Innovation

ChocoVivo innovated the chocolate production process and business model normally present in the food industry. It sells bean-to-bar chocolate, meaning, ancient cacao cultivation is practiced by farmers in Tabasco, Mexico. Here, sustainable work is fledged out by a women’s cooperative. There is no mass production, rather, an intentional process that focuses on empowerment and cultural appreciation. Entrepreneur, Patricia Tsai, incorporates historical context throughout her business and educates consumers via her efforts. This innovation emerged after Patricia embarked on a culinary trip to Mexico. After discovering the art of these generational practices, the U.S. production process seemed inadequate- in terms of processing and additives. She sought to honor traditional practices outside of Latin America and share them with consumers at her storefront in Culver City, CA. Chocovivo also has an online sales presence, although it is more difficult to portray the experiential portion of her business over this medium. Patricia believes a core aspect of her innovation is attributed to her business being aligned with the “mission of developing relationships”. When interviewed, Patricia described her strong alignment with her mission to be even a more significant innovation than her grower-to-consumer model. This is because throughout her findings, she discovered that customers do not value sustainability as deeply as expected “because if you look at bars on a shelf, everything these days is greenwashed. They are most attracted to pretty packages, even if it is not sustainable”. Her passion towards her communal mission is motivated by two forces: honoring the historical community aspect of chocolate and disrupting the grocery market. Patricia shared how it is possible for a company to charge a premium for ethically obtained products, such as Starbucks, and have a large sales volume. With this, she asked herself, “do I want to sleep with the devil, or sell out and grow slowly?” Therefore, it emerged from her dedication to her purpose to have her communal mission grow with the company, rather than have the company outgrow the mission. With this, Chocovivo is a force for good in working to achieve multiple of the United Nations Sustainable Development Goals. Between her ethical supply chain and fostering relationships in her community through her business, sustainable development goals 2, 8, 17 are addressed. Goal 2 is shown through her dedication to providing chocolate with no harmful additives or sugars that is commonly found in the chocolate industry. Finally, goals 8 and 17 are both addressed by her direct relationship with the grower, cutting out the ‘middle man’ of a distributor. This model allows her growers to earn a fair wage, promoting economic growth, and promotes a global partnership that links farms in Mexico to her storefront in Los Angeles.

Inspiration

The original idea started in 2009, when founder Patricia Tsai started stone-grinding cacao nibs, straight from the beans and putting them into bars. She wanted to combine her passions of both people and food, after going on a culinary trip to Mexico. She saw how the people there actually drank chocolate similar to how Americans drink coffee, and witnessed the process of Cacao being grinded up into liquid form, which emitted an amazing smell. This trip to Mexico which exposed her to the rich culture and history of chocolate ignited her passion to bring the holistic aspect of this food back to the United States. Additionally, after observing the traditional methods of preparation and consumption, it opened her eyes to the extent of the preservatives and sugars that are added to mainstream chocolate today, which strip away the natural benefits. These natural benefits include immunity assistance, which was shown in the practice of ancient soldiers drinking chocolate before battle. Also, the cacao beans themselves were used as a form of currency, which Tsai shared shows intrinsic value. Another aspect that was emphasized during the interview was her need for continued inspiration to carry her through difficult times. Tsai mentioned how she was able to derive this motivation from the kind words of her customers that would help her to keep moving forward and broaden the positive impact of her business. Some notable reviews that have stuck with her throughout the years are when one guest came in and said in reference to her shop, “coming in here makes me want to be a better person”. Rather than a direct quote, another moving experience was when a seemingly homeless man came in for a free sample and tipped when it was clear he did not have much to give. These small interactions have shown Tsai’s personal impact on bringing out the good in her community.

Overall impact

The innovations in question aren’t those that would normally arise in a traditional sense, such as a new finding in technology or an easier method of doing things. Rather, the innovations include bringing a new perspective and outlook on the traditional sense that chocolate encompasses in our society. Tsai’s innovation in aligning community with her business model has proven to be one that is very effective for the industry and specific product niche that she’s in, and that has attributed to the great success and longevity of her shop.

The short-term effects of her innovations would include the fair wages and improved livelihoods that Patricia is giving to all of her employees, regardless of their position. This allows her employees to live comfortably and equitably through their day-to-day lives, not having to worry about mistreatment at work, or being discharged without fair reason. Additionally, the water/energy she is conserving through her methods are both great for the environment in the short term as well as the long term sustainability of resources.

In the long term, Tsai’s efforts in creating a sustainable supply chain will prove to be extremely beneficial, as it will not be something that diminishes quickly or causes adversity for the organization. While the business’s growth might be slower paced than that of one with a less sustainable supply chain, that growth will be able to be continued for years and years to come.

Business benefit

Tsai’s employees have amazing retention rates, as they are treated fairly and are appreciated for their work - and this rings true for every step of her business’s supply chain. She is proud to have created hundreds of jobs that empower employees by providing them with a sense of purpose which can bring them gratitude and positivity. The fact that she created the first wholly women cooperative of cacao farmers in Mexico is not an easy feat, and creating this new niche of suppliers has proven to be extremely effective for both the suppliers themselves and her business, as she is able to source the most authentic and high quality ingredients for her final product - which she is meticulous about. Tsai’s ultimate end goal, community aside, is to bring the true essence of the cacao plantation to consumers in the US who would otherwise not be able to experience it; while this demographic has been targeted in similar fashions by other chocolate brands, none have been able to do it as authentically as Tsai, while also providing a top-to-bottom experience with the cacao itself in the store. For example, Tsai offers ‘Cacao Ceremonies’ in her Culver City store, which are often performed in Central American cultures but are a foreign idea to consumers domestically. Thus, she is able to capture a target audience that likely has little to no experience with her offerings, and build her community that way.

Social and environmental benefit

This innovation emerged after Patricia embarked on a culinary trip to Mexico. After discovering the art of these generational practices, the U.S. production process seemed inadequate- in terms of processing and additives. She sought to honor traditional practices outside of Latin America and share them with consumers. Patricia is not limiting her impact solely on the on sector of the market. She aims to enter the skin care industry and that of intimate products to share the health benefits of the cacao bean. Patricia believes a core aspect of innovation is attributed to her business being aligned with the “mission of developing relationships”. The motivation behind her innovation is disrupting the “grocery market” and taking control away from the distributors. The mission behind the company comes from Patricia’s desire to build community which is derived from historical chocolate practices such as the cacao ceremonies that held social and spiritual significance in ancient Mayan and Aztec cultures.

Interview

Patrica Tsai, CEO