Before enjoying the sweet success of candy sales, retailers have a lot of planning to do, since organic candy straddles the grocery side and the bulk merchandise side. In addition, the type of organic candy sold, especially organic chocolate, which accounts for the majority of organic candy items, will warrant a little chin rubbing.

As with coffee and tea comes the added choice for organic candy makers to offer organic and Fair Trade certified cocoa, the only three commodities that can presently be certified Fair Trade.

The cacao tree is strictly a tropical plant found only in hot, rainy climates in countries no more than 20 degrees north or south of the equator. In 2002, the Fair Trade Labeling Organizations (FLO) recorded 1,618.1 metric tons of Fair Trade cocoa sold, up 13.5 percent from the previous year. SPINS, the San Francisco-based provider of content and consulting services to the natural products industry, places natural channel sales of organic chocolate (including Fair Trade) at $7.2 million in the 52 weeks ending July 12, 2003, up 33.5 percent from last year.

A Makeover for the Bulk Aisle

A section traditionally reserved for grains and rice, the bulk aisle is undergoing a transformation to include more candies, mainly enrobed and panned varieties of organic and conventional chocolate.

"The bulk aisle is certainly changing. It's being treated more like a separate department; it's cleaner and more sophisticated than it has been before," said Morty Cohen of SunRidge Farms. SunRidge has its roots in bulk, but found over the years there are those consumers who want bulk and those who want packaged.

Addressing consumer/retailer concerns (many about food safety and freshness), SunRidge Farms now offers several of its organic and natural longtime favorites (Jolly Beans organic jelly beans, Sunny Bears organic gummy bears, milk and dark chocolate almonds, cherries, raisins, toffee, andmore in USDA certified organic and conventional varieties) in new pre-printed bags, or in bulk bins-something for both types of consumer.

From nSpired comes the Sunspire brand of all-natural candies, in six flavors, individually wrapped in recyclable cellophane to increase food safety and increase retailer sales to customers who previously avoided bulk candy.

"We asked ourselves, 'What are the ways that we can ensure our product quality is always on top and help the retailer manage their bulk aisle?' " said Stacey Kelly.

The result is the 5-lb. Max-Pack for customers who want larger quantities of their favorite bulk candy. Kelly called it "a great way to sell customers their favorite candy with no scooping from a bin."

Lastly is the new Sunspire Display More Cases (above) that hold 10 lbs. Each of two products. Individually wrapped, bulk products for the Display More Cases include the Plain Sundrops and Peanut Sundrops, or chocolate covered raisins and chocolate almonds, together, side by side in the display case.

A non-chocolate offering in the bulk aisle, JoEl, Inc.'s College Farm brand of individually wrapped hard candies, is garnering attention, said JoEl president David Deck, especially in the store-within-a-store format. '"It's the regular grocer that I see. Their line is changing the most and we're doing a lot more with bulk," said Deck.

The candies, also available in 4.7-oz. bags (peggable or off-shelf merchandisers) come in five flavors: luscious lemon, strawberries and cream, vanilla caramel, Vienna roast, and chocolate mint. The candies' wrapping is a corn-based plastic film called NatureWorks PLA. The technology used to produce NatureWorks breaks down plant starches in the corn into natural plant sugars. With further production, a plastic called polylactide (PLA) is produced.

Ethical Chocolate

The consumer decision to buy organic/Fair Trade certified chocolate or organic chocolate sourced by Fair Trade measures is a thought-provoking question for retailers when deciding what to stock. The consumer choice is likened to buying conflict diamonds-they're just as beautiful as any other diamond, but is the price of social responsibility too high?

"I think it's just that serious," said Lindsey Browning, deli manager, Whole Earth Center, Princeton, NJ, on carrying Fair Trade chocolate. "I think sometimes people are looking to get a better deal in business more so than worry about how the farmers are treated."

Fair Trade certified commodities seek to ensure that farmers/co-ops located in underdeveloped countries receive fair pricing for crops, utilize child/fair labor laws, enter into direct trade agreements with companies, have direct access to credit, promote environmental protection, and implement social/community programs.

