Presentation on Chocolate Industry Prepared by: Shivali Sharma Course: PGD- HRM Roll no.- HRM/09/015 1 st SEMESTER
INTRODUCTION OF CHOCOLATES
Chocolate is one of the most popular foods of the
It has been traded internationally for centuries,
mostly from the underdeveloped to the developed
Consumption of chocolate specially DARK
CHOCOLATE is growing rapidly because of
reported health benefits.
Chocolate has amazing complexities and levels of
The word ‘chocolate’ entered the English language from Spanish .
“ Chocolate” comes from Nahuatl , the language of Aztecs, from the word “xocolatl” made up from word “xococ” meaning sour or bitter , and :atl” meaning water or drink.
Chocolate is made from beans derived from the cacao tree. These beans are very bitter, so the cocoa solids and cocoa butter has sugar added to it.
History of “Chocolates”
The origins of chocolate can be traced back to the ancient Maya and Aztec civilisations in Central America, who first enjoyed 'chocolatl'; a much-prized spicy drink made from roasted cocoa beans.
Cocoa beans were valuable, they were given as gifts on occasions such as a child coming of age and at religious ceremonies.
Chocolate comprises a number of raw and processed foods produced from the seed of the tropical cacao tree. Cacao has been cultivated for at least three millennia in Mexico, Central and South America, with its earliest documented use around 1100 BC.
Chocolate is created from the cocoa bean. A cacao tree with fruit pods in various stages of ripening.
''Chocolate' (in the form of a luxury drink) was consumed in large quantities by the Aztecs : the drink was described as 'finely ground, soft, foamy, reddish, bitter with chilli water, aromatic flowers, vanilla and wild bee honey'.
Chocolate across Europe
An Italian traveller, Francesco Carletti , was the first to break the Spanish monopoly. He had visited Central America and seen how the Indians prepared the cocoa beans and how they made the drink, and by 1606 chocolate was well established in Italy.
A mug of hot chocolate. Chocolate was first drank rather than eaten .
The secret of chocolate was taken to France in 1615.
The French court enthusiastically adopted this new exotic drink, which was considered to have medicinal benefits as well as being a nourishing food. Gradually the custom of drinking chocolate spread across Europe, reaching England in the 1650s.
First chocolate eating
Up until this point all chocolate recipes were based on plain
It was an English doctor, Sir
Hans Sloane, who - after
travelling in South America -
focused on cocoa and food
values, bringing a milk
chocolate recipe back to England.
The original Cadbury Milk Chocolate
was prepared to his recipe.
By early in the 18th century, the price of chocolate had dropped so many people outside of the wealthy class could enjoy it.
During this era, chocolate houses became as popular in England as coffee houses. In fact, there were chocolate houses that catered to only certain types of clientele such as politicians, gamblers, and the literati.
One interesting fact about chocolate in England was that the Quakers participated in this business very heavily. One reason was that the Quakers hoped to persuade the poor to give up drinking alcohol in favor of the healthier chocolate drink.
Types of chocolate Dark chocolate Sweet chocolate Milk chocolate White chocolate
Types of Chocolates…
Several types of chocolate can be distinguished .
Dark chocolate : Pure, unsweetened chocolate contains primarily cocoa solids and cocoa butter in varying proportions.
Much of the chocolate consumed today is in the form of sweet chocolate , combining chocolate with sugar.
Milk chocolate is sweet chocolate that additionally contains milk powder or condensed milk.
White chocolate contains cocoa butter, sugar, and milk but no cocoa solids.
The Chocolate Industry
Who are the main manufacturers of chocolate in the world?
Candy Industry publishes an annual list of the top 100 global confectionery companies, ranking them by total sales.
The table in next slide is an extract from this list giving the top ten global confectionery companies that manufacture some form of chocolate by total confectionery sales value in 2005.
Reference: Candy Industry, January 2006 1,239 Ezaki Glico Co 1,427 Barry Callebaut AG 1,673 Lindt & Sprüngli 1,693 Meiji Seika Kaisha Ltd. 2,250 Kraft Foods Inc. 4,881 Hershey Foods Corp. 5,580 Ferrero SpA 7,973 Nestlé SA 8,126 Cadbury Schweppes PLC 9,546 Mars Inc Total Sales 2005 US$millions Company
Fair Trade cocoa and chocolate
Fair Trade is a trading partnership, based on dialogue, transparency and respect, that seeks greater equity in international trade.
