chocolate india

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SINHGAD INSTITUTE OF HOTEL MANAGEMENT AND CATERINGTECHNOLOGY

Kusgaon (Bk), Lonavla.

PROJECT REPORT ON

INDIAN MARKET FOR CHOCOLATE MANUFACTURER

SUBMITTED BY

ADITYA.BHALCHNDRA.JOSHI

FINAL YEAR BHMCT

UNDER THE GUIDENCE OF

PROF. SACHIN DESAI

SUBMITTED TO THE UNIVERSITY OF PUNE IN THE FULFILMENTOF SUBJECT

PROJECT REPORT (802)

SINHGAD TECHNICAL EDUCATION SOCIETYS

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SINHGAD INSTITUTE OF HOTEL MANAGEMENT ANDCATERING TECHNOLOGY

Kusgaon (Bk), Lonavla.

CERTIFICATE

This is to certify that Mr. Aditya.b.joshi Student of Final Year BHMCT hassuccessfully completed his project report on INDIAN MARKET FORCHOCOLATE MANUFACTURERand submitted to the report toUniversity of Pune in the fulfillment of Subject

Project Report (802)

For the academic year 200 - 200

Prof. Vijay Thakur Prof. Sachin desaiPrincipal Project guide

Prof. Sameer KoranneProject Head

Internal Examiner External Examiner

DATE________________

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ACKNOWLEDGEMENT

I take this opportunity to sincerely thank and express my gratitude to myguide, Prof. SACHIN DESAI for his cooperation and inputs throughout thecourse of this project. It was largely due to his help, support, esteemedguidance and encouragement that this project could take shape and becompleted. I thank him for giving direction to this project and imbibing in anorganized approach towards tackling the relevant problems.

I also thank the Head of our Project Prof. SAMEER KORANNE forguiding us in the project work.

I shall also like to take this occasion to thankProf. SACHIN DESAI,(HOD) Food Production for lending me with his kind co-operation duringthe course of the work, without his help and suggestions it would have beentremendously difficult to get through the same.

I would also like to thankDr. ASHOK .PUSEGOANKARSIRand forforwarding priceless information through mail despite their busy schedulesand many ideas which were helpful in completing my project.

Lastly, I would like to thank my family for their support and motivationthroughout this period.

ADITYA.B.JOSHIDATE______________

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SYNOPSIS

Name: Aditya.b.joshi Class: Final Year BHMCT

Aim: To study Indian market for chocolate & chocolateManufacturing.

Objectives: To study importance of market in chocolate industry Factors affecting for processing chocolate. To study the Indian market conditions of chocolate and its

scope.

To study the new market trend in chocolate industry. To study the importance of chocolate.

Limitations: Lack market new trends. Lack of mechanical skills. Lack of market Recourse

Methodology: Questionnaires. Market survey.

Reference: Internet. Books. Bakery visits. Manufacturing industry.

Name: Aditya.b.joshi. Sign: ________

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INDEX

SR.

NO.TOPIC PAGE. NO.

1 Project outline 7

2 Objectives 8

3 Limitation 10

4 What is chocolate 12

5 Brief history of chocolate 13

6 Chocolate making process 15

7 chocology 19

8 Chocolate Facts 21

9 Types of chocolate 23

10 Indian market facts 33

11 Cadbury India 40

12 Nestle India 51

13 Amul India 52

14 Benefits of chocolate 57

15 Bibliography 68

16 conclusion 69

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INDEX OF FIGUERS AND PICTUERS

Sr.no List of figures and pictuers Pageno

1 Coco pods basic 22

2 Ripened coco pods 31

3 Coco production in near country 33

4 Chocolate fountain 34

5 Conching machine 36

6 Chocolate packing moulds 45

7Modern consumer trends 48

8 Amul chocolate brands 64

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Objectives of Indian chocolate market

This project is basically constructed in such way to give a guideline toentrepreneur for in future business it gives a complete informationabout chocolate manufacturing process and its details.

To get the information about major manufacturing chocolatecompanies and their chocolate making procedure and study about themarket.

To know Facts and some statistical information, and figures aboutchocolate business in past years.

To record some health related benefits of chocolates with reference oftechnologist and doctors

This project also talks about the Indian market current condition aboutchocolate and its history chocolate has history but its ahs no relationto India but its links with Indian history

This project helps student a lot about understanding the chocolatemaking process and other marketing strategies of major company andtheir mission vision.

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This project is also gives information about Indian climate suitability

about coca production.

To know the details about history of the chocolate.

This information also express the importance of advertisement in themarketing

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Limitations of the Indian chocolate market

India has very less pre capita consumption of chocolate compare toother western countrys.

No. of Indian based chocolate manufacturing companys are veryfew rather only 1. that is amul India.

Coca beans production is also less in India.

Use of chocolate in Indian cuisine is compare to other cuisine isvery low.

Awareness about chocolate benefits to the local public has to beincreased.

Indian import rules should be made less strict to import more and

more chocolate variety from outside and more varieties can beproduced

There has to be some chocolate manufacturing industry allianceand institute giving training so that it helps to increase thecompetitors in the market.

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WHAT IS CHOCOLATE

The word "chocolate" comes from the Aztecs ofMexico, and is derivedfrom the word xocolatl which is a combination of the words, xocolli,

meaning "bitter", and atl, which is "water". The Aztecs associated chocolatewith Xochiquetzal, the goddess of fertility. Chocolate is also associated withthe Maya god of fertility. Mexicanphilologist Ignacio Davila Garibi,

proposed that "Spaniards had coined the word by taking the Maya wordchocol and then replacing the Mayan term for water, haa, with the Aztecterm, atl." However, it is more likely that the Aztecs themselves coined theterm, having long adopted into Nahuatl the Mayan word for the "cacao"

bean; the Spanish had little contact with the Maya before Corts' earlyreports to the Spanish King of the beverage known asxocolatl.] William

Bright noted that the wordxocoatldoes not occur in early Spanish orNahuatl colonial sources.This was all about technical history and inventions about chocolate but insimpler form chocolate is sweets made from unique flavors and taste as wellwhich attracts all age group of the world this is spreads all over world veryfast taste of chocolate loved mostly by the children now a days chocolatealso preferred by youths to express their emotions ,love.

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http://en.wikipedia.org/wiki/Aztechttp://en.wikipedia.org/wiki/Mexicohttp://en.wikipedia.org/wiki/Xochiquetzalhttp://en.wikipedia.org/wiki/Philologyhttp://en.wikipedia.org/wiki/Hern%C3%A1n_Cort%C3%A9shttp://en.wikipedia.org/wiki/Hern%C3%A1n_Cort%C3%A9shttp://en.wikipedia.org/wiki/Hern%C3%A1n_Cort%C3%A9shttp://en.wikipedia.org/wiki/Aztechttp://en.wikipedia.org/wiki/Mexicohttp://en.wikipedia.org/wiki/Xochiquetzalhttp://en.wikipedia.org/wiki/Philologyhttp://en.wikipedia.org/wiki/Hern%C3%A1n_Cort%C3%A9s


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BREIFE HISTORY ABOUT CHOCOLATE

History

A mug of hot chocolate. Chocolate was first drunk rather than eaten.History of chocolateChocolate has been used as a drink for nearly all of its history. The earliestrecord of using chocolate dates back before the Olmec.In November 2007,archaeologists reported finding evidence of the oldest known cultivation anduse of cacao at a site in Puerto Escondido, Honduras, dating from about1100 to 1400 BC. The residues found and the kind of vessel they were foundin indicate that the initial use of cacao was not simply as a beverage, but thewhite pulp around the cacao beans was likely used as a source offermentable sugars for an alcoholic drink. The Maya civilization grew cacaotrees in their backyard, and used the cacao seeds it produced to make afrothy, bitter drink. Documents in Maya hieroglyphs stated that chocolatewas used for ceremonial purposes, in addition to everyday life. Thechocolate residue found in an early ancient Maya pot in Ro Azul,Guatemala, suggests that Maya were drinking chocolate around 400 AD. IntheNew World, chocolate was consumed in a bitter, spicy drink called

xocoatl, and was often flavored with vanilla, chile pepper, and achiote

(known today as annatto). Xocoatl was believed to fight fatigue, a belief thatis probably attributable to the theobromine content. Chocolate was also animportant luxury good throughoutpre-ColumbianMesoamerica, and cacao

beans were often used as currency.[] For example, the Aztecs used a systemin which one turkey cost one hundred cacaobeans and one fresh avocadowas worth three beans. south American and European cultures have usedcocoa to treat diarrhea for hundreds of years. All of the areas that were

