This document provides a summary of the history and production process of chocolate. It discusses how chocolate originated in Mesoamerica among the Maya and Aztec civilizations, who consumed it as a spicy drink. The Spanish introduced chocolate to Europe in the 16th century. Chocolate drinking spread across Europe in the 17th century and the first chocolate for eating was developed in England. The document also provides an overview of the company Goobers Chocolate, including its business plan, competitors, SWOT analysis, cost sheet, and prospects in the Indian market.
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• 1. Management Accounting Project Work “GOOBERS CHOCOLATE” Melts in your mouth, not
on your hands Submitted to: Submitted by: Dr. Ritesh Srivastava Amardeep Bardhan Roll No: FT-
RM (09)-202
• 2. ACKNOWLEDGEMENT The satisfaction and euphoria that accompany the successful
completion of any task would be incomplete without mentioning the name of the people whose
constant guidance and encouragement has crowned all our effort with success. Firstly I would like
to thank Dr. Ritesh Srivastava for giving us his precious time and guidance that helped us a lot in
completing this project. Last but not the least I would like to thank all those people for their
immense co-operation who helped me in any way and without help of these people this project
never be completed successfully. Amardeep Bardhan
• 3. Chocolates!!! Chocolates! Chocolates! Every body has a liking for them, be they in the form of
bar Or a tiny little gem, Or shaped like a rectangle, Or a sphere, a brick or an éclair. For chocolate
lovers it is fun, To have them during rain, breeze or sun. They are white and brown in color, And
taste sweet and bitter Some have them in a glass of cold coffee, or in the form of a toffee. Some
eat them when they are sad Some relish them when they are happy or have sweet dreams, But I
feel, to have chocolates We don’t need a reason, ‘Cause we can have it Anytime, any season!
• 4. TABLE OF CONTENTS History of Chocolate Process of Making Chocolate
Ingredients of Chocolate Company Profile Business Plan & Strategy Competitive brands
in Market SWOT Analysis Cost Sheet Analysis Scope in Indian Market Conclusion
Biblography
• 5. History of Chocolate: The origin of chocolate can be traced back to the ancient Maya and Aztec
civilizations in Central America, who first enjoyed “chocolati” a much-prized spicy drink made
from roasted cocoa beans. Throughout its history, whether as cocoa or drinking chocolate
beverage or confectionary treat, chocolate has been a much sought after food. The Aztec empire
“Chocolate”(in the form of a luxury drink) was consumed in large quantities by the Aztecs: the
drink was described as “ finely ground, soft, foamy, reddish, bitter with chilli water, aromatic
flowers, vanilla and wild bee honey. The dry climate meant the Aztecs were unable to grow cocoa
trees, and had to obtain supplies of cocoa beans from “ tribute” or trade. Don Cortes The Spanish
invaded Mexico in the 16th century, by this time the Aztecs had created a powerful empire, and
the Spanish armies conquered Mexico. Don Cortes was made captain general and governor of
Mexico. When he returned to Spain in1528 he loaded his galleons with cocoa beans and
equipment for making the chocolate drink. Soon “chocolate” became a fashionable drink enjoyed
by the rich in Spain. Chocolate across Europe An Italian traveler, Francesco carletti, was the first
to break the Spanish monopoly. He had visited Central America and seen how the Indians
prepared the cocoa beans and how they made the drink, and by 1606 chocolate was well
established in Italy. Drinking chocolate The secret of chocolate was taken to France in 1615, when
Anne, daughter of Phillip 2 of Spain married king Louis 13 of France. The French court
enthusiastically adopted this new exotic drink, which was considered to have medicinal benefits as
well as being a nourishing food. Gradually the custom of drinking chocolate spread across Europe,
reaching England in the 1650‟s.
• 6. First chocolate for eating Up until this point all chocolate recipes were based on plain chocolate.
