The mission of Divine Chocolate Limited is to improve the livelihood ...

A F A I R T R A D E C O M P A N Y C O - O W N E D B Y C O C O A F A R M E R S
The mission of Divine Chocolate Limited is to improve the livelihood
of smallholder cocoa producers in West Africa by establishing their
own dynamic brand proposition in the UK chocolate market,
thus putting them higher up the value chain.
Annual Report 2006/7

Chairman’s Report
Sandy Balfour,
Chair of Divine
Chocolate Ltd,
presenting
Mr Paul Buah,
the newly elected
president of Kuapa
Kokoo Farmers’
Union with their
first dividend.
I am proud to present the annual report and
accounts for the year to 30 September 2007.
The figures reflect a year of consolidation
and growth for the company, following the
launch of our sister company, Divine Chocolate
Inc., in 2006 in the United States. In the UK
market the company continued to perform
strongly; sales grew by 19% and we made
pre-tax profits of £635,000. For the second
successive year the Directors were able to
recommend a dividend to shareholders.
This is important both in real terms and in
the challenge it poses for others. The largest
shareholder in Divine Chocolate is the Kuapa
Kokoo Farmer’s Union of Kumasi, Ghana.
They provide the bulk of our cocoa, receive a
Fairtrade price for it, and also participate as
owners in the management of the company and
in its profits.
This report covers the end of our ninth
year of trading. In that time we have sold more
than £39m worth of chocolate and made net
profits of £1.9m. Who gets the money? The
dividends are the fourth ‘income stream’ which
small scale cocoa farmers receive from Divine
Chocolate. They also receive the price of the
cocoa and the Fairtrade ‘social premium’ and
they are often the beneficiaries of monies we
spend on strengthening and supporting our
supply chain. One highlight of the year was
attending Kuapa Kokoo’s AGM in Kumasi at
which I had the honour to present the first
dividend cheque from Divine Chocolate to Mr
Paul Buah, President of Kuapa Kokoo. It was
particularly rewarding to witness the animated
debate about how the money should be
used. In monetary terms the dividends are the
smallest of the four income streams, but that
will not always be the case. As Divine
continues to grow I anticipate that dividends –
the return on capital – will outstrip the others in
volume and importance. The enduring success
of Divine will, I am sure, be that the company
created capital for those who previously had none.
But Kuapa Kokoo are not the only winners.
Our other shareholders, Twin, Oikocredit, and
Christian Aid receive dividends too. It is part
of the virtuous circle that these organisations
are in a position to use their profits in pursuit of
social justice and a better trading relationship
between north and south. There are other
winners too. We have often told the story of
how Divine Chocolate would not exist had it
not been for the support of DFID and the then
minister, Clare Short MP. Back in 1998 DFID
provided a loan guarantee which enabled
Kuapa Kokoo to participate in the company as
owners and not only as suppliers. It is worth
noting that DFID was never called upon to make
good that guarantee. The loan has long since
been repaid. And for the past financial year
alone the Treasury will benefit to the tune of
£1.6m in corporate and valued added taxes.
And yet Divine has never only been about
the money. Ours is a vision of a set of trading
relationships in which people are valued as
much as profit. We deliver excellent chocolate
at a fair price to consumers around the world.
Their participation in our story is as important
as that of the cocoa farmers in Ghana.
I want to pay tribute to our Managing
Director, Sophi Tranchell, and her team. In a
highly competitive chocolate market they have
continued to deliver excellent results in an
exemplary way. My thanks too to our board for
their support, time and expertise. During the
year we welcomed Paul Langley from Christian
Aid and Ian Barney and Robert Hutchison from
Twin Trading Ltd. and said goodbye to Jacqui
MacDonald and Robin Murray. A director from
the start, Jacqui was an excellent Chair of the
Board from 2003 to 2005. Robin’s part in the
history of Divine Chocolate has seldom been
told. He too was a member of the board from
the outset. In the busy, difficult times of our
launch in 1998 it was his wisdom, courage and
determination that made sure the company
came into being. We shall miss them, secure in
the knowledge that our loss is the gain of other
parts of the fair trade movement.
Thank you for your continuing support.
Sandy Balfour April 2008

Company News
Comfort Kumeah, National Secretary of the Kuapa Kokoo Farmer’s Union, with Jeff Whisenant, Executive
Vice President of Lutheran World Relief, celebrating the launch of Divine Chocolate Inc in Washington DC
Fulfilling the Divine mission
On Valentine’s Day 2007, Divine,
the Heavenly Chocolate with a Heart
launched in USA! This new company
operating under license from Divine UK,
is co-owned by Kuapa Kokoo Farmers’
Union, Divine Chocolate Limited,
Oikocredit, SERRV and Lutheran
World Relief. Kuapa Kokoo is again
the largest shareholder, gaining the
opportunity to access the $13billion
US chocolate market.
The launch was a wonderfully
organised and choreographed series of
events, covered with enormous interest
by local and national media. Acting as
charismatic ambassador for Kuapa
Kokoo, and leading spokesperson on
why the new company was such a
cause for celebration, Comfort Kumeah,
National Secretary of the Kuapa Kokoo
Farmers’ Union, braved a typical
Washington winter to bring the Fairtrade
message to American consumers,
government and businesses.
Comfort gave briefings on Capitol Hill –
explaining about the Fairtrade deal and
Kuapa’s ownership of 33% of the new
company. Comfort was joined by the
newly appointed Divine team in USA,
and representatives of the shareholders
in the new business.
Erin Gorman
was appointed
first CEO
of Divine
Chocolate Inc
Since this auspicious beginning,
Divine Chocolate Inc, headed up at
the Washington DC headquarters by
Erin Gorman, has already secured
listings in Whole Foods, Wegman’s,
Norstrom, Food Emporium, as well as a
wide range of universities, independent
Fair Trade shops and speciality chocolate
shops across the United States.
Still also working with major customer
SERRV, Divine finished its first year in
the USA with over $1 million in sales.
Producer
support and
development
During the year Divine Producer
Support and Development (PS&D)
focused on strengthening the
governance of Kuapa Kokoo (KK).
In February a 3-day workshop
with the new National Executive
Committee (NEC) and 26 area
representatives, was held. It
covered leadership skills, decision
making, gender issues, project
management, and civic rights
and responsibilities.
Divine PS&D also supported the
Kuapa Kokoo NEC in developing
a cohesive vision for the future of
the organisation. This involved a
strategic visioning workshop in
which NEC members, executives
and other key stakeholders
outlined their ambitions for KK
going forward. These ideas were
then prioritised and developed into
a document which was presented
to members at the July AGM. This
document marked a statement
of intent and ambition of the new
officers and set demanding targets
for each section of Kuapa Kokoo-
the summary was well received
by farmers.
In addition Divine PS&D supported
the Kuapa Kokoo Farmers
Trust Board in developing clear
procedures for the use of Fairtrade
premiums. These procedures were
approved by farmers and were
circulated to all societies. Regular
reports of decisions taken will
also be disseminated to primary
societies helping to strengthen
transparency and accountability.