Fair Trade certified producer organizations must comply with a number of requirements, related to social, economic and environmental developments.
The essential characteristic of Fair Trade cocoa is that producer organizations receive a higher price for their cocoa beans.
Fair Trade premium for standard quality cocoa is US$ 150 per tonne. The minimum price for Fair Trade standard quality cocoa, including the premium, is US$ 1,750 per tonne.
Presently, cocoa sold with the Fair Trade label still captures a very low share of the cocoa market (0.1%).
Manufacturers of chocolate
Many chocolate manufacturers have created products from chocolate bars to fudge , hoping to attract more consumers with each creation.
The Hershey Company and Mars have become the largest manufacturers in the world.
The Hershey Company , known for their Hershey bar , Hershey's kisses and Reese's Peanut Butter Cups , is the largest chocolate manufacturer in North America.
Mars, Incorporated , one of the
largest privately owned U.S.
corporations , is a worldwide
manufacturer of confectionery
and other food products.
Mars is most famous for its eponymous Mars Bar , as well as other confectionery such as Milky Way , M&M's , Twix , Skittles and Snickers .
Other significant players include
Cadbury , Nestlé , Kraft Foods and Lindt .
The graphs show the chief cocoa-producing countries.
Where Chocolate Comes From(Percentage of World Cocoa Bean Production)
Ivory Coast 40- 45%
Rest of the world 5-10%
Recent statistics from Swiss Chocolate Industrial Federation show that the total sales revenue from Chocolate made a historical record of 1.466 billion Swiss francs in 2005, with an increase of 7.5% compared with the previous year.
Lindt and Kraft Food’s Chocolates are the examples of Swiss Chocolates.
Chocolate Consumption Per Person By Country
Germany … 11.12 kilograms of chocolate per person (up
7.8% from 2002)
Belgium … 11.03 kgs (up 24.2%)
Switzerland … 10.74 kgs (down 1.7%)
United Kingdom … 10.22 kgs (up 2%)
Austria … 9.43 kgs (up 18.3%)
Norway … 8.53 kgs (up 3.1%)
Denmark … 7.74 kgs (down 16.3%)
France … 6.78 kgs (down 2.6%)
Finland … 6.77 kgs (up 3.7%)
Sweden … 6.76 kgs (down 17.1%)
United States … 5.58 kgs (up 4.1%)
Australia … 5.31 kgs (up 22.1%)
Italy … 4.26 kgs (up 8.1%)
Canada … 3.90 kgs (no change)
Poland … 3.67 kgs (up 11.2%).
Gourmet Chocolate Gifts
Premium gourmet chocolate represents over 40% of the chocolate consumed in the United Kingdom, Europe’s largest chocolate market.
Germany is the second-largest chocolate products market in Europe. Boxed chocolates and moulded chocolate sales account for some 55% of the German market’s total value.
France is Europe’s third-largest chocolate market, Ferrero accounts for about 50% of the Italian chocolate market.
Global chocolate sales are:
27% for chocolate-covered snack bars .
23% for solid moulded bars .
20% for boxed chocolates often sold as gifts.
14% of global chocolate sales are for bagged or boxed products like M&Ms .
11% for seasonal theme items like chocolate Easter eggs .
3% for chocolate with toys .
2% for regional chocolate specialties .
Effects of Chocolate
Chocolate affects us both negatively and positively.
Chocolate contains more than 300 chemicals, and has been the subject of a number of studies by universities and other scientific organizations.
Advantages of Chocolates
It is common perception that chocolate is a mood elevator.
Some people, when they are sad or depressed, experience a craving for chocolate. On eating chocolate they report that their mood is elevated and they feel better.
This elevation in mood is temporary though and when this effect wears off, they again revert to their previous state of mind.
There are many health benefits that are attributed to chocolates. It is good for the heart.
It increases the responsiveness of blood vessels which is useful for preventing heart disease.
It also increases glucose tolerance. Chocolate also contains some substances which have an anti oxidant effect. This is helpful in preventing cancer.
Eating chocolates increases the brain activities and increases the heart beat rate than any other thing.
