The core of chocolate business: how to really make money on chocolate

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This article is written and published in August 2024. Prices given as an example are average prices for EU countries and current for the time of publication.

Chocolate

For many of us it’s something sweet we buy at a grocery store or a pastry shop. Few connoisseurs see a beautiful delight culture in it. For chocolatiers it’s a full-fledged job, and for many of them it’s a business. We know firsthand that making money, doing something you’re passionate about it’s one of the best things in the world. So in this article we’ll talk about how to make your chocolate making hobby into a profitable business. With examples and numbers, of course.

If you’re reading our journal then you know that we have many materials about equipment and chocolate making technology. In general, business in relation to chocolate is impossible without technological gadgets. At the beginning of your journey you can use a microwave oven, temper chocolate using a granite table top, cast chocolate into molds manually from bowls and so on. And as much as the kitchen DIY method is saturated with an exciting spirit of adventure, it’s nearly impossible to make a scalable business with it.

Let’s say you’re already at a kitchen DIY level, and at a higher level you have a wheeled chocolate molding machine, a vibrating table for chocolate candies and an incubator for cocoa butter crystals, like in the image below.

Сетап для мини-производства

You make about 400 chocolate bars a month and about the same amount of candies. You sell them yourself via the internet or other methods. Now imagine that one beautiful spring day one of your clients, who bought about a 100 bars, turned out to be a representative of a coffee shop chain and decided to sign an annual contract with you in terms of which you have to supply 4 000 bars of chocolate a month for their whole chain. The annual contract amount is 192 000 euros or 16 000 euros a month, making it 4 euros a bar.

Annual contract.
4 000 bars a month
(100 g bars)
16 000 euros a month
(monthly gross income)
192 000 euros a month
(contract amount)

So you sit down and do the math. First thing you need to understand is how much this project implementation and execution will cost you, and whether it will be profitable or not.

You’re probably used to working with pre-made chocolate (belgium, perhaps), which is packed in convenient packages, because it’s rather tasty and it enables you to make bars of a consistent quality time and time again. 4 000 bars a month is 400 kilograms of chocolate. Seeing as the price of pre-made chocolate averages at about 9,45 euros at the time of publication of this article (August 2024), it will cost you about 3780 euros or more.

Бельгийский шоколад

That very one belgium chocolate with convenient packaging

Basically, almost a quarter is gone to buy primary products. Let’s see what to do with the rest of the money. For such a big quantity you’ll need:

  • Spacious cooler (very different from home fridge).
  • Premises that will cost about 950-1200 euros
  • Salary for the worker: 1500-3700 euros, depending on their qualification and specific country.
  • It also takes time to set up and debug the princess - about a month.
  • Oh, the packaging for chocolate bars as well.
  • Inventory…

Well, you get the picture.

Cocoa doesn’t grow in Europe, and the well-known chocolate makers are intermediaries between farmers and entrepreneurs.

No panic

We’ll tell you what can be done about it.

Let’s start with the largest item of expenditure - primary products. Let us remind you again, that in current conditions (at the time of publication of this article in August 2024) the cost of pre-made chocolate averages at about 9,45 euros per kilogram. Did you ever think about what’s included in the price of a kilogram of a pre-made chocolate? Cocoa doesn’t grow in Europe, and the well-known chocolate makers are intermediaries between farmers and entrepreneurs. They’ve processed cocoa for you - pay the coin. They’ve made chocolate, packed it, stuck a logo on it - another coin, kindly. Logistics - that’s another couple of coins. Taxes, duties and salaries - that's a whopping half a bag of coins. And the local salespeople will take the last innocent penny as their markup. Don’t blame them, they also need to make money.

And what should we do in this case?

1/2
The Core

Make chocolate yourself

For that we’ll need specialized equipment. A melangeur in particular.

Меланжеры KADZAMA

The family of professional KADZAMA Melangeurs

To make chocolate it takes from 12 to 48 hours (of continuous process)

It’s a compact grinder with granite millstones, loading capacity of 2 to 100 kg for making chocolate and spreads, including sugarless 100% spread. Melangeur made chocolate that’s made from cocoa nibs or cocoa liquor can be identical in terms of taste to the pre-made chocolate, but it will cost a lot less: starting at just above 2 euros per kilogram against almost 10 euros for pre-made chocolate if ingredients are bought in a small wholesale. All of the ingredients included in chocolate (cocoa liquor, cocoa butter, cocoa powder, milk powder, flavoring agents, sugar, lecithin and other) can be bought from trade platforms, such as Alibaba or Europages, or from industry suppliers like Cargill or Olam.