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http://en.wikipedia.org/wiki/History_of_chocolatehttp://en.wikipedia.org/wiki/Hondurashttp://en.wikipedia.org/wiki/Maya_hieroglyphshttp://en.wikipedia.org/wiki/Maya_civilizationhttp://en.wikipedia.org/wiki/Guatemalahttp://en.wikipedia.org/wiki/New_Worldhttp://en.wikipedia.org/wiki/Vanillahttp://en.wikipedia.org/wiki/Chile_pepperhttp://en.wikipedia.org/wiki/Achiotehttp://en.wikipedia.org/wiki/Annattohttp://en.wikipedia.org/wiki/Theobrominehttp://en.wikipedia.org/wiki/Pre-Columbianhttp://en.wikipedia.org/wiki/Mesoamericahttp://en.wikipedia.org/wiki/Currencyhttp://en.wikipedia.org/wiki/Chocolate#cite_note-12%23cite_note-12http://en.wikipedia.org/wiki/Turkey_(bird)http://en.wikipedia.org/wiki/Avocadohttp://en.wikipedia.org/wiki/Image:Hot_chocolate.jpghttp://en.wikipedia.org/wiki/History_of_chocolatehttp://en.wikipedia.org/wiki/Hondurashttp://en.wikipedia.org/wiki/Maya_hieroglyphshttp://en.wikipedia.org/wiki/Maya_civilizationhttp://en.wikipedia.org/wiki/Guatemalahttp://en.wikipedia.org/wiki/New_Worldhttp://en.wikipedia.org/wiki/Vanillahttp://en.wikipedia.org/wiki/Chile_pepperhttp://en.wikipedia.org/wiki/Achiotehttp://en.wikipedia.org/wiki/Annattohttp://en.wikipedia.org/wiki/Theobrominehttp://en.wikipedia.org/wiki/Pre-Columbianhttp://en.wikipedia.org/wiki/Mesoamericahttp://en.wikipedia.org/wiki/Currencyhttp://en.wikipedia.org/wiki/Chocolate#cite_note-12%23cite_note-12http://en.wikipedia.org/wiki/Turkey_(bird)http://en.wikipedia.org/wiki/Avocado


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conquered by the Azetcs that grew cacao beans were ordered to pay them asa tax, or as the Aztecs called it, a "tribute".

Until the 1500s, no European had ever heard of the popular drink from theCentral and South American peoples. It was not until the Spanish conquestof the Aztecs that chocolate could be imported to Europe, where it quickly

became a court favorite.] To keep up with the high demand for this newdrink, Spanish armies began enslaving Mesoamericans to produce cacao.Even with cacao harvesting becoming a regular business, only royalty andthe well-connected could afford to drink this expensive import. Before long,the Spanish began growing cacao beans on plantations, and using an Africanworkforce to help manage them. The situation was different in England. Putsimply, anyone with money could buy it.

The first chocolate house opened in London in 1657. In 1689, notedphysician and collectorHans Sloane developed a milk chocolate drink inJamaica which was initially used by apothecaries, but later sold to theCadbury brothers. For hundreds of years, the chocolate making processremained unchanged. When the people saw the Industrial Revolution arrive,many changes occurred that brought the hard, sweet candy we love today tolife. In the 1700s, mechanical mills were created that squeezed out cocoa

butter, which in turn helped to create hard, durable chocolate, But, it was notuntil the arrival of the Industrial Revolution that these mills were put to

bigger use. Not long after the revolution cooled down, companies beganadvertising this new invention to sell many of the chocolate treats we seetoday. When new machines were produced, people began experiencing andconsuming chocolate worldwide.

CHOCOLATE MAKING PROCESS

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http://en.wikipedia.org/wiki/Taxhttp://en.wikipedia.org/wiki/Central_Americahttp://en.wikipedia.org/wiki/South_Americahttp://en.wikipedia.org/wiki/Africahttp://en.wikipedia.org/wiki/Hans_Sloanehttp://en.wikipedia.org/wiki/Jamaicahttp://en.wikipedia.org/wiki/Apothecarieshttp://en.wikipedia.org/wiki/John_Cadburyhttp://en.wikipedia.org/wiki/Industrial_Revolutionhttp://en.wikipedia.org/wiki/Taxhttp://en.wikipedia.org/wiki/Central_Americahttp://en.wikipedia.org/wiki/South_Americahttp://en.wikipedia.org/wiki/Africahttp://en.wikipedia.org/wiki/Hans_Sloanehttp://en.wikipedia.org/wiki/Jamaicahttp://en.wikipedia.org/wiki/Apothecarieshttp://en.wikipedia.org/wiki/John_Cadburyhttp://en.wikipedia.org/wiki/Industrial_Revolution


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The cocoa-bean -- the heart of the sweetest delicacy in the world -- is bitter!This is why, up to the 18th century some native tribes ate only the sweetishflesh of the cocoa fruit. They regarded the precious bean as waste or used it,as was the case among the Aztecs, as a form of currency.

The Varieties

There are two quite different basic classifications of cocoa,under which practically all varieties can be categorised: Criolloand Forastero cocoas. The pure variety of the Criollo tree isfound mainly in its native Equador and Venezuela. The seedsare of finer quality than those of the Forastero variety.

They have a particularly fine, mild aroma and are, therefore, used only in theproduction of high-quality chocolate and for blending. However, Criollococoa accounts for only 10% of the world crop. The remaining 90% isharvested from trees of the Forastero family, with its many hybrids andvarieties. The main growing area is West Africa. The cocoa tree can flourishonly in the hottest regions of the world.

The Harvest

Immediately after harvesting, the fruit is treated to prevent itfrom rotting. At fermentation sites either in the plantation or at,

collecting points, the fruit is opened.

Fermentation

The fermentation process is decisive in the production of high quality rawcocoa. The technique varies depending on the growing region.

Drying

After fermentation, the raw cocoa still contains far too much water; in factabout 60%. Most of this has to be removed.

What could be more natural than to spread the beans out to dry on the sun-soaked ground or on mats? After a week or so, all but a small percentage ofthe water has evaporated.

Cleaning

Before the real processing begins, the raw cocoa is thoroughlycleaned by passing through sieves, and by brushing. Finally,

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the last vestiges of wood, jute fibers, sand and even the finest dust areextracted by powerful vacuum equipment.

Roasting

The subsequent roasting process is primarily designed to develop the aroma.The entire roasting process, during which the air in the nearly 10 feet highfurnaces reaches a temperature of 130 C, is carried out automatically.

Crushing and shelling

The roasted beans are now broken into medium sized pieces in the crushingmachine.

Blending

Before grinding, the crushed beans are weighed and blended according to

special recipes. The secret of every chocolate factory lies in the specialmixing ratios which it has developed for different types of cocoa.

Grinding

The crushed cocoa beans, which are still fairly coarse are now pre-ground byspecial milling equipment and then fed on to rollers where they are groundinto a fine paste. The heat generated by the resulting pressure and frictioncauses the cocoa butter (approximately 50% of the bean) contained in the

beans to melt, producing a thick, liquid mixture.

This is dark brown in colour with a characteristic, strong odour. Duringcooling it gradually sets: this is the cocoa paste.

At this point the production process divides into two paths, but which soonjoin again. A part of the cocoa paste is taken to large presses, which extractthe cocoa butter. The other part passes through various blending and refining

processes, during which some of the cocoa butter is added to it. The twopaths have rejoined.

Cocoa Butter

The cocoa butter has important functions. It not only forms partof every recipe, but it also later gives the chocolate its finestructure, beautiful luster and delicate, attractive glaze. cocoa

butter has a low content of unsaturated fatty acids, especially ofpolyunsaturated ones and therefore the shelf life of the fat is relatively good.If cocoa butter is moulded into slabs directly after production and the slabs

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are well packed in order to prevent oxidation, the shelf life should be severalyears.

Often the cocoa butter is transported in liquid form in tankers and more caremust be taken when this occurs if the shelf life is to be maintained. Factorsto watch are temperature (below 45oC), air/oxidation (air coming intocontact with the cocoa butter causes rancidity), storage in the dark, humidity(between 50% and 60%). In addition after the tanks are emptied all residuesof cocoa butter must be removed as they will go rancid and contaminate thenext batch to be delivered.

Reference:S.T. Beckett Industrial chocolate manufacture and use. 2nd edition. BlackieAcademic & Professional, 1994

Cocoa Powder

After the cocoa butter has left the press, cocoa cakes are left which stillcontain a 10 to 20% proportion of fat depending on the intensity ofcompression.

