How is Tony's brand promise going?
At Tony's we are just people: due to a human error on Tony's side (during the super busy chocolate season) we were unfortunately unable to correct the article in advance. Bas Vermond had sent it to us on time. S(n)orry Marketingfacts readers and chocofans! We're bummed. We always welcome a critical piece, because we like that too. We would like it to be correct, so below is a summary of the most important incorrect facts.
At Tony's we are just people: due to a human error on Tony's side (during the super busy chocolate season) we were unfortunately unable to correct the Marketingfacts article in advance. Bas Vermond had sent it to us on time. S(n)orry Marketingfacts readers and chocofans! We're bummed. We always welcome a critical piece, because we like that too. We want it to be correct, so below we list all the nitty-gritty details of the most important incorrect facts.
Quote from Marketingfacts:
"In mid-September, to everyone's surprise, Tony's announced in a preliminary announcement that, despite the record turnover, it expected a heavy loss. Director Beltman explains the losses from the high investments that the company has made in international expansion."
Tony's Fact:
As in ourjaarFAIRslag can be read, the final profit was not negative, but 0%. It is true that Henk Jan said in an interview before the end of our financial year that Tony would suffer a loss. That is ultimately limited to 0%.
Quote from Marketingfacts:
"International growth is necessary, because only 12 percent of turnover comes from abroad and the Dutch market still accounts for 88 percent of turnover"
Fact from Tony's:
Oops, this information goes for the financial year '17-'18. In the last financial year, 77% came from the Netherlands. Still relatively a lot, but Tony's is certainly going well across the border.
Quote from Marketingfacts:
"The effects of all efforts are therefore virtually nil," says Van de Keuken. "In the meantime, I saw an advertisement in the newspaper for a Mother's Day cruise from Tony's Chocolonely, under the slogan 'Quality time with your mother'. Then I thought: focus again on what it really matters, because a promotion like this has nothing to do with the mission anymore, even though it was the basis of the success."
It is true that Teun said this in Quote, but that was not entirely correct at the time. Tony's had not placed this advertisement, but a tour provider had. This tour company mentioned Tony's in its advertisement.
It is not entirely true that Henk Jan is not a fan of the Waarden Inspection Service. Henk Jan respects the Waarde Inspection Service, but always remains critical of it. After all, that is one of our core values.
Quote from Marketingfacts:
"Tony's seems to be in line with Birgit de Vos, senior human rights researcher in supply chains at Wageningen University (WUR), to focus only on slavery outside the family and not to have a specific objective to eliminate child labor within the family."
Fact from Tony's:
Aii, that's not correct. The quote above is our definition of modern slavery. Tony's works to eradicate every form of exploitation: we are talking about modern slavery AND illegal child labor. We also describe both concepts in our annual fair report, on page 11. 13. Online found HERE under 'Modern Slavery'.
Quote from Marketingfacts:
"Tony's not only wants to change the cocoa world in the field of child labor, it also wants to give cocoa farmers a better life by offering them an extra premium for cocoa beans "The whole transition of course started with Fair Trade, which paid an extra premium on top of the world market," says Paul Ingenbleek. "This increases fairness, but you do not offer an incentive to produce better quality. In order to meet all requirements in the future regarding production quantity, quality, fairness, environment, etc., you need more professional farmers with sufficient land, knowledge and means of production. This is a transition process, because Africa is coming from (or is actually still in) a situation in which agriculture is characterized by hundreds of millions of (too) small farmers who can barely make ends meet. In addition, alternatives are now emerging for these people, especially in the rapidly growing cities where the young generation sometimes moves in large numbers," says Paul Ingenbleek."
Fact from Tony's:
Tony's wants to remove exploitation from the chain. Extreme poverty is one of the main causes of exploitation. That's why Tony's wants farmers to have the opportunity to earn a living income. And that is why we pay a higher price that makes a living income attainable. But, that's just one of our 5 sourcing principles (see below), while it is important that all 5 are applied. No cherry-picking!
Tony's agrees with Paul. A higher price alone is not enough. It involves the combination of what we call the '5 sourcing principles':
1. Higher price,
2. Invest in strong farmers,
3. Long-term contracts and relationships,
4. Traceability of beans,
5. Investing in quality and productivity.
Quote from Marketingfacts:
"The experts are not exactly applauding when it comes to Tony's efforts and results"
Question from Tony's:
Whose quote is this? This is being said very generally. There are also several experts who are very satisfied with the effort and results.
