Ralph Hill Push’s Supreme Executive Officer (CEO) Ritter sports US
Important points:
- Procurement control: By directly managing cacao procurement, we guarantee ethical and sustainable production while promoting long -term partnerships with cacao producers.
- Consumer demand for sustainability: In particular, the increase in consumers’ preferences for ethically raised environmental products, especially between the Z and millennials, has a business opportunity for chocolate brands that match these values.
- Brand life and resilience: The rise in cacao prices and climate change have a risk in the chocolate industry, and it is important for companies to invest in sustainable efforts to secure supply chains and maintain consumers’ trust. I am.
The US chocolate market has been facing major monitoring in recent years. From cacao costs and procurements to non -ethical customs and environmental issues, manufacturers must take a firm and meaningful action to deal with these serious issues.
As an industry leader, our responsibility is to implement a solution to secure the future of chocolate while promoting sustainable and ethical supply chains.
Working for the fourth -generation chocolate brand for family management showed that simply money alone was not enough to deal with the fundamental issues of chocolate procurement and manufacturing. Creating and building a sustainable and influential sustainability program and a business approach to people and the earth requires resources and strong initiatives.
There are three main reasons that chocolate manufacturers need to carefully evaluate existing sustainability in order to protect the future of the earth, as well as ensure the long -term success of their own brands.
1. control
The direct management of products in the supply chain can help the company closely monitor the entire process and confirm that the process has been completed in an ethical way. Litter sports recognized from an early stage that it is essential to increase awareness of cocoa procurement in order to work on industry -specific environmental and ethical issues. Therefore, we established a unique 6,000 -acres cacao farm called El Cacao in Nicaragua. As a result, a sustainable procurement chocolate in harmony with nature can be fully produced voluntarily.
Ercchao was founded in 2012 and has more than 1 million cocoa trees and more than 30,000 shades (220). Approximately 450 people are hired on this farm and are receiving fair wages, medical care and education through the Leiac Academia Training Center. After six years of work, the first harvest was brought in 2018. If elcocoo productivity reaches the maximum, it will cover 20 to 25% of cacao’s massive demand.
In addition, we have set an aggressive and realistic measurement target for procurement. By 2025, we aim to track 100% of cacao to agricultural organizations. We have realized this through closely cooperation with cacao producers and 30 years of trusted partnerships. These long -term partnerships build up the trust and accountability of both sides, enhancing supply chain resilience. This means that we receive high quality cacao and have a trusted partner for farmers.
2. Consumer demand
When consumers evaluate food purchases, the price is always the element, but the procurement and production method of the product are also seriously considered. Enjoying the demand of ethical products is not only a moral duty, but also a powerful business strategy for gaining market share among fertilized consumers.
Consumers (especially the Z generation and millennials) do not want to pay premium prices for high -quality and ultimately consistent products. a Opinion polls for 2,000 young people in the United States According to a survey (commissioned by Tomm’s of Maine), it is important for us to buy organic, natural and environmentally friendly products for nearly four out of five American youths (78 %). I answered. 82% of young consumers give priority to environmentally friendly products, so brands that have failed to adapt are at risk of losing relevance.
The strong ethics of the brand and the sustainable practice to make the product in harmony with people and nature will attract consumers who spend money to support companies that model transparency. Is a clear sales point.
3. Life of brand and product
Cocoa price is 250 % soaring With a global lack of supply and chronic under investment in cacao farms, it reached a historic high price of more than $ 10,000 per ton in early 2024. Unstable weather in areas where cacao beans are cultivated (Ghana and Cote Jiboire) threaten the world’s chocolate supply, and by 2050, almost one -third of the world’s cacao production will be present. There is a possibility. For the rise in temperature.
Furthermore, the number of chocolate sales has decreased by 5.5%since 2023, indicating that the rise in chocolate products could reduce consumer demand and ultimately reduce the market share of chocolate brands. Masu.
Chocolate makers have risk in two aspects. 1) Due to the lack of cacao, the number of products manufactured by chocolate brands may decrease, 2) consumers are transferring to other snacks such as cookies and salty options, so the cost is high and consumers are high. Is away from chocolate products.
In order to grow in this unstable market, chocolate manufacturers need to actively invest in sustainable efforts to climate change. By introducing indicators and programs to evaluate how to approach Claimate Neutral, companies will be able to support the environment more appropriately. By achieving the climate neutral* in 2020, we not only contributed to environmental management, but also strengthened consumer trust and loyalty.
*By supplementing the inevitable emissions (scope 1, 2, and 3) with a gold standard climate.
Food food
Looking at the future, there are some opportunities to show a model in the chocolate industry and prove that sustainable practices and profitability can be achieved.
By adopting sustainable procurement practices, people, earth, and and Business -A solution that meets evolving consumer values and guarantees the success of long -term brands indicates that it is not always true. However, it is necessary to have true initiatives and the purpose of the purpose starting from the top. Chocolate brands have the opportunity to create a meaningful impact of environmental management, ethical supplementary chains, and long -term positive changes in the community in which we have exceeded excellent marketing.
I call the industry leaders to participate in this initiative and develop more ethical and sustainable chocolate industries for generations in the future.
Ralph Hillpush has more than 30 years of experience in the confectionery industry, leading the most famous and respected candy brand, including Storck North America and Ritter Sport. Hilpesh is now Liter sportsA newly established US subsidiary and business.
read more:
Cacao crisis: What does it mean to a company recently?