These cakes are crushed again, ground to powder and finelysifted in several stages and we obtain a dark, strongly aromatic

powder which is excellent for the preparation of deliciousdrinks - cocoa. Cocoa paste, cocoa butter, sugar and milk are

the four basic ingredients for makingchocolate. By blending them inaccordance with specific recipes the three types of chocolate are obtainedwhich form the basis of ever product assortment, namely: The following is asummary of the factors to be considered in the storage ofcocoa powder.

Airhumidity should be below 50% to prevent moisture absorption asmoisture encourages the growth of moulds and bacteria.

Pressure can cause lumping of the powder and so bags should not bestacked too high.

Cocoa powder contains fat and so it can easily absorb odours in thesurrounding air. It should therefore be kept away from strong smellingsubstances.

Fluctuations in temperature should be avoided as the fat can partiallymelt in warm conditions and crystallise again as it cools. Changes intemperature can also cause condensation to form, which can

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encourage moulds to grow. The storage temperature should bebetween 15oC and 18oC and not more than 20oC.

The risk ofspontaneous combustion of cocoa powder begins atapproximately 165oC (329oF).

The risk ofdust explosion from cocoa powder begins atapproximately 40g of cocoa powder per cubic meterof air.

Kneading

In the case of milk chocolate for example, the cocoa paste, cocoa butter,powdered or condensed milk, sugar and flavouring - maybe vanilla - go intothe mixer, where they are pulverized and kneaded.

RollingDepending on the design of the rolling mills, three or fivevertically mounted steel rollers rotate in opposite directions.Under heavy pressure they pulverise the tiny particles of cocoaand sugar down to a size of approx. 30 microns. (One micron isa thousandth part of a millimetre.)

Conching

But still the chocolate paste is not smooth enough to satisfyour palates. But within two or three days all that will have

been put right. For during this period the chocolate pastewill be refined to such an extent in the conches that it willflatter even the most discriminating palate.

Conches (from the Spanish word "concha", meaning a shell) is the namegiven to the troughs in which 100 to 1000 kilograms of chocolate paste at atime can be heated up to 80 C and, while being constantly stirred, is given avelvet smoothness by the addition of certain amounts of cocoa butter. A kindof aeration of the liquid chocolate paste then takes place in the conches: its

bitter taste gradually disappears and the flavour is fully developed. Thechocolate no longer seems sandy, but dissolves meltingly on the tongue. Ithas attained the outstanding purity which gives it its reputation.

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CHOCOLOGY

People around the world have grown up enjoying chocolate as a favoritetreat for countless generations. But just how much does the average personreally know about the potential benefits, beyond the great taste, thatchocolate and its key ingredient - cocoa - provides? We all know that a bit ofchocolate tends to make you feel good, but a wealth of research suggests that

people can now have even more reasons to enjoy it. The last decade has seena significant increase in our research and understanding of cocoa andchocolate. But understanding the properties of chocolate is not just a recentdevelopment. For centuries, civilizations from Mexico to Europe haverecognized the benefits of cocoa and chocolate for medicinal and therapeutic

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uses as well as a food, beverage or treat. It has even been hailed as anaphrodisiac!

Of course, we all need to ensure we don't over indulge and that we seechocolate as a treat but researchers are continuing touncover more reasons to enjoy cocoa and cocoa products."Chocology", the science behind chocolate, opens up thatresearch and presents the facts in an easy to use reportthat we hope will be a useful resource when talking aboutthe benefits that chocolate can offer.

Join us in the exploration of "Chocology" - You maydiscover that there's more to chocolate than meets theeye. Reasons to believe Body of Evidence - Where can you feel the Benefits? Myths and Facts about Chocolate

Cocoa

Long before the current trend towards organicingredients, cocoa was one of the best known naturalfoods. In its purest form cocoa is a natural food. The

cocoa tree produces cocoa pods that grow from the trunkor branch of the tree. These pods contain the beanswhich characterize the finished chocolate. The cocoa

beans are fermented under banana leaves to bring out thechocolate flavour and then dried under the tropical sun.They are then shelled and ground to produce chocolateliquor, an essential ingredient for making chocolate. Theliquor can also be pressed to remove the fat and is cooled and ground to

produce pure cocoa powder.

Many different sorts of products can be derived from cocoa.The husks ofcocoa pods and the pulp, or sweatings, surrounding the beans and the cocoa

bean shells can be used. Some examples of these uses are:

Animal feed from cocoa husk- As pelletised dry 100% cocoa podhusk it can be used as an animal feed. The animal feed is produced by

PaulHebblethwaite

"Professor of

Chocology"

Figure 1

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first slicing the fresh cocoa husks into small flakes and then partiallydrying the flakes, followed by mincing and pelleting and drying of the

pellets. Production of soft drinks and alcohol- In the preparation of soft

drinks, fresh cocoa pulp juice (sweatings) is collected, sterilised andbottled. For the production of alcoholic drinks, such as brandy, thefresh juice is boiled, cooled and fermented with yeast. After 4 daysfermentation the alcohol is distilled.

Potash from cocoa pod husk- Cocoa pod husk ash is used mainly forsoft soap manufacture. It may also be used as fertiliser for cocoa,vegetables, and food crops. To prepare the ash, fresh husks are spreadout in the open to dry for one to two weeks. The dried husks are thenincinerated in an ashing kiln.

Jam and Marmalade - Pectin for jam and marmalade is extracted from

the sweatings by precipitation with alcohol, followed by distillationand recycling of the alcohol in further extractions.

Mulch - Cocoa bean shells can be used an organic mulch and soilconditioner for the garden.

Once the beans have been fermented and dried they can be processed toproduce a variety of products. These products include:

Cocoa butter- Cocoa butter is used in the manufacture of chocolate.It is also widely used in cosmetic products such as moisturisingcreams and soaps.

Cocoa powder- Cocoa powder can be used as an ingredient in almostany foodstuff. For example, it is used in chocolate flavoured drinks,chocolate flavoured desserts such as ice cream and mousse, chocolatespreads and sauces, and cakes and biscuits.

Cocoa liquor- Cocoa liquor is used, with other ingredients, toproduce chocolate. Chocolate is used as a product on its own orcombined with other ingredients to form confectionery products.

The quality of cocoa is checked through sampling.

The sampler selects at random a significant percentage of the bags forinspection and a stabbing iron is used to draw a number of beans from theselected bags. Or, if the cocoa is in bulk, samples are taken at random fromthe beans as they enter a hopper or as they are spread on tarpaulins.

Different authorities may set a differing level of beans/samples forinspection. The International Standard recommends that the samples should

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amount to not less than 300 beans for every tonne of cocoa. For baggedcocoa, samples should be taken from not less than 30% of the bags, and for

bulk cocoa there should be not less than 5 samplings per tonne.

The samples are analysed using the cut test. Most exporting countries'authorities specify standards dependent on the International StandardsOrganization cut test, as do normal physical cocoa contracts. The cut test

provides an assessment of the beans from which analysts may infer certaincharacteristics of the cocoa, which gives an indication of quality.

The cut test involves counting off 300 beans. These 300 beans are then cutlengthwise through the middle and examined. Separate counts are made ofthe number of beans which are defective in that they are mouldy, slaty,insect damaged, germinated or flat. The results for each kind of defect are

expressed as a percentage of the 300 beans examined. The amount ofdefective beans revealed in the cut test gives manufacturers an indication ofthe flavour characteristics of the beans.

Bean counts are another measure of quality that producing countries oftenuse, though there is no internationally accepted bean size classification. TheFederation of Cocoa Commerce defines the following method for beancounts: A sample of not less than 600 grammes of whole beans, irrespectiveof size but not including flat beans, will be counted to obtain the number of

beans per 100 grammes.

Further tests are carried out by chocolate manufacturers and cocoaprocessors, particularly for beans from origins that are inconsistent inquality or prone to off flavours. The manufacturer cannot sift out all thedefective beans and so must ensure good quality at the selection stage.Consistency in quality for the production of cocoa mass cannot be achievedwhen using one source of cocoa beans because of the large naturalvariability which exists in each lot. The differences can be reduced byhaving a number of different types and lots of cocoa beans of known qualityin stock and making an appropriate blend. Strict control of the roasting andalkalising processes is also required to produce the best quality.

For the chocolate manufacturer the yield of nib is very important, as is theamount of cocoa butter in the nib. Higher levels of cocoa butter mean thatlower levels will need to be added later on in the manufacturing process. Nibyields are determined in the laboratory.