Quote from Marketingfacts:
"Also Birgit de Vos sees objections to Tony's premium system. "The question is whether Tony's model can be scaled up, because the majority of farmers in Ghana and Ivory Coast only have a small piece of land and low productivity. So they do not reach the eight hundred kilos per hectare that is needed to receive an extra premium."
Tony's fact:
This is not correct. Farmers do not have to produce 800 kilos per hectare to qualify for the Tony's premium. Tony's pays an extra Tony's premium on top of the Fairtrade premium up to the Living Income Reference Price to make it possible to achieve a living environment. to earn an income. Every cooperative/farmer who supplies Tony's receives this premium, regardless of the production per hectare. The 800 kilos per hectare are needed to earn a living income That is why Tony's invests a lot in all kinds of programs (via the cooperatives) that increase productivity. Paying the Tony's premium is separate from productivity is therefore scalable.
Quote from Marketingfacts:
"More importantly, many farmers are so small that higher cocoa production does contribute to higher income , but this is still not enough to live decently. A living income is something that we believe should be an objective." Tony's remuneration model is therefore too limited according to the experts. (Making a living income attainable is therefore a goal of Tony's.)"
Question from Tony's:
Which experts say it is reward model is too limited?
Fact from Tony's:
Tony's set up the Living Income Reference Price calculation together with Fairtrade last November to let the cocoa industry know that this should really be the minimum. Tony's pays the Fairtrade premium, plus the additional Tony's premium according to this model. Living income is therefore a goal of Tony's, see us annualFAIRslag on page 26. Online HERE can be found under 'Living income'
Quote from Marketingfacts:
"Paying farmers better, or giving them more premiums for higher production, can even lead to a negative effect. Birgit de Vos indicates that increasing the cocoa price creates side effects because farmers are inclined to plant more cocoa trees, which increases production, which in turn puts pressure on market prices."
Note from Tony's:
And that's exactly why we have 5 sourcing principles instead of 1 (higher price). The 5th: 'Invest in quality and productivity' also embraces diversification, so that there is less dependence on cocoa and surpluses are prevented. Tony's supports farmers to set up other activities. 'Traceability' is also one of our sourcing principles, so that we know exactly where the beans come from and under what conditions - social and environmental - they are grown to prevent deforestation, among other things.
Quote from Marketingfacts:
"What, according to Birgit de Vos, few people know is that Tony's itself is not a direct buyer of cocoa and therefore does not do business directly with African cocoa farmers. "Tony's works through the normal chain channels and purchases the cocoa through Barry Callebaut, one of the largest cocoa buyers. Through Barry Callebaut, Tony's mainly purchases cocoa from cocoa farmers (five thousand in total) with an above-average productivity (eight hundred kilos per hectare)."
Tony's fact:
Oh dear, this is not correct. Tony's does not trade through Barry Callebaut. They only process the cocoa beans for us into liquid chocolate are able to change the industry from within. Barry Callebaut has set up a separate production line to process Tony's beans in a traceable manner. All beans in Tony's chocolate are fully traceable to the cooperatives with which Tony's has made long-term agreements and with which Tony's has. each party in the chain has separate agreements; for example with the international trader who stores and exports the beans separately. Tony's knows exactly which beans are for Tony's, so that the farmers and cooperatives involved can receive the premium directly from Tony's.
Large chocolate companies purchase through Barry Callebaut, Tony's works with farmers and cooperatives. They must sell through an exporter and an international trader. Tony's follows this entire chain via our Bean Tracker. In our supply chain, Callebaut does not buy directly from the farmers.
In addition, it is not the case that all farmers we work with produce more than 800 kilograms per hectare.
Tony's makes direct agreements with the farmers through their cooperatives. Tony's works directly with 7 cooperatives. We draw up 5-year contracts, so that cooperatives are assured of purchasing for the next 5 years at a Living Income Reference Price for the beans they sell to Tony's. Tony's is not allowed to purchase the beans directly due to current legislation in Ghana and Ivory Coast. That's why we work with domestic traders and an independent exporter.
Quote from marketing facts:
" These farmers receive an extra premium on top of the Fairtrade premium. However, the majority of cocoa farmers only produce three to five hundred kilos per hectare and it is unlikely that they will reach eight hundred kilos per hectare in ten years," says Birgit de Vos.
