Coti Chocolate Manufacturers
| Business Location: | Urban |
| Province | Eastern Cape |
| Branch: | Nelson Mandela Bay |
| Business Start Date: | |
| Busniess Type: | Company |
Business Dynamics and Challenges
Business Activities:
Coti Chocolate was founded in 2004 with the vision of producing a heat-stable, affordable chocolate to expand the mass market across Africa, beyond the traditional supermarket and retail channels. The product was developed for the lower income consumers, but the business had to diversify their product range by developing new products due to the socio-economic conditions of their target market. The business operates from Kensington in Gqeberha.
Chris Parkin, the Managing Director brought a wealth of experience from Mars Inc., where he led the export division focusing on emerging markets. Notably, he established Mars's presence in Turkey and created a successful business from scratch in the newly democratic South Africa, leading to Mars's first factory investment in Africa.
In 2010, Coti ventured into the formal retail channel with the launch of Bake & Eat, a leading baking chocolate brand in South Africa, now available in major retailers nationwide and exported to countries like Mauritius and Zambia. The company introduced Peanut Butter Max, South Africa's first real peanut butter bar with a unique centre filling, setting it apart from competitors.
In 2017 they identified a market gap in zero added sugar chocolate, an area largely neglected by major players like Mars, Nestle, and Hershey due to the complexities and costs associated with production changes. As an independent manufacturer without these constraints, Coti established a separate production line dedicated to zero added sugar products, allowing them to cater to the growing consumer demand for reduced sugar consumption. Recent research indicates a significant global shift towards healthier diets and reduced sugar intake, with taste remaining a crucial factor.
By recognizing the consumer trend towards reduced sugar consumption Coti developed Peanut Butter Zero chocolate, leveraging their successful Peanut Butter Max as a platform in 2018. By 2019, they were the only manufacturer producing both zero added sugar slabs and bars. The product received positive international feedback at events like Gulfood in Dubai and the New York City Wine and Food Festival, leading to successful sales tests in the UK and US.
Coti is one of the few independent chocolate manufacturers in a market dominated by multinational corporations. It is also one of only two manufacturers in South Africa producing zero added sugar chocolate.
Challenges/Needs:
The business faced challenges with accessing international markets like the UK and US that was previously tested towards the end of 2019. Attending international exhibitions post-Covid pandemic has become crucial for marketing their products to buyers. To address these challenges, mentorship and market access/facilitation assistance have been recommended. The UK market is the second largest market for zero sugar chocolate in the world.
Intervention Insights and Results
Intervention Details:
A successful application was submitted to Seda which allowed the client to attend the International Food and Drink Event in London in March 2024.
Outcome Details:
As a result, the business was able to export a once off shipment to the US to the value R1.5 million and managed to sustain 35 jobs.
Client Feedback
Client Comments:
“We want to express our deepest gratitude to Seda for their exceptional assistance and support. We look forward to continuing this partnership with our Business Advisor and are hopeful that the invaluable support we've received over the past few years will persist. Thank you for always availing yourself Abigail and offering product knowledge as well as branding inputs especially when launching new products. Your familiarity with competitor brands, along with your knowledge of their pricing and taste profiles, was invaluable. Thank you once again for your steadfast support”