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Flavouris also important for chocolate manufacturers. Flavourassessment is normally carried out by panels of between five and tenexperienced tasters. Off flavours can readily be detected by tastingroasted ground nib of cocoa liquor directly or they can be mixed withsugar and water to make a basic dark chocolate before tasting.Mouldy and smoky off flavours and excessive bitterness cannot beremoved during processing. Acid tastes can be altered in processing throughneutralisation.

Sub standard beans can be pressed whole to produce expelled cocoa butterwhich is then refined. Better quality beans are deshelled before pressing to

produce pure pressed cocoa butter and cocoa press cake (which ultimatelybecomes cocoa powder). Chocolate manufacturers have a number ofrequirements with respect to the quality of cocoa butter: hardness, melting

and solidifcation behaviour.

Cocoa trade associations and national authorities produce standards or

gradings for cocoa beans covering the bean count per 100g and the

percentage of permitted faults, moisture and foreign matter and the

International Standards Organization provides a specification for cocoa

beans.

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INDIA PLANS TO INCREASE BY 60%India plans to increase cocoa production by 60% in next four years to meetrising demand from the Rs1,500 crore chocolate industry and to cutdependency on costlier imports, industry officials said.

Chocolate consumption is gaining popularity in the country on increasingprosperity coupled with a shift in food habits, pushing up the countryscocoa imports.

Production will be around 10,000 tonnes in 2007-08. We are encouragingfarmers for cocoa cultivation. We would produce 16,000 tonnes in 2011-12,

Venkatesh N. Hubballi, head of Directorate of Cashewnut and CocoaDevelopment, toldReuters.

Majority of Indian farmers cultivate cocoa as an intercrop in coconut andarecanut gardens. The total area under cultivation was 32,360ha in 2006-07.

Indias annual cocoa demand is pegged around 18,000 tonnes during thecurrent year, which would necessitate import of around 45% of its totalrequirement, officials said.

In 2007-08, import of cocoa beans and cocoa products is estimated to jump

fourfold to 8,000 tonnes from 2,027 tonnes in 2000-2001. Industry playerssay there is huge scope for expanding acreage considering rising demandand firm global prices.

To secure good quality raw material in the long term, private players such asCadbury India Ltd are encouraging cocoa cultivation.

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Cadbury Indias Cocoa Department produces over 2.5 million hybridseedlings annually and distributes it among farmers, a companyspokesperson informed in an email.

Its parent company, Britains Cadbury Schweppes Plc. last month said it

would invest 44 million over 10 years in cocoa farms in Ghana, India,Indonesia and the Caribbean.

Duties and transportation cost make import of cocoa beans expensive.However, to fulfil demand, the industry mainly imports cocoa butter and

powder, said an senior official with the Central Arecanut and CocoaMarketing and Processing Cooperative, a major grinding agency in thecountry.

Cocoa requirement is growing around 15% annually and will reach about30,000 tonnes in the next 5 years, Cadbury India said.

CHOCOLATE FACTS

Chocolates have been the most sought after delicacies during festive season.Offering chocolates on special days like Valentines day or Raksha Bandhanhas now become a trend as chocolates form the easiest way of expressinglove. Chocolates have even replaced Mithais, the traditional Indian sweetsamong upwardly mobile Indians. Instead of buying sweets on RakshaBandhan day, sisters prefer offering chocolates to their brothers. One of the

reasons for the increasing demand of chocolates is the impact ofadvertisements that triggered the minds of the masses. Marketing campaigns

by leading chocolate vendors such as Nestle and Cadbury's to popularisechocolates as gift items seem to have helped. The range and variety ofchocolates available in malls seem to be growing day by day, whichaccelerated sales for chocolate companies.

The per capita consumption of chocolate in India is 300 gram compared with1.9 kg in developed markets such as the United Kingdom. Over 70% of the

consumption takes place in the urban market in India.There are special shops devoted to chocolate lovers with different varietiesand flavours of chocolates. To learn more about chocolates one must firstknow where they come from.

Chocolate starts with a tree called the cacao tree (Theobroma cacao). This

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tree grows in equatorial regions, especially in places such as South America,Africa and Indonesia. The cacao tree produces a medium sized fruit. Insidethe fruit are the seeds, also known as cocoa beans. The beans are fermentedfor about a week, dried in the sun and then shipped to the chocolate maker.The chocolate maker starts by roasting the beans to bring out the flavor.Beans from different places have different qualities and flavours, so they areoften sorted and blended to produce a distinctive mix. Next, the roasted

beans are winnowed. Winnowing removes the meat (also known as the nib)of the cocoa bean from its shell. Once roasted, winnowed and blended, thenibs are ground, and the ground nibs form a viscous liquid called chocolateliquor. All seeds contain some amount of fat, and cocoa beans are nodifferent. However, cocoa beans are half fat, which is why the ground nibsform a liquid.

Chocolate liquor is pure, unsweetened chocolate is bitter in taste. You cando two different things with chocolate liquor. You can pour it into a moldand let it cool and solidify.

This is unsweetened chocolate. Or you can press it in a hydraulic press tosqueeze out the fat. When you do that, what you are left with is a dry cake ofthe ground cocoa bean solids and cocoa butter (useful in everything fromtanning products to white chocolate). If you grind the cake, you have cocoa

powder. One can buy both unsweetened chocolate (baking chocolate) andpure cocoa powder at the grocery store. What you are buying is groundcocoa beans, either with or without the cocoa butter.

There are three basic things that must be done by the chocolate maker tomake a chocolate bar- Adding ingredients - The chocolate that we eat contains sugar, otherflavors (like vanilla) and often milk (in milk chocolate). The chocolatemaker adds these ingredients according to his or her secret recipe. Conching - A special machine is used to massage the chocolate in order to

blend the ingredients together and smoothen it out. Conching can take

anywhere from two to six days. Tempering - Tempering is a carefully controlled heating

process.Tempering is "a process where the chocolate is slowly heated, thenslowly cooled, allowing the cocoa butter molecules to solidify in an orderlyfashion." Without tempering, the chocolate does not harden properly or thecocoa butter separates out (as cream separates from milk).These three steps, along with the blend of cocoa beans chosen at the start

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and the way they are roasted, form the art of chocolate making.Those who enjoy different flavours of chocolates can identify the origin ofthe beans that are used in its making. Like coffee or wine, people enjoychocolates according to their tastes. Chocolates should be kept at atemperature of 66-76 degree F to retain their taste and flavour.

TYPES OF CHOCOLATES

Types of chocolate

Main article: Types of chocolate

A half beat of milk chocolate withsalmiakki filling by FazerAlongside milk chocolate, white chocolate and dark chocolate are alsocommon chocolate varieties.White chocolate is formed from a mixture ofsugar, cocoa butter, and milksolids. Although its texture is similar to milk and dark chocolate, it does notcontain any cocoa solids; thus not officially qualifying as true chocolate.Because of this, many countries do not consider white chocolate aschocolate at all. Although first introduced by Hebert Candies in 1955, Mars,Incorporated was the first to produce white chocolate within the UnitedStates. Because it does not contain any cocoa solids, one benefit of white

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chocolate is that it also does not contain any theobromine, meaning it can beconsumed by animals.Dark chocolate is produced by adding fat and sugar to the cacao mixture.The U.S. Government calls this "sweet chocolate", and requires a 15%concentration of chocolate liquor. European rules specify a minimum of35% cocoa solids. Dark chocolate, with its high cocoa content, is a richsource of the flavonoidsepicatechin and gallic acid, which are thought to

possess cardioprotective properties. Dark chocolate has also been said toreduce the possibility of a heart attackwhen consumed regularly in smallamounts.[ Semisweet chocolate is a dark chocolate with a low sugar content.Bittersweet chocolate is chocolate liquor to which some sugar (typically athird), more cocoa butter, vanilla and sometimes lecithin have been added. Ithas less sugar and more liquor than semisweet chocolate, but the two areinterchangeable in baking.

Unsweetened chocolate is pure chocolate liquor, also known as bitter orbaking chocolate. It is unadulterated chocolate: the pure, ground, roastedchocolate beans impart a strong, deep chocolate flavor.Sugar or sucrosegives taste, texture and sensory appeal to chocolate. Replacing sucrose withthe naturally occurring fruit sugar, fructose, produces chocolate with adifferent texture and sweetness to sugared chocolate.

In order to produce a sugar free chocolate with similar taste and texture tosugared chocolate one can use sugar alcohols, such as sorbitol, mannitol,isomalt, maltitol, lactitol and xylitol, to give chocolate mass, volume andtexture. Sugar alcohols are generally of a different sweetness and taste tosucrose and so they tend to be used in combination with bulking agents suchas polydextrose and inulin. These bulking agents produce a warm softfeeling in the mouth. The sweetness can be improved by using high intensitysweeteners such as Sunett, aspartame, cyclamate and saccharin.