Melangeur - It’s a universal machine that can be used to make nut spreads, 100% sugarless spreads, plant-based pates, plant-based milk, hummus, fillings for candies and bars, sauces, dessert and sandwich spreads.

We sense some of you started worrying that this soulless terminator is going to kill the priceless spirit of craftsmanship in your chocolate. No need for that: the machines are also used in large-scale artisan chocolate, though they are many times larger. Melangeur is a “multicooker” that saves you time and money. And also: melangeur is a synonym of chocolate craft. And here’s why: when you buy pre-made chocolate, no matter the brand, you can’t affect its taste and you deal with what you have. That's neither good nor bad. For example, for a beginner chocolatier such an approach is handy – it’s impossible to spoil the taste and there is no need for additional equipment. Melangeur in its turn enables you to control the recipe. You can choose to make chocolate using classic recipe and with a low cost, or with proteins and vitamins. If you don’t like white sugar, make it with cane sugar. If you don’t like sugar at all, make chocolate with sweeteners. Pure creativity and awesome signature mixes.

Set of compact equipment Watch

The process of making bean-to-bar chocolate

As we mentioned earlier, a melangeur doesn't just make chocolate. It is a versatile machine that can produce nut spreads, 100% sugarless spreads, plant-based pates, plant-based milk, hummus, fillings for candies and bars, sauces, dessert and sandwich spreads. So, if you want to expand your product range, a melangeur will serve you well. A larger assortment means more different niches that you can fill with your product, thus increasing your income.

Let's return to our contract. We agreed with the coffee shop to supply them with 54% dark chocolate bars. The number 54% represents the approximate ratio of cocoa products inside (33% cocoa mass and 21% cocoa butter), with the rest being sugar (45.3%) and lecithin (0.7%). At the current prices for ingredients (as of August 2024), the cost of a kilogram of this chocolate will be approximately 3 euros. So, if you make the chocolate yourself in a melangeur, you will spend around 1 200 euros per month on primary products. In the case of pre-made chocolate, it would be around 3 800 euros. Once again...1 200 versus 3 800. And this is with comparable quality. That's a saving of 2 600 euros per month just on primary products. Isn't that great?

Chocolate cost

Self-made chocolate from cocoa liquor
1 200 €/month
Pre-made european chocolate
3 800 €/month

A professional melangeur is designed to operate 24/7. On average, it takes three days (72 hours) to prepare perfectly silky chocolate, but this time can be reduced to two days. This means that during a work week (Monday to Friday), you can make two batches in the melangeur, which totals eight batches per month. Since you need to produce 400 kg, divide this volume by 8 to get 50. Therefore, a 65 kg melangeur is perfect for you, leaving extra chocolate for other needs.

Now you know how to produce the chocolate you and your customers are accustomed to at a third of the price.

Меланжер 65 кг KADZAMA

Melangeur 65 kg

Now let’s think about how we’re going to produce our chocolate bars.

Casting 4,000 bars by hand is no easy task. The nozzle of a wheel mixer does not allow for precise chocolate dosing, so within a month, a spatula will become an extension of your hand. Or not yours. Let’s say you hired an employee. If you don’t want to hire an experienced chocolatier with honed skills for 3 000+ euros a month because they are too expensive, you will still need to spend money training an inexperienced employee. Yes, in this case, you save on salaries, but the employee will need time to get up to speed, so you can forget about a seamless and smooth work process initially. You’ll be working hard yourself too. Moreover, you are not protected from the risk of the person leaving, who might use you as a stepping stone to a higher-paying job elsewhere.

So what to do? How to minimize risks and handle such a volume without issues? Let's continue…

2/2
The Core

Manufacturing automation with a help of an automatic tempering machine

Автоматическая темперирующая машина KADZAMA

The ATM, or automatic tempering machine, does everything by itself: it heats the chocolate, tempers it, and pours it precisely into molds without spilling a drop. Working with it is a pleasure: load the chocolate, press a button, and off you go. No chocolate theory, no pre-crystallization, and no traditional skills are required. The smart onboard system replaces the entire chain of processes that a chocolatier usually handles. The ATM allows you to maintain a high standard of product quality without any mistakes or losses, as the human factor is reduced to loading the product, pressing a button, and positioning the molds under the tap. The salary of an employee performing such simple tasks is much lower than that of an experienced chocolatier.

