate shops »• Different customers• Opportunity of differentiation in the very large chocolate

market

Delvas - our adventure

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Paradox:Chocolate = Luxury & prestige

Assorted chocolates even moving towards jewellery in presentation

Fairtrade = Basic,raw Rather no packaging than too much

Delvas - our adventure

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=North & South reunion

+

Cocoa bean

Delvas, great cocoa for great chocolate.

= Link with cocoa farmers

+

Link with Belgian chocolate (taste) competence

Delvas - our adventure

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Delvas - our adventure

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Delvas - our adventure

Product design

Year1 Year2 Year3

Delvas - our adventure

Product design

Year1 Year2

Delvas - our adventure

Price premium?Our experience: A price premium of 20% is acceptable

Theoretically this is reachable, while packaging & workload are

a big portion of costs of goods.

Problem - Production process is major cost driver

Conclusion: Scale will be an important factor in the development of Fairtrade in the chocolate market in general.

Organic and Fairtrade Together

Organic and Fairtrade TogetherIn common:

Consumer attention on content of the ingredientsConsumer non-acceptance of industrial-only practices

Our experience: Different distribution channels

Differences:

ConceptIngredients/Receipes/production process

Double price-premium?Need for specific offering

Organic and Fairtrade Together

Thank You!