Page 1 of 22

FCIA’s Elevate Chocolate Winter 2019 in San Francisco on January 12 was a power-packed experience, mixing discussion, education, breakout sessions, panels, keynotes, and so much interaction and interpersonal connection.

• Full day experience: FCIA Members started the day with a Membership Assembly, and then were joined by the rest of the attendees for nine workshops in three tracks. In the afternoon, people chose among three intimate format breakout sessions, then rejoined for a plenary discussion, presentations, and keynotes. Through the afternoon and evening, everyone explored the Not So Silent Auction, and by the end of the afternoon transitioned to the Gallery Showcase and the Chocolate Tasting Table.

• Attendance: A total of 227 registered attendees participated in the experience.• Gallery Showcase: The exhibit hall came alive with a sold-out assembly of 22

expert exhibitors.• Partnership Showcase: Our unique Partnership Showcase highlighted important

programs and topics related to the industry. We were delighted to host Catholic Relief Services, CNFA Maximizing Opportunities in Cocoa Activity, Fair Trade USA, and Rainforest Alliance.

• Networking: Once again, Elevate Chocolate provided excellent opportunities and a wonderful setting to connect with fine chocolate colleagues -- and reconnect with old friends.

• Event App: Supplementing the in-person experience, our event app helped everyone keep up with the experience and plan out how to make the most of the day. Agenda and room locations, presenter bios, contact information for sponsors and exhibitors, and attendees’ names and details were all available at one’s fingertips.

Thank you to everyone who attended Elevate Chocolate Winter 2019 and made it a vibrant, enjoyable, and valuable experience. The day was a welcome reminder of the spirit of our community, and our shared mission to promote the artistry and craftsmanship of the chocolate professional focused on producing superior products made from premium chocolate and natural ingredients.

HighlightsBeyond the Bar: New Frontiers for Chocolate

Event Report

Page 2 of 22

For those presenters who utilized and provided a presentation, we’ve included links.

Membership Assembly (View Presentation)

SPEAKER:

Clark Guittard, Guittard Chocolate Company, President, Fine Chocolate Industry Association

Guittard Chocolate Company is one of the oldest chocolate makers in the United States. An expert team at Guittard travels the world, working closely with growers, long before harvest, to assess the development of individual crops and to oversee the fermentation and drying process of the cacao beans. E. Guittard is the artisan line of chocolates made by Guittard Chocolate Company. It is named to honor company founder, Etienne Guittard. E. Guittard chocolates use only all-natural ingredients, such as pure cane sugar, real vanilla beans and full cream milk in the case of milk chocolate. They are also free of any genetically modified ingredients (GMO Free). All E. Guittard chocolates are kosher certified by the Orthodox Union.

WorkshopsHere are glimpses from our Winter 2019 workshops. Cacao Capacity Building in West Africa, Latin America & the Caribbean (LAC) (View Presentation)The U.S. Department of Agriculture (USDA) Food for Progress (FFPr) program was created in 1986 under the Food Security Act. Each year, the USDA has awarded approximately $200 million to private voluntary organizations (PVOs) to implement FFPr projects that help emerging and developing countries build the capacity of their agricultural economies and increase trade, expand rural economies, and grow household farmer incomes in Africa, Asia, and the LAC region.

FFPr is currently engaged in funding, promoting, and developing the cacao value chains in countries in Africa and LAC. By assisting local cooperatives and farmers improve their cultivation and business practices, FFPr hopes to increase farm incomes, trade, and the production of high-value, fine cacao in our target countries.

Funded through USDA, Catholic Relief Services (CRS) is implementing the nearly complete cacao FFPr project Nicaragua, and Cultivating New Frontiers in Agriculture (CNFA) is implementing the new Maximizing Opportunities for Cacao Activity (MOCA) in Côte d’Ivoire. USDA conveyed to the audience the varied contexts and opportunities that face cacao production in LAC and West Africa through lens of these two projects. Specifically, attendees saw FFPr strategies in both regions in relation to how a mature project (Nicaragua) compares to a new project (MOCA).

SPEAKERS:

Jorge Brenes Abdalah, Chief of Party of PROGRESA CARIBE, Catholic Relief Services (CRS)

Jorge Brenes has worked for CRS for the past 8 years. Before that, he worked for the Exporter Association Of Nicaragua and for a multinational dairy company. Brenes obtained his master’s degree in agricultural economics from The Ohio State University and has more that 20 years working in the agribusiness sector of Central America. Currently, he is the Chief Of Party Of PROGRESA CARIBE, an initiative finance by USDA and implemented by Catholic Relief Services in Nicaragua. PROGRESA CARIBE works with almost 3,000 cacao farmers and their families.

Robert Shubert, USDA Foreign Agricultural Service

Page 3 of 22

Marc Steen, Chief of Party Food Progress (COTE D’IVOIRE), Cultivating New Frontiers in Agriculture (CNFA)

Mark Steen has more than 20 years of experience managing projects in Africa, where he has worked in Niger, Guinea Bissau, Ethiopia, Mozambique, and Cote d’Ivoire. He has a wealth of experience working in multiple value chains, including cashews, sesame, cotton, honey, livestock, and cacao. He recently led the Livestock Market Development project in Ethiopia that supported the creation of 5,000 jobs, reached 604,000 beneficiaries, and facilitated $16 million in rural loans. He now serves as chief of Party for the Food Progress project in Cote d’Ivoire, where CNFA is supporting improvement in the country’s cacao value chain.

Health Benefits of Chocolate: Facts, Caveats, and Questions (View Presentation)Chocolate is often considered an indulgence food that should be eaten sparingly or avoided altogether, but chocolate and cocoa are rich in phytochemicals with putative health beneficial effects. Recent studies suggest that consumption of chocolate and cocoa may mitigate certain chronic diseases. While data from human intervention and laboratory studies are promising, many questions remain regarding the phytochemicals that are most important for beneficial health effects, as well as the impact of cacao genetics, growth conditions, and post-harvest processing on the levels of these compounds and the health beneficial effects of the final product.

