Tony’s Chocolonely annual report reveals revenue upturn and progress tackling child labour
pic: Tony's Chocolonely's retail store in Amsterdam remains a focal point for the business. The company was among those gaining honours in the latest Chocolate Scorecard. Pic: Neill Barston
Tony’s Chocolonely has unveiled its latest Fair report and annual results, achieving revenue increases of €50 million, a 33% year-on-year rise to a total of more than €200m for the past financial year, writes Neill Barston.
According to the company, despite background challenges in ingredient costs for cocoa and sugar, it recorded strong growth in the US (up 86%) and Europe up 21 per cent.
Furthermore, the impact company said it has grown its volumes, with 17,690 mt (+19% YoY) sourced in the 23/24 season plus 30,000mt orders (+71% YoY) placed for 24/25.
Significantly, the business has also welcomed a total of six new ‘mission allies’ in its Open Chain initiative designed to pay farmers more in West Africa and achieve a better deal for them. Among companies joining its ranks include Feastables, Pip & Nut and Waitrose. This brings the total to an impressive 20 companies sharing its operating vision.
Linked to this, Tony’s, which was among keynote speakers at our 2024 World Confectionery Conference, is set to notably expand its European production facility in Belgium. This expansion has been funded by existing shareholders.
The company asserted that its impact is growing on farmers in West Africa is growing too, and its 5 Sourcing Principles are now benefiting more farmers and cooperatives than ever before. Some 20,296 agricultural workers (+14.4% YoY) now benefit from Tony’s 5 Sourcing Principles, including receiving living income pricing for all cocoa sold via Tony’s Open Chain.
On the major sector-wide issue of child labour, the company has claimed a continued downward trajectory on cases at its long term partner co-operatives, now less than 4%, compared to an industry average of 47% – equating to more than 10 times higher. The company has said that this statistic has given it confidence there is a pathway to structurally eradicate child labor in the cocoa value chain.
As the business noted, significant challenges remain for farmers in the sector, with millions of workers in West African receiving too little for their cocoa supplies. This has denied them a living income, leading to poverty, illegal labour and deforestation as well as the underinvestment in their farms leading to supply loss.
By its own estimation, over 1.5 million children work illegally on cocoa plantations (with the figure having been as high as 2.1 million in the region in recent years), as well as forced labour affecting 30,000 individuals. This is on top of around 80-95% of rainforest in Ivory and Ghana having already been lost since 1955 – with one-third caused by cocoa production.
Commenting on the results Douglas Lamont, Chief Chocolonely, welcomed the positive momentum. He said: “Our report this year showcases the growing evidence that our 5 Sourcing Principles model can work at scale and deliver step change long term benefits to cocoa farmers and their families, not least in creating a pathway to structurally eradicate child labor from the cocoa value chain.
“While Tony’s Chocolonely has itself grown rapidly, our cocoa volumes have grown even faster, as we’ve been joined by many new partners, our Mission Allies, who have chosen to source their cocoa through Tony’s Open Chain, including some of the fastest growing chocolate brands as well as household-name grocers.
“To inspire industry-wide change, as well as scaling our impact, we need to show that the business model for Tony’s Chocolonely delivers for shareholders. The rapidly increasing net revenue, strong growth in the US and in many of our core European markets, all while delivering a positive EBITDA, shows we are on the right track,” noted the chief executive, who said that their collection action could help end exploitation in cocoa supply chains.
