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Sophi Tranchell says if Divine can break into a multi-billion pound market, there are high hopes for other social companies
Sophi
Tranchell was the toast of the ethical business community in October,
thanks to picking up the main prize in the Enterprising Solutions
Awards 2007. But she’s also hot property in the wider business world, earning the title of first Woman of Retail & Property at
the Confederation of British Industry Awards 2007.
It’s
easy to see why - she manages a fairtrade company with a turnover of £9
million, which is holding its own in the multi-billion pound chocolate
industry. But Divine’s business model bears no resemblance to that of
any of the big chocolate names.
The
company was set up by farmers’ cooperative Kuapa Kokoo with the help of
Twin Trading, The Body Shop, Christian Aid and Comic Relief, in 1999.
And it’s still party owned by the farmers, who earn a good price for
their beans.
“do people realise there might be something they could do in their community that bears resemblance to what Divine is doing?”
“The
farmer ownership is a significant part of our story and a significant
part of the way we operate,” says Sophi. “We don’t work with lots of
farmers from around the world, it’s one group of (45,000 people)
farmers in Ghana who’ve sat on our board for eight years. They’ve been
to every board meeting and they’ve come to Britain to be ambassadors
for cocoa and Divine.”
Over time,
she says, Divine would like to expand to other farmer organisations as
it grows other markets in the North (the world’s Northern Hemisphere).
The company has already been using fairtrade sugar from Malawi since
January 2007.
True empowerment
The
advantage of the way Divine works, its unique selling point, reminds
Tranchell, is the fact that the farmers own 45% of the business. “That
is empowerment,” she says. “And however much Marks & Spencer does
fair trade, we’re doing something that’s significantly different.”
Part
of the reason that farmers own almost half of Divine today, is thanks
to the late Body Shop founder Anita Roddick. In 1997, Kuapa Kokoo voted
to set up Divine, and Twin Trading came back to find people to invest
in the company. Anita rang her husband Gordon and asked him to invest
in it. The Body Shop was the first company to buy cocoa from farmers at
a fairtrade price.
Last year, The
Body Shop donated its shares in Divine Chocolate to the cooperative,
and Anita also visited the Kuapa Kokoo farmers and funded a school for
some of their children.
A social upbringing
Picture: Sophi at Kuapa's 10th AGM
Sophi’s
own social conscience was formed early on in life. She grew up with a
family who were active campaigners on social issues. Her grandparents
were in the Independent Labour Party, which preceded Labour.
After
her studies she worked on peace and justice issues at her University
Chaplaincy. And, while there, she helped establish a Southern African
Scholarship and sold fairtrade products from Traidcraft.
When
she started at the chocolate company in 1999, after a decade working in
the film industry, fairtrade was in its infancy in the UK, with just
11% of the public aware of its meaning. But, today, thanks in no small
way to Cafedirect and Divine, who proudly exhibit the Fairtrade
Foundation mark, awareness rose to 70% in 2008.
No limits
Like
the rise in knowledge of fairtrade, Sophi believes that social
enterprise has become much more widely understood in recent years. “It
has now become part of people’s vocabulary; there are good examples of
significantly scaled social enterprises winning public contracts and
tenders on things like bus routes and swimming pools and recycling
contracts.” That shows there is probably no limit to what the sector
can achieve.”
“When we set up Divine
we were trying to break into the most valuable chocolate market in
world, worth £3.6 billion,” explains Sophi. “Eighty percent of the
market is owned by three players: Mars, Cadbury’s and Nestle. It’s also
an incredibly mature market.
“Business
advisors and bankers didn’t think we were likely to be very successful.
Business support advisors still need to be up-to-date on how new
business models work. They need to be more cutting-edge,” she adds.
As
an ambassador Sophi feels the challenge is getting people to realise
how broad social enterprise is. “For example, when people hear me talk
about chocolate, do they realise that there might be something they
could do in their community that has some resemblance to what Divine is
doing?”
“If we’ve managed to do what
we’ve done in such a competitive market, that must mean there is
actually a lot of opportunity to mobilise consumers to make decisions
on what they buy in order to benefit people. I feel as if there’s a
nice optimism there,” she concludes.
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Divine chocolate in a nutshell
Despite
being relatively small compared to the major chocolate brands, Divine
is edging its way into the market, finding its way on to more and more
of our shelves each year. It’s giving chocolate lovers an opportunity
to hand over their coins to a company with the Fairtrade Foundation stamp, which ensures its suppliers are not short-changed. In Feburary 2007 Divine Chocolate Inc was launched in the USA.
Began life: 1997
Founders: Kuapa Kokoo, Twin Trading, Body Shop International
Employees: currently 16
Turnover: £9m in 2006.
Business model:
In
2006, Body Shop international transferred its entire interest in Divine
Chocolate to Kuapa Kokoo, making the co-operative the single largest
shareholder (45%). The balance is held by NGO Twin Trading (43%), and
by Dutch international development finance institution Oikocredit
(12%). In 2007 the farmers were paid their first Dividend.
www.divinechocolate.com
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