Académique Documents
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A Case Study
In partial fulfilment of the subject
Market Management
Taza also seeks to build positive relationships across the entire supply chain.
HISTORY
In its origins, cacao relied heavily on the slave trade to fuel its ever-increasing
demand (Martin, 2018). Despite the abolition of slavery in the mid 19th century,
the modern day chocolate industry is still riddled with inherent ethical issues. In
response to the persistent pervasiveness of injustices within the industry’s process,
bean-to-bar brands have proliferated as a potential solution with a commitment to
both the ethicality and culinary aspects of chocolate production; Taza Chocolate in
Somerville, Massachusetts typifies one of these companies striving to produce
delicious chocolate through ethical practices and a high degree of production
transparency. Founded in 2005 by Alex Whitmore and Kathleen Fulton, Taza
Chocolate produces “stone ground chocolate that is seriously good and fair for all”
(Taza, 2017). Taza acts as an all-around ethical, socially-conscious and purpose-
driven business.
Taza Cultivates Channel Relationships with Chocolate
Taza’s company culture is driven by its founder, who prior to opening his own
company “apprenticed with Mexican molineros, learning their ancient chocolate-
making secrets” (Taza, 2017). Taza offers an easy application process opening up
more opportunities in making an effort to get natives from the countries that it
sources its cacao from involved in its business processes.
“Taza founder Alex Whitmore took his first bite of stone ground chocolate
while traveling in Oaxaca, Mexico. He was so inspired by the rustic intensity
that he decided to create a chocolate factory back home in Somerville, MA.
Alex apprenticed under a molinero in Oaxaca to learn how to hand-carve
granite mill stones to make a new kind of American chocolate that is simply
crafted, but seriously good. In 2005, he officially launched Taza with his wife,
Kathleen Fulton, who is the Taza Brand Manager and designed all of the
packaging.
Taza Cultivates Channel Relationships with Chocolate
Taza is a pioneer in ethical cacao sourcing. We were the first U.S. chocolate
maker to establish a third-party certified Direct Trade Cacao Certification
program. We maintain direct relationships with our cacao farmers and pay a
premium above the Fair Trade price for their cacao. We partner only with
cacao producers who respect the rights of workers and the environment.”
(Taza, 2017
Taza chocolate making process is unique. Taza chocolate is stone ground and
minimally processed, and no conch is used. They use authentic Oaxacan stone mills
instead of steel refiners to grind the cacao. Due to the imperfect surface of a
granite millstone, unrefined cacao particles and sugar granules remain in the
finished chocolate.
They roast, winnow, grind, temper, and mold their chocolate in house and
by hand. They use exclusively organic and sustainable ingredients to craft their
chocolate.
Taza Cultivates Channel Relationships with Chocolate
The First step is roasting in this mid-century, candy-apple red Barth Sirocco
200 cacoa roaster.
Then beans are Winnowed (Winnowing is the process of removing the shell
and germ from the cacoa bean and breaking it into cacoa nibs. This machine was
found in a candy factory in the Dominican Republic. It took half a dozen men five
days to disassemble it. If purchased new today, it cost about half a $million.
Next, the cacao nibs are ground into cocoa liquor using authentic Mexican
stone mills that is sourced from Oaxaca. This machine uses hand-hewn granite
millstones to grind the cacao into a grainy paste.
The liquor is then combined with sugar and either reground or refined in the
stone refiner for about a day, depending on the final chocolate They’re making.
Next comes the crucial stage of tempering. Tempering refers to the precise
raising, lowering, and raising of the temperature of liquid chocolate to develop and
align the crystals in the chocolate to give it the right mouth feel and snap. They use
a relatively small tempering machine at the moment: the Sollich Minitemper
200FD.
Finally, the chocolate is precisely dosed into molds using a ring depositer.
The molded chocolate bars are dried in our custom drying room and demolded
onto sheet pans. Then, every single bar and disc is wrapped by hand, and packed
into recyclable display boxes awaiting shipment around the country and world.
Taza Cultivates Channel Relationships with Chocolate
The chocolate supply chain begins with the cultivation of cacao pods. After
cacao cultivation, the pods are harvested and the seeds and pulp are separated
from the pod. The cacao seeds are fermented and dried before being sorted,
bagged, and transported to chocolate manufacturers. The cacao beans undergo
roasting, husking, grinding, and pressing before the product undergoes a process
called “conching,” in which the final flavors develop (Martin, 2018). Differences in
the execution of each step influence the ultimate taste and consistency of the
chocolate product.
In response to the social and economic injustices associated with the cacao
supply chain, various organizations have been established with the common
mission of improving ethical and corporate responsibility of global cacao practices.
Many of these organizations have established criteria for certifications with the
goal of enticing companies to comply with specified ethical requirements in
exchange for public acknowledgement for doing so.
Yet, while in theory Fair Trade seems to address many issues the cacao
farmers face, critics of the certification point out there exists a lack of evidence of
significant impact, a failure to monitor Fair Trade standards, and an increased
allowance of non-Trade ingredients in Fair Trade products (Nolan, Sekulovic, & Rao
2014). So, while in theory certifications like Fair Trade offer the potential to
improve the cacao-supply chain by ensuring those companies who subscribe to the
certification meet certain criteria, the rigor and regulation of the criteria remains
heavily debated.