Fact from Tony's
Farmers who supply Tony's and produce less than 800 kilos per hectare also receive their Tony's additional premium on top of the market price and on top of the Fairtrade premium. The premium is only a means to make it possible to earn a living income.
Quote from Marketingfacts:
"(Vincenzo)Fogliano: "Barry Callebaut is the largest processor of chocolate in the world. All major chocolate products buy their chocolate through them." Fogliano finds it remarkable that Tony's also purchases through Callebaut. According to him, Tony's should just trust what Callebaut says about where the cocoa comes from. You can reasonably expect it to be correct, but it certainly is you don't know"
Tony's fact:
We are repeating ourselves, but this is also not correct. Tony's has managed to get a segregated production line at Callebaut. So we do not have to rely on the blue eyes of Callebaut, but we can be sure that they process the beans that we have purchased from the cooperatives via the exporter. Our entire supply chain is traceable. PWC provides independent assurance on our traceability. For evidence, see the jaarFAIRslag.
Quote from Marketingfacts:
Fogliano has an opinion based on his expertise about the cocoa beans used in Tony's bars: "The Tony's Chocolonely product has a low to medium score if it is about quality, appearance and technological performance."
Tony's fact
Ask a few chocolate fans, they will tell you something different.
< br>
Quote from Marketingfacts
Explainably, he indicates: you can buy high to low quality chocolate at Callebaut, it just depends on the price you want to pay.
Fact from Tony's:
Tony's consciously chose 15 years ago to source the beans from Ghana and Ivory Coast, because there the problems with child labor and modern slavery. More than 60% of the world's cocoa comes from Ghana and Ivory Coast. Tony's is not a chocolate company that wants to make the best chocolate, but an impact company that uses chocolate to tackle a problem. It is extremely important that the product is good: the quality of the bar and the brand. Tony's consciously chooses to work with cocoa from West Africa in order to combat the problems.
Cocoa from Ivory Coast and Ghana is on average bulk cocoa and no distinction is made between different qualities. The cocoa from Tony's fully segregated chain is of good quality.
Quote from Marketingfacts:
"Tony's did not want to respond to the conclusions of the above experts when asked."
Tony's mistake:
The chocolate season is very busy for us. We have therefore not responded to the conclusions of these experts. We would have liked to do it, but due to the crowds the email did not reach the right person. We're just people. We are critical of ourselves and are working on this.
Tony's stands for openness, which can be seen in the annual public annual FAIR report. We present all figures, the good and the not so good, openly and publicly to everyone. Not because we have to (Tony's is a private company), but precisely because we want to share this information with our fans, the industry and the news.
Quote from Marketingfacts< /em>
"The wrong focus on child labor and the distribution of premiums for farmers does not provide structural solutions and it turns out that Tony's also purchases relatively cheaper chocolate at the counter, where parties such as Nestlé and Mars doing business."
Correction from Tony's:
As explained above, we consciously buy through the same channels as the large chocolate companies, in order to prove that it is possible to be traceable and pay a fair price.
Fact from Tony's:
The above conclusion insinuates that Tony's pays the same as the large chocolate companies. That is not correct: Tony's pays the Fairtrade premium plus the additional Tony's premium on top of the market price. This is on average 40% more than the market price, and we pay extra to ensure that we only have cocoa in our chocolate that comes from our partner cooperatives, and that from the large bulk cocoa.
Quote from Marketingfacts
"The question is also whether Tony's should be the pilot boat that 'wants to put major chocolate makers on the right course'. Tony's is not the only one who wants to make the world of cocoa more sustainable and slave-free: all major parties in the cocoa market are working on their own or joint initiatives to tackle the problems."
Tony's opinion:
It is true that all major chocolate companies have initiatives, but why have these chocolate giants still been unable to comply with the comply with agreements imposed by themselves? A 70% reduction in child labor was promised by 2020. Tony's welcomes initiatives, but everything starts with paying a price that makes a living income possible. Tony's has been doing this for years and the major chocolate companies could start doing this tomorrow. The question is why this does not happen (margin?). Extreme poverty is the root cause of the problem, so let's start paying a fair price today!
Tony's welcomes initiatives that make the chain equal, because we cannot do it alone. That is why our mission is: “Together we make 100% slave-free chocolate the standard”. We must do this together with the industry.
