INTEGRATED TUTORIAL

ELABORATION AND COMMERCIALIZATION OF DARK CHOCOLATE BUTTER WITH ORGANIC

COCOA MEMBERS: Marilyn Martinez, Jennifer Medranda, Brigitte Petroche, Angie Recalde, Melissa Vera

CHOCOLATE EMPIRE2

"Chocolate Empire" is a new company founded by a group of students from UCSG

Star product "ChocoDarky" which is a black chocolate butter that contains multiple benefits for the health.

Dark chocolate cocoa contains: fiber, iron, magnesium, copper, manganese, potassium, phosphorus, zinc and selenium.

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MISSIONTo be an innovative company specialized in the production, sale and distribution of dark chocolate butter, with the aim of satisfying the palate of our Ecuadorian market, through innovative products characterized by being low in fat and sugar, with a high quality

VISIONTo be a company recognized in the local market, expanding our range of products derived from the cocoa and in a future grow at the international level to provide quality products

VALUES4

Leadership Quality

Confidence Originality

TARGET MARKET5

Ecuadorian people

Between 6-60 years

Socio-economic level medium-low, medium-high and high,

Enjoy eating black chocolate

Have a tendency to take care of their health.

Nutritional Contribution of the dark chocolate butter

6

Dark chocolate favors the

circulation of blood to the

brain to improve brain function

Improve blood flow and Lower Blood Pressure

Reduces the levels of tension and aggression,

LOCAL PRODUCTION OF THE PRODUCT

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Los Ríos

Guayas

Manabí

Sucumbíos

NATIONAL COMPETITORS8

DIRECT COMPETITOR:

DELIBÚ

INDIRECT COMPETITOR:

NUTELLA

DIRECT COMPETITION, ECUADOR 9

VALENCORP INDUSTRIA CACAOTERA KUNTUCAO CIA.LTDA (Organic Chocolate Butter)

COMPAÑIA ECUATORIANA PRODUCTORA DE DERIVADOS DE COCOA C.A. ECUACOCOA. (Chocolate Butter)

ARRIBA CHOCOLATE COMPANY S.A. CHOCOMPANY. (Chocolate Butter)

CHOCO DARKY 10

One of the main trends in the chocolate industry has been a greater focus on the health benefits of chocolate, which has contributed to the growth of the consumption of dark chocolate, known for its antioxidant properties.

PRODUCTION PROCESS11

Arrival of the raw material

Selection of the seeds Toste the seeds Peal the seeds

Ground the seeds

Mix and Process the ingredients

Cook the mixture

Wait until the mixture gets

cold

Put the mixture into the package

Put the labels in each package.

All the packages are

put in Cardboard

Boxes.

TIME OF REQUIREMENT RM12

Raw material TimeSeeds Once a month

Honey Twice a month

Brown Sugar Once a month

Cinnamon Once a month

Salt Once a month

Cornstarch Once a month

Milk Every two weeks

Milk Powder Once a month

Glass Package Twice a month

Label Once a month

Cardboard boxes

Twice a month

SUPPLIERS13

Hacienda Herrera km 26 vía al Triunfo

• Cocoa seeds and Honey bee

Central Market, Guayaquil

• Brown sugar, milk, powder Milk, cinnamon, salt and cornstarch.

Label: Imprenta de artes gráficas Espinoza.

Cardboards boxes: Central Market, Guayaquil.

DISTRIBUTION CHANNELS14

INBOUND LOGISTICS15

PROCESS THE RAW MATERIAL

DISTRIBUTE TO STORES AND

SUPERMARKETS

SUPPLIER PROVIDE THE

RAW MATERIAL

TRANSPORTATION

RECEIVE RAW MATERIAL FROM

SUPPLIER

DISTRIBUTION CHANNELS16

SuppliersMercado Central.Printing graphic

arts.Hacienda Herrera

km 26 vía al Triunfo

Chocolate Empire Company

Transform the raw material

SupermarketsTía

Gran AkíMi comisariato

Final Customer

OUTBOUND LOGISTICS17

CHOCOLATE EMPIRE CUSTOMERS

Our product will be delivered in:

- Supermarkets

So, we have to maintain a good relationship with the owners of the supermarkets and be willing to receive feedback from them as they are those who are directly related to our market.

Chocolate Empire will be delivered the product according to their needs, and we will have a good communication to our customers to be aware of any change in the orders.

It’s important to satisfy our customers to maintain a good relationship with them and to have a good business environment.

