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MAY 2014 Quarterly Bulletin of Cocoa Statistics

London 30 May 2014--The International Cocoa Organization today releases its revised forecasts for the current

2013/2014 cocoa year and revised estimates of world production, grindings and stocks of cocoa beans for

2012/2013, as summarized below. The data published in Issue No. 2 - Volume XL - Cocoa year 2013/2014 of

the Quarterly Bulletin of Cocoa Statistics,reflect the most recent information available to the Secretariat as at the

middle of May 2014.

Summary of revised forecasts and estimates

Cocoa year

(Oct-Sep) 2012/2013 2013/2014 Year-on-year change

Revised

estimatesPrevious

Forecastsa/Revised

Forecasts

(thousand tonnes) (Per cent)

World production 3 929 4 104 4 162 + 233 + 5.9%

World grindings 4 0834 178

4 195 + 112 + 2.7%Surplus/deficit b/ - 193 - 115 - 75

End-of-season stocks 1 640 1 547 1 565 - 75 - 4.6%

Stocks/Grindings ratio 40.2% 37.0% 37.3%

Notes:

a/ Estimates published in Quarterly Bulletin of Cocoa Statistics, Vol. XL - No. 1 - Cocoa year 2013/2014

b/ Surplus/deficit: net world crop (gross crop adjusted for loss in weight) minus grindings

Totals may differ due to rounding.

This issue of the Bulletincontains the Secretariats revised forecasts for the 2013/2014 cocoa

year as well as data for the past four years of production and grindings of cocoa beans, detailed by country. The

main features of the global cocoa market are il lustrated in colour charts. In addition, the Bulletinincludes

comments on crop and demand prospects in the leading countries for the current season, and a review of price

developments on international markets for cocoa beans during the January-March quarter of 2014.

Statistical information on trade in cocoa beans, cocoa products and chocolate, by country and by region,

published in this edition, covers annual data from 2010/2011 to 2012/2013 and quarterly statistics for the period

January-March 2012 to July-September 2013. Details of destination of exports and origin of imports for leading

cocoa exporting countries are also provided. Historical statistics on cocoa trade and consumption, by country and

by region, for the period 2004/2005 to 2012/2013 are presented for reference.


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Ban on Chinese milk products extended by a

yearUmesh Isalkar,TNN | Jul 2, 2014, 12.45 AM IST

PUNE: Ban on import of milk and milk products from China has been extended for one

more year from June 23, 2014 across the country. The banned items include chocolates

and chocolate products, candies, confectionery and food preparations with milk and milk

solids as an ingredient.

The Food Safety and Standards Authority of India (FSSAI), the country's food regulatory

body, has made it clear that the ban will continue 'unless there are dependable reports

about significant improvement in the situation'.

Food and Drugs Administration (FDA) official have reiterated that they would initiate

strict action against those found selling Chinese milk products in and around the city.

The ban was imposed after it was found that melamine, an industrial chemical which

could be harmful if consumed, was present in some dairy products imported from China.

"The ban has been in force since September 2008 and has been extended periodically.

The ban has been extended by one more year, from June 23, 2014, since there have been

doubts about any improvement in the quality of milk from China. Action will be initiated

against those found selling the banned products," said Shashikant Kekare, joint

commissioner (food), FDA, Pune division.

The Directorate General of Foreign Trade had first banned import of Chinese milk

products in September 2008 after reports suggested that they contained melamine,

which damages kidneys in the long run.

"Chinese dairy farmers were using melamine to increase their profit margins. First, they

diluted milk by 30% and then added melamine to increase its protein content. A quality-

control equipment is designed to detect nitrogen and not melamine," said Dilip Sangat,

assistant commissioner (food), FDA Pune.
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Manipal Institute of Technology students

build 3D chocolate printerMalavika Murali,ET Bureau | Aug 2, 2014, 01.01 PM IST

Students of Manipal Institute of Technology are launchingIndiasfirst 3D chocolate printer.

RELATED

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Formula Manipal unveils its competition vehicle

While the West has been quick to 3D print food items like cheeseburgers and chocolates,

this technology is only now entering the East with China and India dabbling in it.

Students of the Massachusetts Institute of Technology (MIT) in the United States

recently gained fame for building a 3D ice cream printer. Now students of Manipal

Institute of Technology are launching India's first 3D chocolate printer.

Named Chocobot, the 3D chocolate printer makes custom-shaped chocolates and icing.