Caffeine , which increases resistance to fatigue, intellectual activity, and watchfulness.
Endorphins , natural opiates that are released by the brain in increased amounts when eating chocolate, thereby elevating one's mood and reducing pain.
Dark Chocolate Versus Milk Chocolate
Dark chocolate contains more cacao and less sugar than milk chocolate. It follows that any health benefits would be more pronounced in dark chocolate.
Dark chocolate is allowed on the
popular Montaignac diet while
milk chocolate is not.
Disadvantages of Chocolates
Chocolate is reported to cause headache, obesity, rectal itching, heart burn and emotional problems like irritability, confusion, anger and depression.
There are more than 350 chemicals in chocolate. Some of these are believed to cause allergic reactions.
Eating chocolate can also give rise to a feeling of anxiety.
The addictive property of chocolate is also well documented.
This is evidenced by the fact that some people, when trying to give up alcohol, depend on chocolate to satisfy their cravings.
This drug-like property is attributed to caffeine and magnesium that are present in chocolate. The presence of caffeine and magnesium can contribute to a feeling of craving for chocolate.
One ounce of chocolate contains 20 mg of caffeine.
Researches on the effects of caffeine have reported that caffeine can cause problems in sleep, restlessness, irritability, heartburn and anxiety.
Withdrawal from caffeine causes fatigue and headaches.
Tyramine is another amino acid present in chocolate.
Though it is not certain whether any significant amount of tyramine reaches the brain, yet it is known that it causes blood vessels to expand and contract causing dull headaches.
Is Chocolate A Health Food?
Cacao, the source of chocolate, contains antibacterial agents that fight tooth decay. Of course, this is counteracted by the high sugar content of milk chocolate.
The smell of chocolate may increase theta brain waves, resulting in relaxation.
The cocoa butter in chocolate contains oleic acid, a mono-unsaturated fat which may raise good cholesterol.
Chocolate increases antioxidant levels in the blood
Chocolate contains phenyl ethylamine, a mild mood elevator.
Men who eat chocolate live a year longer than those who don't.
The flavanoids in chocolate may help keep blood vessels elastic.
Mexican healers use chocolate to treat bronchitis and insect bites.
Myths about chocolate
There are many myths and half-truths about the
effects of chocolate on the human body.
Studies show that chocolate is not a causative factor in acne.
Cacao contains the stimulants caffeine and bromine, but in such small quantities that they don't cause nervous excitability.
Chocolate is not addictive.
Chocolate contains stearic acid, a neutral fat which doesn't raise bad cholesterol.
Chocolate doesn't make you 'high'. You'd need to eat a huge quantity (about 25 pounds at one sitting) to feel any noticeable effect.
Drinking a cup of hot chocolate before
meals may actually diminish appetite.
10 facts about chocolate
Chocolate is lower in caffeine than tea, coffee and coca cola. A one ounce bar of chocolate contains about 6mg of caffeine, whereas a five ounce cup of regular coffee contains over 40mg.
Chocolate was regarded as an aphrodisiac by Aztec Indians.
Chocolate contains antioxidants which may help prevent cancer and heart disease.
Chocolate is the favourite flavour in the United States Of America.
The shelf life of a bar of chocolate is approximately one year.
In 1842 Cadbury's in England created the worlds first chocolate bar.
The Swiss eat the most chocolate. The average person eats 19lbs a year.
Chocolate contain theobromine, which is a mild relative of caffeine and magnesium. This chemical is found in some tranquilisers. Because coffee also contains caffeine, it both picks you up and calms you down.
It is widely believed that chocolate consumption releases a chemical into your body very similar to what is produced when you are in love.
Chocolate manufacturers use 20% of the worlds peanuts and 40% of the worlds almonds.
This report will help:
Marketing Managers identify market opportunities and develop targeted promotion plans for chocolate.
Research and development professionals stay on top of competitor initiatives and explore demand for products in the chocolate arena.
Advertising agencies working with clients in the food industry understand the product buyer to develop messages and images that compel consumers to purchase these products.
Business development executives understand the dynamics of the market and identify possible partnerships.
Information and research center librarians provide market researchers, brand and product managers and other colleagues with the vital information they need to do their jobs more effectively.