Premium
New thinking in international trade? A case study of The Day Chocolate Company
Author(s) -
Doherty Bob,
Tranchell Sophi
Publication year - 2005
Publication title -
sustainable development
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.115
H-Index - 64
eISSN - 1099-1719
pISSN - 0968-0802
DOI - 10.1002/sd.273
Subject(s) - shareholder , fair trade , equity (law) , business , marketing , business model , economics , international trade , finance , corporate governance , political science , law
This paper explores the experience of The Day Chocolate Company (Day) in connecting small‐scale cocoa farmers more directly into global markets by making the farmers significant shareholders, and therefore equity owners, within this fair trade company. It examines how Day combines both social and business goals, thus providing an alternative model to conventional international trade. The paper investigates the positive impacts that this unique fair trade model has achieved on Kuapa Kokoo (Kuapa) members in Ghana from the Fairtrade relationship coupled with the equity stake and explores how Day has achieved its business goals in what is a highly competitive UK chocolate market. Further, it explores the challenges the company has faced and the lessons learnt over the past six years. Overall, the paper concludes that Day could not have been successful in meeting its objectives without cocoa farmer ownership being at the centre of the brand. Copyright © 2005 John Wiley & Sons, Ltd and ERP Environment.