Production methods may have to be altered to produce sugar free chocolate.For example, some of the sweeteners have lower melting points and soconching temperatures will have to be lower, also, some pick up moisture

causing an increase in viscosity during tempering and moulding.

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Production

Figure 2

Chocolate is created from the cocoa bean. A cacao tree with fruit pods invarious stages of ripeningRoughly two-thirds of the entire world's cocoa is produced in WesternAfrica, with 43% sourced from Cte d'Ivoire. According to the World CocoaFoundation, some 50 million people around the world depend on cocoa as asource of livelihood. The industry is dominated by three chocolate makers,Barry Callebaut, Cargill and Archer Daniels Midland Company. In the UK,99.999% of chocolatiers, whether they be large companies such as CadburySchweppes or small independents, purchase their chocolate from them, to

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melt, mold and package to their own design. Despite some disagreement inthe EU about the definition, chocolate is any product made primarily ofcocoa solids and cocoa fat. The different flavors of chocolate can beobtained by varying the time and temperature when roasting the beans, byadjusting the relative quantities of the cocoa solids and cocoa fat, and byadding non-chocolate ingredients.Production costs can be decreased by reducing cocoa solid content or bysubstituting cocoa butterwith a non-cocoa fat. Cocoa growers object toallowing the resulting food to be called "chocolate", due to the risk of lowerdemand for their crops.There are two main jobs associated with creating chocolate candy, chocolatemakers and chocolatiers. Chocolate makers use harvested cacao beans andother ingredients to produce couverture chocolate. Chocolatiers use thefinished couverture to make chocolate candies (bars, truffles, etc.).

Cacao varietiesCacao trees are small, understory trees that need rich, well-drained soils.They naturally grow within 20 degrees of either side of the equator becausethey need about 2000 millimeters of rainfall a year, and temperatures in therange of 21 to 32 degrees Celsius. Cacao trees cannot tolerate a temperaturelower than 15 degrees Celsius (59 degrees Fahrenheit).The three main varieties ofcacao beans used in chocolate are criollo,forastero and trinitario.Representing only five percent of all cocoa beans grown, criollo is the rarestand most expensive cocoa on the market and is native to Central America,the Caribbean islands and the northern tier ofSouth American states. Thereis some dispute about the genetic purity of cocoas sold today as Criollo, asmost populations have been exposed to the genetic influence of othervarieties. Criollos are particularly difficult to grow, as they are vulnerable toa variety of environmental threats and produce low yields of cocoa per tree.The flavor of Criollo is described as delicate yet complex, low in classicchocolate flavor, but rich in "secondary" notes of long duration.The most commonly grown bean is forastero, a large group of wild andcultivated cacaos, most likely native to the Amazon basin. The African

cocoa crop is entirely of the Forastero variety. They are significantly hardierand of higher yield than Criollo. The source of most chocolatemarketed,forastero cocoas are typically strong in classic "chocolate" flavor,

but have a short duration and are unsupported by secondary flavors,producing "quite bland" chocolate.[

Trinitario is a natural hybrid of Criollo and Forastero. Trinitario originatedin Trinidad after an introduction of Forastero to the local Criollo crop.

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Nearly all cacao produced over the past five decades is of the Forastero orlower-grade Trinitario varieties.

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Figure 3

In the abovepicture the dark brown colour picture is coco produced is mostof the aeras.But here excatly can be grown only that area.

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Harvesting:

Harvesting cacao beans is a delicate process. First, the pods containing cacaobeans, are harvested by cutting the pods from the tree using a machete, or by

knocking them off the tree using a stick. The beans with their surroundingpulp are removed from the pod and placed in piles or bins to ferment. Thefermentation process is what gives the beans their familiar chocolate taste. Itis important to harvest the pods when they are fully ripe because if the pod isunripe, the beans will have a low cocoa butter content, or there will beinsufficient sugars in the white pulp for fermentation resulting in a weakflavor. After fermentation, the beans must be quickly dried to prevent moldgrowth. Climate and weather permitting, this is done by spreading the beansout in the sun from 5 to 7 days.Chocolate liquorThe dried beans are transported from the plantation where they were grownto a chocolate manufacturing facility. The beans are then cleaned (removingtwigs, stones, and other debris), roasted, and graded. Next the shells areremoved to extract the nib. Finally, the nibs are ground which releases andmelts the cocoa butterproducing chocolate liquor.

Figure 4

Chocolate made with enough cocoa butter flows gently over achocolate fountain to serve dessert fondue.

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Blending

Chocolate liquor is blended with the cocoa butter in varying quantities tomake different types of chocolate or couvertures. The basic blends ofingredients for the various types of chocolate (in order of highest quantity ofcocoa liquor first), are as follows:

Dark chocolate: sugar, cocoa butter, cocoa liquor, and (sometimes) vanillaMilk chocolate: sugar, cocoa butter, cocoa liquor, milk or milk powder, andvanilla

White chocolate: sugar, cocoa butter, milk or milk powder, and vanillaUsually, an emulsifying agent such as soy lecithin is added, though a fewmanufacturers prefer to exclude this ingredient for purity reasons and toremain GMO free, sometimes at the cost of a perfectly smooth texture. Somemanufacturers are now using PGPR, an artificial emulsifier derived fromcastor oil that allows them to reduce the amount of cocoa butter whilemaintaining the same mouthfeel.The texture is also heavily influenced by processing, specifically conching(see below). The more expensive chocolate tends to be processed longer and

thus have a smoother texture and "feel" on the tongue, regardless of whetheremulsifying agents are added.Different manufacturers develop their own "signature" blends based on theabove formulas, but varying proportions of the different constituents areused.The finest, plain dark chocolate couvertures contain at least 70% cocoa (bothsolids and butter), whereas milk chocolate usually contains up to 50%. High-quality white chocolate couvertures contain only about 33% cocoa.Producers of high quality, small batch chocolate argue that mass production

produces bad quality chocolate. Some mass-produced chocolate contains

much less cocoa (as low as 7% in many cases) and fats other than cocoabutter. Vegetable oils and artificialvanillaflavor are often used in cheaperchocolate to mask poorly fermented and/or roasted beans.In 2007, the Chocolate Manufacturers Association in the United States,whose members include Hershey,Nestl, and Archer Daniels Midland,lobbied the Food and Drug Administration to change the legal definition ofchocolate to let them substitutepartially hydrogenated vegetable oils for

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cocoa butter in addition to using artificial sweeteners and milk substitutes.Currently, the FDA does not allow a product to be referred to as "chocolate"if the product contains any of these ingredients.

Conching

Figure 5

various chocolate-making machineryThe penultimate process is called conching. A conche is a container filledwith metal beads, which act as grinders. The refined and blended chocolatemass is kept in a liquid state by frictional heat. Chocolate prior to conching

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has an uneven and gritty texture. The conching process produces cocoa andsugar particles smaller than the tongue can detect, hence the smooth feel inthe mouth. The length of the conching process determines the finalsmoothness and quality of the chocolate. High-quality chocolate is conchedfor about 72 hours, lesser grades about four to six hours. After the process iscomplete, the chocolate mass is stored in tanks heated to approximately 4550 C (113122 F) until final processing.

Tempering:

The final process is called tempering. Uncontrolled crystallization of cocoabutter typically results in crystals of varying size, some or all large enoughto be clearly seen with the naked eye. This causes the surface of the

chocolate to appear mottled and matte, and causes the chocolate to crumblerather than snap when broken. The uniform sheen and crisp bite of properly

processed chocolate are the result of consistently small cocoa butter crystalsproduced by the tempering process.The fats in cocoa butter can crystallize in six different forms (polymorphouscrystallization). The primary purpose of tempering is to assure that only the

best form is present. The six different crystal forms have different properties.

Crystal MeltingTemp.

Notes

I 17 C (63 F) Soft, crumbly, melts too easily.

II 21 C (70 F) Soft, crumbly, melts too easily.

III 26 C (78 F) Firm, poor snap, melts too easily.

IV 28 C (82 F) Firm, good snap, melts too easily.

V 34 C (94 F)Glossy, firm, best snap, melts near body temperature(37 C).

VI 36 C (97 F) Hard, takes weeks to form.Making chocolate considered "good" is about forming as many type Vcrystals as possible. This provides the best appearance and texture andcreates the most stable crystals so the texture and appearance will notdegrade over time. To accomplish this, the temperature is carefullymanipulated during the crystallization.

