Choc a bloc: Indian chocolatiers up their game as foreign brands make a killing

406 chocolates per minute. These were the record-breaking deliveries during Valentine’s week that Albinder Dhindsa, CEO of Blinkit, shared on his X account. The numbers are a reiteration of the burgeoning chocolate market in India. At $2.2 billion, it is predicted to grow at more than 6.6 per cent over the next few years.

Offering a substitute to the traditional mithai with taglines like ‘Kuchh meetha ho jaye’, Cadbury’s Dairy Milk was able to connect with millions in India, which incidentally holds the dubious ranking of being the diabetic capital of the world. Cadbury’s parent brand Mondelez India reigns over the chocolate market space at a comfortable 65 per cent, much ahead of its competitors like Nestle, Amul, ITC, etc.

The world is taking note of Indian-made chocolates. Recently, three chocolatiers won nearly 30 prestigious awards

The demand for luxury and premium imported chocolates, too, has seen a steady growth in recent years. From being available only at upmarket stores across metro cities till a few years back, high-end imported chocolates are finding their way to grocery and retail stores across Tier II and III cities. As per data issued by the Commerce Ministry, in the 2022-23 financial year, India imported chocolates worth $27.84 million, a year-on-year growth of 45 per cent.

According to Karan Ahuja, co-founder of CocoCart, India’s official distributor of imported chocolates with more than 60 retail stores across the country, “The appetite for chocolate is definitely growing. Our consumer favourite brands like Toblerone, Hershey’s and Whittaker’s continue to drive the sales. However, recently, we’ve seen a dramatic increase in the sales of luxury chocolates like Venchi, Neuhaus and Leonidas — the last is the newest brand to join their ranks, imported straight from their ateliers in Belgium. We plan to launch 200-250 more retail stores within the next five years.”

The growing cocoa crush has led to many domestic and international players entering this market. Haldiram’s recently opened its premium chocolate store Cocobay at Hyderabad international airport while premium Swiss artisanal chocolate brand Laderach joined hands with Indian FMCG conglomerate DS Group (known for products like Catch spices, Rajnigandha, Pass Pass, etc) for exclusive presence in the country.

According to Sanskriti Gupta, spokesperson for Laderach India, “The brand’s entry is driven by a clear recognition of India’s burgeoning appetite for luxury, especially influenced by western trends. The decision is rooted in the observation of shifting consumer behaviour, where we’ve identified a rising demand for Swiss chocolates. We’ve also noticed a growing interest among Indian customers who have discovered the brand in Switzerland and Dubai.”

Award-winning Australian author Charmaine O’ Brien has been studying Indian food habits for close to three decades. As an outsider, what struck her during her recent visits to India was the significant increase in the variety of luxury chocolates. These included imported chocolates at retail food stores and supermarkets, alongside a growing selection of Indian-made premium chocolates, besides dedicated chocolate stores in cities.

In her book, ‘Eating the Present, Tasting the Future: Exploring India Through Her Changing Food’, Charmaine observes that a number of correlated factors have been responsible. “Social media has made people aware of the global trends. Moreover, a lot of Indians have had an increase in prosperity. They have the money to purchase luxury chocolates. The health claims around the antioxidant and weight-loss properties of dark chocolate, too, have abetted this growth,” she says.

Charmaine adds that a lot of premium Indian-made bean to bar artisan chocolates are coming out with all sorts of interesting regional flavours. Brands like Paul and Mike, Kocoatrait and Manam Chocolate are creating dark chocolates using Indian cocoa which has a distinct origin flavour, she says.

“I always take back Indian artisan chocolates for my friends and family in Australia. Flavours like Naga chilli, masala chai, etc, are among my favourites. I love the clever fun that chocolatiers like L Nitin Chordia are having with the packaging,” she adds.

This is an exciting period for Indian-made chocolate and the world is taking note. At the prestigious Academy of Chocolate Awards, UK, three Indian chocolate makers — Manam Chocolate, Paul and Mike and Bon Fiction — recently won close to 30 awards.

Though the British introduced cacao in the subcontinent as early as 1798, it wasn’t until Cadbury broke ground in Kerala in the mid-1960s that its cultivation gained attention. Cocoa or cacao is an understory crop, which like coffee, grows under the shade of tall trees. Many bean to bar chocolatiers are working closely with farmers and helping them improve the flavour profile of cocoa, besides controlling its acidity, astringency and bitterness levels during the crutial post-harvest phase. While Andhra Pradesh, Kerala, Karnataka and Tamil Nadu are major cultivation areas for cacao, the same is being grown in Assam’s Daragiri-Kacharipara, which is gaining popularity as the chocolate village of the Northeast.