It will be sold commercially in the second half of August. "This could be the next big

thing. We love 3D printing and everybody loves food," said Gopal Krishna, director of

Global3dlabs, the startup launched by the students of MIT.

The Manipal startup, which launched its first 3D printer 'Pramaan' at Rs 75,000 in April,

collaborated with a local bakery, that served as a testbed, giving inputs and suggestions,

throughout the development process.

World over, industries are warming up to the idea of digital food.

NASA funded a project this year of 3D printed pizza for astronauts pioneered by Indian-
http://timesofindia.indiatimes.com/home/science/MIT-students-make-3D-printed-ice-cream/articleshow/38753251.cmshttp://timesofindia.indiatimes.com/home/science/MIT-students-make-3D-printed-ice-cream/articleshow/38753251.cmshttp://timesofindia.indiatimes.com/city/nashik/MIT-plans-innovation-lab-for-Nashik-after-Kumbh/articleshow/38834886.cmshttp://timesofindia.indiatimes.com/city/nashik/MIT-plans-innovation-lab-for-Nashik-after-Kumbh/articleshow/38834886.cmshttp://timesofindia.indiatimes.com/city/bangalore/100-metere-crack-in-Manipal-causes-worry/articleshow/37728508.cmshttp://timesofindia.indiatimes.com/city/bangalore/100-metere-crack-in-Manipal-causes-worry/articleshow/37728508.cmshttp://timesofindia.indiatimes.com/city/mangalore/Formula-Manipal-unveils-its-competition-vehicle/articleshow/37785763.cmshttp://timesofindia.indiatimes.com/city/mangalore/Formula-Manipal-unveils-its-competition-vehicle/articleshow/37785763.cmshttp://timesofindia.indiatimes.com/city/mangalore/Formula-Manipal-unveils-its-competition-vehicle/articleshow/37785763.cmshttp://timesofindia.indiatimes.com/city/bangalore/100-metere-crack-in-Manipal-causes-worry/articleshow/37728508.cmshttp://timesofindia.indiatimes.com/city/nashik/MIT-plans-innovation-lab-for-Nashik-after-Kumbh/articleshow/38834886.cmshttp://timesofindia.indiatimes.com/home/science/MIT-students-make-3D-printed-ice-cream/articleshow/38753251.cmshttp://timesofindia.indiatimes.com/tech/computing/Manipal-Institute-of-Technology-students-build-3D-chocolate-printer/articleshow/39471339.cms#write


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origin engineer Anjan Contractor who used crust, cheese and protein as raw material.

Chocolate maker Hershey's struck a multi-year deal earlier this year with South

Carolina's 3D Systems to build a 3D chocolate printer, while Barcelona-based startup

Natural Machines has launched a Kickstarter campaign of $100,000 (around Rs 60

lakh) for Foodini, a 3D printer that can print multi-course meals, from crackers to caviar.

Chocobot, is like a regular 3D printer, with the same design software but produces

chocolates in different shapes and sizes. It takes about 40 minutes to print a plate of

chocolates.

"It's a cost-cutting measure and it's new technology. Both serve well for a bakery startup

like ours. Of course, there is the time constraint, but that does not bother us too much,"

said Prajwal Kumar, who heads marketing at Fiona's bakery in Manipal, highlighting the

financial strains of shelling out employees' salaries that could be solved by buying the

printer that will produce the same quantity.

The Chocolate Industry

dated on 04 February 2014

Who are the main manufacturers of chocolate in the world?

Candy Industrypublishes an annual list of the top 100 global confectionery companies, ranking them by net

sales.The table below is an extract from this list, giving the top ten global confectionery companies that manufacture

some form of chocolate, by net confectionery sales value in 2013:

Company Net Sales 2013 (US$ millions)

Mars Inc (USA) 17,640

Mondelz International Inc (USA) 14,862

Nestl SA (Switzerland) 11,760

Meiji Holdings Co Ltd (Japan) 11,742*

Ferrero Group (Italy) 10,900

Hershey Foods Corp (USA) 7,043

Arcor (Argentina) 3,700

Chocoladenfabriken Lindt & Sprngli AG (Switzerland) 3,149

Ezaki Glico Co Ltd (Japan) 3,018*

Yildiz Holding (Turkey) 2,500


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Reference:

Candy Industry, January 2014

* This includes production of non-confectionery items

Fair Trade cocoa and chocolate

Fair Trade is a trading partnership, based on dialogue, transparency and respect, that seeks greater equity in

international trade. It contributes to sustainable development by offering better trading conditions to, and securing

their rights of, disadvantaged producers and workers - especially in the South (FINE, 2001).