This presentation provided an overview of the evidence supporting the health beneficial effects of cocoa and chocolate; covered the available data on the impact of cacao processing on these putative health beneficial effects; and identified areas that require further research. In addition, this presentation highlighted areas that might be of key importance to a cocoa/chocolate producers who have an interest in considering health beneficial effects as a potential marker of a “high-quality” chocolate product.

KEY TAKEAWAYS:

A growing body of observational studies suggests that consumption of cocoa is associated with reduced risk of cardiometabolic diseases including heart disease and Type II diabetes. Laboratory studies with cell culture and animal models have shown that cocoa can mitigate chronic inflammation, insulin resistance fatty liver disease, and other conditions. Cocoa powder as an ingredient has a favorable nutritional profile: high amounts of fiber, resistant starch, and minerals and low amounts of fat, sugar, and calories. Cocoa powder is also rich in non-nutritive compounds such as polyphenols and methylxanthines that have been reported to health beneficial effects in laboratory studies.

While the collective results of these studies are promising, additional work is needed. More well-designed human intervention studies are needed to convincingly demonstrate the health-beneficial effects of cocoa and chocolate in human subjects. Moreover, because chocolate is a complex food that uses cocoa derived from multiple genetic and agronomic backgrounds, and is subject to multiple processing steps, it is important to understand the impact of these different factors on the chemistry and bioactivity of the final product.

Finally, given the high fat and high sugar content of most chocolate, there will be resistance to incorporating chocolate into public health recommendations. Additional work by cocoa processors is needed to identify alternative nutrient-rich food products into which cocoa can be incorporated as an ingredient.

SPEAKER:

Joshua Lambert, Associate Professor, The Pennsylvania State University

Joshua Lambert possesses a doctorate degree in pharmacology/toxicology and is a faculty member in the Department of Food Science at Penn State University. He has studied the putative health beneficial effects of polyphenol-rich foods including cocoa and chocolate for more than 20 years. His research focuses on understanding the potential for foods to mitigate the diseases, the biological mechanisms underlying this potential, and the impact of parameters such as plant genetics, growth conditions, and post-harvest processing on the potential beneficial effects of foods of interest.

Page 4 of 22

New Sensory Standards for Finished Chocolate: Attribute Scoring & Evaluation MethodsBrian Cisneros has been working across the industries of coffee and chocolate for more than a decade. In that time Brian has developed a new scoring system for chocolate finished products that combine the sensory attributes of artisan chocolate with the Q-Grade protocols of Specialty Coffee. In this seminar he was joined by Guittard’s John Kehoe to provide an overview of the new score system and a practice session with participants using the Sensory Attribute Form to evaluate finished chocolate products. Samples included!

KEY TAKEAWAYS:

Sensory evaluation of finished chocolate involves a focused approach that takes into account the variety of unique attributes that are present in finished chocolate. In this system each attribute area is evaluated separately and assigned a score with its own set of criteria. These scores are then combined to arrive at a total score for the product. In the system previewed at FCIA Elevate the chocolate score chart has ten (10) unique attributes. These include the presence or absence of defects and the overall balance of the product. Participants in the workshop were able to learn about the attributes, review the scoring method, and practice using three unique finished chocolate samples.

SPEAKERS:

Brian Cisneros, Founder & Owner, NW Chocolate Festival

Brian Cisneros is the founder of the Northwest Chocolate Festival, one of the top shows for artisan chocolate in the world. Brian explores the world of sensory evaluation as a daily practice and he brings 15-years focused on the tasting of artisan chocolate and 20-years of involvement with the Specialty Coffee industry. Brian holds multiple university degrees in organization-development and prior to working in chocolate he had a professional background consulting for business and non-profit organizations.

John Kehoe, Director of Sustainability, Guittard Chocolate Company

With 25 years in cocoa sourcing, international trade and development, together with cocoa sensory and product development experience, John brings a unique perspective to the issues and opportunities facing sustainability in the cocoa and chocolate industries. John has managed cocoa exporting operations in Venezuela and the Dominican Republic, started his own specialty cocoa brokerage business, help build branded sustainability platforms and initiated innovative flavor and technology based development work with USAID and other donor agencies. John joined Guittard Chocolate in April of 2014 as director of sustainability.

A Sustainable Treat: The Future of Biodiversity-friendly Chocolate (View Presentation)

KEY TAKEAWAYS:

In the early ‘90s, Smithsonian researchers noticed a disturbing trend: due to tropical deforestation, populations of migratory songbirds had dropped by nearly half since the 1970s. Expansion and intensification of tropical agriculture removes forests and other wildlife habitat to make room for crops—even for traditionally shade-grown crops like cacao trees—driving the loss of habitat, biodiversity and soil fertility. Recent reports have exposed alarming deforestation driven by cocoa production, some of it on government-protected land, with serious consequences for chocolate companies—and biodiversity.

The Smithsonian Migratory Bird Center (SMBC) is working toward a solution for consumers, companies and producers—not only to minimize cocoa’s negative environmental impact, but also to maximize the crop’s positive impact on biodiversity: Bird Friendly chocolate.

Page 5 of 22

The Bird Friendly® certification concept has proven fruitful in its 20 years of existance connecting growers, importers, roasters and drinkers across the world with coffee grown to “gold-standards” in habitat protection. Though many migratory bird and tropical wildlife species are declining, there is cause for optimism: shaded cacao plantations in forested landscapes can support diverse communities of native plants and animals in addition to people throughout the cocoa supply chain.

