Ghriradelli Chocolate

Dear Mr. Chu

Thank you very much for your inquiry on the subject of cocoa sourcing which was forwarded to us at the Lindt & Sprüngli Headquarters in Switzerland by our colleagues of Ghirardelli. Ghirardelli is a 100% subsidiary of the Lindt & Sprüngli Group, one of the leaders in the premium chocolate market.

First of all let us tell you, that Ghirardelli, as well as all other members of the Lindt & Sprungli group of companies, has a special obligation to its consumers who expect something out of the ordinary from our chocolates.

In a general way, as far as our sourcing of raw materials for all our group companies is concerned, we kindly ask you to notice the following points:

Lindt & Sprüngli is one of the few chocolate makers that have complete control over every step of the production chain starting with the precise selection of the finest cocoa varieties from the best growing areas in the world right on through the careful and expert processing until ending with the elegant packaging. To safeguard the uniform and consistently high quality of all our chocolate products, all ingredients are thoroughly tested in our own laboratories before and after purchase, so that we can be sure that their quality constantly meets the highest standards.

While cocoa is currently traded at the commodity stock exchanges, superior grade cocoa beans (so called flavor beans or fine grade cocoa), as we utilize to a great extent for the manufacturing of our premium products, are purchased through tarders at a substantial premium price over ordinary bulk cocoa. These finest grade cocoa beans (also called Criollo cocoa) can only be grown in specific geographical areas (Central and South America, Caribbean Area). While the Criollo cocoa production is less than 5 percent of the world’s supply, it is exactly those (together with the Trinitario cocoa which is also considered as fine grade cocoa) for which Lindt & Sprüngli’s demand is very high. The remaining part are West-African cocoa beans (so called bulk cocoa or Forastero cocoa) which are utilized mostly for fillings. These West African beans are sourced from Ghana, where one of the best (if not the best) Forastero beans come from.

Prudent and conscientious relations with the environment and with the communities in which we live and work are important to us and enshrined in our Company Credo. In the procurement of our raw materials, great importance is therefore attached to compliance with the rules of sustainable conduct. This includes respect for social and societal aspects, such as working conditions and incomes of farmers in the growing countries, support and promotion of environmentally friendly production conditions, and payment of fair prices for raw materials which satisfy our stringent quality criteria.

We are confident that the vast majority of farmers abide by the law and do not engage in abusive or illegal child labour practices. Nevertheless, we are extremely concerned about allegations of child labour on few cocoa farms in Ivory Coast and can assure you that we condemn any abusive practices. In concert with a global industry effort, we are committed to bring about real, lasting change. But we cannot do it alone. Through membership and active participating in local branch associations or international non-profit organizations such as the WORLD COCOA FOUNDATION www.worldcocoafoundation.org we support the underlying idea of sustainable cocoa growing and provide financial contribution to that end. In addition, through regular visits to the countries of origin and in discussions with local government agencies and trading companies, Lindt & Sprüngli personally monitors conditions on cocoa plantations and takes action to promote the interests of the farmers.

WCF is a partnership between the cocoa-processing industry and government agencies, international associations, trade organizations, and Non Governmental Organizations. The aim of this cooperation is to safeguard stable and secure cocoa supplies. This is done by taking measures to increase revenues and re-duce harvest losses, while also securing income situations that enable cocoa farmers in Africa, Latin America, and Asia to lead a viable and worthwhile life.

In compliance with these principles, and to safeguard the uniform high quality of all its chocolate products, Lindt & Sprüngli selects fine cocoa beans from the best growing areas. The Group is therefore willing to pay considerable price supplements for the special varieties it purchases. These prices may be as high as more than three times those quoted on the futures market. This procurement policy guarantees fair, long-term working and price conditions for the farmers, while at the same time satisfying the high expectations placed by demanding consumers on LINDT, GHIRARDELLI and CAFFAREL products.

It is our hope that the foregoing answers your questions and emphasizes our commitment to help establish a credible, long-term solution through the establishment of a monitoring and public certification system.

Yours truly,

Sylvia Kälin
Corporate Communications
Lindt & Sprüngli (International) AG
Seestrasse 204, CH-8802 Kilchberg (Switzerland)
Tel: ++41-(0) 44 -716.24.56 // Fax: ++41-(0) 44 -716.26.61
e-mail: skalin@lindt.com
www.lindt.com