Whole Earth carries both certified and-certified Fair Trade/organic chocolates.

According to TransFair USA's director of marketing and communications, Haven Bourque, the 15-year-old logo is "a [consumer] guarantee backed by a double-blind audit trail," of the Fair Trade standards. As laid out by TransFair, the U.S. Fair Trade certification agency, the audit trail consists of a field audit where farms are inspected to make sure Fair Trade standards (like the aforementioned), as set out by FLO, the worldwide Fair Trade umbrella organization, are adhered to by farmers and manufacturers contracted in the Fair Trade program.

For example, Bourque said the minimum Fair Trade certified price for cocoa is $1,750/metric ton or 79¢/lb; organic and certified Fair Trade cocoa is $1,950/metric ton or 88¢/lb. If the world price rises above these minimums, Fair Trade importers must pay the world market price plus a premium of $150/metric ton to be used by the farming cooperative for social or environmental projects. Also, children are only allowed to work on the farm when school is not in session.

Standards are reflected by the Fair Trade logo found on the front of the product label. What separates one company from another is the certification logo.

The Certification Issue

In terms of Fair Trade, the coffee and tea business is making strides both in the mainstream and the natural channel. As for how it affects the cocoa industry, Jon Stocking, owner, Endangered Species Chocolate Company (Talent, OR), said, "While some might perceive the effect in a negative light because of higher associated costs involved, the better question would be, how will the Fair Trade standards affect the farmers working in the cocoa industry? I believe that answer is an absolute positive effect. Why? Because Fair Trade creates an integrated self-sustainable balance between quality of life, business, the environment and social commitment."

Endangered Species is among several chocolate makers that have developed company specific Fair Trade programs, which they add, closely mirrors those of certifying agencies. Nevertheless they remain undecided on how to best to approach Fair Trade certification at present.

"We respect and value the concept of Fair Trade in coffee, chocolates, and other commodities. Whenever possible we pursue and utilize Fair Trade. For us we find there is not sufficient quantity economically at this point. We are watching this issue closely," said Morty Cohen, president, SunRidge Farms, based in Santa Cruz, CA.

Of Endangered Species' Fair Trade program, Stocking said, "I have been purchasing beans from small cooperatives in Costa Rica and the Dominican Republic for several years. I travel periodically to those places unannounced, to see for myself how the farming operation is performed, to visit the schools to verify the kids are getting their education and confirm that there is a healthy balance between business and the environment as well as the social commitment."

Karlo Flores, fifth generation chocolatier, KFM Foods, makers of Terra Nostra brand chocolate bars, based in Vancouver, BC, said KFM buys organic ingredients as well as some, which are also certified Fair Trade by independent associations.

"The next step for me in the development of a comprehensive Fair Trade plan will be to utilize these ingredients in current and new products under my own Equi-Trade philosophy."

Equi-Trade is a combination of efforts to help distribute some of the wealth created by products, which carry the Equi-Trade logo to two distinct areas-at source ingredients; and the at consumption area. Through Equi-Trade, to be outlined on the label this year, Flores said he ensures fair wages to those involved in the crop production and conducts audits to protect against child/slave labor. "Secondly, there is funding to associations for programs (e.g. literacy, food) in the 'developed' world where needs are present and under-addressed, in our cities and countries," Flores outlined.

TransFair's Bourque questioned the absence of a certifying logo. "The crux of the matter is do we always trust businesses to monitor themselves? We can look at organics and see that people trust the organic certification label because it's an independent third party evaluation."

Supply Issues

"There's not a large source for Fair Trade certified chocolate. For our four chocolate brands, we purchase from growers who are producing cocoa using fair labor practices," said Stacey Kelly, brand manager for San Leandro, CA-based nSpired Natural Foods, producers of Cloud Nine Chocolates, Ah!laska Organics, Tropical Source Chocolates and Sunspire Chocolates. "We would like to see the certified Fair Trade grower base develop further, especially as global definitions and enforcements continue to evolve."

