TONY’S CHOCOLONELY’S SUCCESSFULLY SCALES IMPACT MODEL WHILE DELIVERING RECORD REVENUE GROWTH  

Amsterdam, 30 January 2024 - Tony’s Chocolonely, the impact company that makes chocolate, publishes its latest annual FAIR report for 2022-23.  The report shows the largest annual increase in Tony’s Mission Allies to date with six new partners joining their collaborative industry initiative Tony’s Open Chain. More than 17,000 farmers (+20% YoY) now benefit from Tony’s 5 Sourcing Principles, including receiving living income pricing for all cocoa sold via Tony’s Open Chain. The company also reports a record €28m (+23% YoY) rise in chocolate revenue, reaching an annual revenue of €150m. 

On the company’s progress, Douglas Lamont, Chief Chocolonely, said: “As an impact-led company that wants to drive change across the whole industry, we must prove that ending exploitation of West African farming families can come in parallel with good returns for shareholders, impactful careers for employees and care for our planet. Our results this year demonstrate yet again that partnering with others in the cocoa supply chain and balancing the needs of all our stakeholders is both the right thing and the smart thing to do, to build a successful impact company over the long term” 

Higher farmer incomes and less child labor   

In 2022-23, the premiums paid upped the cocoa income earned by farmers supplying to Tony’s Open Chain in Côte d’Ivoire by 51%. This is a direct result of both Tony’s and its Mission Allies (other brands sourcing cocoa via Tony’s Open Chain) paying the Living Income Reference Price, which is higher than the national farmgate price and the Fairtrade price – enabling farmers to reach a living income. Maintaining the LIRP regardless of national cocoa prices, could be a potential game changer for farmers if adopted industry wide. Currently 17,740 farmers benefit from living income cocoa prices thanks to Tony’s Open Chain, 20% more than last year.   

Partner co-operatives within Tony’s Open Chain showed a significantly lower prevalence of child labor at 10.5% versus the industry average of 46.7%. Encouragingly, Tony’s long-term partner co-ops (3+ years) have an even lower rate of 4.4%, demonstrating the ability to effectively reduce child labor if Tony’s 5 Sourcing Principles are successfully applied. 

Lower carbon footprint 

Detailed satellite mapping and deforestation reviews have confirmed that Tony’s supply chain is deforestation free, resulting in 87% lower emissions in Ghana and 95% lower emissions in Côte d’Ivoire than most other cocoa sold in the same region. To go further, the company signed up to the maximum scope 1&2 science-based emission reduction target (42% by 2030 for SMEs). 

More partners on a change mission 

Tony’s Open Chain also welcomed six new Mission Allies, with the recent joining of HEMA and Jumbo marking the participation of most major Dutch grocery groups – resulting in a bigger share of 100% traceable cocoa that enables a living income on retailer shelves. 

As Tony’s Open Chain expands, the company announced a new impact promise "together, we’ll end exploitation in cocoa” to bring to life the wider scope of work involved in Tony’s 5 Sourcing Principles. Building on Tony’s original “slave-free” mission, the evolved statement targets all interconnected forms of exploitation in the cocoa supply chain, like ensuring a living income and combatting rampant deforestation, whilst acting as a rallying cry to build an industry-wide change coalition. 

Record revenue growth and strong momentum  

A record absolute net revenue growth of +€28m (+23%) took annual net revenue to €150.2m. Key growth contributors included a successful launch into the chocolate snacking market with Tony’s Lil’ Bits and particularly strong revenue growth in the UK, the USA and Germany. As Tony’s continues to invest ahead of the curve (reflected in an EBIT of -€2.7m) to bolster its growth momentum across multiple markets, Tony’s strengthened its balance sheet through a €20m investment from existing shareholders in June 2023. 

NOTES TO EDITOR 

Challenges in the cocoa market 

Millions of cocoa farmers in West Africa receive too little for their cocoa, denying them a living income, leading to poverty, illegal labor and deforestation. Over 1.5 million children work illegally on cocoa plantations, forced labor affects 30,000 individuals and 80-95% of rainforest in Côte d’Ivoire and Ghana has already been lost since 1955 – with one-third caused by cocoa production. 

About Tony’s Chocolonely   

Tony’s Chocolonely is an impact company that makes chocolate, dedicating its efforts to ending child labor, forced labor and all forms of exploitation in cocoa.  They have grown to become one of the market leaders in the Netherlands and are rapidly growing worldwide. Tony's Chocolonely is a B Corp and is Fairtrade-certified.   

About Tony’s Open Chain   

Companies are invited to join Tony's Chocolonely in its ambition to end exploitation in cocoa together, by becoming Mission Allies and sourcing cocoa beans through Tony’s Open Chain. In doing so, their beans are sourced according to Tony's 5 Sourcing Principles from communities where the Child Labor Monitoring and Remediation System is fully implemented.  

About Tony’s 5 Sourcing Principles 
 Tony’s 5 Sourcing Principles aim to structurally improve the lives of cocoa farming families. They consist of (1) sourcing 100% traceable cocoa beans, (2) paying a higher price for cocoa to enable farmers to earn a living income, (3) promoting strong partner co-operatives to professionalize and make cocoa farming safe and sustainable, (4) engaging in long-term commitments to boost farmers’ income security, (5) training farmers to improve their productivity and cocoa quality.  

A note from Tony’s

In line with Dutch legal requirements, the AFR 2022/2023 contains an auditor’s report and is signed by the managing board and the supervisory board. The AFR 2022/2023 has yet to be adopted by the general meeting of shareholders in accordance with article 2:210(3) DCC.