Divine Chocolate’s Business Model. Can This Model Be Successful in the Market Conditions of the 21st Century?

Divine Chocolate’s business model. Can this model be successful in the market conditions of the 21st century?

Introduction 

Chocolate has become a fast-growing favourite food in the world. It is produced from cocoa which is mostly grown in regions located close within the equator. Ivory coast is the world’s largest cocoa growing country supplying 40% of the world. In the process of making chocolate, many manufacturers of chocolate face several environmental, economic and ethical difficulties. In this report, we will discuss in detail divine chocolate’s business model and determine whether its model can be successful in the market conditions of the 21st century. First, the history and background of the company will be introduced then the business model will be explained in detail. Next a further look into the business model identifying if it can be successful in the market conditions of the 21st century. To conclude whether the Divine chocolate business model can be successful an analysis will be conducted.

Background

Divine chocolate is one of the top leading chocolate companies in the world that trades under Fair Trade. Divine Chocolate was known before as the Day Chocolate Company. It is a Limited Company that was established in 1998 and trades its products in several countries around the world. All Divine Chocolate products carry the Fairtrade mark. This is a certified and independent guarantee, licensed by the Fairtrade company ensuring that the product being sold has been sourced under internationally agreed fair trade terms and conditions. These terms and conditions comprise a certain, secure minimum price, an extra social premium payment for the farmers to invest in their own community programs, long-term trading contracts, decent health and safety conditions, all aimed at empowering farmers to make their own improvements to living standards.

Divine Chocolate has a very innovative business model which is an initiation from Kuapa Kokoo, a cooperative of cocoa farmers based in Ghana. Kuapa Kokoo owns 44% of the company. The other percentage of the company is owned by the NGO Twin Trading and The Body Shop which also is known for its Fair trade products. Divine chocolate’s main focus is on the mass market. 

The business model which Divine Chocolate uses, farmers are also shareholders of the company and receive a fair share of the profit made from sales. A fair trade business is an example of a social enterprise business model. To determine the business model that Divine Chocolate has, the aim of the company should be stated first. According to its website the company is driven by a social mission which empowers the producers and consumers by trading under dignified trading relations, this verifies Divine Chocolates business model to be a social enterprise.