TransFair reports eight certified Fair Trade cocoa cooperatives worldwide including Africa and Latin America. Many chocolatiers do not source from Africa (one of the largest producers of chocolate) because of the shaky political climate, which may violate many of the Fair Trade standards.

"We are very careful where we source from. We do not source from Africa," said Marilyn Del Duca, director of marketing, Shaman Chocolates, Santa Cruz, CA.

To counter this negative image branding all African cocoa, certifying agencies point to Ghana's Kuappa Kokoo. Since 1993 the 35,000-member cooperative has sold 58 containers of Fair Trade cocoa. At present that still does not seem to be enough certified cocoa to go around; although TransFair would argue otherwise. "Fair Trade Certified cocoa cooperatives are able to sell on average only 10 percent of their harvest at Fair Trade prices, so there is not short supply, but rather demand is not meeting the supply available," explained Bourque.

Accepting Certification

Through their own Hand-in-Hand Fair Trade program, Rapunzel Pure Organics, Valatie, NY, has eight producing partners, which supply them with six raw ingredients used in almost 50 percent of their products, according to the program booklet.

Rapunzel's president Eckhart Kiesel said Hand-in-Hand provides that if the world market price for cocoa is above $1,600/metric ton, Rapunzel will match that price and add an additional $350 ($150 for Fair Trade and $200 for organic and Fair Trade) for cocoa beans. In addition, Kiesel said, the company gives back to the cooperatives each year about 2 percent of total sales volume, amounting to nearly $30,000 in 2002.

Others in the industry have opted to use the TransFair program to certify only one or two items, instead of the entire line, like Dagoba Chocolate's ChocoDrops, good for baking or snacking. Central Point, OR-based Dagoba also counts five different organic milk chocolate bars and seven organic dark chocolate bars, including the signature dark chocolate lavender bar, with real lavender hand-stirred into the chocolate mix, as part of its assortment.

"Consumers recognize the logo so we decided to use it. This way consumers can rest assured that we actually paid what we said we paid," said Frederick Schilling, founding alchemist, Dagoba. "We are working toward 100 percent integration, but it will take time to get our other cooperatives into the FLO registry."

Schilling said the marketing partnership developed with TransFair also makes logo use attractive. "When we get calls from a retailer about Fair Trade we sit down and explain the concept. However, TransFair's marketing materials do a great job at educating retailers about the benefits," said Schilling.

At Green & Black's Organic location in Portsmouth, RI (headquarters are in the U.K.), "We pay an extra Fair Trade premium for the cocoa we use in our Maya Gold bars, which the Fair Trade Foundation will then invest in various Fair Trade projects. The motivation is in knowing that Green & Black's is running a highly ethical and socially-conscious business. We have a long-term contract, guaranteeing to buy all the cocoa the Mayan Indian Farmers in southern Belize grow," said spokesperson Wendy Minter-Griffin.

Green & Black's has recently secured a grant, valued at nearly $382,000, from the U.K. Department for International Development (DIFID) to put in place a project team that will further develop the Fair Trade cocoa market in southern Belize.

Whole Earth helps consumers identify Fair Trade products with signage throughout the store.

Talking to Retailers

Explaining the Fair Trade policy to retailers means "helping [them] understand the whole Fair Trade certification picture, including what's already being done by natural chocolate producers to end abusive labor practices on a global level. It's a very real set of issues when you talk about the current cocoa supply and the impact that certification has on price," said nSpired's Kelly.

Retailer Browning said an organic and Fair Trade certified chocolate bar runs about 30 to 60 cents more per bar on average than a non-Fair Trade certified. Bulk prices vary.

"I would like to believe, in no particular order, intrinsic value, price, quality, and taste keep customers coming back for more," said Stocking. Stocking may be onto something. Two years ago Rapunzel convened a consumer focus group when they were designing the new labels. "The message came across that they like organic and Fair Trade chocolate, but for chocolate consumption it's not that important if it's labeled organic and Fair Trade. The priorities are different," Kiesel said. "They wondered if the product would still taste good."

