FCIA Dives into Consumer Perception of Fine Chocolate · 2018-07-15 · socially-conscious chocolate but do not actually buy it. You will read later that FCIA discovered the same

The Manufacturing Confectioner • June 2018 13

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The Fine Chocolate Industry Association(FCIA) celebrated its 10th anniversary

in 2017. With close to 400 members, we arecomprised of small- to medium-sized choco-late makers, chocolatiers, farmers, pastrychefs and bean and other suppliers. We area small but growing organization focusedon supporting the fine chocolate segmentof the industry. One of the biggest chal-lenges our members face is how to respondto the often asked question, “Why shouldI pay $10 for a chocolate bar?” Conversely,one of the most challenging questions FCIAfaces is from members who ask, “How doI break through to consumers about whatmakes my product different and at a higherprice point than mass-market chocolate?”

Both consumers and fine chocolate pro-fessionals are faced with an informationgap. They are asking the right questions, butthe answers have been hard to find, resultingin consumers missing out on unique sensoryexperiences and chocolate makers missingout on reaching new customers to buildtheir customer base and turn their passioninto more profits.

This lack of understanding of what moti-

vates consumers often results in chocolatemakers with scant funds missing the markwhen creating products, packaging and mar-keting messages for their target audiences.

INDUSTRY INFORMATION CHALLENGES

FCIA decided to find a way to bridge thisinformation gap so consumers and profes-sionals alike could begin to better under-stand each other and connect in a mean-ingful way. For an industry that is not quite20 years old, and a small member organi-zation that just celebrated its 10th anniver-sary, this was a tall order. But FCIA was notdeterred.

First, we turned to established sourcesfor industry research to better understandwhat consumers know, think and feel aboutfine chocolate. Surprise! We discoveredthere were none specifically focused on oursmall but growing segment of the largerchocolate industry. However, we did find:

1. A sales forecast prepared for the Spe-cialty Food Association by Mintel on spe-cialty chocolate and other confectioneryfrom 2012 to 2021. While this forecast indi-cates a slower growth projection between2017 and 2021 after almost 41 percent

FCIA Dives into ConsumerPerception of Fine ChocolateBridging the information gap between consumers and chocolate professionals will foster better understanding of value and help tailor products to specific tastes.

Karen BryantFine Chocolate Industry Association

Karen Bryant has servedas the executive directorof the Fine ChocolateIndustry Associationsince 2014. She recentlycompleted NationalResearch into ConsumerPerception of FineChocolate and previ-ously served in corporate marketing and non-profit management.

growth between 2012 and 2016, it lumpsspecialty chocolate and confectionstogether, not terribly helpful to our finechocolate members who need insights thatpertain to fine chocolate alone.

2. An interesting Kansas State Universityresearch study backed by Hershey andpublished in an industry trade journalinforming us that millennials say they wantsocially-conscious chocolate but do notactually buy it. You will read later thatFCIA discovered the same in all genera-tional categories.

3. Various reports like FONA’s ChocolateConfectionery Report on Flavors (2016)and Vreeland & Associates’ U.S. ChocolateMarket Factsheet (2016) and Premium Con-fectionery Flavor Forecast (2016).

Of course, we also relied on FCIA’sBusiness Survey of the Fine ChocolateIndustry recently completed in 2017.

All this data, although interesting andappreciated, did not drill down to the corequestions that would help us bridge theinformation gap between consumers andour segment of the industry. Do consumersunderstand the difference between mass-market and specialty chocolate? Do theyperceive a difference in value? What moti-vates them to purchase fine chocolate?Where do they learn about it? And, whatare their preferences within this category?

If this data wasn’t available, what wouldit take to develop it? We turned to industryexperts in specialty food market researchto see if they would be interested in helpingus conduct national research to answer thesequestions. They all expressed interest. Butwith a starting price of tens of thousands ofdollars for a one-time regional effort, theproposals were too limited in scope andunrealistic for FCIA’s small budget built onmembership dues and events. Again, wewere challenged but not deterred.

