Chocolate money
Lee Jamieson on the lucrative potential of the Middle East’s love for chocolate.
The Middle East adores its chocolate. With annual sales averaging US $4.2 billion, it is one of the few ingredients to penetrate all levels of the market: from budget to luxury offerings, from retail outlets to corporate events and as an ingredient in both sweet and savoury dishes.
The region’s confectionery market is fertile territory for development; worth an estimated $127 billion according to TNS Media Intelligence figures, the state of the chocolate market has been radically transformed in a relatively short period of time and the last decade has seen a sharp increase in demand as tastes become more sophisticated.
“There is a lot more chocolate in the market today,” says president of the Emirates Culinary Guild and director of kitchens at Radisson Blu Hotel Dubai Deira Creek, Chef Uwe Micheel.
“Just 15 years ago there were only two chocolate brands on the market; today there is an endless array of brands from across the quality spectrum. Today we even have chocolatiers producing bars and pralines in this region.”
A brief review of the chocolate consumption of any major F&B outlet highlights how important the ingredient has become. Chef Micheel estimates that his kitchen uses about 6,000kg of chocolate each year in over 100 different dishes, while Eric Pellen, Al Bustan Palace Hotel Muscat executive sous chef, estimates an annual consumption of nearly 10,000kg.
Demand is growing steeply, according to Bruce Woolner, commercial and development manager of supply company Chef Middle East: “We have increased 62% in importation volume, which translates into about 35%-40% in terms of sales,” he says.
Although much of the region’s chocolate consumption is dessert-based, some operators have developed specialist outlets and events to highlight their chocolate offering and add an element of luxury to the guest experience, as Ritz-Carlton, Dubai International Financial Centre executive assistant F&B manager, Antony McNeil confirms: “We have a signature chocolate and champagne high tea in our lobby lounge which covers a vast selection of chocolate treats.
This includes an individual chocolate fondue and attention is given to varying degrees of cocoa percentage to build up a rich flavour profile. Our events, desserts and chocolate amenity products utilise around 200 kilograms of chocolate every week.”
Supply and demand
Rapid market expansion has led to the introduction of many high-end products, striving to differentiate themselves in the eyes of the Middle East’s brand-conscious consumer.
However, the majority of quality chocolate is imported from key international markets, which exposes the prices to fluctuations in commodity prices. It has therefore become difficult for many chocolate manufacturers and distributors in the region to balance price and quality – especially in the current economic climate.
“It’s certainly true that the Middle East has seen an unprecedented demand for chocolate in the last decade, but since 2008, the UAE in particular has experienced both an influx of chocolatiers and an economic downturn,” says Gavoa House of Chocolate managing partner, George Tannous.
“This has naturally led to increased competition and has affected prices in the chocolate market. Ultimately, this has resulted in quality issues.
There are a significant number of chocolatiers in the region using cheap chocolate compound at a fraction of the price of real chocolate and then supplying the market at ridiculously low prices. This makes it very difficult for quality chocolatiers like us and I think there is a need for tighter regulation in this area.”
As the market grows, chocolate suppliers both old and new have fought to make their products stand out from the competition by introducing more variety. New flavours and new market sources have put an increased strain on the chocolate supply chain to the region.
In some areas, the supply chain is still maturing and sometimes struggles to keep pace with the region’s insatiable appetite for chocolate.
“The importers and distributors are not at all consistent with in terms of availability of products,” says Swiss International Chocolates managing director, Daniel Hutmacher.
“They change products without notification, thus creating havoc with our recipes, which are all carefully designed to be a delicate balance of ingredients.”
Can’t take the heat?
The logistical challenges in supplying the region do not end there. Temperature control is a major concern for both chefs and suppliers because the taste and texture of chocolate products can be affected by the region’s hot climate.
At a time when the price of chocolate is unstable, the extra cost of temperature-controlled distribution is an added frustration.
“Handling the region’s weather conditions is a real challenge for us,” says ChoCo’a managing partner, Assem Hamzeh. “It definitely helps to wrap the chocolate in foil – a simple thing that offers extra protection to our products.
For deliveries, we use temperature-controlled vans to maintain the texture and taste of the chocolate and we avoid the product being outdoors for any longer than 10 seconds.
“We also advise our customers to store the chocolate at room temperature rather than put it in the fridge. Extreme cold, as well as heat, will alter the taste and texture – so it’s a delicate balance of these two elements.”
Education
Chefs and suppliers report that the region’s chocolate tastes are slowly evolving as consumers move away from “quick and easy to eat” milk chocolates to dark chocolates with a higher cocoa percentage and lower sugar content.
"Dark chocolate is becoming a gourmet product, served in five-star hotel restaurants, says Zeyneb Larabi, regional sales manager for Valrhona, which is distributed by Chef Middle East across the region."Further to using the best products for their starters and main dishes (ingredients like high-quality salmon, high-quality foie gras, high-quality meat), chefs are looking for high quality desserts.”
"And as palates mature the demand for new tastes is increasing, with consumers seeking out chocolate infused with herbs and chocolate-based savoury dishes.
A lack of understanding among the region’s consumers means that the trend for savoury chocolate dishes is still in its infancy. There is still a long way to go before chefs wean diners off their love for milk chocolate and introduce them to the diversity of high-quality dark chocolate as an ingredient.