This talk targeted chocolate makers and businesses throughout the cocoa supply chain who 1) wanted to source cocoa from farms and landscapes that support biodiversity; 2.) wanted to differentiate their brands with practices scientifically proven to sustain wildlife and biodiversity; 3.) were interested in mitigating negative environmental impacts of cocoa production by implementing and supporting biodiversity-friendly agroforestry systems.

By using Smithsonian science and leveraging the institution’s international reputation, chocolate companies had the opportunity to align high-quality chocolate with gold-standard conservation.

The FCIA presentation was an excellent platform to discuss the science, gain enthusiasm for the market opportunity, and receive feedback on the creation of a new global standard for cocoa agroforestry. The Bird Friendly® coffee certification shows that certified agroforestry practices are not only achievable, but economically, socially and ecologically meaningful.

SPEAKER:

Ruth Bennett, Ph.D., Postdoctoral Research Fellow, Smithsonian Conservation Biology Institute

Ruth Bennett is a postdoctoral research fellow at the Smithsonian Migratory Bird Center who studies the relationships between biodiversity conservation and tropical agroforestry management. She has worked in diverse agroecosystems across Latin America -- including hardwood plantations, oil palm, coffee, and silvopastoral systems -- and seeks build science-based management recommendations that support biodiversity.

Five Ways to Communicate Your Responsible Sourcing Message (View Presentation)Consumers are placing more emphasis than ever before on making responsible food choices for their health, and for ethical considerations including a company’s manufacturing practices and employee welfare. In fact, “The Mindful Consumer” leads the 2018 list of food researcher Innova Market Insights’ top ten food trends.

This workshop presented ways for chocolate companies and associated businesses to tout their efforts concerning responsible sourcing to all their constituents, whether customers, distributors, retail buyers, consumers and the press.

The one-hour presentation delved into five topics:• Tactics That Work• Build Your Message• Tell Your Story• Get the Word Out• Get Inspired: Chocolate Industry Success Stories

KEY TAKEAWAYS:

Today’s “mindful consumer” wants transparency from farm to table. They care about a company’s manufacturing practices, employee welfare, and sustainability practices. This talk covered how a company’s responsible sourcing practices can serve as a powerful way to connect with all stakeholders from suppliers to buyers to press and ultimately to consumers. Following are summaries of each point.

Page 6 of 22

1. How to Craft Your Message Think about what sets your company apart from farm to factory. Do you provide solar water heaters for growers, have you added eco-friendly packaging or provided added benefits to workers? How are you protecting the environment? Highlight the human touch vs. big business. Keep it simple. Track industry trends and connect your work to them. Enter award competitions that recognize corporate responsibility.

2. Appoint a Communications Ambassador Task one or two people to communicate your message to the press and consumers. Identify authentic stakeholders such as the company founder and provide media training and messaging points. (The Almond Board of California appointed a third-generation almond farmer and environmental scientist to speak on sustainability.) Be proactive in communicating your responsible sourcing message.

3. Tell Your Story To stand out in a crowded media landscape, craft simple and compelling messages that focus on authenticity and good business practices. (Bono Olive Oil puts tracking numbers on its bottles to demonstrate its commitment to traceability.) Include your certifications. Everything is a communications tool from packaging to social media.

4. Get the Word Out Small samples are always appreciated. Target and cultivate 10 dream publications. Build relationships and get press lists from trade shows, and publications you read. Target the right media for each message. Distill shortest message for social media. Long form and business publications for more in-depth stories

5. Get Inspired: Check out the Competition This talk featured guest speaker Deborah Kwan, PR consultant for Guittard, who used its 150th anniversary as a platform to communicate the company’s responsible sourcing message.

Guest speaker Jean Thompson of Seattle Chocolate talked about the company’s Rainforest Alliance Certification and direct sourcing, recyclable and compostable packaging and commitment to a cause, in this case addressing hunger. Its website has a Thoughtful Sourcing page; Social media posts tell the story as do factory tours and events.

SPEAKERS:

Louise Kramer, Founder, President of Louise Kramer Communications

Louise Kramer is a public relations and communications professional with extensive experience promoting food brands. As the former communications director for the Specialty Food Association, she conceived and executed the press plan for 16 Fancy Food Shows - the leading trade show in the food world - and landed coverage for each show in dozens of top consumer and trade outlets. Her work garnered coverage in The New York Times, The Wall Street Journal, Food & Wine, and on NPR, The Today Show, Good Morning America, and more. Earlier, Ms. Kramer was a business journalist specializing in food and hospitality and still writes about food and other topics today. She is a graduate of Barnard College and the Columbia University Graduate School of Journalism.

Priscilla MartelPriscilla Martel is a chef, educator and food writer with a special interest in almonds and artisan baking. She creates innovative recipes, marketing programs and products and for her clients in the food ingredient, restaurant and housewares industries. One consulting assignment lead to her four-year tenure as president of American Almond Products Company, an ingredient manufacturer for whom she continues to serve as culinary director. A culinary educator, she is co-author of the award-winning culinary textbooks On Baking: A Textbook of Baking and Pastry Fundamentals and On Cooking: A Textbook of Culinary Fundamentals.

Page 7 of 22

Fresh Chocolate with a Connection to the PalateMegan Hile from Madison Chocolate Company and Maya Schoop-Rutten from Chocolate Maya shared their passion and creativity around making fresh chocolate confections. They believe in opening the doors to future chocolatiers by breaking the mold of one needing official training in pastry schools to have a successful business and creating stellar sweets and treats.

Both Maya and Megan use local products and utilize farmers’ markets or small artisan food producers to make delicious delicacies. Moving away from concentrating on perfecting shelf life, they are directing their focus on selling a fresh product with connection to the palate; it’s the backbone of both of their businesses.

Eating fresh chocolate confections is about an experience and slowing down rather than creating products that will last forever on the shelf.