DIY MARKET RESEARCH

With the rise of the do-it-yourself cultureand creative data gathering such as crowd-sourcing, crowdfunding and social media,FCIA decided to circumvent traditionalmarket research. We would take a baby stepusing our own resources to better under-stand the drivers of the fine chocolate mar-ketplace and connect the dots between con-sumers and our members’ products. Theresult was the first-ever national researchinto consumer perception of fine chocolatedone on a shoestring budget.

Our strategy was to use the expertiseand resources at hand to create a low-cost,high-impact baseline of current insightsfor members and a foundation upon whichto build for future phases of this research.Armed only with a nod from the FCIAboard of directors, we cobbled together aworking team.

In addition to serving as ExecutiveDirector of FCIA, I had years of corporatemarketing experience to draw on thatincluded being part of a number of marketresearch efforts. And, I had years of non-profit management experience where cre-ating miracles with no money was derigueur. I felt prepared to lead this effortand was willing to go on the road to admin-ister the survey and conduct focus groups.

We needed someone outside of theorganization to lend a neutral but knowl-

FCIA Dives into Consumer Perception of Fine Chocolate

All this data,although interestingand appreciated, didnot drill down to thecore questions that

would help us bridgethe information gapbetween consumersand our segment of

the industry.

14 June 2018 • The Manufacturing Confectioner

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A woman browses a selection of finechocolate bars

edgeable eye to the process. FCIA’s grow-ing visibility and respect within the finechocolate community helped bring in twostars of the chocolate world with consid-erable research background to serve asvolunteer academic advisors on this effort:Kristy Leissle, PhD, University of Wash-ington Bothell and UW Seattle; and CarlaMartin, PhD, Founder/Executive Directorof the Fine Cacao & Chocolate Instituteand Harvard University.

Research Goals and Execution

Together, we developed goals, a strategyand logistical game plan.

First, to confirm we were going after rel-evant information important to fine choco-late professionals, we tapped the knowl-edge and experience within FCIAmembership to form a volunteer workingcommittee. This group included Jan Calkinsof Calkins & Burke Ltd., Jessica Ferraroof Bar Cacao, Kristin Joslin of Cocoa Nou-veau and Tom Rogan of Goodnow FarmsChocolate. We developed a survey forchocolate consumers to be administeredone-on-one in person and in focus groups.

Then we asked, how can we efficientlyand economically reach a maximum num-ber of chocolate fans? The answer: choco-late festivals. We reached out to developpartnerships and secure permission to con-duct research at the following events:• Seattle: Northwest Chocolate Festival• Los Angeles: Los Angeles Chocolate

Salon• San Francisco: San Francisco Interna-

tional Chocolate Salon• New York City: The Big Chocolate Show• Washington, DC: DC Chocolate Festival• Dallas: Dallas Chocolate FestivalLastly, we set up focus groups by partner-ing with specialty chocolate shops in eachof the festival cities and a few other loca-tions to expand our reach and drill downdeeper into the survey questions. These

locations included:• Seattle: Chocolopolis• New York City: Voilà Chocolat• Salt Lake City: Caputo’s Market & Deli• Pittsburgh: Mon Aimee Chocolat• San Francisco: Dandelion Chocolate• Los Angeles: Chocolate Salon• Washington, DC: The Chocolate House• Dallas: CocoAndré ChocolatierWith surveys and airplane tickets in hand,we began the FCIA National Researchinto Consumer Perception of Fine Choco-late in October 2016. We completed theeffort in October 2017 having connectedwith more than 1,000 participants in eightcities around the United States. We gath-ered quantitative data by administering a10- to 15-minute survey to more than 1,000individuals at chocolate festivals and qual-itative data by conducting focus groups(made up of 10 to 25 people each) withmore than 120 individuals in the eveninglasting approximately an hour and a half.

No one was paid to take the survey orparticipate in the focus group. At festivals,we were amazed at the enthusiasm of thosewho clearly came to enjoy chocolate butwere interested enough to stop at our tableand take the survey. Sometimes, they actu-ally stood in line to participate.

We were blown away by the number ofthose who gave us time to participate in


We gatheredquantitative data byadministering asurvey to more than1,000 individuals atchocolate festivalsand qualitative databy conducting focusgroups with morethan 120 individuals.