With that in mind, Rapunzel decreased the size of the company's certification logos and saw sales grow, Kiesel said.

Pure Indulgence

Actors Johnny Depp and Juliette Binoche shone a light on the art and indulgence of candy making in the movie Chocolat. Just as inviting are the stories of hand-stirred ingredients and attention to detail that many companies, some with trained chefs at the helm, pour into their bars.

"Nobody watches over your children like you do," said Stocking, who will be introducing this year a Black Panther bar, said to "highlight a real high cocoa percentage" and a Peace Crane Bar that will probably be a milk chocolate bar with a nutty center.

With a staunch philosophy of enjoying food in all of its fullness, some marketers of these gourmet chocolate treats are not yet sold on the idea of sugar-free chocolate. Their reasons are based partly in ingredient sourcing and partly in ideals.

Idealist and chef Del Duca said of Shaman's offerings, "We are doing pure foods." Del Duca noted that company president and Shaman Brant Secunda is thinking about adding a sugar-free bar, to her chagrin. Shaman is run entirely by volunteers with all profits supporting the Huichol Indians of Mexico.

Dagoba's Schilling, also a chef, said there are no alternative or sugar-free organic sweeteners on the market. The main alternative sweetener is maltitol, a non-organic corn derivative. Schilling said stevia, for which the jury is still out on its classification as a food or sweetener, is not an option because it would give the chocolate a metallic, bitter taste.

"We are investigating our options, but when the product will be released I don't know," said Schilling.

Besides cocoa, other basic organic ingredients include organic pure cane sugar, organic cocoa butter, and often, organic fruit and nuts.

Healthy Snacks

Recent scientific studies have highlighted chocolate's high antioxidant content-higher than prunes, raisins, or blueberries.

"A taste is developing for higher cocoa content chocolates which are not only more flavorful, but also have more antioxidants in them," said Flores.

On the other hand, Del Duca said people are not buying chocolate for its associated health benefits. "I think people really love chocolate. Adding the health benefits to that just justifies the treat," Del Duca said, slightly joking.

Del Duca and others have noted the healthful studies and incorporate the healthy message onto sell sheets and insides of wrappers.

Another healthful candy, Sharkies fruit snacks, from SG Naturals, Auburn, CA, is made with real fruit juice, whole grains, and carbohydrates for an energy boost that lasts. The company also uses rice syrup instead of processed sugar, which is believed to digest easier.

Another option in the healthy snack category is Candy Tree's gluten and dairy-free licorice and gummy candies. "Organic candies start with whole ingredients and suffer little processing so the end product tends to have more nutritive value. This leads to the healthfulness of the product-a candy made with an unrefined sugar-that can have less of an effect on blood sugar levels and are less likely to cause allergic reactions," said Erin A. Maguire, marketing director, of Brewster, NY-based Health Flavors, which distributes Candy Tree in the U.S.

For More Information:

* College Farm Candy, (800) 367-2441 * Dagoba Chocolates, (541) 664-9030 * Endangered Species Chocolate Company, (541) 535-2170 * Green & Black's Organics, (401) 683-3323 * Health Flavors, (845) 278-8164 * Joel Inc., (800) 367-2441 * NSpired Natural Foods, (510) 686-0116 * Rapunzel Pure Organics, (518) 392-8620 * SG Naturals/Sharkies, (530) 268-8208 * Shaman Chocolates, (877) 990-3337 * SunRidge Farms,(831) 462-1280 * Terra Nostra Organic,(604) 267-3505

Websites: * www.chocolateandcocoa.org (World Cocoa Foundation) * www.iita.org (International Institute of Tropical Agriculture) * www.transfair.org (TransFair USA) * www.fairtrade.net (Fair Trade Labeling Organizations)

Organic Products Retailer Magazine 431 Cranbury Road, East Brunswick, NJ 08816 Phone: (732) 432-9600 Fax: (732) 432-9288 Email