Theo Chocolate Makes a Sweet Difference I want to build a model that other companies can look at and emulate. A model that's based on strong ethics and financial success," Joe Whinney, founder of Theo Chocolate, says when describing his company. Today the firm employs 100 people and produces a suc- cessful line of chooolate bars, confections, caramels, and specialty items. Although the chocolate bars are than competitors, consumers know that they are supporting fair trade and organic practices that benefit the farmers. One of Seattle-based Theo Chocolate uses the cocoa bean to make the world a better place. The company has become known for its organic, Fair Trade bean-to-bar chocolate Theo takes cocoa beans and manages the entire process to educate consumers about Fair Trade and tell the story turn them into high-quality chocolate. The concept for Theo chocolate to give consumers an appreciation for the work that Chocolate came two decades ago when Whinney was travel goes into it and the farmers who supply the beans. ing through Central America and Africa. He witnessed farm- ers being exploited by multinational companies and wanted initiative Theo has to develop a firm that would sell a high-quality product and D benefit the farmers that supplied the ingredients. In 2006 Whinney and his ex-wife Debra Music, who is now chief $5a keting officer, founded Theo Chocolate. They later relocated to Seattle and built a factory that began producing chocolate whom he sources in 2006. Theo's greatest marketing tools is the tours it provides to visitors of its facilities. From the beginning. Theo's founders wanted to behind its These stories have become even more important with an embarked upon to help farmers from the Democratic Republic of the Congo (DRC). Theo has launched a line of chocolate bars from the DRC. These bars cost a little bit his ex-wife Debra Music, who is now chief mar- extra at $5 a bar, but the extra money goes toward improving the farmers' lives. Whinney pays the farmers in the DRC from chocolate two to three times the market rate. addition to purchasing cocoa and paying farmers higher Originally, Theo wanted to develop flavors it was excited about, such as coconut curry. However, Whinney and Music realized that they also needed to listen to the consumer and develop more traditional flavors such as chocolate and mint. Their attention to consumer needs not only ethical but also is an important part of a success- ibility as it is proft ful marketing strategy. wages, the partnership has also provided education to 2.000 farmers on how to improve cocoa crop yields. Whinney is committed to developing trust and mutually beneficial rela- tionships armong suppliers, companies, and consumers Theo Chocolate embodies all four levels of social respon- able, obeys relevant laws, acts and engages in philanthropic activities. Although some The firm decided it wanted to do everything it could to believe that a ensure the quality and integrity of its products. This is why munity relations or stakeholder it not only sources Fair Trade products but also oversees the production of the chocolate from bean to bar. Its ability profitable at the same time.* to oversee the entire process allows it to control for any disruptions that might compromise the chocolate's integrity. Questions company should focus on profits over com- demonstrates that a firm can create positive change and be Just being organic and Fair Trade isn't enough. You will spark consumers interest because of our certifications and the integrity of our product, but ifit doesn't taste good, if people don't enjoy it, then it really doesn't matter," Whinney ays. "So we put as much or more of an emphasis on quality because without that, then nothing else really matters. Questions1. How has Theo Chocolate incorporated its model of phi- lanthropy and social responsibility into a successful busi- ness concept? 2. What advantages does Theo Chocolate have by sourcing cocoa from the Congo, even though the chocolates ends up costing consumers more?