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Survey work during a focus group

the focus groups, also without remunera-tion. All it took was an invitation from theirfavorite specialty chocolate shop. It seemsthat people love to talk about chocolateas much as eat it.

They took the work seriously. In everycity, the survey takers and focus group par-ticipants became partners with both FCIAand the chocolate professionals who wouldeventually receive their feedback. Theyseemed to appreciate the need for choco-late makers and chocolatiers to betterunderstand the consumers they are tryingto please.

A Closer Look at the Participants

So, who were these people? First, they werenot representatives of the general public.Of course, at some point we want inputfrom that segment and will reach out tothat audience in a future effort. Our imme-diate goal for this research was to capturethe thoughts of those who already areinterested in fine chocolate. If we can bet-ter understand what motivates them, thenwe can use those insights toward thebroader consumer market.

We categorized our audience into twoprinciple groups:

Chocolate Enthusiasts: Those who tooktime out of their weekend and paid $25 ormore to attend a chocolate festival. Onone end of the spectrum were those forwhom this was a one-time activity. On theother were those who repeatedly attendthese types of festivals throughout the year.At this point in our data gathering, we wereworking on the assumption this groupknows more than the general public aboutfine chocolate. They show great enthusiasmand come ready to learn. Further, theywere interested enough to give 10 to 15minutes of their festival time to take thesurvey for no remuneration. All we men-tioned was, “Chocolate makers and choco-

latiers want to know what you think andfeel about fine chocolate. They’re going touse this information to plan future prod-ucts, packaging and messaging. Would youtake ten minutes to share your thoughts?”More often than not, they said yes.

Chocolate Connoisseurs: Those weencountered at the focus groups who havea relationship with a specialty chocolateshop. They attend tastings and classes, arefamiliar with numerous brands and manyhave knowledge of the people behind thebrands. They are fans. They know shopowners, take recommendations and are onmailing lists to receive updates, invitationsand promotions for chocolate products.

All each shop had to do was send out aninvitation to participate in an industry focusgroup about chocolate and the rsv ps

poured in. Most groups filled up within days,some with a waiting list. Again, no paymentwas offered, just the opportunity to partic-ipate in the first-ever national research intoconsumer perception of fine chocolate.

We captured demographic informationfrom both survey-takers and focus groupparticipants on geographic location, gen-der, age, household income, ethnicity/race,education and general interest in chocolate(Figure 1). Note that not everyoneanswered every question.

Survey responses were input into anExcel spreadsheet. Not terribly high-tech,but a solid reporting tool. With this dataand guidance from our academic advisors


Our immediate goalfor this research was

to capture thethoughts of those

already interested infine chocolate. If we can better

understand whatmotivates them, we

can use those insightstoward the broaderconsumer market.


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Participants fill out surveys

savvy about “mean, median and mode,”the sorting and comparing possibilities areunlimited. We won’t know the true powerof the information until our membersbegin requesting customized sorts. Withthe demographic data we collected, we willbe able to sort by geography, gender, age,race, education level and annual householdincome. For example, if I’m a chocolatemaker with principle clientele in Seattleand I wish to know what that populationsays about taste and price preference orwhat motivates them to purchase, ourresearch is sortable and can begin to pro-vide that data.

Consumer Research Sneak Peeks

While we anticipate it will take a good por-tion of 2018 to sort through the data, drawconclusions and discover what our mem-bers want to know from this anthropologicdig into consumer chocolate experience,the data already revealed a number of sur-prising insights.

Are health benefits of fine chocolate a pur-chase motivator?Survey-takers told us overwhelmingly theybelieve “good” dark chocolate has healthbenefits: 901 responded yes while 80responded no. Furthermore, many wereable to list quite a few benefits: hearthealth, mood relaxer, lower blood pressureand increased energy, while offering upterms like bioflavonoids, antioxidants andendorphins. Awareness of these responsescould be tempting for fine chocolate pro-fessionals to begin allocating marketingdollars toward this messaging. However,they will want to pay attention to what ourfocus groups revealed.

