Fine & Raw Chocolate, Cacao Beans vs Cocoa Butter / Cocoa, and the tech tools of CPG brands

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September 03, 2024

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Hey there and welcome back to Farm2Me. We help you discover the best CPG brands, emerging trends, and the tech stacks powering them.

We hope you are staying cool! This week we have a new brand to breakdown (Fine & Raw), a brand in the Farm2Me network since 2010, and why they matter, and Transparent Trade – knowing the ingredients in your food, the farmers growing them, and what doesn’t belong, so you don’t get ripped off when you’re buying that $4.99 – $8 CPG maker product from emerging or pre-launch products. As well as a unique tool to discuss (Black Crow AI) how to consolidate your Shopify, Email, and SMS data so you can send personalized marketing to drive conversion.

Now, let’s get started 🛠️

Fine & Raw Chocolate was established in 2007 in a notorious Williamsburg, Brooklyn artist loft by Daniel Sklaar. Daniel launched into making small Fine & Raw Chocolate batches and sharing them with friends, Fine & Raw Chocolate wholesale then started delivering them on his bicycle to local purveyors of fine food. It was apparent that the chocolate flavor was so good it was borderline addictive. Fine & Raw Chocolate wholesale grew based on the premise of producing organic, unparalleled quality chocolate and a shear love of the chocolate making process.

The “raw” in Fine & Raw is something of a misnomer. Sklaar and Fine & Raw Chocolate company do roast some of their organic cacao beans under lower temperatures and for longer durations than common in standard high-heat processing. Says Sklaar, “Raw chocolate is an amazing source of antioxidants. We’re basically looking to maintain those while playing with the unique flavor profiles of raw chocolate.” Fine & Raw offers chocolates using both “raw” and combinations of “raw” and conventionally roasted beans.

Fine & Raw Chocolate wholesale manufactures the finest chocolate in the world. Fine & Raw Chocolate wholesale specialize in bean-to-bar, organic chocolate bars and truffles, spreads and well, anything our imaginations can think of it. Fine & Raw Chocolate start by sourcing the worlds finest cacao beans and specialize in clean ingredients lists. Their products are always organic, plant-based and next level.

Fine & Raw Chocolate's first point of sustainability is a radically-transparent cacao supply chain which is focused on quality and direct relationships with cacao farmer! Fine & Raw's cacao is sourced from the highest quality and most ethical suppliers in Ghana and Ecuador. "We ensure that our farmers are paid above fair trade wages, because we believe farmers should have the economic freedom and empowerment to farm organically and develop sustainable land management practices. It is currently estimated that less than 0.5% of cacao beans are organic. By cultivating long-lasting and ethical relationships with suppliers and farmers, we hope to continue providing economic support for the organic cacao industry."

Made in Brooklyn, NY

Founded by Daniel Sklaar in 2007

Black Crow AI

  • Increase welcome flow revenue by 50%

  • Generate 15% more repeat purchases

  • Send shoppers to branded storefronts with a 20% conversion rate

When chocolate products receive a Fair Trade designation this represents certification by a for-profit governing body that has specified certain standards of business operation. Certification implies that companies in developed countries pay fair prices to producers in developing countries. Fair Trade is also associated with safer and environmentally friendly working conditions plus improved worker rights. 

However, some chocolate makers are adopting Direct Trade practices in addition-or instead. They believe Fair Trade certification results in an absolute minimum payment to cacao suppliers, and minimum ethics standards. In addition, costs associated with upfront and annual Fair Trade certification fees for participating producer groups, exporters, importers, and chocolate makers, may be prohibitive and unsustainable especially for small producers. 

Tom Rogan, founder, and Head Chocolate Maker at Goodnow Farms Chocolate (Sudbury, Massachusetts) agrees. “Our payment to farmers is two to four times above the typical commodity price. We sometimes pre-pay too because some of our farmers have cash-flow problems. We also invest in infrastructure, so we donated money to help restore a bridge for cacao farmers.”

Another problem with Fair Trade? Among other things there is no one single set of standards or certification and some logos don’t even represent certification, just membership in an organization.

Emily Stone, co-founder/CEO of Uncommon Cacao, Inc. (Arvada, Colorado) a cacao bean wholesaler says her company doesn’t typically use the words "Direct Trade," because the term isn't clearly defined, and describes a wide variety of sourcing practices. 