MARKET ANALYSIS

▸ The survey was conducted to students of the career Commerce and finance international business of the Catholic University.

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19

88%

12%

DO YOU LIKE DARK CHO-COLATE?

YesNo

Elaborado por: Chocolate Empire group

4%

96%

HAVE YOU CONSUMED DARK CHOCOLATE

BUTTER?

YesNo

Elaborado por: Chocolate Empire group

20

65%

3%

32%

WOULD YOU LIKE TO CONSUME THIS

PRODUCT?

YesNoIt depends

Elaborado por: Chocolate Empire group

34%

61%

4% 1%

AFTER YOU HAVE TASTED THE PRODUCT. WHAT IS

YOUR OPINION ABOUT THE PRODUCT? DID YOU LIKE

THE TASTE? Strongly agreeAgreeUndecidedDisagreeStrongly Disagree

Elaborado por: Chocolate Empire group

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4%

96%

WOULD YOU PURCHASE THE PRODUCT?

NoYes

Elaborado por: Chocolate Empire group

18%

82%

WHAT PRESENTATION SIZES WOULD YOU LIKE

THE PRODUCT?Medium (350gr) Small (200gr)

Elaborado por: Chocolate Empire group

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76%

23%

1%

IN WHICH PLACES WOULD YOU LIKE TO FIND THE PRODUCT? OR WHERE

IS IT MORE LIKELY TO BUY THIS PRODUCT? Bakeries

SupermarketsNeighborhood shopsWeb SitesApps

Elaborado por: Chocolate Empire group

INTERNATIONAL MARKETS ANALYSIS▸ PERCENTAGE PARTICIPATION OF THE MAIN ECUADORIAN EXPORT PRODUCTS

(FOB) IN 2016.

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Cocoa and its processed products is the third most

traditional product exported by Ecuador with

a participation percentage of 6.4% from

the total of the exportations in 2016.

INTERNATIONAL TRADEThe main importer

of Ecuadorian products.

The third largest importer of

products made with chocolate in the

world.The fith largest

importer of products

made with chocolate of

Ecuador.

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CHARACTERISTICS OF AMERICAN CONSUMER

 

Credit culture

Value comfort

Concerns about safety, the environment and healthy life.

They use natural products.

Acquire products that do not pollute.

Interested in fresh produce.

COST OF THE PROJECT

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27 PRODUCTION CAPACITYQuantity

2 660 L (55 lit. per pot)1 100 Kg/h1 360 packages per hour2 360 packages per hour1 500 Kg/h2 360 packages per hour1 450 Kg/h4 1600 packages per hour1 200 Kg/h1 900 Kg/h (4 amounts of 225 kg c/u)

Mixer Machine.Labelling Machine.

Machinery Maximun capacity of production

Industrial Mill .Industrial refrigerators.Peeling of grains.Grain roasting machine.

Industrial Kitchen Stainless Steel (6 burners).Food processing machine.Filling machine for containers (3 nozzles).Vacuum sealing machine.

PROCESSTime/ Minutes

Toast the grains. 15Peel the grains. 1,2Grind the grains. 0,53Food processing. 6Mix all the ingredients. 1,2Cook the mixture. 25TOTAL ELABORATION 48,93Fill glass package 8,33Seal vacuum packaging. 8,33Put the labels in the package 8,33TOTAL PACKAGE. 24,99TOTAL daily production. 73,92

MAXIMUM PRODUCTION CAPACITY 1 hour # minutes

Product units. 50 packages,

Hours of work per day. 8 hoursProduct units Per day. 324 packages

6480 packagesAnnual product unit 77.760,00 packages

MAXIMUM PRODUCTION CAPACITY 500 TOTAL HOURS OF PRODUCTION PACKAGING. 1 hour # minutesProduct units. 50 packages,

Hours of work per day. 8 hoursProduct units Per day. 324 packagesUnits of product on a monthly basis. 6480 packagesAnnual product unit 77.760,00 packages

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2981

DETAIL 200 grmUNITARY

QUANTITY UNITARY COST TOTAL MONTHMilk powder 40gr 40,00 0,28889$ 861,12$ Milk 40 ml 40 0,02600$ 77,50$ Cinnamon 2,4 gr 2,4 0,02400$ 71,54$ Honey 15ml 15 0,15000$ 447,12$ Cocoa 80 gr. 80 0,12000$ 357,70$ Brown Sugar 20 gr. 20 0,01750$ 52,16$ Salt 0,2 gr. 0,2 0,00005$ 0,15$ Cornstarch 0,6 gr. 0,6 0,00195$ 5,81$ TOTAL RAW MATERIAL 0,63$ 1.873,10$