It was an English doctor, sir Hans‟s sloane, who- after traveling in south America- focused on
13. cocoa and food values, bringing a milk chocolate recipe back to England. The original Cadbury
milk chocolate was prepared to his recipe. History: The earliest record of chocolate was over
fifteen hundred years ago in the central America rain forests, where the tropical mix of high rain
fall combined with high year round temperatures and humidity provide the ideal climate for
cultivation of the plant from which chocolate is derived, the cacao tree. “ Chocolate is made from
the cocoa bean, found in pods growing from the trunk and lower branches of the cacao tree, Latin
name “ theobroma cacao” meaning “ food of the gods” Cacao was corrupted into the more
familiar “ cocoa” by the early European explorers. The Maya brewed a spicy, bittersweet drink by
roasting and pounding the seeds of the cacao tree with maize and capsicum peppers and letting the
mixture ferment. This drink was reserved for use in ceremonies as well as for drinking by the
wealthy and religious elite; they also ate cacao porridge. The Aztecs, like the Mayans, also
enjoyed cacao as a beverage fermented from the raw beans, which again featured prominently in
ritual and as a luxury available only to the very wealthy. The Aztecs called this drink xocolatl, the
Spanish conquistadors found this almost impossible to pronounce and so corrupted it to the easier
“ chocolat” the English further changed this to chocolate. The Aztec‟s regarded chocolate as an
aphrodisiac and their emperor, Montezuma reputedly drank it fifty times a day from a golden
goblet and is quoted as saying of Xocolatl: “ the divine drink, which builds up resistance and
fights fatigue. A cup of this precious drink permits a man to walk for a whole day without food”.
• 7. Chocolate in Europe Xocolatl! or chocolat or chocolate as it became known, was brought to
Europe by Cortez, by this time the conquistadors had learned to make the drink more palatable to
European tastes by mixing the ground roasted beans with sugar and vanilla ( a practice still
continued today), thus offsetting the spicy bitterness of the brew the Aztec‟s drank. The first
chocolate factories opened in Spain, where the dried fermented beans brought back from the new
world by the Spanish treasure fleets were roasted and ground, and by the early 17th century
chocolate powder – from which the European version of the drink was made- was being exported
to other parts of Europe. The Spanish kept the source of the drink- the beans- a secret for many
years, so successfully in fact, that when English buccaneers boarded what they thought was a
Spanish “ treasurer galleon” in 1579, only to find it loaded with what appeared to be “ dried
sheep‟s droppings, they burned the whole ship in frustration. If only they had known, chocolate
was so expensive at that time, that it was worth it‟s weight in silver ( if not gold), chocolate was
treasure indeed ! Within a few years, the cocoa beverage made from the powder produced in Spain
had become popular throughout Europe, in the Spanish Netherlands, Italy, France, Germany and –
in about 1520 – it arrived in England. The first chocolate house in England opened in London in
1657 followed rapidly by many others. Like the already well established coffee houses, they were
used as clubs where the wealthy and business community met to smoke a clay pipe of tobacco,
conduct business and socialize over a cup of chocolate. Back to the America’s Event‟s went full
circle when English colonists carried chocolate (and coffee) with them to England‟s colonies in
north America. Destined to become the united states of America and Canada, they are now the
worlds largest consumers – by far – of both chocolate and coffee, consuming over half of the
words total production of chocolate alone. The Quakers The Quakers were, and still are, a pacifist
religious sect, an offshoot of the puritans of English civil war and pilgrim fathers fame and a
history of chocolate would not be complete without mentioning their part in it. Some of the most
famous names in chocolate were Quakers, who for centuries held a virtual monopoly of chocolate
making in the English speaking world – fry, Cadbury and row tree are probably the best known.
