Cocoa
Potential to Prosperity
A Cluster and Value Chain Approach
Indera Sagewan-Alli
Executive Director Caribbean Centre for Competitiveness
UWI
Bean to Bar to Spa
An Artisanal Destination Approach:
Cocoa
Economic Development Board of Trinidad and Tobago
 An industry for active revitalization
 “Our cocoa should be treated in an analogous way to that of
Champagne, low volumes, high quality, high price, high profit and
having a growing global demand.”
 “future of the industry should focus on the processing of the beans
for high quality chocolates, rather than the sale of the beans as this
adds significant value, 10 to 15 times the raw material on the open
market. Consideration should be made to partnership with
experienced international processors of the beans, to rapidly
provide the technical expertise as well as the customer base for
exports.”
 “..Fairtrade should replace the current model which would ensure that
cocoa farmers receive the best price for their produce.”
Shared farmer Perspective
 “Cocoa has now become an uncompetitive commodity
due to volatile prices, perennial labour problems
within the agricultural sector as a whole and climate
change.”
The Cluster/Value Chain
Approach
Positive Trends
 Demand for cocoa increase 30% by 2020
 fine flavor cocoa is 5% to 7% market share but increasing
 Chocolate $131.7 billion by 2019
 Growth in demand for ‘healthier chocolates’ (Dark)now
account for 20% of US market
 Demand Growth for specialty/premium chocolates in high
end segment of mature markets in US and Europe
 Product innovation driver of demand for gourmet chocolates
 Chocolate prices increasing (45% increase in US market 2013)
Negative Trends
 Increase in suppliers of Fine Flavor Cocoa as countries
aggressively seek certification to secure higher prices.
 Large Chocolate Producers are capitalizing on the growing
demand for “healthier” “fair trade” “single origin” dark
Chocolate
 Country of Origin bean processing dominated by a few
MNCs
 Growth led by the milk chocolate segment, estimated to
grow at about 2.4% between 2014 and 2019
Cluster Map
Business Models: Attractiveness
 Fine Flavor Beans for Export….Power/Value with buyer
 Fine Flavor bean Branded……..Value marginally increased
 Cocoa Derivatives…………………..Added Value to local/MNC
processor
 Chocolates/beauty products for local/Export
consumption………limited growth potential/Highly
competitive
 Product + Experience ……………..Most Attractive Value
creation and retention
Local Monetary Value Chain
International Monetary Value
Chain
Notes:
Gourmet 250g baking bar Lindt * Tourism Accommodation the Chocolate Boutique
Hotel, UK * The Chocolate Museum, Canada * Chocolate prices based on 100g bar *
Chocolate SPA, Hotel Hershey
Bean to Bar to Spa
An Artisanal Destination Approach:
Advanced Purchase Criteria
 A different/unique Quality experience
 Authenticity of product and experience
(process/flavors/personalities)
 On-line accessibility
 Mix chocolate with other sight seeing experiences
 Security and trust
Target Market
Market: US, Canada, South America
Age/Income: Middle aged and older/higher
Income
Gender: Balance men and women
Support Activities
Primary Activities