 “Our partner evaluation system includes a lot of overlap [with Fair Trade] when it comes to human and child rights, working conditions, wages, the environment, traceability and transparency,” she says. “But we definitely have direct and close relationships with producer partners, too. We import cacao directly, and we pay more for cacao quality.

 “Our focus has always been on higher farmgate prices paid for higher quality cacao at the point of purchase, from the actual cacao producer. Farmers earning a net profit from cacao production is the critical foundation for building more equitable trade relationships, supporting producers in achieving a living income, and addressing key systemic problems such as deforestation and human rights violations.” 

WHAT IS DIRECT TRADE?

Chocolate makers with a Direct Trade focus typically emphasize such mutually beneficial and transparent trade relationships, with no entity operating between buyer and supplier and onsite visits to see farmer partners. Direct Trade also implies the business’s frank communication with producers about farming to labor practices. It typically means that a company meets its workers at every stage of production, from growing and harvesting cacao to fermentation and drying.

“With cacao, how it is treated at origin has a huge impact on the resulting quality of chocolate,” Rogan says. “Being able to influence how that happens means we’re able to get a more consistent, higher quality product. We have visited each of the farms [we work with] personally. We stay in regular contact with producers at origin, and we work with them to develop their day-to-day operations.”

One challenge with Direct Trade? Chocolate is not often labeled as such.

TRANSPARENCY

Broader Direct Trade practices including Transparent Trade are based on real relationships and trust between producers, exporters, and buyers. The Transparent Trade approach is important to chocolate makers as well as wholesalers. Fair Trade certified as a trader, the company sources multiple Fair Trade certified cacaos (ABOCFA Ghana, EcoCacao Ecuador, Alto Urubamba Chuncho Peru). 

The company sources high quality cacao from more than 7,000 smallholder producers across 14 countries, imports it to the U.S. and Europe, and distributes the cacao to hundreds of chocolate makers globally. 

But Stone says her company is also a ‘radically transparent’ cacao trader, publishing all prices and margins across its value chain. Uncommon Cacao’s partners get to see the price at which their cacao sells to chocolate makers. 

For instance, “We pay higher prices for better quality, and fully disclose the prices and margins across our value chain in an Annual Transparency Report. We spend time with real numbers, real names, and real stories of the human beings who grow, produce, and move the cacao that represents such a critically important part of the value of their products.” 

Askinosie Chocolate’s Transparency Reports compare prices they pay for cocoa beans against World Market Price, and Fair Trade pricing. On average, the company pays 25 percent more than Fair Trade prices. The company is also involved with every step of the chocolate-making process, from farm to bar.

“We clearly define the way we practice [Direct Trade] on our website, our packaging, our annual Transparency Reports, our book, and more, and we hold ourselves accountable,” says Lawren Askinosie, Marketing Officer and co-owner of Askinosie Chocolate, Springfield, Missouri. 

Taza Chocolate publishes its prices, volumes, and cocoa sources annually too, plus standards regarding the minimum price it will pay for cocoa beans at any given moment. 

“Chocolate and cocoa are historically very opaque markets,” Whitmore says. “Our goal is to change that by really creating awareness and visibility of where cocoa comes from. We are bean-to-bar makers, getting unique, specific cocoa to make our unique, specific cocoa products. I’m incredibly passionate about the cocoa supply chain and improving the quality and the supply chain at all levels-from farmer to consumer.”

Turn your Shopify brand’s email marketing into a profitability engine

  • Increase welcome flow revenue by 50%

  • Generate 15% more repeat purchases

  • Send shoppers to branded storefronts with a 20% conversion rate

AI TOOLS

Tech tools powering the best DTC brands

Rebuy: AI-powered personalization for e-commerce (link)
Klaviyo: Email personalization with AI integrations (link)
Smartly.io: Personalize your Ads 100,000x with AI, per geography and customer use case (link)
Range.me: Meet 3 buyers free, and over 50,000+ emerging food buyers (link)
Okendo: Reviews & Loyalty based on paclaging, flavor, ingredients, CX, and more (link)
Fairing: Attribution Surveys to help make sense of customer intent blackholes (link)
Algolia: Personalized Search using AI for e-commerce (link)
Braze: Personalized Customer Profile Databases (CDP) (link)

THAT’S A WRAP

Stay Cute,
Garry & The Farm2Me Team 🌈

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