Демонстрация АТМ KADZAMA Watch

Kadzama automatic tempering machine demonstration.

The optimal choice for fulfilling our order is to purchase a 30 kg automatic tempering machine.

If you make chocolate with the same recipe in one melangeur, for example, dark 54% with white sugar, there is no need to wash the machine after each batch. Simply add the ingredients for the new batch. The melangeur needs to be cleaned and washed only when changing the recipe.

The work cycle with a 65 kg melangeur and a 30 kg ATM will look something like this: on Monday, you make the first batch of 65 kg of ingredients and grind it in the melangeur for 2 days, until Wednesday. 65 kg kilograms is equivalent to 650 chocolate bars. During these two days, you prepare the packaging for the bars (cardboard boxes and foil), prepare the molds, clear space in the cooler, and thoroughly study the ATM to either brief an employee or practice using it yourself. Wednesday comes, first, you unload the chocolate from the melangeur: 30 kg goes directly into the ATM, 15 kg into some regular container, and the remaining 20 kg into the wheeled chocolate molding machine. The machine with the wheeled mixer will be used as an additional tank for the ATM: if you attach an extended nozzle to the wheeled machine, you can easily pour melted chocolate into the ATM, thus making the process continuous since you don't waste time melting solidified chocolate.

Next, the molds. For comfortable and efficient work, ideally, you need 100 molds. Each polycarbonate mold costs about 25 euros, so you will need a total of 2 500 euros for all the molds. The workflow is such: in 20 minutes, you cast the first 50 bars — this quantity is optimal for a standard cooler: 10 bars per tray multiplied by 5 trays. While the cooler is getting fully loaded, the temperature inside rises (while you are loading the bars, the cooler remains open), and the circulation of cold air worsens, so it takes about 15-20 minutes for the bars to set. During this time, you pour the second batch of 50 bars and place them into the cooler, replacing the already set first batch. The molds need to be cleaned and organized immediately. You can simply wipe them down, without washing. It will take about 20 minutes to handle 50 molds. Thus, your productivity will be 100 bars per hour. Making 650 bars in a day is quite feasible — this is about 6.5 hours of work. So, you won’t have to strain too much or leave some bars for the next day. Feel free to rest and do other things, as today and tomorrow the melangeur will be grinding a new batch of chocolate, which you will only work on by Friday. By the way, nothing stops you from leaving the melangeur running over the weekend to start the new week with casting the chocolate into the molds right away.

This approach to fulfilling the contract will allow you to complete all 4 000 bars in 2.5 weeks under a normal work schedule without rushing. You will be able to rest on weekends and still have a full one to two weeks each month (including mid-week breaks) to search for other contracts, develop new products, or handle other business processes.

For better clarity, we have prepared detailed calculations with all costs and the time required to recoup the investments.

Calculations

This is not a business plan. Everything is calculated approximately to provide a general overview.

Goal:

4 000 100-gram chocolate bars per month = 400 kg of chocolate.

The contract amount is 192 000 euros, which equals 16 000 euros per month (4 euros per bar).

Chocolate self-made from cocoa liquor

Automatic tempering machine + Melangeur 65 kg

Net cost of 1 kilogram of the dark chocolate 54% made in a melangeur

Cocoa liquor (33%) € 1,48
Cocoa butter (21%) € 1,27
Sugar (45,3%) € 0,31
Lecithin (0,7%) € 0,05
Total: € 3,11

Equipment cost:

Melangeur 65 kg KADZAMA

€ 14 990,00

Automatic tempering machine 30 kg KADZAMA

€ 12 300,00

Prepare for payment:
Cooler

€ 1 250,00

One off
Inventory

€ 600,00

One off
Rent of premises

€ 1 020,00

Monthly
Salary of one person

€ 2 210,00

Monthly
Packaging

€ 365,00

Monthly
Chocolate molds

€ 2 500,00

One off

Let’s start working
Preparatory month
Advance + € 0,00
Cooler -€ 1 250,00
Rent of premises -€ 1 020,00
Molds -€ 504,00
Inventory -€ 600,00
Melangeur -€ 14 990,00
ATM -€ 12 300,00
Total: -€ 30 664,00
The 1st and the rest moths of work (12 in total)
Advance € 16 000,00
Rent premises -€ 1 020,00
Salary of one person -€ 2 210,00
Foodcost -€ 1 200,00
Total: € 11 570,00
TOTAL:
Total for the 1st year before taxes
€ 96 606,00
Total for each subsequent year in the case of renewing the contract under the same conditions.
€ 138 840,00
Pre-made European chocolate