Fair Trade certified producer organizations must comply with a number of requirements, related to social,

economic and environmental developments. In addition, labour conditions in these organizations must follow

certain standards.

The essential characteristic of Fair Trade cocoa is that producer organizations receive a higher price for their

cocoa beans. The Fair Trade price represents the necessary condition for the producer organizations to have the

financial ability to fulfil the above requirements, and to cover the certification fees. It is calculated on the basis of

world market prices, plus fair trade premiums. The Fair Trade premium for standard quality cocoa is US$ 150 per

tonne. The minimum price for Fair Trade standard quality cocoa, including the premium, is US$ 1,750 per tonne.

Other benefits for certified producer organizations are better "capacity building" and "market access".

Presently, cocoa sold with the Fair Trade label still captures a very low share of the cocoa market (0.5%).

Organic cocoa and chocolate

The organic cocoa market represents a very small share of the total cocoa market, estimated at less than 0.5% of

total production. ICCO estimates production of certified organic cocoa at 15,500 tonnes, sourced from the

following countries: Madagascar, Tanzania, Uganda, Belize, Bolivia, Brazil, Costa Rica, Dominican Republic, El

Salvador, Mexico, Nicaragua, Panama, Peru, Venezuela, Fiji, India, Sri Lanka and Vanuatu.

However, the demand for organic cocoa products is growing at a very strong pace, as consumers are

increasingly concerned about the safety of their food supply along with other environmental issues. According

toEuromonitor International, global organic chocolate sales were estimated to have increased from a value of

US$ 171 million in 2002 to US$ 304 million in 2005.Certified organic cocoa producers must comply with all

requirements associated with the legislation of importing countries on production of organic products. The benefit

for cocoa farmers is that organic cocoa commands a higher price than conventional cocoa, usually ranging from

US$ 100 to US$ 300 per tonne. However, originating countries with smaller volumes can fetch much higher

premiums. This premium should cover both the cost of fulfilling organic cocoa production requirements and

certification fees paid to certification bodies.


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Cocoa & Chocolate Market by Application (Confectionery, Food &

Beverage, Cosmetics, & Pharmaceuticals), Cocoa Type (Cocoa Butter,

Powder, & Liquor) & Chocolate Type (Dark, White, Milk, Filled) - Global

Trends & Forecasts to 2019

By: marketsandmarkets.comPublishing Date: August 2014Report Code: FB 2615

This report analyzes the cocoa & chocolate market by geography, type, and application. Geographically, thereport is segmented into Asia-Pacific, Europe, North America, and Rest of the World. The cocoa applicationscovered in this report are confectionery, food & beverage, pharmaceuticals, and cosmetics. Cocoa & chocolate-based products are gaining momentum due to their various health benefits and usage as a substitute for sweets.

This report estimates the global cocoa & chocolate market size, in terms of volume. It discusses the marketdrivers, restraints, and opportunities. The report also tracks the recent strategic activities of market players suchas product launches, expansion plans, supply contracts, and partnerships & collaborations. Additionally, ten keyplayers of the market have been profiled in this report.

The cocoa & chocolate industry has gained a significant position in the food industry as they provide taste, color,and texture with several functional benefits. These products are mostly preferred during festive season such asValentines Day, Christmas, and New Year.

Cocoa Market Share, by Application, 2013

Source: MarketsandMarkets Analysis

The global chocolate market, by volume, consumed 7,064.63 KT in 2013. Various types of chocolate have beenintroduced in the past decade.


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The cocoa & chocolate market is a rewarding market from the perspective of confectionery producers. Productinnovations are likely to play a key role in increasing the share of the market players. Some of the key playersinclude Cargill (U.S.), Archer Daniels Midland (U.S.), and Barry Callebaut (Switzerland). The top five playersaccounted for the maximum market share in the industry, by market value. The products of these companies areused by food manufacturers. Europe dominates the cocoa & chocolate market, owing mainly to the largest cocoaprocessing capacity of the region. Moreover, increasing population and disposable income has helped inincreasing the penetration of the market in Asia-Pacific. The North American cocoa market is also growing rapidly

due to the huge demand for cocoa & chocolate-based products.

This report highlights three types of cocoa & chocolate in terms of value and volume. The report also estimatesthe market size of applications of cocoa & chocolate in the key markets of Europe, the Asia-Pacific, NorthAmerica, and Rest of the World (ROW). In addition to market forecasts, the report also highlights key opportunityareas for the relevant stakeholders analyzing trends, opportunities, drivers, and inhibitors for the market.

