Project Sweet
Company Profile
July 2019
Emerging market drives global chocolate demand
Retail Consumption of Chocolate Confectionery
World Cocoa Production FY15-FY18F
Worldwide FY12-FY18
in million MT in thousand MT
Cocoa Production by Country FY17Y
7,696
7,626
4.74 Brazil • Global cocoa production
7,465
Nigeria 4% is concentrated in 7
4.59 6%
Cameroon 7,314 countries.
6%
Ecuador 7,177 • Europe and US account
6%
7,061 for ~70% of global
4.23 Ivory
Indonesia Coast 6,946 chocolate consumption.
6% 49%
• Increasing number of
4.00
middle-class population
Ghana in emerging markets
22% drives chocolate
demand.
FY15 FY16 FY17 FY18F
• Asia-Pacific is the fastest
FY12 FY13 FY14 FY15 FY16 FY17 FY18
growing market for
chocolate, especially
Chocolate Consumption per Capita FY17 Asia-Pacific Chocolate Market FY19F-FY24F China and India.
in kg in USD bn
• Rising chocolate demand
in emerging markets may
8.8 32.02
8.1 7.9 cause cocoa beans
shortage and compound
23.59
chocolate may be the
5.0 4.9
4.4 answer to fill the gap.
1.2 1.2 0.9
0.1
Switzerland Austria Germany New Zealand Australia United States Brazil Japan South Africa China
FY19F FY24F
Source: Statista, Fitch Solution, Mordor Intelligence
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Chocolate confectionery market development
Westren Europe (33% of the market)
FY13-18 avg: -0.5%
1H19: -1.0%
North America (22% of the market)
FY13-18 avg: -0.4%
1H19: +1.0%
EEMEA (24% of the market)
FY13-18 avg: +0.3%
1H19: +4.7%
North America (14% of the market)
FY13-18 avg: +3.2%
1H19: +8.6%
South America (7% of the market)
FY13-18 avg: -1.1%
1H19: +1.2%
Source: Barry Callebaut Roadshow Presentation HY2018/2019, Nielsen (growth), Euromonitor (regional market share
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Cocoa is Indonesia’s top 4 exported agriculture product with international
players in the industry
Indonesia’s Cocoa Production FY17
Main Location of Cocoa Production
2
Sulawesi
388,233 MT
West Sumatra
66,137 MT 1
4
Papua
3 13,720 MT
Source: Ditjenbun East Java
29,142 MT
Cocoa Bean Production & Export
In 2017, Indonesia had approximately 1.7 million hectares of cocoa
in 000 MT FY14 FY15 FY16 FY17 plantations. The main Indonesian cocoa producing region is the island of
Sulawesi which accounts for around 63% Indonesia's total cocoa production.
Production 728 593 656 688
In terms of export, cocoa is Indonesia's fourth largest foreign exchange
Export 76.6 55.3 28.3 25.1
earning from the agriculture sector (after palm oil, rubber, and coconut).
Source: Ditjenbun, BPS However, the majority of Indonesia's cocoa export constitutes raw beans
instead of processed cocoa, meaning that Indonesia loses out on added
value revenues.
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Sweet is in the midstream of the cocoa and chocolate value chain
Cocoa Value Chain
Cocoa Tree Raw material: Semi-processed products: End products:
Cocoa Beans Cocoa butter, cocoa powder, Chocolate, gum confectionery,
compound chocolate, etc pharmaceutical uses and cosmetic products
Cocoa Processing Flow Compound Chocolate Processing Flow
Compound chocolate is a product made from a combination of cocoa,
Cocoa Beans
vegetable fat and sweeteners. It is used as a lower-cost alternative to
“real” chocolate, as it uses less-expensive hard vegetable fats such as
coconut oil or palm kernel oil in place of the more expensive cocoa
Cleaning, drying and micronising butter.
Cocoa Cocoa
by-product Shell Cake
Cocoa Nibs
Cocoa Shell
Roasting, grinding, refining, winnowing, tempering Cleaning, drying, alkalizing and grounding
Cocoa Liquor Cocoa Shell Powder
Cooling Pressing
Cocoa Cocoa Palm/Coconut Sugar
Butter Cake Oil
Pulverizing Mixing
Cocoa Compound
Powder Chocolate
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Compound chocolate is a universal raw material for all chocolate-based
confectionery
Real (Couverture) Chocolate vs Compound Chocolate Application of Real Chocolate and Compound Chocolate
• Artisan chocolatiers make premium, high-quality chocolate or chocolate-related
Real (Couverture) products using real chocolate. One of the most prominent artisan chocolatier is
Compound Chocolate
Chocolate Godiva.
Using vegetable fats
Base ingredient Using cocoa butter (e.g. palm oil, coconut • Confectionery refers to sweet foods. In general, confectionery is divided into 2
oil, etc) groups: baker’s confectionery (e.g sweet pastries, cakes, cookies) and sugar
confectionery (e.g candy, candied nuts, chocolates, gum).
Price More expensive Cheaper
• Industrial confectionery prefer to use compound chocolate not only because of its
cheaper price, but also because of its features. Compound chocolate may be
Smooth and fresh after Oily and greasy after designed to provide a better sensory experience and for better compatibility with
Taste
taste taste the product’s composition. This includes delivering a more intense flavour.
The melting point of
cocoa butter is slightly Higher melting point, Products Using Compound Chocolate
Melting point
lower than human body, not easily melt
therefore easily melt
Need to be tempered,
Can be melted down
which is the process of
without tempering.
How to work with slowly melting, then
Easier and quicker to
cooling the chocolate so
work with.
it keeps a shiny texture.
Applications Artisan Chocolatier Industrial Confectionery
Regulation pertaining “real” chocolate:
USA: only products containing cocoa solids, cocoa butter and dairy (milk) fat can
be sold as “chocolate” (FDA)
EU: allow up to 5% of other vegetable fats to be present in real chocolate
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With growing demand and foreseen shortage in global supply,
Sweet is ready to supply major confectionery players across Asia
Potential Local and International Customers
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