“The trend for savoury chocolate dishes is definitely catching on, but at the moment we’re only doing it for special menus,” says Kempinski Hotel Ajman pastry chef, Pierre-Julien Rebuzzi.
“A dish like chocolate on foie gras for example is a fantastic taste experience, but I think there needs to be more education to fully introduce chocolate dishes like this. One of the benefits of including these dishes on special menus is that we get to interact with the guests and trigger their interest.”
It could be argued that the region’s chocolate market is expanding at a faster rate than necessary to meet consumer demand – perhaps, in part, due to the increased competition at the top end of the region’s hotel and F&B industries.
Luxury operators are searching for cost-effective ways to differentiate their offering from the competition, and high-quality, luxury chocolates “fit the mould”.
To this end, the region’s suppliers and chefs fully understand the importance of education when introducing new chocolate products and concepts. “I think an important segment of demand is being driven by the chefs themselves,” says Valrhona’s Larabi.
“As they introduce new chocolate concepts onto their menus they are educating people about the different colours, tastes and nuances.”
Simplicity
With lots of high-quality chocolates flooding the Middle East’s F&B market, chefs are spoilt for choice – a world removed from Chef Micheel’s recollection of only two brands to choose from some 15 years ago.
“Even 10 years ago, people would not accept chocolate bars made with chilli or lemongrass,” he added, “but today, they are very common.”
The shift in the market has opened up new creative opportunities for chefs – yet, despite the wide range of exciting new products available, chefs continue to focus on the simplicity and uniqueness of chocolate as an ingredient.
“I think we’ll continue to see a trend for simple and elegant chocolate presentation over the next few years,” says Al Bustan Palace’s Pellen. “An effective chocolate dish is all about how you balance flavour, texture and presentation.
“Take a chocolate passion fruit cake, for example. The different textures and tastes of chocolate are all wrapped up in a dish like that: you’ve got the dark chocolate mousse, passion fruit jelly, dark chocolate glaze and the crunch of the milk chocolate and praline.”
As chocolate moves away from being a mass-consumer product to something more boutique, end customers become more interested in the nuances, the product’s origin and the artisan elements that make up the taste.
Ironically, the more complex the chocolate market becomes, the more interested consumers become in the simplicity of the product.
Ultimately, chocolate has emerged as a key gourmet product in the region – and as with other gourmet ingredients, chefs emphasise the qualities of the ingredient itself. They allow the product to do the talking.
“I think the secret to a great chocolate dish is simplicity,” concludes Kempinski’s Chef Rebuzzi. “If you’re using a dark chocolate with a high cocoa percentage, then the taste is strong enough. You don’t need to introduce lots of other ingredients. When it comes to chocolate, less is definitely more.”
Meet the Suppliers
Valrhona
“Our flagship product, Guanaja, was created in 1986 and was the first chocolate squares and the first bitter chocolate in the world. Used in pastries of all kinds, Guanaja is well-known in the professional pastry chef community.”
www.valrhona.com/worldwide
ChoCo’a
“Our exclusive caramel collection includes caramel with rose water, caramel with almond florentine, chewy caramel, classic vanilla caramel, and dark chocolate caramel with roasted walnuts.”
www.chocoa.ae
Gavoa House of Chocolate
“Our Arabian Collection brings together the finest ingredients to reflect local tastes such as dates filled with pistachio nuts dipped in Belgian chocolate and hand finished. The collection is served in an engraved wooden box.”
www.gavoa-uae.com
Swiss International Chocolates
“We have a number of flagship chocolates including raspberry and chilli, rooibos earl grey tea, lemongrass and lime leaf, and passion fruit. I think they are popular because they take you on a dreamy journey of flavours and let you enjoy a real chocolate made with passion.”
http://sichocolat.com
Choco Dou Chocolates
“We can customise our products to the client’s needs in terms of filling, colour and presentation. This makes our products ideal for wedding centrepieces, corporate events, and flower bouquets.”
www.chocodou.com
Chocolate Trends
“I think the market will improve and demand will increase. In the Middle East, chocolate is required for all occasions – everything from corporate events to weddings – but it is new ideas, creative new products and increased quality that will drive demand for brands.”
Wassim Yared, managing director, Choco Dou
“I think customers will begin to seek out origin specific products and favour single producers that have unique characteristics. Direct access to producers – much like a single estate vineyard – will define how we enjoy new chocolate experiences in the future.”
Antony McNeil, executive assistant F&B manager, Ritz-Carlton, Dubai International Financial Centre
“In years to come, I believe that the chocolate market will become more competitive and more selective, which definitely raises the bar for ChoCo’a. With an evolved market, brands will have to work on
creating special product selections to maintain a competitive edge.”
Assem Hamzeh, managing partner, ChoCo’a
“As consumers become more educated about chocolate, quality will become paramount. I think chocolate made from natural sources will become distinct from the crowd of average products by advertising themselves as “made from all natural ingredients” and “hand crafted”. Also, a “made in UAE” stamp is becoming increasingly important.”
Daniel Hutmacher, managing director, Swiss International Chocolates
“I think packaging is becoming more competitive and chocolatiers that can present their products in an innovative way will stay ahead of the competition.”
George Tannous, managing partner, Gavoa House of Chocolate