DIRECT WORKFORCE

DETAIL QUANTITY UNIT COST TOTAL MONTHOperatives workers 4 494,50$ 1.978,00$ TOTAL WORKFORCE 1.978,00$

INDIRECT COST OF MANUFACTURE

DETAIL QUANTITY UNIT COST TOTAL MONTHINDIRECT LABORChief of operation department 1 845,26$ 845,26$ INDIRECT RAW MATERIALGlass package 200 gr. 2.981 0,30$ 894,24$ Cardboards boxes 100 1,00$ 100,00$ Labels 2.981 0,05$ 149,04$ OTHER INDIRECT COST OF MANUFACTUREIndustrial Gas 1 100,00$ 100,00$ TOTAL INDIRECT COSTS 2.088,54$ TOTAL PRODUCTION COST 5.939,65$

COST OF THE PRODUCT

DETAIL MONTHLY ANNUALRAW MATERIAL 1.873,10$ 22.477,22$ DIRECT WORKFORCE 1.978,00$ 23.736,00$ INDIRECT COST OF MANUFACTURE 2.088,54$ 25.062,54$

COST OF PRODUCTION 5.939,65$ 71.275,76$ ADMINISTRATIVE EXPENSES 3.467,97$ 41.615,60$ SELLING EXPENSES 385,00$ 4.620,00$ COST OF DISTRIBUTION 3.852,97$ 46.235,60$

TOTAL COST 9.792,61$ 117.511,36$ PRODUCTION UNITS 4.000 48.000

PRICE OF SALE TO DISTRIBUTORS 3,40$ 3,40$

PVP. FINAL CONSUMER 4,00$ 4,00$ Unit cost 1,48$ 1,48$

TOTAL FIXED COSTS 10.143,18$ TOTAL VARIABLE COST 61.132,58$ 1,27$

TOTAL ANNUAL COST 71.275,76$

Dark chocolate butter 200 gr

NATIONAL PRODUCTION

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3000

DETAIL 200 grmUNITARY

QUANTITY UNITARY COST TOTAL MONTHMilk powder 40gr 40,00 0,28889$ 866,67$ Milk 40 ml 40 0,02600$ 78,00$ Cinnamon 2,4 gr 2,4 0,02400$ 72,00$ Honey 15ml 15 0,15000$ 450,00$ Cocoa 80 gr. 80 0,12000$ 360,00$ Brown Sugar 20 gr. 20 0,01750$ 52,50$ Salt 0,2 gr. 0,2 0,00005$ 0,15$ Cornstarch 0,6 gr. 0,6 0,00195$ 5,85$ TOTAL RAW MATERIAL 0,63$ 1.885,17$

DIRECT WORKFORCEDETAIL QUANTITY UNITARY COST TOTAL MONTHSocial networks 8 711,05$ 5.688,43$ TOTAL WORKFORCE 5.688,43$

INDIRECT COST OF MANUFACTUREDETAIL QUANTITY UNITARY COST TOTAL MONTHINDIRECT LABORSpending domain and hosting web page 1 845,26$ 845,26$ INDIRECT RAW MATERIALGlass package 200 gr. 3.000 0,30$ 900,00$ Cardboards boxes 250 1,00$ 250,00$ Labels 3.000 0,05$ 150,00$ OTHER INDIRECT COST OF MANUFACTUREIndustrial Gas 4 200,00$ 800,00$ TOTAL INDIRECT COSTS 2.945,26$ TOTAL PRODUCTION COST 10.518,86$

COST OF PRODUCT

DETAIL MONTHLY ANNUALRAW MATERIAL 1.885,17$ 22.622,00$ DIRECT WORKFORCE 5.688,43$ 68.261,18$ INDIRECT COST OF MANUFACTURE 2.945,26$ 35.343,18$

COST OF PRODUCTION 10.518,86$ 126.226,35$ ADMINISTRATIVE EXPENSES 4.646,43$ 55.757,17$ SELLING EXPENSES 558,00$ 6.696,00$ EXPORTATION EXPENSES 700,00$ 8.400,00$ COST OF DISTRIBUTION 5.204,43$ 70.853,17$ TOTAL COST 15.723,29$ 197.079,52$ PRODUCTION UNITS 6.000 72.000

PRICE OF SALE TO DISTRIBUTORS 4,00$ 4,00$ PVP. FINAL CONSUMER 4,50$ 4,50$

Unit cost 1,75$ 1,75$

TOTAL FIXED COSTS 10.143,18$ TOTAL VARIABLE COST 227.405,53$ 3,16$

TOTAL ANNUAL COST 237.548,71$

Dark chocolate butter 200 gr

PRODUCTION FOR EXPORTATION

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DESCRIPTION VALUE % DE INV.

