Brad Churchill
@brad-churchill
10/14/16 05:06:13AM
527 posts

Hi Antonella;

In my opinion and experience, cocoa powder is the bottom of the barrel in the industry, and I would never add it to chocolate that I make.

Yes, you are right that big manufacturers do add it to some of their products, but it's never a decision predicated on creating a quality product.  It's a decision driven by profit.

In the commercial candy bar industry, the margins on chocolate bars are very very slim.  Given that (aside from vanilla) cocoa butter is the most expensive ingredient in a chocolate, and cocoa beans are the second most expensive, it comes down to mathematics - minimizing the expensive ingredients, while maximizing the intensity and flavour.

The problem is that cocoa powder is very astringent and often muddy tasting, and if anything detracts from the flavour of the end product.  I have never seen a case where it contributes positively to the end flavour of a good quality chocolate.

That's my experience.

Brad


updated by @brad-churchill: 10/14/16 05:07:10AM
Sebastian
@sebastian
10/16/16 07:42:44PM
754 posts

Out of curiosity, what do you think commercial candy bar margins are?

Brad Churchill
@brad-churchill
10/18/16 02:53:19AM
527 posts

That's a pretty general question Sebastian.  Kind of like "how high is up?".  

Big companies utilize many different distribution channels and pricing structures.  Depending on the channel, the product could go through several hands before reaching the end consumer, with each hand getting a piece of the action.  Then there's also the case of a huge chain buying direct and through sheer volume getting deep discounts (such as in the case of Walmart, Target, or Costco).

Then there's also different classes of products within each category.  Some classes command a higher retail price, even though the COGS is the same, (or maybe even less than) as a similar item in a different category or demographic.

Take Kit Kat for example.  Here in North America a 55g Kit Kat bar is $1.00 at best.

Not in Japan. Japan is Kit Kat crazy.  An 11 gram single finger is $2.24! That would make a 55g bar the equivalent of $11.12 here in Canada!

Nobody anywhere is going to convince me that Nestle's margin on a north american kit kat is the same percent as the margin on a Japanese Kit Kat, and while producing about 1.5 BILLION kit kat mini's per year just for Japan, their margin - even IF small - most likely makes Warren Buffet hard.

Hmmmm..... I don't think I'm charging enough for my bars....

Brad 

Sebastian
@sebastian
10/22/16 06:39:41PM
754 posts

I think it's fair to say i understand a bit about that 8-)  i'm still curious as to what you think the average margins are for commercial confections though, given you'd indicated they were very very slim.

Tags

Member Marketplace


Activity

Keith Ayoob
 
@keith-ayoob • 3 weeks ago • comments: 0
Posted a response to "Raw Cacao Beans vs 100% Dark Chocolate"
"@joe-john, I'd like to weigh in on this.  First, some of the nutritional info you post there is reasonable, some is not -- and that's not unusual...."
Tet Kay
 
@tet-kay • 5 months ago • comments: 0
Xocol855
 
@xocol855 • 3 years ago
Created a new forum topic:
slaviolette
 
@slaviolette • 4 years ago • comments: 0
Created a new discussion "Cost of goods produced":
"Hi Everyone, Been a long time member but I have not been in in a few years, the fact is that I had to close down my small chocolate business.. but now is..."
chocolatelover123
 
@chocolatelover123 • 5 years ago • comments: 0
Created a new forum topic:
New Chocolate Brand - "Palette"
Marita Lores
 
Marita Lores