Taza Cultivates Channel Relationships with Chocolate
TRADE
This direct connection, allows the buyer and farmer to communicate fair
prices, ensuring that the cacao farmers receive fair wages, working conditions, and
support (Zusman, 2016). Furthermore, the transparency associated with the bean-
to-bar process motivates the companies to keep up to date on ethical practices,
and encourages the cacao farmers to take extra care the cultivation of their beans.
Taza Cultivates Channel Relationships with Chocolate
Taza sources its cacao from its “Grower Partners” in the Dominican Republic,
Bolivia, and Haiti. Taza provides a detailed profile for each of its cacao producers
which features information including the country region, number of farmers,
duration of partnership, tasting notes which contribute to the terroir of their
chocolate, history of the region, and pictures of the farmers with Taza employees.
The thorough information Taza provides truly puts faces to the names of the
farmers and displays Taza’s direct and personal engagement with their cacao
producers.
The mission of Taza Chocolate is “To make and share stone ground chocolate
that is seriously good and fair for all” (Taza, 2017). In the dual parts of their mission:
“seriously good” and “fair for all”, Taza has become a leader in using the quality
and ethicality of their products to empower and respect those often overlooked
workers at the very front of the supply chain. Looking first at quality, Taza has seen
success as a maker of “seriously good” chocolate (Taza, 2017). Their products are
now available all over the country and internationally, in specialty, natural and gift
stores. Fine restaurants have used Taza Chocolate in their kitchens and numerous
major food publications have featured the company. But these are just outward
indicators of what goes on behind the scenes. For one thing, their “seriously good”
Taza Cultivates Channel Relationships with Chocolate
chocolate seeks to remain true to its cacao origins and acknowledge where it comes
from through proper and authentic taste. While other chocolate makers may do as
they please to conform to the tastes of the consumer masses, Taza Chocolate caters
to the genuine recipes and processes of the geography and culture within which it
was conceived.
“Taza is big on ethical cacao sourcing, and is the first U.S. chocolate maker to
establish a third-party certified Direct Trade Cacao Certification program,
meaning, you maintain direct relationships with your cacao farmers and pay
a premium above the Fair Trade price for their cacao.” (Taza, 2017)
In its Transparency Report displayed below, Taza even discloses what it pays for its
cacao beans.
Taza Cultivates Channel Relationships with Chocolate
1. Real Relations
2. The Best Cacao
3. More Money for Partners
KEY INDICATORS
PRODUCTS
Wicked Dark w/
Coconut
Wicked Dark w/ Ginger
Wicked Dark w/
Toasted Quinoa
PRODUCT FACTS
TARGET CUSTOMERS
- Wealthy
- Organic Consumers
- Community Oriented
- Urban Area
- Adventurous Consumer
- Well Informed
- Ages 24-35
Taza Cultivates Channel Relationships with Chocolate
SWOT ANALYSIS
Strengths
- High Quality
- Direct Trade
- Wholesale/Distributor Relationship
Weaknesses
- Price
- Limited Availability
Opportunities
- Expanded Internationally
- Increase Promotions
- Increase Availability
Threats
- High Competitors
- Competitive Pairity
Taza Cultivates Channel Relationships with Chocolate
PROPOSED ALTERNATIVES
PROS:
- Retain the Image of being a “Premium Brand”
- Ensure High Quality Ingredients
CONS:
- High Price
- Limited Target Market
- Less Brand Awareness
Taza Cultivates Channel Relationships with Chocolate
PROS:
- Larger Market
- Receptive to Organic & Ethical Chocolate
- Low Barriers to Entry
CONS:
- More Employees
- Big Competitors
- Brand Promotion Cost
Taza Cultivates Channel Relationships with Chocolate
PROS:
CONS:
PROS:
CONS:
1. Which Distribution Channels does Taza use, and why are they appropriate
for this company?
2. In what ways does Taza benefit from selling directly to some consumers?
What are some potential problems selling directly to consumers?
3. In what ways are Taza’s distribution efforts influenced by the fact that its
products are organic?
Taza Cultivates Channel Relationships with Chocolate
Answers:
The only downfall is that Taza cannot provide the same quality
of its product to all of their consumers since chocolate is a
perishable product and it cannot hold long during transportation.
REFERENCES
Coe, Sophie D., and Michael D. Coe. The True History of Chocolate. New
York: Thames and Hudson, 1996. Print.
US EPA, http://www.epa.gov/cleanenergy/energy-resources/refs.html,
Accessed December 5, 2009
CBECS (2003)
Source:http://www.eia.doe.gov/emeu/cbecs/cbecs2003/detailed_tables_2
003/2003set11/2003pdf/c24.pdf, US DOE
Taza Cultivates Channel Relationships with Chocolate
Nolan, Markham, Dusan Sekulovic, and Sara Rao. “The Fair Trade Shell
Game.” Vocativ. Vocativ, 16 Apr. 2014. Web. 03 May 2017.
“Organic Stone Ground Chocolate for Bold Flavor.” Taza Chocolate. N.p.,
2015. Web. 08 May. 2018. <https://www.tazachocolate.com/>.
Luna, Taryn. "Seven Things You Should Know About Alex Whitmore".
bostonglobe.com. The Boston Globe.
Taza Cultivates Channel Relationships with Chocolate
Hofherr, Justine (February 23, 2016). "CEO Desk: How Taza Chocolate's
founder brought a taste of Mexico to Somerville". Boston.com. Retrieved
December 16, 2017.
"Beyond fair trade: These bean-to-bar chocolate makers are upping the
ante on working with cocoa farmers". Financial Post. December 6, 2017. Retrieved
December 16, 2017.