Operation equipment 1.985,00$ 2,64%

Computer equipment 2.580,00$ 3,35%Furniture and appliances 1.160,00$ 1,51%Machinery 33.196,38$ 43,10%TOTAL FIXED ASSETS 38.921,38$ 51,81%Constitution expenses 685,00$ 0,89%Preoperational expenses 5.048,00$ 6,55%TOTAL DEFERRED ASSETS 5.733,00$ 7,44%Working Capital 31.351,23$ 40,71%TOTAL CURRENT ASSETS 37.084,23$ 48,15%INITIAL INVESTMENT OF THE PROJECT 77.020,00$ 100,00%

INVESTMENT PLAN

INVESTMENT PLAN

STOCKHOLDERS APORTATION %Brigitte Petroche 7.748,25$ 20,00%

Angie Recalde 7.748,25$ 20,00%Jennifer Medranda 7.748,25$ 20,00%Melissa Vera 7.748,25$ 20,00%Marilyn Martínez 7.748,25$ 20,00%TOTAL APORTATIONS 38.741,23$ 100,00%

STOCKHOLDER APORTATION

SOURCE VALUE %CAPITAL 38.741,23$ 51,57%LOAN CFN 36.387,17$ 48,43%TOTAL INVESTMENT 77.020,00$ 100,00%

FINANCE

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Period EQUITY USD NET PROFITS USD ROE OR RM USD

2011 80.483.467,16$ 7.411.435,48$ 0,092012 90.398.759,38$ 7.754.063,44$ 0,092013 97.421.300,82$ 9.368.349,08$ 0,102014 106.017.887,12$ 16.383.083,43$ 0,152015 105.298.566,04$ 13.005.031,00$ 0,12

11,04%

ROE LA FABRIL S.A. 2011-2015

Source: Superintendencia de Compañías, Valores y Seguros, 2017

CAPMROE: RETURN OF EQUITY

Unlevered beta 0,610Tax rate Ecuador 33,70%% DEBT 48,43% DEBT 36.387,17$ % EQUITY 51,57% EQUITY 38.741,23$ D/E 93,92% 93,92%

LEVERED BETA = Bu*(1+(1-T)*D/E)LEVERED BETA = 0,99

Food Processing

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SOURCE VALUE %CAPITAL 38.741,23$ 51,57%LOAN CFN 36.387,17$ 48,43%TOTAL INVESTMENT 77.020,00$ 100,00%

FINANCE COST OF THE PROJECTFIXED ASSETS 27.244,97$ WORKING CAPITAL 9.405,37$ DEBT 36.387,17$ CAPITAL 38.741,23$ INITIAL INVESTMENT 77.020,00$

INVESTMENT PLAN- COST OF THE PROJECT

LOAN ValueInterest

rateAverage

media Cost of debtFIXED ASSETS 27.244,97$ 10,50% 75% 7,86%

WORKING CAPITAL 9.405,37$ 9,50% 25% 2,39%DEBT 36.387,17$ % of Cost 10,25%

Dird= (1-T)* rd(1-33,77%)*10,25%

6,79%

WACC = (1-L)Re+L+Dird((1-48,43%)* 13,78%)+48,43%*6,79%

10,39%

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BIBLIOGRAPHICAL SOURCES

ARCSA (2016). Control sanitario. Tasas registros sanitarios/ notificaciones sanitarias. Recuperado de

http://www.controlsanitario.gob.ec/wp-content/uploads/downloads/2014/11/ie-d.1.1.-ali-01-

a1_requisitos_rs_alimentos_nacionales.pdf

 

Gunnars, K. (2016). 7 proven health benefits of dark chocolate. Authority nutrition. Retrieved from:

https://authoritynutrition.com/7-health-benefits-dark-chocolate/

ARCSA (2016). Control sanitario. Tasas registros sanitarios/notificaciones sanitarias. Retrieved from:

http://www.controlsanitario.gob.ec/wp-content/uploads/downloads/2016/01/Tasas-servicios-Arcsa-

2016.pdf

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