Paccari

The Best Chocolate tastes like Sustainability

Pacari amor chocolate

Authors

Luis Adrián Vásquez M

Luis Adrián Vásquez M

Karen Cuenca

Karen Cuenca

Jean Carlo Luzuriaga

Jean Carlo Luzuriaga

Jovanna Rivadeneira

Jovanna Rivadeneira

School

Escuela Superior Politecnica del Litoral, ESPOL

Escuela Superior Politecnica del Litoral, ESPOL

Professor

Jorge Rodriguez Rodriguez

Jorge Rodriguez Rodriguez

Global Goals

1. No Poverty 12. Responsible Consumption and Production 15. Life on Land

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Summary

Paccari produces high-quality chocolates using sustainable and socially responsible practices that respect Ecuador's environmental biodiversity. It has managed to develop 45 unique and innovative varieties of organic chocolate, all of which are also entirely vegan.

Innovation

From day one, the owners of the company sought an enterprise where stakeholders are prioritized, unlike the major chocolate companies in the world.

Paccari pays farmers fairly and, in addition, train them to maintain high quality standards when producing chocolate. In this way, they obtain organic chocolate, which serves as the high-quality raw material for their products.

They have also implemented environmentally responsible processes in the company. They still carry out many parts of the cocoa production manually to maintain quality, and they use packaging that is biodegradable (made from compost).

With their business model, known as "From Tree to Bar," direct trade, without intermediaries, and having rescued nearly extinct cacao species, Paccari directly benefits farming families. This ensures better living conditions and a fair price for workers, making them the true protagonists of the entire value chain.

The Best Chocolate tastes like Sustainability

Pacari, high-quality organic and fair-trade chocolates

Inspiration

"The purpose of Paccari is to: generate added value in the country, respect the environment, inspire, and set an example for other companies in the region that high-quality things can be done in Ecuador and Latin America."

"Paccari means nature, which means that we do not use any agrochemicals or pesticides. We are respecting the land, the producer, and the end consumer."

"Paccari also means dawn. So, it's like a dawn, realizing that companies must now think this way because it's the only way to think in the long term. With Paccari, we always think in the long term."

Originally, Carla and her husband aimed to establish a sustainable company, which led them to search for an organic product from the country that could be exported. They began by exporting flowers, mushrooms, and even organic peanuts. Until one day, the idea of pursuing organic cocoa came to them. Initially, there were some challenges due to the fact that the certification of organic cocoa in the country was handled by a European company. Nevertheless, they started their first farms, encouraging local farmers to become certified for organic cocoa cultivation. They designed simple machinery that could be used to process cocoa beans and then added sugar. After 5 years of exporting just the fruit and cocoa paste, they began producing their own chocolate.

Overall impact

Paccari's sustainable business model has significant impacts:

- Short Term: It creates 64 direct employment opportunities and 3,500 indirect jobs involving farmers from various parts of Ecuador. It contributes to the economic development of small-scale farming communities, promotes gender equity, engages in educational initiatives, and supports the health of farmers within its value chain.

- Long Term: Through its ethical and sustainable practices, Paccari preserves Ecuador's environmental biodiversity. Dedicated to the production of organic, sustainable, and fair-trade chocolate, its innovative approach lies in its commitment to sustainability and the promotion of responsible practices throughout its supply chain.

Business benefit

"Companies that can share an authentic narrative tend to draw significant interest from international buyers. Paccari's business model has played a pivotal role in expanding market opportunities."

"Within our value chain, fair compensation for farmers not only fosters their confidence but also instills a strong belief in Paccari, motivating them to sustain their organic cultivation practices. This, in turn, yields the finest quality raw materials for our chocolates."

The benefits that the business gains from its innovative model include:

- The development of the farmers and the artisanal method of cocoa cultivation is reflected in the high quality of their chocolate. It's not just about the cocoa, but also about other raw materials. For example: wild fruits and salt that are added to their products.
- The fair price paid to producers, even though it might increase production costs, translates into suppliers committed to the brand. They prioritize Paccari and deliver the best quality raw materials.
- The development of rural communities has allowed for greater dedication and specialization in this industry. The most productive work comes from happy people. Their business model is evidence of this.

- The business model has significantly increased their brand value. This gives their products greater reach and acceptance, opening doors to international markets. The main recognitions they have received as a result include:

* B Corp Best for the World' by the B Lab foundation.

* The farms of Paccari's organic cocoa suppliers are certified by "USDA Organic" and the European Union's Organic Regulation 2092/91.

* The only chocolate company with the Demeter Biodynamic Certification, which certifies that the raw material production farms maintain a self-regenerative ecosystem, free from chemicals, pesticides, and fertilizers; with an ecological balance between animals, soil, plants, and humans.

* The Paccari case has been a subject of study in prestigious universities like Harvard. It is now part of the Harvard Business School repository in the United States.

* Its founders have been recognized for their leadership in managing an innovative business model. In 2013, Santiago Peralta was named "Best Chocolatier in the World" by the Fine Chocolate Association, the first time a Latin American received this recognition. In 2014, Carla Barbotó was named Woman of the Year by the Ecuadorian magazine Hogar.

Social and environmental benefit

Paccari works directly with local farmers, ensuring they receive a fair price for their products and promoting sustainable agricultural practices. This directly benefits over 3,500 farming families, enabling better living conditions. It fosters social and economic development within small-scale farming communities, where women play a crucial role. Paccari ensures that all individuals involved in its supply chain are treated with dignity and respect.

Paccari is transitioning to biodegradable packaging and is implementing a composting system through simple processes.

Paccari is the first chocolate company in Ecuador to achieve carbon-neutral certification. It has implemented an ambitious plan to transition to solar energy both in its factory and Experience Houses, resulting in a reduction of its carbon footprint. The company's carbon footprint reduction is equivalent to ceasing the production of 2,317,953 plastic water bottles.

Interviews

Carla Barbotó, Co-founder & CEO

Carla Barbotó, Co-founder & CEO

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Business information

Paccari

Paccari

Quito, Different states from Ecuador, EC
Business Website: https://www.paccari.com/
Year Founded: 2002
Number of Employees: 51 to 200

Paccari is a premium Ecuadorian chocolate brand that specializes in producing high-quality organic and fair-trade chocolates. The company aims to create fine chocolates while promoting sustainability, social responsibility, and the preservation of Ecuador's biodiversity. Paccari began exporting in 2008 and currently, its chocolates are present in more than 40 markets around the world. Paccari is found on the shelves of large supermarkets, gourmet stores, and other points specialized in premium chocolate and products for responsible consumers.