• 8. Its probably before the time of the English civil war between parliament and king Charles 1st
that the Quaker‟s who evolved from the puritans, first began their historic association with
chocolate. Because of their pacifist religion, they were prohibited from many normal business
activities, so as an industrious people with a strong belief in the work ethic (like the puritans), they
involved themselves in food related businesses and did very well. Baking was a common
occupation for them because bread was regarded as the biblical “staff of life”, and bakers in
England were the first to add chocolate to cakes so it would be a natural progression for them to
start making pure chocolate. They were also heavily involved in breakfast cereals but that‟s
another story. What is certain is that the fry, row tree and Cadbury families in England among
others, began chocolate making and in fact Joseph fry of fry &sons (founded 1728 in Bristol,
England) is credited with producing and selling the world‟s first chocolate bar. Fry‟s have now all
but disappeared (taken over by Cadbury) and row tree have merged Swiss company nestle, to form
14. the largest chocolate manufacturer in the world. Cadbury have stayed with chocolate production
and are now, if not quite the largest, probably one of the best-known chocolate makers in the
world. Chocolate as we know it The first mention of chocolate being eaten in solid form is when
bakers in England began adding cocoa powder to cakes in the mid 1600‟s. Then in 1828 a Dutch
chemist, Johannes van houten, invented a method of extracting the bitter tasting fat or “cocoa
butter” from the roasted ground beans, his aim was to make the drink smoother and more
palatable, however he unknowingly paved the way for solid chocolate as we know it. Chocolate as
we know it today first appeared in 1847 when fry & sons of Bristol, England – mixed sugar with
cocoa powder and cocoa butter (made by the van houten process) to produce the first solid
chocolate bar then in1875 a Swiss manufacturer, Daniel peters, found a way to combine (some
would say improve, some would say ruin) cocoa powder and cocoa butter with sugar and dried
milk powder to produce the first milk chocolate.
• 9. Process of Making Chocolate Hundreds of pounds of fermented and dried cacao beans bundled
in burlap sacks arrive at factories around the world everyday, ready to be turned into fine bars and
cocoa powder. Over a period of about one to three days, the bean is transformed from tropical seed
into treasured chocolate. Roasting After being cleaned, the cacao beans pass to the first critical
step in flavor development at the factory: roasting. There are two main approaches to roasting:
roast the beans for a short time at high heat, which produces a strong chocolate flavor but
eliminates any subtle, floral notes and risks the development of charred flavors from over-roasting,
or roast the beans for a long time at low heat, which allows the more delicate flavors to come
through but sacrifices the big, chocolate flavor. Winnowing — Getting Rid of the Shells After
roasting, the beans are put through a winnowing machine which removes the outer husks or shells,
leaving behind the roasted beans, now called nibs. Milling — Making Cocoa Liquor The nibs are
then ground into a thick liquid called chocolate liquor, which essentially is cocoa solids suspended
in cocoa butter. Despite its name, chocolate liquor contains no alcohol. Pressing — Cocoa Powder
and Cocoa Butter The processing now goes in a couple of different directions. Some batches of
chocolate liquor are pressed to extract the cocoa butter, which leaves a solid mass behind that is
pulverized into cocoa powder. The remaining cocoa butter is reserved to help in chocolate-
making. Other batches of chocolate liquor are used directly to make chocolate.
• 10. The Beginnings of Chocolate To make dark chocolate, chocolate liquor, sugar and other minor
ingredients such as vanilla are mixed together and kneaded until well blended. To make milk
chocolate, milk and sugar are mixed together and then blended with chocolate liquor. This sweet
combination of ingredients is stirred until the flavors are thoroughly combined. Refining —
Smoothing It All Out After being mixed, both dark and milk chocolates go through the same
process. The mixture travels through a series of heavy rollers which press the ingredients until the
mixture is refined to a dry flake. Additional cocoa butter and a small amount of emulsifying agent
are added to the flake and then mixed to make a smooth paste ready for “conching.” Conching —
Kneading for Exquisite Flavor Conching further develops flavor by putting chocolate through a
kneading process. The conches, as the machines are known, have heavy rollers that plow back and
forth through the chocolate mass anywhere from a few hours to up to seven days. Tempering —
Temperature Magic For A Perfect Product The mixture is then tempered, or passed through a
heating, cooling and reheating process. Tempering allows you to solidify chocolate in a way that
keeps it glossy, causes it to break with a distinctive snap and allows it to melt smoothly in your
mouth. Moulding — We're Getting Closer The mixture is then poured into moulds and cooled in a
cooling chamber. Finally — Something We Can Eat! Once cooled, the chocolate is demoulded,
packaged for distribution and is ready for savoring.