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Generally, the chocolate is first heated to 45 C (115 F) to melt all sixforms of crystals.[ Next, the chocolate is cooled to about 27 C (80 F),which will allow crystal types IV and V to form. At this temperature, thechocolate is agitated to create many small crystal "seeds" which will serve asnuclei to create small crystals in the chocolate. The chocolate is then heatedto about 31 C (88 F) to eliminate any type IV crystals, leaving just type V.After this point, any excessive heating of the chocolate will destroy thetemper and this process will have to be repeated. However, there are othermethods of chocolate tempering used. The most common variant isintroducing already tempered, solid "seed" chocolate. The temper ofchocolate can be measured with a chocolate temper meter to ensure accuracyand consistency. A sample cup is filled with the chocolate and placed in theunit which then displays or prints the results.Two classic ways of manually tempering chocolate are:

Working the molten chocolate on a heat-absorbing surface, such as a stoneslab, until thickening indicates the presence of sufficient crystal "seeds"; thechocolate is then gently warmed to working temperature.Stirring solid chocolate into molten chocolate to "inoculate" the liquidchocolate with crystals (this method uses the already formed crystal of thesolid chocolate to "seed" the molten chocolate).Chocolate tempering machines (or temperers) with computer controls can beused for producing consistently tempered chocolate, particularly for largevolume applications.

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cocoa butter is the fat in the cacao bean that gives chocolate itsunique mouth-feel and stable properties. To be considered realchocolate, a chocolate bar or chunk can contain only cocoa butter,not any other fat. Cocoa butter is the reason why you have totemper real chocolate. Cocoa butter is fat that is composed of threeto four glycerides of fatty acids. What complicates matters inchocolate making is that each of these different fatty acids solidifiesat a different temperature. Once you melt a chocolate bar, the fattyacid crystals separate. The objective in tempering melted chocolate isto entice the disparate fatty acid crystals of cocoa butter back intoone stable form.

Tempering is like organizing individual dancers at a party into a

Conga line. For chocolate, temperature and motion are the partyorganizers that bring all the individual dancing crystals of fatty acidstogether in long lines and, in the process, create a stablecrystallization throughout the chocolate mass.

Also, strange as it may sound, the temperature at which well-tempered chocolate melts is much higher than untempered chocolate

because the fatty acid crystals in tempered chocolate are lockedtogether tightly it takes a higher temperature to pull them apart.Being tightly bound, well-tempered chocolate is resistant to

developing chocolate bloom that whitish film, streaks or spots ofcocoa butter that form on the surface of chocolate.

In the tempering process, melted chocolate is first cooled, causingthe fatty acid crystals to form nuclei around which the other fattyacids will crystallize. Once the crystals connect, the temperature isthen raised to keep them from solidifying.

To help the chocolate to crystallize during the tempering process,chocolate makers use one technique called seeding. The "seed" istempered chocolate in hunks, wafers or grated bits. It is added at the

beginning of the tempering process. These crystals of temperedchocolate act like magnets, attracting the other loose crystals of fattyacids to begin the crystallization process that results in well-tempered chocolate.

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Learning to Temper Real Chocolate

Temper by Seeding is the easiest and quickest way to temperchocolate. You will need: Microwave (or double boiler), microwave-

safe bowl, spatula for stirring and a good thermometer that has arange as low as 70 F (21 C).

I suggest you have at least twenty-four ounces (680 g) of chocolatewhen you start to temper. I know it sounds like a lot and a bigmonetary commitment but this amount gives you enough to workwith when you are dipping or molding. Also, it is much easier tocontrol temperatures and not overheat when you have a mass ofchocolate. You can re-temper or reuse any of the chocolate you have

left over so the extra wont be wasted. At my shop, au Chocolat, wesold our bulk chocolate in one-pound (454 g) round bars so I couldeasily show that a one-pound (16 ounce) puddle of melted chocolateonly came up about an inch in the bowl. Step 1. You need to heat thechocolate to melt all fatty acid crystals. Chop the chocolate intosmall pieces. The smaller the pieces, the quicker your chocolate willmelt and temper. Set aside about 25 - 30 percent of the chocolate.There is no need to be exact on this measurement, as you just wantenough unmelted, tempered chocolate to start the seeding process.

Place the remaining 70 - 75 percent of chopped chocolate in amicrowave-safe bowl and microwave on half-power, being verycareful to stir the mixture every minute until it is almost completelymelted, which should take about four to five minutes.

Remove the bowl of chocolate from the microwave and stir to cool itslightly. Removing the bowl before all the chocolate is completelymelted will help prevent over heating. You dont want yourchocolate to burn. Those last bits of solid chocolate will melt as youstir. Using a thermometer, check the temperature of the meltedchocolate it should be between:

Dark Chocolate: 114-118 F (46-48 C) Milk Chocolate: 105-113 F (40-45 C) White Chocolate: 100-110 F (37-43 C) Note: be very careful

as the high milk and sugar content in white chocolate will

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cause it to burn easily.

Ive indicated a range of temperatures above as not all thermometersare perfectly accurate.

Step 2 - Add seed chocolate you have set aside.

Start adding handfuls of the grated chocolate you set aside to themelted chocolate. Stir in the seeding chocolate bits continuouslyuntil the desired temperature (see below) is reached and the bits havedissolved completely. This could take anywhere from ten to fifteenminutes depending on the temperature of your environment. Yourchocolate should now be tempered.

Dark chocolate should be between 88 - 89 F (31 C) Milk and white chocolates should be between 84 - 86 F (29-

30 C)

Make sure to stir the tempered chocolate and check the temperatureduring the time you are using it for dipping or molding. You can putthe tempered chocolate mass in the microwave for 10 - 15 seconds athalf-power if the temperature starts to drop. Just make sure that youdont raise the temperature above 90 F (32 C) or you will lose yourtemper and have to start over again at Step 1.

A heating pad put around the bottom and sides of the bowl will helpif you are doing a lot of work at one time. Again, make sure theheating pad doesnt raise the temperature of the chocolate too high.Keep stirring and checking the chocolate mass with a thermometer.

About Chocolate Seize

This is when your melted chocolate mass becomes a paste that isgrainy, dull, and thick. There are two conditions that bring about

chocolate seize:

Water

Chocolate is made up of dry ingredients (cocoa solids, sugar, andpossibly milk powder) suspended in cocoa butter. A small drop ofliquid will moisten the dry ingredients and allow the cocoa solids to

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clump together and separate from the cocoa butter. Remember theold saying that oil and water don't mix. This is why you never covera pot of chocolate with a lid (because the steam will condense anddrop into the chocolate) and why you need to be very careful whenusing a double boiler. If this happens, the chocolate will not temper,

but it doesnt have to go to waste; it can be used in baking or trufflecenters. Interestingly, if you add in more liquid to the chocolate (aminimum of one tablespoon of liquid per ounce of chocolate), themelted chocolate will remain in a liquid state because the dry

particles get saturated by the moisture and detach from each other.They then are suspended in the liquid again so the chocolate mass is

back to a liquid form. You'll find this technique used to makechocolate sauces and syrups or for flavoring cakes and pastries.

Heat

Overheating separates the cocoa solids and other dry ingredientsfrom the cocoa butter. Chocolate solids and dry ingredients will burnif heated to 130 degrees. The result is a dry, discolored paste. Theresno retrieving burnt chocolate, so be very careful when heating in adouble boiler or microwave.

Storing:

Molten chocolate and a piece of a chocolate barChocolate is very sensitive to temperature and humidity. Ideal storagetemperatures are between 15 and 17 C (59 to 63 F), with a relative

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humidity of less than 50%. Chocolate should be stored away from otherfoods as it can absorb different aromas. Ideally, chocolates are packed orwrapped, and placed in proper storage with the correct humidity andtemperature. Additionally chocolate should be stored in a dark place or

protected from light by wrapping paper. Various types of "blooming" effectscan occur if chocolate is stored or served improperly. If refrigerated orfrozen without containment, chocolate can absorb enough moisture to causea whitish discoloration, the result of fat or sugar crystals rising to thesurface. Moving chocolate from one temperature extreme to another, such asfrom a refrigerator on a hot day can result in an oily texture. Althoughvisually unappealing, chocolate suffering from bloom is perfectly safe forconsumption.Unsweetened chocolate is pure chocolate liquor, also known as bitter or

baking chocolate, mixed with some form of fat to produce a solid substance.

It is unadulterated chocolate: the pure, ground, roasted chocolate beansimpart a strong, deep chocolate flavor. With the addition of sugar, however,it is used as the base for cakes, brownies, confections, and cookies.

Dark chocolate is produced by adding fat and sugar to cocoa. It is chocolatewithout milk as an additive. It is sometimes called "plain chocolate."