KEY TAKEAWAYS:

Megan Hile from Madison Chocolate Company and Maya Schoop-Rutten from Chocolate Maya are both committed to making fresh chocolate confections. Instead of focusing on shelf life they each sell fresh product.

Strong proponents of fresh ingredients, they don’t use artificial ingredients and use less sugar leading to a shorter shelf life for their confections. They each shared stories of their inspiration, including an ice cream made with eucalyptus and trips to the farmers market.

They also shared techniques for both creating and selling fresher products. Here are some pearls of their wisdom:• The retail experience is key, including a note in the box that indicates expiration • It takes experimentation to find the right chocolate to pair with fresh fruits or herbs• Non-pastry chefs should not feel that is a handicap — it may lead to more experimentation• Chocolate is temperamental; seek help from colleagues and other professionals if you run into trouble• Think of chocolate more as food than confection. Try pairing chocolate with cheese. And encourage customers to eat

it before a meal instead of always as dessert.

• Product mix is important in retail. Caramels keep the lights on!

• Don’t be afraid to create demand by running out of product.

SPEAKERS:

Megan Hile, Owner, Madison Chocolate Company

Megan Hile is a former educator turned chocolatier. Megan has a passion for creativity, keeping things fresh and sharing her knowledge about chocolate with local area schools, libraries, corporate and personal clients. Madison Chocolate Company was started in the fall of 2012. We were born out of a realization that food prepared well, with high quality ingredients and a thoughtful process can heal the spirit and easily put a smile on one’s face. Madison Chocolate Company is a woman-run microbusiness with a focus on training others to make an incredible product.

Maya Schoop-Rutten, Owner, Chocolate Maya

In 2007 Chocolate Maya set out to create chocolate heaven in Santa Barbara, California. Aiming to help chocolate-lovers discover the world through their taste-buds, we spread our counter with diverse truffles and bonbons and lined our walls with the best bean-to-bars we could find.

Much has happened since our debut: we went to Switzerland to study with the talented and generous Jeremy Ramsauer of La Chocolaterie, our kitchen expanded, excellent new equipment arrived, and production flourished. Our passion for fine chocolate has only grown, and working with seasonal and natural products like fresh herbs, fruits, nuts, and liquors enables us to create exciting flavors and aesthetics while maintaining our dedication to the highest quality ingredients.

Page 8 of 22

Throughout the past ten years, our visits to international cocoa farms have taught us the importance of knowing where our ingredients come from and the impact of our work as chocolatiers at home and abroad. We care deeply about the well-being of cocoa farmers and their families and are committed to working with cocoa sources that pay their farmers a living wage.

The New Generation of Cacao FarmersThe presentation covered how the next generation of cacao farmers, that is, the sons and daughters of current producers, are actively incorporated into the cacao supply chain. They highlighted what the profile of the cacao producers will be in the year 2030 and addressed their challenges and opportunities. This new generation will guarantee the sustainable supply of fine cacao for the industry and assumes a role of change agent. For example, through current projects the youth are helping their parents with bookkeeping; promoting improved practices such as grafting, pruning, shade management; and grain fermentation and testing.

Two young cacao farmers joined this workshop via Skype. Through this presentation the audience came to understand who they are buying from and how the cacao value chain that goes from a producer country to the US market can become stronger in the future.

SPEAKER:

Jorge Brenes, Chief of Party of PROGRESA CARIBE, Catholic Relief Services (CRS)

Jorge Brenes has worked for CRS for the past eight years. Before that, he worked for the Exporter Association Of Nicaragua and for a Multinational Dairy Company. Brenes obtained his Master in Agricultural Economics at The Ohio State University and has more that 20 years working in the agribusiness sector of Central America. Currently, He is the Chief Of Party Of PROGRESA CARIBE, an Initiative finance by USDA and implemented by Catholic Relief Services in Nicaragua. PROGRESA CARIBE works with almost 3,000 cacao farmers and their families.

Use and Care of Chocolate MachineryWhat are the best equipment choices for a business? How do chocolate professionals lessen downtime and increase productivity while optimizing quality control? A trio of leading machinery manufacturers shared their insights. This proved to be an ideal education session for new chocolatiers as well as useful for experienced producers looking to troubleshoot simple problems.

SPEAKERS:

Dr. Balu M. Balasubramanian, CEO, CocoaTown

Dr. Balu has been invited by chocolate festivals around the world to give seminars on bean to bar industry relevant topics. Dr. Balu is a chemist turned to inventor and has developed patented bean to bar equipment. He understands the chemistry and physics of chocolate making in addition to designing machines.

Andal Balu, CocoaTown

Ms. Andal Balu has been invited by chocolate festivals around the world to give seminars on bean to bar industry relevant topics. She is a botanist and now markets bean to bar equipment. Through customer interaction, she understands the new breed of chocolate makers and helps them to get better ROI from their equipment.

Page 9 of 22

Alvaro Bejarano, PKT America Javier Sanchez, South Central Sales Manager, Savage Bros.

Javier Sanchez has worked for the confectionery equipment company Savage Bros. Co. since 1986. He spent most of those 30-plus years working out of its main office in Chicago in almost every department before moving to an outside sales role and handles South Central sales in the U.S. in addition to managing distributors in Central and South America.

Creating Inclusive and Practical Systems for the Sensory Analysis of CocoaRepresentatives from TCHO, Uncommon Cacao, ACOPAGRO Cooperative, and more reviewed their proven methodology for communicating about cacao flavor and quality throughout their respective supply chains.

