The first thing that you learn when you start looking into chocolate
makers is just how many there are in this $100 Billion market (depending on who
you talk to. CNN reports $110B in 2014, IBIS
estimates $120B, Markets and Markets estimate $98.3 B by 2016). I have found
over 1000 companies involved in chocolate production by consolidating lists
across several sources, and I am sure that there are many that are missing. These firms are either manufacturers or
chocolatiers. The manufacturing firms
are those that take beans from the market and produce chocolate for their own
end products or for wholesale. The
chocolatiers use the premade chocolate as a base for their products such as
truffles and flavored bars. The
following describes each in more detail.
THE MANUFACTURERS
Manufacturing firms take beans from the market (usually wholesalers and
commodity markets, sometimes from actual farmers) and create various levels of
chocolate for their own end products or wholesale to smaller chocolatiers.
Although chocolate manufacturers start with the same raw ingredient -
cacao- there is a wide spectrum of how this is done. For a majority of the chocolate on the
market, cacao beans are purchased on the commodity market through dealers. The largest supplier of cacao is the Cote
d'Ivorie. There has been a movement
recently where chocolate manufacturers (mostly smaller start-ups) are sourcing
beans directly from farms. These firms
are referred to as "bean-to-bar". Firms go directly to farms for a variety of
reasons such as reducing likelihood of unethical practices such as human rights
violations (child labor), obtaining better quality beans, and supporting
sustainability practices. (Please note
that some just do it for the marketing rights.)
Big incumbents and old faithfuls –
You know who they are. They are the prize of every child's Halloween
basket, the makers of Easter bunnies, and the permanent fixture at the check-out
of grocery stores. They give you a
break, melt in your mouth, and satisfy.
These firms are the mass market producers and dominate the market. In fact, Mars, Mondelez (Kraft), and Nestle
have 40% of the market with Hershey, Ferrero, and Meiji making up another 27% (www.icco.org/about-cocoa/chocolate-industry.html;
www.forbes.com/sites/bethhoffman)
Subsidiaries –
Over the last 50 years, there has been a huge consolidation in the
chocolate manufacturing industry. Some
of the most contentious fights included the Kraft purchase of Cadbury in 2010
and Hershey's take-over of Scharffen Berger in 2005.
Start-ups –
Since about 2009, the start-up chocolate scene has flourished. Some
describe this as the New American Chocolate Movement since there has been such
a flood of companies entering the market.
But the increase has not been confined to the United States. Check out the company list to see the new
chocolate makers around the world.
THE CHOCOLATIERS
This may be surprising, but most companies outside of mass
manufacturers and bean to bar firms don't make their own chocolate. These firms are referred to as
"Chocolatiers" who use chocolate made by other companies as a base,
but innovate with flavors, textures, fillings, and combinations. For example, the majority of chocolatiers in
the Bay Area that I talked with source their chocolate from Guittard in
Burlingame, CA. Some of the best known figures in the chocolate world are
actually chocolatiers such as See’s, Russell Stover, Lulu’s and Whittman’s.