Company News
A Symbolic new design for Divine
In 2006 we made the decision to review
Divine’s brand identity with the aim of more
explicitly and distinctively communicating
Divine’s very special appeal. Working with
consultancy Williams Murray Hamm, a bold
new look started to evolve. The striking
identity, launched in January 2007 has
helped win thousands more hearts and
minds, opened many more doors, and is
continuing to delight chocolate lovers as the
design is rolled out across all existing and new
products. Building on the original gold and
black palette the design features an elegantly
reworked logo and is decorated with gold
Adinkra symbols, traditional marks used on
Adinkra symbols
Many of these traditional signs symbolise
virtues, folk tales and proverbs, animals,
and even historical events, and most are
very old, having been passed down through
generations of craftsmen. Here are six of
the symbols that appear on Divine bars:
Mpatap
Reconciliation, peace
and harmony
Funtunfunefu
-Denkyemfunefu
Democracy and
unity in diversity
Dwennimmen
Humility and
inner strength
Ananse ntontan
Wisdom
and creativity
Adinkrahene
Greatness
and leadership
Sanckfa
Revival and learning
from the past
Visit www.divinechocolate.com
to see more symbols
many fabrics, signage and handcrafts in Ghana,
each with its own meaning. This tribute to the
products’ Ghanaian roots was welcomed with
much pride by the farmers of Kuapa Kokoo,
and gives Divine an exclusive presentation and
promise of quality and integrity amongst
a plethora of new competitors.
The rebrand was supported by a seductive
advertising campaign created once again by
St Lukes, and featured in national press and
women’s titles. It was also swiftly followed
by the refreshed Divine website going live and
bringing Divine’s online presence brilliantly
to life.

Divine Nationwide
Dressed in its fine new livery, and armed with the enhanced website,
latest advertisements, posters and exhibition stand, Divine reached
out across the nation with renewed vigour! We set out to increase the
opportunities to sample Divine, and get more value out of each sampling
occasion. We developed our collaboration with our many partners and
fellow Fairtrade brands, and focused on both new and old customers to
increase Divine listings. The credentials and reputation of the company, as
a pioneer and a successful business model, were also put in the spotlight.
The Divine
experience
With a gorgeous brand design to put on show,
we stepped up our programme of sampling
opportunities all over the UK and introduced
over two million chocolate lovers to an irresistible
taste of Divine. We ran promotions with all
our partners, offered competitions and prizes
for all the chocolate occasions of the year,
covermounted on magazines, offered subscriber
incentives and supported several events with
Divine goodie bags. Wherever possible we
used sampling occasions to gather data about
chocolate choices and knowledge
of Divine Fairtrade to further hone our
understanding of the market.
We also ensured a Divine presence at several
festivals and exhibitions, including the Vitality
Show, Thames Festival, Spirit of Christmas
and Greenbelt. Divine once again sponsored
National Chocolate Week which gave us the
opportunity to organise a huge variety of very
successful chocolate collaborations and events
with retailers, cafes, hotels, restaurants and
complimentary brands all over the country.
Divine in print
2007 also saw the publication of a stunning
book of chocolate recipes, created by food
writer and chocolate expert Linda Collister.
Divine Heavenly Chocolate Recipes with a
Heart is a beautifully presented collection
Freema Agyeman, the star of Doctor Who
and Torchwood, gave her support to Divine
and Dubble
A model house made by children with chocolate
and Divine wrappers for the ‘Sweet’ exhibition at
the Museum of Childhood
of recipes alongside the story of Divine
and Kuapa Kokoo. Published by
Absolute Press, it was out well in time
to be top of the Christmas shopping
list, and was featured as book of the
week in John Lewis nationwide.
Ghana@50
Fifty years ago Ghana declared
its independence, and both
Ghana and the Ghanaian
diaspora celebrated in both
serious and flamboyant style.
Divine was very pleased to
be one of the sponsors of a
programme of commemorative
cultural events here in the
UK, while both Divine and
Kuapa Kokoo contributed to a
celebration hosted by DFID
in Accra. Sophi Tranchell spoke
at an international cocoa
summit attended by all the
major players in the Ghanaian
cocoa industry at City Hall,
and selections of Divine
chocolate were omni-present at
many Ghana-themed occasions
around London all year.