Wheeled chocolate molding machine

Net cost of pre-made European dark chocolate 54%:

Pre-made chocolate € 9,45

Prepare for payment:

Cooler

€ 1 250,00

One off
Inventory

€ 600,00

One off
Rent of premises

€ 1 020,00

Monthly
Salary of one person

€ 2 210,00

Monthly
Packaging

€ 365,00

Monthly
Chocolate molds

€ 2 500,00

One off
Let’s start working
Preparatory month
Advance + € 0,00
Cooler -€ 1 250,00
Rent of premises -€ 1 020,00₽
Molds -€ 504,00
Inventory -€ 600,00
Melangeur -€ 1 990,00
ATM -€ 1 190,0
Total: -€ 6 554,00
The 1st and the rest moths of work (12 in total)
Advance € 16 000,00
Rent premises -€ 1 020,00
Salary of one person -€ 3 270,00
Foodcost -€ 3 800,00
Total: € 7 910,00
Total for the 1st year before taxes: € 80 456,00
Total:
Total for the 1st year before taxes.
€ 80 456,00
Total for each subsequent year in the case of renewing the contract under the same conditions.
€ 94 920,00

Conclusion
Regardless of the approach to fulfilling this contract, you will earn comparable amounts over the 1-st year. However, if you use a melangeur and an automatic tempering machine, you only need to pay for them once and then own them, and then just use them to create your product. This means that in the case of renewing the same contract (let’s say under the same conditions), you will earn not 7 910 euros, but 11 570 from the first month. Moreover, you will be less dependent on staff turnover and new investment opportunities will open up. This is the ideal option for those who prioritize business over craft.

Back to the top

Result

Ядро
Меланжер 65 кг KADZAMA
Melangeur enables you to:
  • Avoid dependency on the prices of finished chocolate, which are directly affected by complex logistics;
  • Significantly save on primary products without compromising quality when producing large volumes of products monthly;
  • Gain control over your chocolate recipes (primary product), become more flexible in terms of the composition of your products, and stop relying solely on finished chocolate;
  • Expand your product line by adding items such as nut spreads, 100% sugarless spreads, plant-based pates, plant-based milk, hummus, fillings for candies and bars, sauces, dessert and sandwich spreads or healthy lifestyle desserts.

    Learn more about melangeurs >
Автоматическая темперирующая машина KADZAMA
Automatic tempering machine enables you to:
  • Automate complex processes in chocolate bar and candy production, reducing them to simple button presses. The automatic tempering machine (ATM) can operate as a standalone unit or in conjunction with additional attachments, such as a chocolate enrobing machine or a dispensing plate to speed up the production of candy shells;
  • Eliminate expensive manual labor in production, as the staff operating it do not need to be chocolate experts, tempering specialists, or skilled in other complex chocolatier techniques;
  • Avoid production stoppages due to employee turnover, as replacements for staff are easy to find;
  • Easily produce large volumes of chocolate.

    Learn more about possibilities of ATM >

    Checklist for choosing an automatic chocolate tempering machine >

Thus, the melangeur and ATM allow you to think and act in terms of business, serving as the core of a scalable chocolate production system. They enable you to build your operation step by step without significant economic risks. This means you no longer need to purchase all the equipment at once; you can start with the essentials and acquire additional pieces as needed. Previously, you used tasty but expensive pre-made chocolate for your bars and candies. With increasing volumes, you realized that continuing in the same way was not cost-effective. With the melangeur, you began producing your own chocolate in the quantities you need and at the cost you require. The ATM allows you to completely forget about the routine of classic tempering and chocolate waste. Whereas you once manually coated candies in chocolate due to small volumes, which was time-consuming and expensive, you can now buy a chocolate enrobing machine that connects to the tempering machine, eliminating manual enrobing, increasing speed, and improving quality. If volumes continue to grow, you may find that your current cooler capacity is insufficient, prompting you to purchase a cooling tunnel that becomes an extension of the chocolate enrobing machine. You can then hire a packer to work at the end of the cooling tunnel, responsible for packaging the final product at the end of the line.

We understand that there are always risks in business. However, it’s reassuring when some of the risks affecting the system can be minimized or almost eliminated. The key is to have a stable core.

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