During the sessions, it was almost unani-mous —most do not really understand noruse health benefits as a motivator to pur-chase chocolate. In every city, this wasreflected in responses such as, “I don’t buyor eat chocolate for health. It’s nice to thinkit’s not so bad for me, that’s a bonus. ButI’m not going to spend more money for achocolate bar just because it might have ared heart on it. I buy and eat good chocolatefor the taste and the experience!”

Do fair trade and direct trade practicesmotivate consumers to purchase?If you are counting on the socially respon-sible practices your company takes to con-vince your customers to open their wallets,here is another insight. Although the ratingby survey-takers of importance for fairtrade and direct trade was medium (forfair trade, average response was 2.9 out of4 and for direct trade 2.2 out of 4), welearned that these certifications are not abig purchase motivator.

The focus group participants told us why.“To be honest, I don’t really know what itmeans. For me, it’s about the flavor. And,I wonder if it’s expensive for the farmerto participate. Who are these certifyingorganizations anyway?” There were others


During the sessions, itwas almostunanimous —mostdo not reallyunderstand nor usehealth benefits as amotivator topurchase chocolate.


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GenderFemale: 646Male: 259Other: 6

Ethnicity/RaceWhite: 610Asian/Pacific Islander: 159Hispanic/Latino: 78African American: 67Native American: 39Other: 16

Generation/Year Range BornGen Z (1996 and later): 57Millennials, Gen Y (1977 –1995): 335Gen X (1965 –1976): 155Baby Boomers (1946 –1964): 201Silent Generation (1945 and earlier): 14

Total Household Income(Median household income in 2015 = $56,516)Less than $20,000: 49$20,000 –$34,999: 59$35,000 –$49,999: 77$50,000 –$74,999: 148$75,000 –$99,999: 142$100,000 –$199,999: 246$200,000 +: 97

Figure 1

Research Demographics

who indicated that they cared about thefarmers getting a fair price, but many didn’ttrust the certifying organizations. The over-whelming response was that taste was amuch bigger motivator than ethical trade.This may be due to a lack of awarenessaround this topic rather than a lack of car-ing for the farmer. And, it informs us ofone avenue of consumer education ourmembers can pursue.

What are consumers really prepared topay for fine chocolate?Another surprise. Although our membersfeel like consumers want fine chocolateat grocery store prices, both chocolateenthusiasts at the festivals and chocolateconnoisseurs in the focus groups, for themost part, have graduated from grocerystore pricing and are spending $9 on aver-age for a small-batch craft chocolate barwhile many are spending in the $10 to $14range. Therefore, our research participantshave indicated that price is not a barrier.Price may be an issue for the general pub-lic and FCIA hopes to explore this in asubsequent research effort. We also haveto ask our members if there might beother reasons why some fine chocolateprofessionals are struggling to find anaudience. Might it be flavor, texture, pack-aging or messaging? The full FCIA Con-sumer Research Report might help themaddress some of those hurdles.

What really motivates consumers to pur-chase fine chocolate?The overwhelming response was “pleasure”with an average response of 3.8 out of 4.When pushed to explain what this elusiveword means, we discovered that for somefocus group participants, it is a solitary guiltypleasure. For others, it means community.Some focus on the taste. Others mentionthe intellectual pleasure of discoveringwhere and how the chocolate is grown and

processed. But to a person, it is about havingan experience that is unique and fulfilling.

Where and how do consumers becomeaware of a favorite fine chocolate?When asked how they came to be awareof a favorite brand, 554 said they tastedsamples and another 213 said they encoun-tered the product at a farmers’ market.Another 460 said word-of-mouth influ-enced them. What we deduced fromresponses was that they had an experience.Or a friend or relative did and mentionedit to them. The next highest response waswebsites at 182 and online food reviews at181. Important, but nowhere near theresponses of having directly experiencedthe product.

Digging Deeper Reveals Gold

An important point is that surveys alone donot tell the whole picture. If we had con-ducted only surveys, we would have receivedskewed insights. The focus group participantscompleted the same survey as those at thechocolate festivals. But they were then asked,“Tell me more. What do you mean by that?How many of you really feel that way?”Thisqualitative feedback sometimes took us 180degrees from their written responses. It turnsout, when filling out a survey, it is temptingfor participants to check off the boxes theythink they should when it comes to socialresponsibility, price or health benefits. Butin a focus group, if they trust the presenterand their group, they will eventually say whatthey really think and feel.