Milk chocolate is chocolate with milk powder or condensed milk added.

White chocolate is a confection based on sugar and fat (either cocoa butteror vegetable oils) without the cocoa solids.

Chocolate making is a special art and requires skill. Chocolate making notnecessarily requires a long procedure. In today's modern lifestyle everythinghas become convenient and easy. Ami Dalmaali supplies her chocolates tomultinational companies and banks. She shares with us her wonderfulexperience with chocolates.

55mi collects readymade raw chocolates (Belgium, Madagascar) called"chocolate slabs" from Crow ford Market, Mumbai. Melts the chocolateslabs under definite temperature. Adds fresh cashew nuts, almonds,hazelnuts and then moulds the chocolates to give it characteristic shape andsizes. The chocolate is finally dressed to make it look more attractive andready to serve. She believes chocolate making is very interesting and

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creative. Experimenting with new flavours, giving your chocolate a newlook every time is a challenging job.

Chocolate products should be stored in areas that are:

Free from odours Well ventilated With a temperature of 65oF to 68oF At a relative humidity below 50% Away from walls and floors Out of direct sunlight

Problems caused by poor storage include sugar bloom and fat bloom

Sugar bloom makes the surface of the chocolate appear gray, covered in athin layer of sticky syrup or covered with sugar crystals. It is caused by thedissolving of sugar from the chocolate by surface moisture, which eventuallydries off leaving sugar crystals. One of its causes is storage in dampconditions. Chocolate will absorb moisture on the surface if stored in air at arelative humidity above 82% to 85% for dark chocolate or above 78% formilk chocolate. Impervious packaging will give protection, but overlappingwrapping will allow penetration of water at the folds or corners and thesugar bloom will appear near these points. It can also be caused by theremoval of chocolate from cold storage without adequate wrapping

protection. When chocolate has been stored below 10oC moisture will bedeposited on the surface if it is brought out into normal atmosphere. Whenremoving chocolate from cold storage it either needs to be transferred to aroom with fairly dry air or needs to be covered until it has attained the sametemperature as the outside air. Filled chocolates when contained inimpervious packaging will, under warm storage conditions, produce a highhumidity within the wrapping and this can cause diffusion of the syrup fromthe centre to the surface which results in sugar bloom.

Fat bloom also makes the surface of the chocolate appear gray but it ismade up of minute fat crystals. One of its causes is warm storage. Theformation of fat bloom is related to the changes in structure of cocoa butterat different temperatures.

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Chocolate packaging

Chocolate packaging is the most important part in the process of

manufacturing. There are various types of chocolate wrappers are availablein the market as we have seen in the storing process chocolate is very muchdelicate and need to be stored in well condition as well as in well boxes and

packets for that plastic can be the most suitable one but normal paperwrappers are also suites to it. Designer silver wrapper is best suitablewrapping option for the chocolate.

Figure 6

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INDIAN MARKET FACTS OF 2008

Facts & Figures

1. Chocolate market is estimated to be around 1500 cores (ACNielson)growing at 18-20% per annum

2. Cadbury is the market leader with 72% market share

3. The per capita consumption of chocolate in India is 300 gram comparedwith 1.9 kilograms in developed markets such as the United Kingdom

4. Over 70 per cent of the consumption takes place in the urban markets

5. Margins in the chocolate industry range between 10 and 20 per cent,depending on the price point at which the product is placed.

6. Chocolate sales have risen by 15%36000 tones according to one estimate.Another estimate puts the figure at 25000 tones.

7. The chocolate wafer market (Ultra Perk etc) is around 35 % of the totalchocolate market and has been growing at around 13% annually.

8. As per Euro monitor study, Indian candy market is currently valued ataround USD 664 million, with about 70%, or USD 461 million, in sugarconfectionery and the remaining 30%, or USD 203 million, in chocolateconfectionery.

9. Entire Celebrations range market share is 6.5%

10. The global chocolate market is worth $75 billion annually

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Companies

1. The chocolate market in India has only three big players, Cadbury, Nestleand Amul

2. New brands such as Sweet World, Candico and Chocolatiers are presentin several malls

3. The largest target segment for Cadbury is youth

4. Delhi-based Chocolatiers, started with a small shop in south DelhisChittaranjan Park and has now ventured into malls and multiplexes in NCR,Mumbai and Bangalore, with focus on high-end or designer chocolates, a

niche market of their own.

5. Candico India is aiming for 400 locations across malls and multiplexes inthe country by 2010.

Companies & Brands

1. Cadbury - Cadbury, 5 Star, Bytes (chocolate snack), Celebration, DairyMilk, Gems, Perk

2. Nestle - Bar One, Kit Kat, Milkybar, Munch, Nestle

3. Amul - Amul (Chocozoo, Chocomines)

4. Dairy Milk is the market leader

5. 5 Star (heritage brand which came to India in 1969) has a market share ofover 14%

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Consumer Trends

1. Mithai- the traditional Indian sweats is getting substituted by chocolates

among upwardly mobile Indians. Instead of buying sweats on RakshaBandhan, sisters prefer offering chocolates to their brothers. This is thereason for sudden spurt in advertisement

between July & Sep by most of the companies

Figure 7

2. The range and variety of chocolates available in malls seems to begrowing day by day, which leads to lot of impulse sales for chocolatecompanies

3. Chocolates which use to be unaffordable, is now considered mid-priced.Convenience over Mithai in terms of packaging and shelf life in making

both middle class and rich Indians opt for chocolates

4. Designer chocolates have become status symbols. They are linked toones aspiration and lifestyle and malls are perfect points of sale as peopleusually are happy and gay at these destinations

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5. Cadbury initial communication for Celebrations was concentrated onoccasions like Diwali and Rakshabandhan. Over the last seven to eightyears, the brand emerged as a good gift proposition for occasions andenabled people to come closer. Research done by Cadbury suggested thatthey should extend the plank of occasion-based gifting to social gifting i.e.all-year-round gifting options

6. Consumers can choose from wide range of chocolates, which initially waslimited to Milk chocolates like DairyMilk and MilkyBar. In past few yearswe have seen so many SKUs with almonds, raisins and all sort of nuts. Andhow can we forget latest 5 star crunchy and Ulta Perk, which has openednew windows for consumers

7. In past, consumers had negligible inclination for dark chocolates. But nowwe have seen a change in the Indian palate, which is increasing the base ofthis sub-segment

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Advertisement Trends (Media Research)

1. Chocolate advertising rose by 30 per cent during January-November 2007

compared to January-November 2006

2. Maximum chocolate advertising was during Raksha Bandhan across 2005and 2006 and January-November 2007.

3. As expected chocolate advertising skewed towards kids channels andregional GEC took the second position.

4. Cadbury India Ltd rules chocolate advertising on television.

5. 17 per cent more advertising during third quarter 2007 (Raksha Bandhanfestival) compared to first quarter 2007.

6. Regional GEC took the second place with a 21 per cent share ad volumesof chocolates, followed by Hindi movie with 13 per cent share duringJanuary-November 2007.

7. Among regional GEC, maximum advertising of chocolates was onMalayalam and Bengali channels.

8. Cadbury India Ltd was way ahead of its peers with 66 per cent sharefollowed by Nestle India Ltd and Parle Products Pvt Ltd during January-

November 2007.

9. During January-November 2007 the number of new chocolate brandsadvertised decreased to seven from 12 during 2006.

10. Nestle Munch Pop Chocolate led the chart of new chocolate brandsadvertised on television during January-November 2007.

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Some Activities

1. Cadbury India has tied up with leading coffee chain Caf Coffee Day fordirect sampling of the product in top cities

External Environment

1. The prices of cocoa and milk, the chief ingredients used in chocolates,have gone up by 50 per cent, while the price of sugar, another important rawmaterial, has come down. The overall input costs have gone up by 20 per

cent. If the prices of these commodities keep increasing, companies will beforced to increase the prices. India imports most of its cocoa requirements.The prices of cocoa have risen globally due to unavailability of thecommodity

2. US-based chocolate-maker Hersheys is mulling a foray into the Indianchocolate market through its joint venture with Godrej

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CADBURY INDIA TODAY

Index stock on BSE and NSE. Rs. 15 billion market capitalization. 48,000 + shareholders. 1,900 + employees Rs. 5,711 million sales in 2000 :

1. 76% Confectionery2. 24% Food Drinks.3. Rs. 1,069 million PBDIT4. Rs. 2,345 million total assets.