On a mission to educate people about good quality chocolate as well as improving cocoa, Chennai-based enthusiast L Nitin Chordia, who became India’s first certified chocolate taster a decade back, has held more than 500 tasting sessions till date. He hosts tasting certifications in a tie-up with IICCT (International Institute of Chocolate and Cacao Tasting), UK. His own brand, Kocoatrait, offers India’s first zero-waste, sustainable, single-origin bean to bar chocolate.

“Most popular imported chocolates, including the likes of Lindt and Godiva, are mass produced using bulk cacao. In their own countries, many of these cost barely 79 euro cents, which comes to Rs 60. But just because these have been imported from Europe, the same are sold for around Rs 400 or more. The craft chocolates we are making are trying to snatch away the market of imported dark chocolate. We are offering our customers chocolates made with fine flavour cocoa which are able to compete successfully with established brands,” says Nitin. “Premium quality chocolate has already emerged as the clear-cut substitute for mithai for the convenience of regifting and the prestige that it lends. It is a matter of time when every mithaiwala in the country will turn into a chocolate maker,” adds Nitin.

Already, one can find takers for this growing demand. Chaitanya Muppala, founder of Manam Chocolate and CEO of Distinct Origins, is one such entrepreneur. His ‘Almond House’ was a well-established name in the sweets business in Hyderabad when he came up with his 10,000 sq ft chocolate retail experience store ‘Karkhana’. It offers 300 chocolate products spread over 50 categories, besides a live chocolate-making experience. The store has been in the news ever since it was opened to public in August last year. “In September, the police had to get our store closed for three days due to the severe traffic congestion it was causing. On weekends, we park around 1,000 cars,” says Chaitanya.

“Your chocolate is as good as your bean. Quality cacao needs proper care. We work closely with 100-plus farmers on 1,500 acres in the West Godavari district. The idea is to create an ecosystem where farmers are equal beneficiaries,” says Chaitanya, whose state-of-the-art fermentary is among the largest in the world.

Unlike him, Akhil Grandhi’s family was already into cacao cultivation but the decision to enter chocolate-making was a recent one. “Our family has been cultivating coconut for decades. A part of the land is dedicated to cacao plantation. It was during Covid-19 that we decided to take the plunge into premium chocolates,” says Akhil, who studied to be a mechanical engineer. Along with his wife Prathina, an electronics engineer, he started Bon Fiction. “Our volumes are very small compared to big brands but we are hoping to make it a go-to brand,” says Akhil, who is based in Rajahmundry town in Andhra Pradesh. The region is a haven for cacao production.

Kochi-based Vikas Temani co-founded craft chocolate brand Paul and Mike five years back. While it is already an established name in the South, besides being available across major big cities, the brand is working to create its pan-India presence over the next few years. “Though awareness about chocolates made from Indian cacao is gaining, it’ll take at least a generation till people get used to Indian brands. The country of origin matters. Swiss brands have created a perception around their chocolates for so many decades. But our chocolates are getting much appreciation,” says Vikas.

Chocolate makers in North India are at a disadvantage compared to those in the South, where the chocolatiers can work in tandem with cocoa farmers, says Balpreet Singh Sehgal of Chandigarh-based Kreative Chocolates. “The demand for chocolates has scaled manifold. However, most small-scale entreprenuers are sticking to making wedding boxes and party packs with chocolate-coated nuts. The readily available mass-produced chocolates like Cadbury cost as low as Rs 1.5 per gm, a price tough for small-scale chocolatiers to compete with. Another disadvantage is the huge profit margin that retail stores expect. But with the way this industry is gaining momentum, we hope things will turn for the better soon,” says Balpreet, whose dark chocolate brand ‘Mammoth’ has been finding many takers.

It is with this hope that Indian chocolatiers are entering this booming market.

SWEET TOOTH COMES AT A PRICE

Venchi: Rs 7,295 for an 800 gm bar. The 54 assorted chocolate cigar box comes for Rs 64,500

Neuhaus: Rs 3,749 for 12 pralines and Rs 5,990 for 24 assorted pralines

Leonidas: Rs 2,795 for 12 chocolate pearls while the 24-Gianduia chocolates come for Rs 4,495

Laderach: Rs 1,000 for 4-piece praline and Rs 27,550 for 1.6 kg Frischschoggi wooden gift box

Bon Fiction: Rs 225 for 55 gm and Rs 1,095 for assorted gift pack of four bars

Kocoatrait: Rs 235 for 45 gm bar and Rs 1,725 for climate change centric box

Paul and Mike: Rs 250 for 70 gm and Rs 1,800 for assorted gift box of 324 gm

Manam Chocolate: Prices between Rs 350 for 80 gm Signature Tablet and Chocolatiers Selection gift pack for Rs 8,500