Our questions ran the gamut from theimpact of awards on purchase decisions,price thresholds and preferences on point-of-purchase, desired cocoa percentage andorigin, to added flavor, purchase frequency,where they learn about new products andmore. Since each participant completeddemographic information, we are able to


What really motivatesconsumers to purchase

fine chocolate?The overwhelming

response was“pleasure” with an

average response of3.8 out of 4.

it is about having anexperience that is

unique and fulfilling.


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examine the responses by geographic loca-tion, gender, age, ethnicity, householdincome and education level.

Now the work begins. FCIA plans toadd to our volunteer team, dig in and deter-mine which insights they feel are mostimportant. We will share this via webinars,reports and workshops. We will not reallyknow the power of what we have compileduntil our members reveal it to us. However,we already have an answer to the questionof why consumers pay ten dollars for a finechocolate bar or three dollars for a finebonbon —experience. Over 1,000 con-sumers spoke loud and clear confirmingthis. When they eat fine chocolate, theyhave an experience they get with nothingelse. Fine chocolate provides a unique sen-sory experience that connects consumersto exotic places and conjures a relationshipwith dedicated artisans.

What Is Next For Our ConsumerResearch

We believe we have achieved our initialgoal of gathering baseline data about finechocolate consumers and what they thinkand feel about these products.

But we are not going to stop there.FCIA will engage our membership viawebinars and workshops to explore thedata and uncover other insights. We wouldalso like to embark on a beta test to con-duct customized sorts for individual mem-bers. We will also explore creating onlinesurveys to connect with the general public.Lastly, we would like to eventually attracta university partner to help us take ourresearch to the next level.

When you see these outcomes, we hopeyou will remember how FCIA saw a needand was not deterred by cost and scope,and accomplished the research usingcourage and creative problem-solving. Wealso hope you will be motivated to do the

same, be it for product development, long-term strategy, fundraising or anotherendeavor that will help you advance yourcompany or product.

CONCLUSION

Our ultimate goal is to empower our mem-bers to connect with the consumers whowill help them build their business. Thetrue value of our research effort will revealitself as our members engage with the datawe have collected, discover new insightsand find ways to incorporate them intotheir businesses. This may take the formof product development, packaging, mes-saging, consumer engagement or a freshlook at certifications and awards and howto frame them. As fine chocolate profes-sionals come to better understand con-sumers, we hope this will result in a greaterappreciation for fine chocolate. n


As fine chocolateprofessionals come tobetter understandconsumers, we hopethis will result in agreater appreciationfor fine chocolate.


FCIA believes there are points to be learned from the survey process thatmay prove just as powerful as the insights from the data. We want othersmall- to medium-sized organizations to benefit from our experience.

• Be brave and do not be deterred by the seemingly impossible. It would havebeen very easy for us at FCIA to throw up our hands after receiving the more than$40 thousand dollar market research proposals and say, “We can’t afford that.”Thanks to the vision and trust of our board, the passion of staff and support ofour expert volunteers, we have accomplished something that will have a long-term impact on the fine chocolate industry.

• Be open to untraditional resources. Have a challenge but little budget to meet it?Look within your company or organization and put the word out about what youwish to achieve, even if you do not know how to accomplish it. Unanticipatedresources different than you imagined may surface to help you.

• Create new partnerships. In addition to the wealth of data that FCIA gathered,we saw unexpected collateral benefits. Our festival and focus group partners toldus our presence at their events and shops gave them pride in being affiliatedwith FCIA, and our national research effort provided a new layer of validationwith their clientele. We have been invited back and as a result of our researchactivities, gained new partners.

• Build on your success. To capitalize on our new relationships, FCIA has developeda Supporting Partners Program to help find other ways for FCIA and our newpartners to support each other’s efforts.

Takeaways for Small- to Medium-sized Organizations

Presented at the PMCA Production Conference

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FCIA Dives into Consumer Perception of Fine Chocolate · 2018-07-15 · socially-conscious chocolate but do not actually buy it. You will read later that FCIA discovered the same