In order to provide a deeper understanding of the competitive landscape, the report profiles ten key players of thecocoa & chocolate market, and provides more than 70 market tables, categorized into type, application, andgeographic regions.

The report segments the global cocoa & chocolate market into the following three segments:

By Geography:

North America

Europe

Asia-Pacific

Rest of the World

Cocoa, By Type:

Cocoa Butter

Cocoa Powder

Cocoa Liquor

Cocoa, By Application

Confectionery

Food & Beverage

Cosmetics

Pharmaceuticals

Chocolate, By Type:

Dark Chocolate

Milk Chocolate

White Chocolate

Filled Chocolate

Cadbury Dairy Milk: Who moved my chocolate?

ByRavi Balakrishnan,ET Bureau | 20 Aug, 2014, 05.10AM IST
http://economictimes.indiatimes.com/etreporter/author-ravi-balakrishnan.cmshttp://economictimes.indiatimes.com/etreporter/author-ravi-balakrishnan.cmshttp://economictimes.indiatimes.com/etreporter/author-ravi-balakrishnan.cmshttp://economictimes.indiatimes.com/etreporter/author-ravi-balakrishnan.cms


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Habit or treat, most of us have grown up on this brand of

chocolate. But how Cadbury Dairy Milk has been brought up over the years will decide its future in our lives.

THE PAST

Piyush Pandey, chairman and creative director, O&M South Asia has a challenge for all ad strategists:

"I would like the best planner to write me a strategy document on the target audience for a laddu. I

believe the target audience for a chocolate or a laddu is every human being with an urge for a

moment of joy." And that's the core group for Cadbury Dairy Milk at least over the last 20 years,

through which it's moved from a product aimed at children to one that reaches out to everyone.

Prior to 1994's 'The Real Taste of Life' campaign, Cadbury Dairy Milk aka CDM aka "Cadbury" , the

generic word for chocolate in large parts of the country, was already a well recognised brand. Early

commercials saw indulgent parents bestow CDM on kids after trips out of town or for the tots lacing

their own boots unassisted.

Around the late 80s, the pressure of stagnation set in. Cadbury's India realised it needed to widen its

base. There were adults who ate chocolate but in a furtive manner, guilty about such a childish

indulgence. Cadbury and Ogilvy made tentative attempts at reaching out: a film from the late 80s

showed a father wolfing down a bar of chocolate under the pretext of telling his children a story. But

the brand remained reluctant to make a clean break from its primary target audience.

In 1993, the account went up for a pitch, sending panic through O&M. Pandey, then on a vacation in

Hawaii, rushed back to India. While miffed at having to cut short a long awaited break, he had an

idea for a new direction: "One of our relatives who'd just had a bypass drove 150 km to pick us from

the airport.

While talking to him, we found he'd been on a ride at Disney which was specifically forbidden to

people with heart conditions. He said 'I wanted to check if the doctor had done a good job.' I

thought that was a great mindset."


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Further inspiration hit Pandey at a toy store in San Francisco filled with signs that said 'By order of

the management, you are obliged to play'. He spied an elderly couple crawling out from beneath a

table in hot pursuit of a toy. Says Pandey, "I wrote the jingle to 'The Real Taste of Life' on the back of

a boarding pass."

The ad was presented and the account retained. Pandey recalls, "Rajeev Bakshi who was on the

brand at the time decided not to research it. He said, 'Let's make it first and research it later.'"

The first film was a montage featuring several of O&M's staffers at the time among others since the

agency wanted people who looked "real" as opposed to models. Next up was the iconic cricket

commercial featuring first time model Shimona breaking out into a spontaneous jig at a match. It's

an ad that Pandey claims still gets applause even when played to an audience too young to have

seen it the first time around.

Says Siddharth Mukherjee, director - chocolate category & media, Mondelez India, "The ads very

consciously showed adults consuming the chocolate in a very public setting. It was the first major

leap forward to make the category acceptable for adult consumption."

Distribution was expanded and smaller packs introduced at more affordable prices. Mukherjee says,

"It led to 20% plus growth for 3 to 4 straight years. The category doubled in size." The campaign

continued with several variations, the most significant of which was'Khaane Waalon Ko Khaane KaBahana Chahiye' featuring Cyrus Brocha distributing CDM at a wedding.