In this interactive workshop, the presenters shared:

1. The void and need that existed in their organizations before using the Cacao Sensory Analysis Tasting Form

2. How the Cacao Sensory Analysis Tasting form was co-created through the Cooperative Development Program – an eight-year USAID funded collaboration between TCHO, Equal Exchange, and six cacao producer-owned cooperatives in Latin America

3. How they are actively using the form in their organizations and the results they are seeing

4. A guided liquor tasting using the Cacao Sensory Analysis Tasting Form

5. All attendees received a detailed guide to using the Cacao Sensory Analysis Tasting Form to take home

In 2010, TCHO and Equal Exchange initiated the Cooperative Development Program with the objective of strengthening the capacity of their respective supply chain partners in the realms of cacao quality, productivity, and capitalization. When they began in 2010, there was no shared language that producers and buyers could use to communicate about flavor. Using the specialty coffee industry’s tasting system as a model, they set out to develop a Cacao Sensory Analysis Tasting Form and Guide, a Protocol for the Preparation of Liquor Samples, and a Taster Training Program.

The objective of these tools is to achieve a common and inclusive language for quality among all cacao stakeholders. Their hope that this set of open-source resources will empower producers and buyers to engage in transparent conversations around cacao bean quality and the corresponding price. They are actively using them in their own supply chains with strong measurable results of improved calibration and reduced rejection of offer samples. Uncommon Cacao has been supplying cacao into the specialty bean to bar market since 2010, when they started operations in Belize.

KEY TAKEAWAYS:

Laura Ann Sweitzer, source program manager at TCHO, introduced the panel of representatives from Uncommon Cacao, and ACOPAGRO Cooperative and began the program by explaining that until very recently there has been no common language for producers and buyers of chocolate.

There was physical analysis but no sensory analysis the way there is for coffee and wine. Influenced by specialty coffee producers, they embarked on an eight-year USAID funded collaboration between TCHO, Equal Exchange, and six cacao producer-owned cooperatives in Latin America. The three-part goal was to create a cacao sensory analysis and a stan-dardized tasting form and guide, a protocol for the preparation of liquor samples, and a taster training program.

Page 10 of 22

Sweitzer walked the attendees through the process used to create a common and inclusive language for quality among all cacao stakeholders.

The process included: • Creating flavor laboratories• Quality exchanges/Intercambios in person and virtual tasting and calibration sessions Cacao quality contests • Development of open source resources for sensory evaluation of cacao • Standardized cacao taster training

The new form uses categories of aroma, acidity, bitterness, astringency, defects, flavor, and aftertaste. Flavor is broken into cocoa/cacao, sweet, nutty, dried fruit, fresh fruit, floral, spices and other.

The benefits for Cooperative partners include: • Increase in liquor samples analyzed from 25 in 2010 to more than 3,000 by 2018• Quality premiums paid by 2018 are now $5,000,000• TCHO flavors labs have increased from four in 2010 to more than 35 in 2018

For TCHO, the results have led to 70% less rejection of offer samples, better collaboration with partners to achieve desired flavor profiles and an increase in shared understanding around quality premiums, lot approval, and rejections.

Attendees were each given the form, the guide to filling out the form and samples of chocolate to evaluate in the work-shop and at home.

SPEAKERS:

Laura Ann Sweitzer, Source Program Manager, TCHO

Laura Ann Sweitzer is the source program manager at international award-winning TCHO Chocolate, based in Berkeley, California. In addition to working closely with TCHO’s suppliers, Sweitzer focuses on quality and flavor in every step of the sourcing and chocolate making process. Prior to joining TCHO in 2014, Sweitzer spent five years working on quality improvement in coffee supply chains in Latin America, Africa and Asia. Sweitzer grew up on a farm in the Midwest and is passionate about flavor, sustainability, and equity in food.

Stasi Baranoff, Director of Global Operations and Sourcing, Uncommon Cacao

Stasi is the Director of Global Operations and Sourcing at Uncommon Cacao, focused on sourcing high-quality cacao from partners we trust and ensuring social and economic impact in our supply chain. Before Uncommon, Stasi was the Program Director for Sustainable Harvest Coffee Importer’s NGO in Rwanda, helping to build women’s coffee cooperatives, processing centers, and an international market for high quality, women-produced, Rwandan coffee. She holds a BA in Global Studies and an MA in International Development, and has been working overseas in international development for the better part of the past seven years, in microfinance, women’s economic opportunities, coffee, and cacao. Hailing from a family of chocolate makers in Japan and the US, Stasi loves tasting and getting to know the flavor nuances in the beans we source.

Mey Choy Paz and Hernan Garcia Meza assisted in this presentation.

Page 11 of 22

Breakout GroupsChocolatier’s Hardcore Business SessionRichard Tango-Lowy, Master Chocolatier and owner of Dancing Lion, led a discussion on the three critical keys to success as a small chocolatier. Based on performance excellence methods that have been used by some of the world’s most effective businesses for decades, these tools are designed to help one start, grow, and sustainably thrive as a small business in the fine chocolate industry.

KEY TAKEAWAYS:

1. Know what you’re trying to accomplish. Know why your business exists and what you want it to look like in five to 10 years. Dancing Lion Chocolate uses the following:

• Our CORE BUSINESS OBJECTIVE is to make a living and have a good time doing it.• Our MISSION is to surprise and delight every customer with perfect customer service and the highest quality products.

2. Ask questions about every process you create.

Specifically• What are you trying to do?• How are you going to it?• How will you know it’s working?

This is how Dancing Lion Chocolate approaches everything. Regarding packaging, for example:• What are we trying to do? We want unique natural packaging that shows off our products and surprises and delights

our customers.• How are we going to do it? We’re going to have our packing custom made using handmade papers, with a Japanese

“layered” approach to opening and exposing the products.• How will we know it’s working? We’ll monitor feedback from our customers for a year. If we see numerous comments

about the uniqueness and beauty of the packaging, we’ll know it’s successful. Otherwise, we’ll try to identify where the weak points are and where we can improve.