• 11. Ingredients of Chocolate Pure chocolate comes from Cocoa beans. A typical chocolate bar will
also have: • Sugar, • Milk (if it's milk chocolate, not if it's dark), • Cocoa Butter, • Lecithin, •
Flavorings (like vanilla), • Sometimes, Vegetable Oil Exotic ingredients of chocolate GOOBERS
CHOCOLATES: • Sugar • Cocoa Butter • Cocoa Solids • Peanuts • Milk Solids • Chocolate
coated Raisins • Almonds • Vanilin • Honey Boston Baked Bean
• 12. Company Profile The name of my company is Blumenthal Chocolate Company which
introduced GOOBERS in 1985 in India. Initially, The Company was dealing in 2-3 types of spices
and dry fruits only. But later on it came up with an idea of chocolate coated peanuts with milk
chocolate. In the year 1992, the CEO of Blumenthal Chocolate Company thought about increasing
the profit of the company with some bigger margins and making the company bigger then ever. In
15. the Year 1993 company had introduced the full variety of chocolate like dark chocolate, chocolate
enriched with dry fruits etc., and also he started exporting them to neighboring countries. At that
time Blumenthal Chocolate Company was the only company who was there in Indian Market with
full varieties of dark chocolate, chocolate with dry fruits, wafer chocolate, bar chocolate etc. In the
year 1995, This Company got listed in NSE. Now, in the year 2009, after reading the Indian
booming food industry, The Company has decided to launch a new Chocolate (only in Indian
market) by the name of “GOOBERS”. This chocolate is a unique in its category which is has
peanuts coated in milk chocolate with butter, caramels, dry fruits and honey in it. This chocolate is
available in different packs of 15 grams, 35 grams, 65 grams and JUMBO pack of 125 grams. This
chocolate is especially launched in a way so that it suits the middle class pocket and even low call
of people as well. The JUMBO pack of this chocolate is the biggest chocolate available in the
Indian market.
• 13. Business Plan & Stretegy Since the GOOBERS CHOCOLATES has been launched under the
brand name Blumenthal Chocolate Company, so the company has the advantage of easily
poisoning of GOOBERS CHOCOLATE on such competitive market. Firstly to attract the target
audience towards the chocolate product the company will place a low promotional price for the
chocolate for time being and will also distribute some free sample in the market to make feel the
audience of the caramelized taste of milk chocolate coated peanuts. The target audience for this
chocolate is the younger generation, children and also middle age groups who like chocolate. Also
the company has decided to launch this chocolate before Christmas so that the audience can taste
it earlier and then can gift it to their near and dear ones on the occasion of Christmas and New
Year. Also the company will launched the „Santa Gift‟ pack for Christmas and „New Year‟ pack
of GOOBERS CHOCOLATES which contains the dry fruits and the GOOBERS CHOCOLATES.
These packs are especially designed to be sold at the time of Christmas and New Year. Before
Christmas and New Year, the Company has planned to launch the small pack worth Rs 5 and Rs10
so that the audience are intended to purchase Goobers chocolates. There will be some offer also
associated with the purchase of two packs of GOOBERS CHOCOLATES.
• 14. GOOBERS CHOCOLATES main concern is advertisement and the promotion, and then
making sure the consumers get a nice tasting, good quality product. No other chocolate bar is
similar to this, making it almost certain that this bar will occupy its own market segment and make
it something different from other confectionaries. If promoted correctly, stressing the point that
the, the bar will be a big hit in stores and adding the factor that it is healthier will arouse people‟s
attention and curiosities. Since it is the first Chocolate with a Milk chocolate coated peanuts and
other dry fruits in it so it‟s already a added benefit for the Chocolate. The main thing that
GOOBERS CHOCOLATES should try to do is make the consumers think this bar is so different
and special compared to regular chocolate bars that they will need to try it in order to see if this is
true or not, and arouse a sort of craving for the bar that will secure sales for years, if lucky. If
executed correctly, this strategy will ensure a good entrance to the market and GOOBERS
CHOCOLATES will soon have a successful new chocolate on the market that will ensure sales
and let GOOBERS CHOCOLATES reap profit from it. If all the above written plans goes well
then the GOOBERS CHOCOLATES will get better positioning in the market.