Quote from Marketingfacts:
"According to the Port of Amsterdam, it is necessary to establish joint to identify initiatives, by supporting others with best practices, that contribute to the sustainable production of cocoa. "We therefore also believe in a chain-wide approach," the Port of Amsterdam concludes."
Fact from Tony's:
Tony's agrees with the Port Authority that a chain-wide approach is necessary. There are negotiations about DISCO, but there is no agreement yet.
Quote from Marketingfacts:
"Tony's has a striking product that can be found everywhere. is a typical case of purpose porn."
Tony's opinion:
Tom De Bruyne is cordially invited to our office so that we can can read through the annual report and it will become apparent that we do marketing to promote our mission and not the other way around. The mission comes first in everything we do. This is evident from the fact that Tony's shares all learnings, tools and models with other chocolate companies via Open Chain. We do not keep this knowledge to ourselves. That is the difference between a purpose and USP: you share a purpose, you keep a USP to yourself.
Quote from Marketingfacts:
< em>"The group of people who find it important that an organization has a purpose appears to be growing. "Tony's has been very successful from the start in communicating their higher purpose extensively and clearly. In the beginning you need to prove this in many ways. Once these associations are fixed in the brain, your image is clear. So people who purchase your product for this reason will continue to do so and will certainly not think about it again. It becomes an automatic choice. Real proof is no longer necessary, as long as you continue to promote your existing positioning," says Ronald Voorn."
Addition from Tony's:
Tony's continues to provide proof every year, see the annual FAIRSLAG because we believe that we should show this to our loyal chocolate fans and the rest of the world.
Quote from Marketingfacts:
"The distinctive character of Tony's may indeed be losing its strength: almost all major supermarkets have some kind of fair trade-like chocolate bar. Tony's is no longer the only one that cares about African cocoa farmers, but Tony's is so well placed in the minds of Dutch consumers that they can still benefit from this." p>
Reaction from Tony's:
Tony's welcomes the fact that many chocolate companies also take their responsibility, as long as this is done sincerely. That is exactly why Tony's shares all its knowledge for free with other chocolate companies via Tonysopenchain.com. Because only together can we change the industry. Again: that is the difference between a USP and purpose. The first example of this is Delicata from Albert Heijn. We are very happy with all brands that sincerely take responsibility for their entire chain.
Quote from Marketingfacts:
"It might be It is not clear what exactly Tony's does every year to combat child labor, but the majority of your current buyers are not interested either."
Correction from Tony's:
This is 100% transparent in our annual report: online and in print.
Quote from Marketingfacts:
"The Benevolent Halo effect may also be the reason why Tony's is struggling to gain a foothold internationally Consumers abroad also want to eat away their bad conscience with sustainable chocolate bars, but Tony's has simply not yet been able to build a positive association there."
Opinion of Tony's :
We have not yet managed to build up great brand awareness, but we are growing by double digits abroad every year. This can happen quickly, see first results in the UK after 9 months. The USA is indeed very large and we need more time to work on issue and brand awareness there.
Quote from Marketingfacts:
"Tony's has fought for years to correct the dire situation on the African cocoa market. Dutch radar from the consumer and the partners involved. The bitter reality may be that they now have to compete on their own story."
Tony's opinion:
If that were the case, it would not be a bitter reality, but a sweet reality, because if every chocolate producer takes responsibility completely, then Tony's mission is accomplished! We would be cheering if a large multinational followed us in our 5 sourcing principles.
Quote from marketing facts:
"At a Mars with a turnover of more than thirty billion dollars per year and Nestlé with an annual turnover of 89 billion dollars, it is difficult to compete. It is better to continue as a brand in the portfolio of a multinational than to disappear silently from the supermarket shelf. "
Tony's opinion:
Disagree, prefer more impact through collaboration with a chocolate giant than less alone. Because together we do more than each of us alone.
Quote from marketing facts:
"Beltman's amusement park is nothing more than a cry for attention."
< br>Tony's opinion:
Indeed, the Tony's Chocolonely Chocolate Circus is a cry for attention to the problems in the cocoa industry.
Quote from Marketingfacts:
"N.B. When asked, both Henk Jan Beltman and Tony's Chocolonely did not want to answer specific questions and the views of the experts interviewed."
Tony's response:
Tony's Chocolonely was indeed politely asked for a response, but failed to respond due to unfortunate circumstances. We are very disappointed, because we like to tell the right story.