3. Intuitively understand cashflow. Know the difference between revenue and profit, and the difference between price and margin. Understand how your revenues and expenses vary through the year, and ensure you always have sufficient cash reserves to cover deficiencies. Dancing Lion Chocolate keeps a reserve fund to help weather the quieter late summer season when it needs to start building inventory for the holidays.

4. Don’t go it alone. Use resources such as the U.S. Small Business Administration (SBA), Small Business Development Centers (SBDC), local Chambers of Commerce, and other business support groups to help expand your knowledge and understanding. Dancing Lion Chocolate has an Advisory Board of volunteer experts who provide knowledge in multiple areas.

GROUP LEADER:

Richard Tango-Lowy, Dancing Lion Chocolate

Chocolatier Richard Tango-Lowy has been working with chocolate since 1996. He graduated with honors from Ecole Chocolat in Vancouver, and earned his Master Chocolatier designation at Ecole Du Grand Chocolat Valrhona in Tain L’Hermitage, France and a second at Ecole Chocolat’s Master Chocolatier course in Tuscany. He is a member of the Ecole Chocolat faculty, and was recently appointed to the Board of Directors of the Fine Chocolate Industry Association and the Heirloom Cacao Preservation Initiative.

Page 12 of 22

Mr. Tango-Lowy opened Dancing Lion Chocolate in Manchester, New Hampshire in 2007, where he uses small farm and artisan chocolate to craft his bonbons and confections, each of which is made only one time. In 2016, Dessert Professional Magazine recognized Mr. Tango-Lowy as one of their Top 10 Chocolatiers in North America, and more recently, London-based Lux Magazine awarded him 2018 Chocolatier of the Year for the Northeast USA.

Meet the BakerThis session was a fireside chat with a few prominent pastry chefs from San Francisco, moderated by Todd Masonis, Dandelion Chocolate. It was geared toward chocolate makers to better understand how chefs use their products or those interested in using chocolate as an ingredient.

GROUP LEADER:

Todd Masonis, CEO and Co-Founder, Dandelion Chocolate

Todd Masonis graduated from Stanford University in 2001 with a degree in Symbolic Systems specializing in Computational Linguistics. After Stanford, Todd co-founded the internet start-up Plaxo with his friend Cameron Ring, which was sold to Comcast in 2008. After leaving the tech world, he reignited his lifelong love of chocolate through a traveling sabbatical, studying everything from the old chocolate making traditions in France to the best way to smash cocoa beans in his kitchen. Soon enough, he and Cameron founded Dandelion Chocolate, a small-batch, bean-to- bar chocolate factory in San Francisco’s Mission District.

PARTICIPANTS:

Lisa Vega, executive pastry chef, Dandelion Chocolate Angela Pinkerton, James Beard award-winning pastry chef (CheFico, Eleven Madison Park Restaurant) Ramon Perez, Puur Chocolate, De Librije, Parkheuvel and Pierre Gagnaire

Regulatory UpdateMarlene Stauffer, Blommer Chocolate, provided an update on various regulatory topics impacting the fine chocolate industry including: chocolate standards of identity; FSMA; nutritional labeling; organics; nonGMs; and gluten free.

KEY TAKEAWAYS:

This discussion provided a guide through the Regulatory Requirements needed to make a legal, safe, authentic product.• Chocolate Standards of Identity and labeling was discussed. • The new Food Safety Modernization Act (FSMA) was signed into Law in 2011. Attendees learned how this impacts

manufacturing and what controls are needed as far as Preventive Controls, Food Safety, Foreign Suppliers, Environmental controls, Sanitation, and Roaster Validations.

• Proposition 65 is a Hot Topic and was discussed• Nutritional Labeling is changing – what are the most recent changes and when do companies need to comply. • Other topics included nonGMO Project, Organic, and Gluten Free.

The session provided tools to aid in decision-making, development strategy, and manufacturing procedures to provide high quality, transparent products to customers.

Page 13 of 22

GROUP LEADER:

Marlene Stauffer, Director of Quality Assurance / Regulatory Compliance, Blommer Chocolate Company

Marlene has been with Blommer Chocolate Company since 1982. She is presently the Director of Quality Assurance/ Regulatory Compliance. She is involved with all aspects from manufacturing to quality systems and from product development to technical assistance for customers.

Marlene is a member of the PMCA Research Committee, Membership and Education Committee, Institute of Food Technologists, American Association of Candy Technologists, the NCA Chocolate and Regulatory and Health and Nutrition Committee, Pa Food Industry Advisory Board, and Food Industry Group. She is a past recipient of the Marie Kelso Award.

Plenary DiscussionExecutive Director’s RemarksSPEAKER:

Bill Guyton, Executive Director, Fine Chocolate Industry Association

Bill Guyton is a senior-level leader within international agribusiness and non-profit organizations who is committed to leading the creation and implementation of global sustainability best practices. Throughout his career, he has been recognized for his ability to create public-private partnerships as well as his ability to develop resilient supply chain and community-based programs.

Bill currently is Executive Director to the Fine Chocolate Industry Association (FCIA) where he provides strategic leadership for over 350 company members. He also consults for private firms and non-profits on strategic planning, technical training, and partnership development. Prior to his current assignments, Bill was the founder and CEO of the World Cocoa Foundation for 15 years where he grew the organization from a handful of companies to a globally recognized organization with 115 members representing 85% of the global chocolate industry. He also has worked in other agricultural value chains such as feed grains, livestock and fruits and vegetables. In addition to his career record of successful leadership, he currently serves on the Advisory Board for the World Food Law Institute, a member of The Alliance to End Hunger, and the Association for International Agriculture and Development..