• 15. Competitive Brands in the Market NESTLÉ Nestlé India is a subsidiary of Nestlé S.A. of
Switzerland. With seven factories and a large number of co-packers, Nestlé India is a vibrant
Company that provides consumers in India with products of global standards and is committed to
long-term sustainable growth and shareholder satisfaction. The Company insists on honesty,
integrity and fairness in all aspects of its business and expects the same in its relationships. This
has earned it the trust and respect of every strata of society that it comes in contact with and is
acknowledged amongst India's 'Most Respected Companies' and amongst the 'Top Wealth
Creators of India'. Various brands of Nestle available in the market – NESTLÉ KIT KAT
NESTLÉ KIT KAT LITE NESTLÉ MUNCH NESTLÉ MUNCH POP CHOC NESTLÉ
MILKYBAR NESTLÉ MILKYBAR CHOO NESTLÉ BAR-ONE NESTLÉ FUNBAR NESTLÉ
Milk Chocolate POLO POLO Powermint NESTLÉ Eclairs
• 16. CADBURY Cadbury is the world's largest confectionery company and have a strong regional
presence in beverages in the Americas and Australia. With origins stretching back over 200 years,
today their products - which include brands such as Cadbury, Schweppes, Halls, Trident, Dr
Pepper, Snapple, Trebor, Dentyne, Bubblicious and Bassett - are enjoyed in almost every country
16. around the world. We employ around 60,00 people. Their heritage starts back in 1783 when Jacob
Schweppe perfected his process for manufacturing carbonated mineral water in Geneva,
Switzerland. And in 1824 John Cadbury opened in Birmingham selling cocoa and chocolate.
These two great household names merged in 1969 to form Cadbury Schweppes plc. Since then
they have expanded their business throughout the world by a programme of organic and
acquisition led growth. Concentrating on their core brands in beverages and confectionery since
the 1980s, they have strengthened their portfolio through almost fifty acquisitions, including brand
icons such as Mott's, Canada Dry, Halls, Trident, Dentyne, Bubblicious, Trebor, Bassett, Dr
Pepper, 7 Up and Snapple. - It employ 60,000 people in over 200 countries - Worlds No 1
Confectionery company - World's No 2 Gums company - World's No 3 beverage company
CADBURY CHOCOLATES Dairy Milk 5 Star Perk Celebrations Temptation Eclairs Gems
• 17. SWOT Analysis Strengths: • Almost 80,000 employees are working for the company • The
company is a respected employer that values its workforce. • It is cheap in comparison to other
chocolates. The company provides better quality of chocolate at competitive prices. Weaknesses: •
Transportation and its costs giant because of the company‟s size. • Production costs are high. • A
lot of work just to keep the company running in an orderly and organized fashion • Quality of new
products is automatically expected to be very good • It causes health problems. Opportunities: •
Expansion into every country around the world. • Increase in control over their market segment. •
Acquisition of more famous and well known brand names. • Expand product range in order to
target multiple user groups. • Production of sugar-free chocolates.
• 18. Threats: • Increased international taxes on goods, especially beverages and confectionary
goods. • Rise of transportation prices. • Other companies such as Cadbury and Nestle who also
strive for market leadership. • Change in laws that inhibit production or sales in any way.