Says Mukherjee, "The challenge was to get a functional message across in what's not a functional

category." There were also a couple of campaigns that died a quick death. Pandey says, "We

followed research which is a mistake I don't make very often. People said they get perked up by a

chocolate when they feel low. So we had two commercials about how to accept defeat with the

line 'saat rahe har pal'. We soon discovered that whatever people said in research, they didn't want

to see it on air."

In 2003, however, CDM itself was on the defensive after a controversy about worms in the

chocolates gained traction. Celebrity spokesperson Amitabh Bachchan was roped in to give it a clean

chit.

Pandey recalls, "Instead of arguing about who was right and wrong they looked at the brand and its

responsibility. The speed at which they brought in new machinery on the back of a few stray

incidents was testament to their belief in a relationship with consumers. The other great learning is

when a consumer loves a brand, he gives it a chance and is forgiving."


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It was a transitional time, with Cadbury dabbling with taglines like 'Kush Hoon Khamaka'(Happy for

the heck of it) and a world cup special campaign called 'Maza Aa Gaya', none of which lasted. The

time was right for a big change.

THE PRESENT

The current phase has been built around 'Kuch Meetha Ho Jaaye', marking a strategic shift for CDM.

The brand tried to crack the larger market for sweets as far back as the late 1980s. Then in client

servicing, Pandey remembers going to Varanasi to research if Cadbury had a role in mithai; only to

conclude it didn't. But by 1999, the brand was starting to revisit the idea.

Mukherjee says, "Indians consume as much sweet as anyone else if not more. And meethais such a

strong part of tradition. Can we see the relevance of chocolate in occasions where people

eat mithai?" The initial campaigns like 'Pappu Paas Ho Gaya' were about introducing CDM as a

substitute for traditional sweets likepedas. This has been followed by'Pehli Tareek'and 'Shubh

Aarambh'.

Explaining the rationale, Mukherjee says, "We are making the transition from once in a while

celebratory occasions to more everyday events." CDM has in the meantime worked out an

exemplary collaboration between creative and media.


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Says Shekhar Banerjee, senior VP & head of Madison Media-Pinnacle, a division that works

exclusively on Cadbury, "The core focus is actually about business goals led planning rather than

media planning." An early highlight was a tie up with Reliance and the education board in 2006

where people who sent an SMS inquiring after their exam results got the information and a branded

message which said "Pappu paas ho gaya.Kuch meetha ho jaye."

Banerjee says with a laugh, "We made sure the message only reached people who had passed." The

agency has tied 'Shubh Aarambh' with unlikely partners like jobsite naukri.com. Or placed ads

immediately after a commercial for a car or bike, recommending people who buy something new

also have a bar of CDM to mark a fresh start.

'Kuch meetha ho jaaye' has been taken to sweet shops in Kolkata convincing them to include

variants of chocolate with traditional mishti. It calls for an evolved style of working. Says Banerjee,

"We'd list the occasions for 'Shubh Aarambh' and which media maps best. Ogilvy's Abhijit Avasthi

and Manoj Shetty would immediately take those and come up with creatives on each of them. It

would be impossible to pull off without creative and media working together."

So where does the latest campaign featuring a couple romancing in a snow fight fit into this?

According to Pandey, "When a brand is this big and it's succeeding in expanding the market, it

should not forget its larger role of greater joy. So parallel to the activities you do in terms ofincreasing consumption, there's the aura of a leader, the larger picture.


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THE FUTURE

Mukherjee sees meetha holding fort for a while: "We think of what the marketing task is at hand and

if the line needs to be changed to achieve that, so be it. But a timeless line likekuch meetha ho

jaaye may just need to be modified or refreshed."

Marketing consultant Harish Bijoor believes the brand is the taste of India in chocolate pretty much

like Amul is in butter. It's a brand that's received a high degree of creative inputs both from the

agency and the management team. However it's not immune to the challenge every leader faces:

"Each new entrant pecks at your share. The first task is preserving share and the second remaining

relevant to an adult audience."

Bijoor opines that apart from the social sanctions against adults eating chocolates which are still in

place, there's the functional idea of chocolates being a sugar rich category and therefore not good

for health. He says, "This problem cannot be tackled by advertising and only by other offerings that

may or may not do equally well."

By playing in the meetha space, the brand has perhaps set itself up for a tough slog. "When you

say thanda matlab Coca-Cola you are competing with seven brands of soft drink. But when you

say kuch meetha ho jaayeyou are competing with thousands of traditional sweets including regional

favourites. It's a good piece of strategy, but whether it's effective is the question."

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