Industry Outlook / Regulatory Update (View Presentation)

KEY TAKEAWAYS:

Chocolate Never Felt or Tasted So Good Consumers have always had a deep love for chocolate. With gourmet and specialty chocolate products poised to continuing to capture the hearts and attention of shoppers, especially the elusive millennial shopper, how can the industry best position itself to make the most of the opportunities ahead? We looked at current and predicted consumption trends, revealed new chocolate-specific shopper and market data, explored how the industry’s Always A Treat Initiative helps carve out a unique role for chocolate and candy, and examine the regulatory concerns on the horizon. The President & CEO of the National Confectioners Association, John Downs, provided this industry outlook and regulatory update.

Page 14 of 22

OUTLINE:• Sales and consumption trends

• Sales performance• Shopper Insights• Demographics

• Candy Moments and Seasons• Always A Treat Initiative• Regulatory Update• Opportunities Ahead

• Transparency• Sustainability• Technology• Our Demographic Destiny

SPEAKER:

John Downs, CEO and President, National Confectioners Association

John H. Downs, Jr. was named president and chief executive officer of the National Confectioners Association and NCA’s Chocolate Council in 2014. As the chief representative of the Association, John manages strategic direction and daily operations of the Washington, DC-based trade group, and serves as the primary voice for the $35 billion U.S. confectionery industry.

The Association has a robust public policy agenda; hosts the American confectionery industry’s largest trade show, the Sweets & Snacks Expo; conducts scientific and shopper research; has a well-established international marketing program for U.S.-made products; and serves as the primary voice for the chocolate, cocoa, non-chocolate and gum industries in the United States across a variety of audiences. In 2015, John was appointed to the U.S. Chamber of Commerce’s prestigious Association Committee of 100 (C100).

Heirloom Cacao Preservation PresentationHCP Secretary/Treasurer Pam Williams, Ecole Chocolat, gave an update on the success of the most recent HCP efforts. Ed Seguine, Seguine Cacao, Cocoa and Chocolate Advisors/Guittard Chocolate Company, and Anne Zaczek announced the newest HCP designees and conducted a tasting.

SPEAKERS:

Pam Williams, Secretary/Treasurer, Heirloom Cacao Preservation; Founder and Lead Instructor, Ecole Chocolat

Pam Williams is the founder and lead instructor of Ecole Chocolat Professional School of Chocolate Arts, which she started in 2003. It offers a portfolio of programs for chocolate making in order for its students to gain a deep understanding of modern techniques, recipes, equipment, efficient production, operations, marketing, quality assurance and the business knowledge – all the skills needed to become a professional chocolatier or chocolate maker.

Earlier in her career she founded au Chocolat in 1981 in Vancouver, B.C., and spent 10 years as master chocolatier for the chocolate-making retail and wholesale business whose specialty was gourmet chocolate truffles. During that time, she also taught chocolate-making programs and courses on starting a business for many different organizations and wrote numerous articles on chocolate and chocolate candy making.

Her first cookbook, Oh Truffles by au Chocolat, was a best-selling cookbook with a second printing.

Page 15 of 22

Ed Seguine, Seguine Cacao Cocoa & Chocolate Advisors

Ed Seguine has created craft chocolate from bean-to-bar for over a third century. His passion for the diversity and purity of flavor in chocolate has led him to chair the ICCO Fine and Flavour Panel, Chairs the Cocoa of Excellence Technical Committee, and Chairs the Fine Chocolate Industry Association-Heirloom Cacao Preservation Sensory Committee. His lab processes and evaluates cocoa beans providing liquor and chocolate evaluations and he continues to consult for Guittard Chocolate as they near their 150th year and 5th generation of the family management. While we work to develop sustainable supply chains we must not lose sight of the reason that cocoa exists—to provide flavor that delights and creates memories.

Keynote Presentation (View Presentation)

SPEAKER:

Chi Bui, Head Chocolatier, K+M Extravirgin Chocolate

Chi Bui is the head chocolatier of Thomas Keller and Armando Manni’s K+M Extravirgin Chocolate. She oversees production, bean sourcing, product development and K+M’s ongoing research with the University of Florence.

Bui came to K+M from Romera restaurant in New York, where she worked on the highly praised chocolate program: a groundbreaking single-origin, bean-to-bar effort that was pioneering for a fine-dining restaurant. At Romera, Bui worked with neurologist-chef Miguel Sanchez Romera, who introduced her to the idea of integrating health, science, art and gastronomy. Bui also honed her chocolate-making skills as the head chocolatier at Cacao Prieto in Brooklyn.

Before focusing exclusively on chocolate, she worked in the pastry kitchens of some of New York City’s finest restaurants, including Le Bernardin, Union Square Cafe, Gotham Bar and Grill and Daniel.

To her work sourcing responsibly grown cocoa beans from around the world, Bui brings her previous experience working at the United Nations Development Program. There, she helped developing countries get funding and technical resources and establish networking infrastructure. Bui holds a bachelor of arts degree in literature and writing from the Eugene Lang College at The New School.

Page 16 of 22

Partnership ShowcaseThe Partnership Showcase participants for Elevate Chocolate Winter 2019 Beyond the Bar: New Frontiers for Chocolate highlight the depth and breadth of our nonprofit partnerships -- and the vital role each of them plays in fostering and growing our entire industry across the value chain.

We’re so fortunate to work with these fine global organizations. Bringing them together in San Francisco gave show attendees the unique opportunity to leverage their collective insight, expertise, and vision in order to better meet the many opportunities and challenges they face in 2019.

Catholic Relief Services (CRS) Nicaragua is connecting cacao buyers in the U.S. to producers in that country. CRS supports thousands of cacao farmers and their families in Latin American who depend on their cacao plantations; they ensure that these farmers are able to connect with formal buyers who are interested in building long-term relationships.

Cultivating New Frontiers in Agriculture, an international agricultural development organization, recently partnered with FCIA on the Maximizing Opportunities in Cocoa Activity (MOCA) project in Côte d’Ivoire. The goal is to increase the productivity and efficiency of the country’s cocoa value chain, boosting the quality of crops, expanding cocoa trade and ultimately improving the incomes and livelihoods of cocoa farmers.