Consumer - Growth Opportunities

Impulse snacking is an Indian habit. Attitude and disposable income changes are favourable to impulse

foods. Large youth population, 47% of urban India is growing dominant

chocolate consuming segment. Child and gifting segments expected to grow at faster rate. Current low penetration of Chocolates ,22% adults in urban India.

Ref:- Cadbury Indian limited website

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Creating Value in Future

Effectively managing growth drivers1. Gifting Child Connectivity and low end VFM.2. New channels.

Optimizing manufacturing efficiencies.

Competitiveness in logistics and distribution using IT.

Exploiting mass media to create / maintain large brands.

10+% Advertising / Sales.

Cocoa Beans

About half of requirements bought locally. "Forward" purchases in case of imports. "Cash on delivery" purchases locally

1. Purchase Price declared by CIL, giving fair price tofarmer.

2. Long term relationship

Local cocoa area development in progress1. Expansion2. Better yields

Chocolate Imports

Greater presence of imported products Low volume high trade margin segment Reducing restrictions and duties Threat as well as opportunity. CS International portfolio being evaluated.

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Our Vision

Cadbury in every pocket Superior shareholder value.

This Requires

Broadening our consumer appeal and extending our reach to newermarkets.

Sustained growth of our market share through aggressive productdevelopment.

Striving for international quality in our products and processes. Focusing on cost competitiveness, productivity and innovative

utilization of assets. Energizing and developing our people.

GIRISH M BHAT, DIRECTOR ( FINANCE & COMMERCIAL)

Market Share

Chocolates 69.2%

Sugar Confectionery 4.0%

Food Drinks 14.2%

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CIL in relation to Competition

Stronger brands in Chocolates Defining Chocolate taste Dominant Chocolate market shares First mover advantage Established distribution network. Aggressive market development

Sugar Brand portfolio one among many1. though dominant in clairs category2. very strong price led competition

Only one player (Nestle) who competes across all categories.

Concentrated advertising campaign to ensure positioning and recall.

Increasing market share through

Broadening consumer appeal1. 4,50,000 outlets2. 2,100 + distributors.3. Strategy aimed at fostering new users4. 8 million new consumers added in 2000.

Total now above 60 million

Aggressive product development.

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OVERALL FUTURE STRATEGY

Focus on maintaining dominance on Chocolate Confy market andleadership in Brown Drinks.

New growth drivers in new Choc consumer segments like Gifting,Child connectivity, low end VFM and new channels.

Grow sales volume around 10% p.a. (avg) over next 3 years.. Launch of one new major product every year. Dominated by branded players

Market Statistics Chocolates

Market Size (Volume) 22,500 tpa

Growth Rate (last 3 years) 12% p. a.

Cadbury's share 69.2%

Focus areas for growth

Impulse snacking Child connectivity Gifting New channels & Institutional sales Further improve quality of products.

Optimum utilization of distribution network and reach Introduce technologically differentiated value added sugar products

Focus on quality and packaging Regular introduction of variants.

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Current scenario

No. 2 in food drinks market. Positioned on platform of 'taste and energy'. Associated with children through programs such as 'Bournvita Quiz

Contest'.

Reaching one step up

Extend positioning of 'taste and energy' to adults. Continue programs for associations with kids. Increase association with kids through website 'bournvita.com'

1. Games2. Education and information.

Plans for near term future

Increase share in impulse category Introduce new product offerings to grow overall business. Enhance Chocolate Confectionery products offer to drive growths in

wider consumer segments. Introduce differentiated value added Sugar Confectionery products. Enhance share in Food Drinks market. High focus on Economic Profit

To evaluate Company and Brands performance :

Drive low cost manufacturing Reduction in manufacturing costsSupply chain efficiencies ,Further reduction in material costs.Increase trading margin Increase utilization of assets Brands and

production capabilities, Further improvement in working capitalnorms. Effective use of properties Use of Information Technology for

business improvement and reducing costs. Web enabled SCM.Enhancing organizational capability through people Training and

development Sharpening culture workshops Performance linkedincentives for managers People care index measurement.

.

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Some recent business improvement projects

In house projects teams of senior managers have been working closely

with CS Group and some well known consultants to1. Identify new growth opportunities2. Improve manufacturing costs and supply chain processes.3. Effectively use of information technology.

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QUESTION & ANSWER SESSION

Company is cutting down costs so that it would like to be best in classwhen compared to world class companies so that it would like tointernationally cost competitive in next 3 years even at zero importduty from current level of 50%.

Business challenge is non-improvement in domestic market andincreasing material costs. If this happens, margins will fall.

International products are imported by under-invoicing so as to reduceimport duty. This has created low imported product costs whencompared to locally manufactured goods.

Cocoa is important raw material for company. 40-50% is importedwhile balance is locally procured.

Other brands except Cadbury Diary Milk has not grown that well.

In sugar confectionery also except clair, none of new launches in last3 years have fared well.

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FUTURE PLANS OF CADBURY INDIA

Company wants to source all the cocoa for its Indian products from within

the country.The company has plans to increase acreage for cocoa cultivation. Theincrease in acreage will involve a tripling of investments in contract farmingand in five years it wants to source cocoa for domestic production entirelyfrom India.

Here is a transcript of Sagar Malviya and Sandeep Srikanth's comments

on CNBC-TV18. Also watch the accompanying video.

India produced about 10,000 tonne of cocoa in 200708, with annualdemand of about 18,000 tonne. Cadbury India which already procures 5,000tonne of cocoa through contract farming now wants that number to increase.

Sanjay Purohit, Executive Director-Marketing, Cadbury India said, Wehave identified areas in Andhra Pradesh and Tamil Nadu, and are workingwith governments there to improve the acreage for cocoa cultivation.

The increase in acreage will involve a tripling of investments in contract

farming and in five years it wants to source cocoa for domestic productionentirely from India.

The Indian chocolate market is growing at 20% annually and Cadbury,which has 71% market share, presently, sources half of its cocoarequirements from other countries. It is importing cocoa from Ghana for anew range of dark chocolate under the name Bournville, which it hasintroduced in India. The company says this new brand, to be sold mainlythrough modern retailers, will be a platform to launch more products from itsinternational range.

All this is being done in an effort to preserve market share which is nowbeing targeted by many global competitors who are coming in.

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NESTLE INDIA

NEW DELHI: Swiss FMCG major Nestle is expanding its chocolate

portfolio in India with an aim to strengthen its market share in the estimated

Rs1,900-crore chocolate market in the country.

"Our current market share is over 27 per cent and we will continue to striveto enhance our position,"Nestle India General Manager (Chocolate andConfectionery) Stewart Dry burgh said.

The company, which currently offers six brands of chocolates - Munch, KitKat, Milky bar, Milk Chocolate, Bar One and Selection, has added two morevariants to its popular Kit Kat range to boost the growth momentum.

"The chocolate market, valued between Rs 1,700 core and Rs 1900 core,grew at 23 per cent last year and we have been able to better the industrygrowth. Going forward, we expect to continue this," he said.

Asked if the company had any specific targets for the coming fiscal, Dry

burgh declined to comment. He, however, said Nestle India would belaunching the two new Kit Kat variants, Kit Kat Chunky and Kit Kat Mini-in23 cities across India, which would be supported by adequate advertisingand communication campaigns.

Dry burgh said keeping in mind the changing lifestyle of consumers, thenew Kit Kat variants would target those who are seeking to balanceindulgence with lightereating

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AMUL CHOCOLATE INDIA

Amul the taste of India the company has in 1946 year later with the financialhelp from UNICEF assistance from the Govt. of New Zealnd under theColombo plan, of Rs 50 millions for factory to manufacture milk and milk

powder and butter was planned. There after some years amul also planned toproduce chocolate and they launched first chocolate in the year of 1989 ithas started with amul milk chocolate since plenty of milk is produced inGujarat. Amul is the only one chocolate manufacturing Indian basedcompany.

Dairy major Amul is reworking its strategy in the chocolate category to push

its chocolate product sales.

Although, the company has maintained a chocolate portfolio for more than20 years, the dairy products major never posed a threat to market leaderssuch as Cadbury and Nestle.

Now, with a new product portfolio, the home-grown foods giant is planningto create a space for itself.

In the chocolate business, our strategy is to identify the market gaps and tryand fill them. We have done this in the past with our sugar free and ChocoZoo, both of which have been appreciated by the consumers. We areconcentrating on the niche segment as far as the chocolate range isconcerned, says R S Sodhi, general manager, marketing, Amul.

Company executives say that by occupying niche spots such as the shape-based chocolates segment, Amul can dominate the segment. In the overallcategory, Amul has a market share of roughly 10 per cent compared with 70

per cent share of the market leader, Ca

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