“The amazing story of how small scale cocoa farmers in Ghana came to own 45% of Divine Chocolate Ltd.”

Social Enterprise

Divine Chocolate Limited

The Best Social Enterprise 2007

Social Enterprise

SOCIAL ENTERPRISE = MISSION DRIVEN BUSINESS

Mission The heart of what they do

It is what gives them their reason to be

It makes them good at what they do

It gives them their competitive edge

It defines where the money goes

Divine Chocolate ltdMission

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 Chocolate market

• Average person in the UK eats 16kg• Very mature and competitive market• Dominated by 4 companies• 3 companies share 80% of the market• UK Chocolate market worth £3.6 billion• World Cocoa market only £2.14 billion

Divine Chocolate LtdObjectives

• To take a quality and affordable range of fair trade chocolate bars into the mainstream market.

• To raise awareness of fair trade issues among UK retailers, consumers of all age groups

• To be highly visible and vocal in the chocolate sector and thereby act as a catalyst for change

• To pay a fair trade price for all the cocoa used in products

Kuapa KokooFarmers Union

A Co-operative of Ghanaian Cocoa Farmers• Established in 1993 in response to

liberalisation • 2000 members in 22 village societies• Work with the cocoa farmers to ensure

quality• Now 45,000 members in 1,200 village

societies• Democratically organised• Voted in 1997 AGM to set up a chocolate

company in UK

Divine partners

TWIN TRADING• Founders of cafédirect, Coffee traders • Working with producers to develop new products for

new markets• PS&D, Agricultural & Business advice

THE BODY SHOP INTERNATIONAL• Significant customer base sympathetic to the message• Good products with strong values• Community Trade partnership & traceable sourcing

Divine partners

CHRISTIAN AID• 200,000 committed supporters• Fantastic access to community networks and supporters

COMIC RELIEF• History of support for Kuapa Kokoo• Incredible brand awareness • Celebrity endorsement

DFID• Bi-lateral support for Ghana• Guaranteed a bank loan

Latest News

• July 2006 Body Shop International donated their shares to Kuapa Kokoo, 14 ordinary shares and 250,000 preference shares.

• Sept 2006 Oikocredit invested £500,000 for 15 shares

• Sept 2006 Divine Chocolate Inc USA incorporated

• 14th February 2007 Divine Chocolate Inc launched

• April 2007 Divine announced its first Dividend £500 a share

Divine Owners

Ordinary Preference

Shares Shares

Kuapa Kokoo 55 shares 283,605

Twin Trading 52 shares 379,375

Oikocredit 15 shares

Christian Aid 150,000

Fairtrade Cocoa

• Guaranteed Independent International Guarantee giving consumers confidence in the claim – Annual audit & monitoring

• minimum price of $1,600 per tonne providing long term security

• Social premium of $150 per tonne to be invested in community projects Long term contracts providing security

• Guaranteed minimum health and safety conditions• Education and training

Kuapa kokoo recorder

How Kuapa kokoo is structured

Kuapa Kokoo Farmers Union

Kuapa Kokoo Ltd

Kuapa Kokoo Farmers Trust

Kuapa Kokoo Credit Union

Divine Chocolate Ltd

Kuapa Kokoowater well

Kuapa KokooSchools

Kuapa Kokoo Women’s empowerment

Divine Chocolate

• Creamy smooth milk chocolate developed to appeal to British palate

• First mainstream Fairtrade chocolate bar• Natural ingredients and certified GM Free • 7 Divine varieties of 100g and 4 Divine

45g bars• First ever Fairtrade chocolate advent calendar• Divine Mini Eggs and Divine chocolate coins and Divine

drinking chocolate • Stocked in Tescos, Sainsbury’s, ASDA, Waitrose, Co-op,

wholesales and Independent and Wholefood shops

Divine Chocolate

Divine marketing

• First ever Fairtrade TV advertising campaign featuring Ben Elton• Covermounted on BBC Good Food magazine and Party

magazine• Ongoing women’s monthly magazine coverage, Elle, Eve, She • Stoc the Choc with Christian Aid• Innovative activity with key Fairtrade

audience, e.g Divine poetry competition• Farmers Tour of UK to engage with

consumers, supermarkets and media

• www.divinechocolate.com • National Consumer Advertising

• 40g smooth milk chocolate crispy crunch countline bar with added Comic Relief

• Real cocoa butter and GM ingredients free• Affordable price• Money can’t buy promotions – Celebrity Big Brother• Dubble Vision Competition – Nickleodeon, Samantha

Mumba • Award winning Teachers pack www.papapaa.org • Dubble Agents: unique Fairtrade fan club with over • 55,000 members signed up through• Latest campaign MISSION:POSSIBLE

www.dubble.co.uk

What Divine Chocolate Ltd success looks like

Turnover Profit Sales Growth

2004/05 £7,673,298 £497,481 36%

2005/06 £8,988,071 £453,091 18%

2006/07 £10,702,500 £434,554 19%

PROFITABLE WITH GOOD GROWTH

What Divine Chocolate ltdsuccess looks like

Purchase of Kuapa Kokoo Fairtrade cocoa beans

Tonnes FT Price Social PremiumPS&D

2004/05 996 $1,593,600 $149,400 £107,426

2005/06 1165 $1,864,000 $174,750 £125,832

2006/07 1420 $2,272,000 $213,000 £149,835

April 2007 Divine announced its first Dividend £500 a share

SIGNIFICANT BENEFITS TO FARMERS

2007 Highlights

FY2005/06 - Divine Chocolate announced its first dividend. As co-owners Kuapa Kokoo benefited by sharing in the profits.

What we are trying to address through ownership

• We are trying to address how poor people can access

more of the value they have indirectly generated

• Alternative is charity which is arbitrary

• Ownership formalizes the relevant contributions and

distribution of income

Benefits of ownership to the farmers

• Sole supplier of cocoa • A Fairtrade price for their cocoa• Share of the profits, Kuapa Kokoo own 45% of Divine • Seats on the Board• Influence over the end product in the market place• Status - every member owns shares in a UK Company• Capacity Building – understanding the trading chain• Develops business skills & reputation

No one really thought it was possible

But, they would like to live in a world where it was …

so through

Partnership

Passion

Persistence

The Divine Chocolate has established a market for

a company co-owed by small holder cocoa farmers in one

of the most competitive and mature markets in the world.