Sabrina Mustopo had no knowledge of cocoa at all. But it it poked her interest when she read an article that stated how Indonesia, not only coffee, is also the third biggest cocoa producer in the world. Yet, most of the chocolate she found in the markets are from foreign brands such as Hersey’s Kiss, Dairy Milk, etc. This is the beginning of Krakakoa chocolate company.
Mustopo then spent quite some time to do research on chocolate and cocoa in Indonesia. She also found out about WWF and the sustainable livelihood campaign it has in Lampung, Indonesia. That’s how she met her now cocoa farmers partners.
Meeting the farmers showed her the problems of the cocoa farmers in the country. And it’s mainly on the welfare the farmers. Cocoa production in Indonesia continued to decrease annually. This, plus the low income of the farmers caused a significant decrease on the quality of the cocoa produced.
Read more: Expansion to Middle East and India is Coming for Luckin
Krakakoa chocolate and the farmer’s welfare
Krakakoa chocolate company then started to educate the farmers on organic production. Then, the company buys the cocoa straight from the farmers, with a high premium price, elevating the economy condition of the farmers. Since 2014, it claimed that it has increase the farmers income by 62% and increased the cocoa production by 65% per yield.
The company then produces its own chocolate products. Starting from premium 100% Dark Chocolate bars, flavored chocolate bars, cocoa drink, to gourmet cacao nibs. Krakaoa chocolate are available in its flagship store in Bali and other 160+ points of sale in Indonesia. As well as exporting it to distributors in Singapore, Netherlands, Germany, Belgium and Czech Republic.
The company recently announced that it has raised an undisclosed amount of funding. Impact Investment Exchange (IIX) Growth Fund, a Singapore-based fund, led this investment.
Krakakoa also stated at the announcement that it will use the funding to “provide 1,000 smallholder farmers and 20 female factory workers with sustainable livelihoods, and avoid over 64,000 kg of chemicals through environmentally-friendly farming methods.”
Krakakoa is not the first Indonesian company to combine local ingredients and nature-friendly concept. Fore Coffee is also another company that tries to educate Indonesian on both aspects.
While the coffee business has attracted many interests, the chocolate side has not been that popular yet. But with the new funding, Krakakoa is ready to break even by 2020.
Read More: Trax Retail Announced $100 M Funding