• 19. COST SHEET For the month of December Total Output = 4,50,000 units Particulars Cost Per
Unit Total Cost Raw material Sugar = 3,00,000 Cocoa Butter= 3,00,000 Cocoa Solids = 3,20,000
Peanuts = 2,00,000 5.16 23,20,000 Milk Solids = 2,00,000 Chocolate Coated Rasins= 4,00,000
Almonds= 3,00,000 Vanilin= 1,00,000 Honey= 50,000 Boston Baked Bean= 1,50,000 Direct
Labour= 7,00,000 1.56 7,00,000 Carriage on Material= 2,42,500 0.53 2,42,500 Prime Cost:- 7.25
32,62,500 Factory expenses:- Fixed – Depreciation on Plant and Machinery= 2,57,500 Rent=
1,50,000 Power and Consumable Stores= 1,50,000 Factory Insurance= 1,50,000 Supervisors
Salary= 50,000 2.35 10,57,500 Variable – Electricity Charges= 50,000
• 20. Power and Consumable Stores= 1,00,000 Running Expenses of Machine= 1,50,000 Factory
Cost:- 9.60 43,20,000 Office and Administration Expenses Office staff salary= 10,00,000 Rent=
80,000 Computer= 1,20,000 Furniture= 3,00,000 4.40 19,80,000 Telephone= 10,000 Carriage
outward= 20,000 Depreciation on furniture= 50,000 Salaries to administrative staff= 3,70,000
Rent, rates, and taxes= 30,000 Office and Administration Cost:- 14.00 63,00,000 Selling &
Distribution Expenses Advertisement (Print and by local T.V. channels)= 4,00,000 Petrol=
1,00,000 2.00 9,00,000 Delivery vehicles= 2,50,200 Maintenance of delivery vehicles= 49,800
Packing rates= 50,000 Bad Debts written off= 1,00,000 Total cost 16.00 72,00,000 Net Profit
(20% on selling price) 4.00 18,00,000 Sales 20.00 90,00,000
• 21. Analysis The GOOBERS CHOCOLATES will be introduced in the market with a competitive
edge that it is under the banner of BLUEMENTHAL CHOCOLATE COMPANY. The goodwill
of the BLUEMENTHAL CHOCOLATE COMPANY will help the GOOBERS CHOCOLATES
to get the market captured in a shorter span of time. The chocolate will be launched just before
Christmas and New Year so the time is perfect to gain the market in max. The company is
producing 4,50,0000 units of chocolates at the rate of Rs. 16 for which we are incurring the total
cost of Rs. 72,00,000 and the total sales of Rs. 90,00,000which implies that we are having the
profit of Rs. 18,00,000. The company is producing a single unit of chocolate at the rate of Rs. 20
which includes the cost of chocolate as Rs. 16 which again implies that the profit of Rs. 4 is
gained on the single unit of chocolate. Since the company is earning some percentage of profit
above the cost it means increasing cost can be the favorable condition for the company. Since the
company is earning some amount of profit so our business is a feasible to launch over. The punch
line of GOOBERS CHOCOLATE is “MELTS IN YOUR MOUTH, NOT ON YOUR HANDS”
will make people to get attracted towards the chocolate. Also the Pack is designed in such a way
like a king of all chocolates is sitting in the shop.
• 22. Scope in Indian Market This chocolate has a great scope in Indian Market as it is a different
17. kind of product amongst all other chocolates present under different brands. GOOBERS
CHOCOLATE is cheaper than Fruit n Nut, Crackle and Temptation which is an added benefit to
the company. The chocolate will be launched before Christmas and New Year with attractive
packing and with offers so the chocolate will capture the market quickly. As according to some
survey in India it is found that 90% of people consume chocolates and 42% consumers are of age
group 10-20 and 33% consumers are of age group 21-30, thus this chocolate has a great scope in
India. It is also found from the survey that the most important aspect of the consumers they keep
in mind before purchasing chocolate is the Flavor, Quality and Packing and the GOOBERS
CHOCOLATE has priorised this aspects the most to capture the market and compete with the
chocolate of same kind.
• 23. Conclusion As we compare my company product with some other company‟s product, the
chocolate may seem to be same as other chocolates existing in the market but it has a distinct taste
of its own and also the main difference is the marketing strategy and the profit margin ensured. As
we know if strong competitors are already exist in the market, it gets really very tough to enter
into the market. Instead of all these if we give value for money product to the customers, we can
definitely compete with the competitor‟s and can draw the positive attitude of the customer
towards the product.
• 24. Biblography www.allchocolate.com www.wikipedia.com www.google.com
www.cadbury.com www.nestle.in www.reviewstream.com www.mouthshut.com
• 25. "Hmmmmmmmm...... Getting hungry yet? Make time for your favorite chocolate today!"
GOOBERS CHOCOLATE MELTS IN YOUR MOUTH, NOT ON YOUR HANDS
Object 10
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