Fair Trade USA is a nonprofit organization that promotes sustainable livelihoods for farmers and workers; protects fragile ecosystems; and builds strong, transparent supply chains through independent, third-party certification. Its trusted Fair Trade Certified™ label signifies that rigorous standards have been met in the production, trade and promotion of Fair Trade products from over 80 countries across the globe.

Rainforest Alliance is a nonprofit organization that promotes sustainable livelihoods for farmers and workers; protects fragile ecosystems; and builds strong, transparent supply chains through independent, third-party certification. Its trusted Fair Trade Certified™ label signifies that rigorous standards have been met in the production, trade and promotion of Fair Trade products from over 80 countries across the globe.

Page 17 of 22

Gallery ShowcaseThe Winter 2019 Gallery Showcase witnessed participants buzzing with excitement about the latest trends courtesy of these expert value-chain partners.

• ABM Equipment• ASpecialtyBox.com• Biocacao Del Ecuador• Blommer Chocolate• Chef Rubber• Cemoi• Cocoatown• Conexion• Dallas Chocolate Festival • Deershop Chocolate• Diamond Custom Machines• EZtemper by the Chocolate Doctor• Guittard Chocolate Company• Heirloom Cacao Preservation• KahKow• Mesocacao• Northwest Chocolate Festival• PMCA• Rockgate Group• Savage Brothers• SUA Soluciones Energéticas• TCF Sales• Tomric

Page 18 of 22

Chocolate Sampling TableThank you, contributors.

Learn more about the contributors by visiting their websites:

Blommer Chocolate

BOHO Chocolate

Castronovo Chocolate

Cemoi

Conexion

Dancing Lion Chocolate

Dandelion Chocolate

Flying Noir

French Broad Chocolates

Lake Champlain Chocolates

Ritual Chocolate

SUA Soluciones Energéticas

Page 19 of 22

Not So Silent AuctionLoud acclaim for a fun fund-raising event

We are very grateful to our 16 generous donors, who contributed wonderful prizes -- and to all the bidders who partook of the fun -- and walked away with amazing deals! The auction raised a total of $3,325, which will go to support FCIA’s educational activities.

Thank you...

To the many bidders who participated and the generous auction item donors who made real noise with the silent auction:

• Alto Beni Cacao Co.• Amano Chocolate• BFREE • Blommer • Burleigh Dodds Science Publishing• Chef Rubber• Cocoatown • Dallas Chocolate Festival• Diamond Custom Machines• EZ temper• Guittard• InterContinental SF• PMCA• Safranne Chocolate Moulds• Seattle Chocolate• TCHO

Page 20 of 22

Gold Event Sponsors

Silver Event Sponsors

Bronze Event Sponsors

Media Sponsors

Partnership Showcase Exhibitors

Catholic Relief Services CNFA Maximizing Opportunities in Cocoa Activity

Fair Trade USA Rainforest Alliance

Page 21 of 22

Thank you, FCIA/HCP Directors * Educational Committee Member

FCIA Board of Directors

Clark Guittard (Guittard Chocolate Company), President

Brad Kintzer (TCHO Chocolate), Vice President/Treasurer

Lauren Adler * (Chocolopolis)

Andal Balu (Cocoatown)

Greg D’Alesandre (Dandelion Chocolate)

Jenna Derhammer (Blommer Chocolate)

Daniel Domingo * (Atlantic Cocoa / ECOM Cocoa)

Mark Harman (Mesocaco)

Eric Lampman (Lake Champlain Chocolate)

Jason Los (Perennial Chocolate)

Maricel Presilla * (International Institute of Chocolate and Cacao Tasting, Gran Cacao & Blue Cacao)

Pam Williams (Ecole Chocolat), Past President

Plus, additional members of the FCIA Education Committee:

Dan Domingo, Chairman

Richard Tango-Lowy (Dancing Lion)

Curtis Vreeland (Vreeland Associates)

Melanie Boudar

Art Pollard

Bill Guyton

Kristy Leissle

Sander Wolf (Dallas Chocolate Festival)

Maya Schoop-Ruten (Chocolate Maya)

Todd Masonis (Dandelion)

HCP Staff and Board of Directors

Anne Zaczek, HCP Executive Director

Pam Williams (Ecole Chocolate), President

Jacob Marlin (BFREE), Secretary/Treasurer

Dan Pearson (Marañón Chocolate) Past President

Mark Christian (The c-Spot) Director HCP Fund

Brad Kintzer (TCHO), Bean Submission Committee

Robert Bowden (Vivere Chocolates)

Greg D’Alesandre (Dandelion Chocolate)

John Kehoe (Guittard Chocolate Company)

Clark Guittard (Guittard Chocolate Company)

Bill Copeland (Glacier Confection)

Jody Hayden (Grocer’s Daughter Chocolate)

And, Thank You, FCIA StaffBill Guyton, Executive Director

Jennifer Wicks, Member Service Manager

Nicole Price, Event Manager

Matisse Geenty, Event Assistant

Karen Bryant, Senior Adviser

Thank You, VolunteersWe couldn’t have done it without you! Alyssa Baker-Blanc

Anne Baldzikowski

Robert Bowden

Andrew Carter

Romeo Garcia

Minerva Gomez

Sarit Henig

Susan Jensen

Claire Kehn

Denise Keplinger-Sorkin

Shanah Luhmann

Glenn Petriello

Stacy Radin

Steve Schechner

Amy Sherman

Chanel Snowden

Eleni Valverde

Nelson Valverde

Madeline Weeks

Stephanie Westhelle

Renata Zacarias

Page 22 of 22

Mark your calendarsFCIA Elevate Chocolate – Summer 2019

June 22, 2019 | New York City

FCIA Board of Directors: 2019-2020