Here’s our thoughts on the future of Chocolate retailing (published in Retail Focus magazine, March 2012)

1. opinion
The future
of chocolate
retailing:
More sweet
than bitter
As Easter approaches, Liz McShane of Portland
Design delves into the world of chocolate retail
and considers the key ingredients to a sweet,
successful future for the sector.
The news last summer that Thorntons was planning to close up
to 180 stores (nearly half its store portfolio) came at a poignant
time in the retailer’s history - it was announced in the year that the
company celebrated its centenary. Things have not
improved for the retailer, which recently announced that half year
profits had slumped by a whopping 92 per cent in the six months
to Christmas.
Although the retail market, in general, is facing tough
times given the difficult and uncertain economic landscape, At the other end of the Nestle brand spectrum, the company is
the chocolate sector has its own unique problems and set of turning to ‘crowd sourcing’ as a means to engage with consumers
challenges. One of the most noticeable developments has as well as allowing them to be co-participants in deciding a
been the marked polarisation between mid market retailers and new flavour for their range of chunky Kit Kat bars. This was
specialist chocolatier-type boutique offers. also accompanied by an AR (Augmented Reality) marker on
www.retail-focus.co.uk
Thorntons has been a clear victim of this trend in polarisation. packaging, enabling consumers to vote for their favourite flavour.
Over the years, its sales through supermarkets grew and grew, Meanwhile, over in the States, the co-founder of Wired
making it more difficult for its standalone stores to compete and magazine has launched Tcho, a new chocolate ‘start up’ in San
develop a proper narrative, and having a rather bland in-store Francisco. Tcho combines many elements of classic Silicon Valley
experience only served to exacerbate the situation, making the innovation: its approach to working with farmers, the re-thinking of
retailer less relevant and receptive to changing consumer trends. the chocolate lexicon, and its approach to raising money.
In contrast, these new boutique-type offers are brimming with Its 50-gram dark chocolate ‘beta’ (prototype) bars, which are
innovation, not just in terms of product development, but with their co-created by customers, are sold only locally at first to those who
store environments and marketing approach, and are creating have signed up on the Tcho website, and only to those willing to
a much more immersive, interactive and personalised customer go and pick up the chocolate at Tcho’s headquarters - so not
experience and conversation. your typical retailer approach! It now operates a nationwide mail
We are now witnessing some of the big ‘corporate’ chocolate order service and has a retail outlet at its 1,395 sq m converted
brands creating niche offers to target the growing trend towards warehouse on the San Francisco waterfront.
personalisation and luxury. Nestle has developed Maison Cailler However, contrary to popular belief, innovation is not just
- a new luxury brand that offers a unique profiling system that restricted to the online/digital world, new store formats and retail
consumers can use to discover their ‘chocolate personality’ and offers are emerging and taking the chocolate experience to new
share the result with their friends online. Within 48 hours of using levels. The most notable of these being Hotel Chocolat - originally
the service, customers are sent a box of Maison Cailler chocolates launched as a catalogue retailer, then a web-based business, it
that have been carefully selected to match their individual now has around 65 stores in the UK as well as 35 concessions in
preferences. This means that the brand can retain an ongoing John Lewis stores and two outlets in the U.S. Its boutique hotel on
relationship with the consumer. its plantation estate in St Lucia also has a retail element.
In addition to its online activity, Maison Cailler ‘profiling Selling and living the ‘full cocoa experience’ right from the
stations’ will be set up in a variety of luxurious locations around company-owned plantation to its store environments, Hotel
Switzerland, such as five star hotels. The temporary booths will Chocolat has brought a gourmet experience to buying chocolate.
give people the opportunity to take the chocolate personality As well as having a high quality product and store environment,
tests with a friend in relaxed and comfortable surroundings. A the retailer has developed and grown customer loyalty, passion
new flagship store will open outside the existing Maison Cailler and engagement through its Tasting Club subscription service.
chocolate museum in Broc, where visitors will also be able to More than 100,000 members pay a monthly fee to receive a new
discover their chocolate personality. selection of chocolates and are invited to give their feedback.
This is a clear example of a brand tapping into key consumer Other Hotel Chocolat activities include a cacao cuisine street
trends of personalisation, new luxury (quality, individualism and food café in London’s Borough Market, which serves authentic
craft) and authenticity. cocoa tea, savoury and sweet cacao wraps and a range of Rabot
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2. opinion
Hotel Chocolat is selling and living ‘the full cocoa experience’, from
the company-owned plantation to its store environments.
Estate small batch chocolates. L’Artisan du Chocolat has developed the whole chocolate
At the brand’s cocoa estate in Saint Lucia, they have opened experience from a daytime into an evening activity with its cocoa-
Boucan - a full dining experience centred around an innovative, based cocktails, and has also developed some chocolate-based
light and healthy cacao cuisine menu - and this has been beauty products aligning itself with the sophisticated adult world
complemented by the opening of their plantation chic hotel of beauty and fashion.
last December. Reinforcing the connection between fashion and the new
The company’s latest venture, Roast & Conch - the ‘coffee generation of chocolatiers, Cocomaya Fine Chocolatier & Artisan
vs cocoa bar’ concept in London’s Covent Garden - links cocoa Baker is the brainchild of two highly influential players in the
growing, chocolate making and tasting in one location, and is a fashion industry. Sharing a love of fine chocolate and authentic
first for London. Hotel Chocolat has teamed up with Monmouth artisan baking, they have created a very paired down space in
Coffee to offer a drinks menu written in familiar coffee language - which to enjoy afternoon tea and some of the finest chocolates.
www.retail-focus.co.uk
the twist being that customers can decide whether they would like So, these are just more examples to prove that chocolate can
their latte, flat white or cappuccino prepared with cocoa freshly be a sophisticated, grown up experience while at the same time
roasted on the premises or with traditional coffee beans. being playful and fun.
Cocoa lovers can also try out Roast & Conch’s bespoke Exciting times lie ahead for the chocolate sector as a new
‘cacao cuisine’ menu, offering a range of warm cocoa wraps and generation of retailers and brands invent a new language and
open salad sandwiches, as well as a unique chocolate and wine approach. The key ingredients for future success will be to have
dining experience. intimate knowledge of your customers - this will be more important
So, applying and adapting some of the techniques of coffee then ever in our permanently connected world - and brands will
brands has allowed brands to create a whole new product and need to build strong relationships with customers and encourage
service culture around chocolate. bonding around their products. Allowing feedback, dialogue and
In addition to Hotel Chocolat, a number of smaller, co-creation will be key in attracting, retaining and stimulating
haute-couture chocolate retail brands have continued to customer interest and repeat purchase. The future doesn’t have to
re-define the art of chocolate retailing; these include L’Artisan du be bitter, it can be sweet.
Chocolat and Cocomaya. www.portland-design.com
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