Business Owner Profile: Raaka Chocolate

Ryan Cheney, from Raaka Chocolate, creates and produces small batches of fair-trade, stone-ground chocolate bars in Brooklyn.

Hi Ryan. These unroasted chocolate bars are really delicious! You have great flavors, chili, blueberry-lavender, bourbon… How did you come up with this idea?

My first exposure to crafting chocolate by hand was actually at an esoteric yoga school in Thailand. Yoga practitioners tend to love raw food, and one of the students at the school was teaching how to craft what she called “raw chocolate bliss balls.”  They were hand-rolled raw chocolate truffles, with herbs from many different cultures that were traditionally used as aphrodisiacs.  I loved making chocolate, and Raaka grew organically from that experience.

And how would you describe your business mission?

My objective in business is to serve the well-being of all people, and the earth at large.  Capitalism has improved standards of living tremendously in the developed world.  Still, I feel that there are clearly imbalances both internationally and here in the U.S. which businesses have created, and which businesses can correct. Specifically, my gut tells me that current resource distribution leaves a lot to be desired.  Raaka is committed to a more balanced compensation structure within the company, and to improving well-being in communities from which it sources cacao by paying premiums to farmers.

The measure of success in Fair Trade ingredient sourcing generally has to do with setting specific standards/goals in trade agreements, and then successfully auditing the program.  The basic problem is that cocoa beans are often grown in regions with a lot of corruption, and premiums can get pocketed by various parties before they reach farmers.  In the ideal case, chocolate companies have close connections with the cocoa communities from whom they source their beans, and they schedule unannounced visits directly to the farmer, and interview the farmer about the compensation she/he received for previous orders.  This ensures the exporter/processor is passing on the premium to the farmer, or operating in accordance with the agreement.Some companies simply outsource this task to third party fair trade certifiers (transFair USA, Rainforest

Alliance, FLO – Fairtrade Labeling Organizations International, UTZ, etc).  Some of these organizations are better than others.  I can tell you that FLO was certifying beans leaving Haiti last year, but I don’t think they were successful in ensuring that most of the premiums were passed on to farmers.Finally, Raaka proposes a way to further maximize improvement in quality of life.  Namely, we plan on targeting economically distressed regions, and setting up DirectTrade agreements which pay premiums to farmers and processors in those regions.  For example, right now, there are a lot of fair trade beans leaving the Dominican Republic, but there is also a relatively high standard of living in that country.  No fair trade beans have left Haiti for the past 18 months.  Paying a Haitian farmer what the fairtrade farmers in DR are paid would be offering a huge opportunity to that farmer.  So, the main difference in our approach is that we are specifically targeting regions with greatest potential improvement in quality of life through Fair Trade.

This in itself makes your products better. I did try that Cask-Aged Bourbon chocolate bar, it’s fantastic. 

We use simple, organic, fair trade ingredients.  We have unique products like our Cask-Aged Bourbon bar. We’re the only company to age cocoa nibs in oak casks for making chocolate bars.  We also use 100% post consumer recycled paper for our packaging.

How many people do you employ, and what are the next steps of your expansion?

Currently 5 Full time, 5 Part time. We plan to move into a larger factory in the spring or summer of 2013.

What drives you to do better every day?

My father is an idealist, and he encouraged me to find a practical application of my own ideals.  Building a company which contributes to a more harmonious resource distribution lends the meaning necessary to put in the long hours necessary to successfully launch a company.

Do you have a daily routine that keeps you focused?

Ha.  I try to get a little running and meditation in each week.  I try to guarantee a short vacation each summer, to get my mind off the company a bit.  On long work days, I indulge in short 10 minute naps to relax and take a step back from the project.

What’s the best part of being a business owner? Why do you think people are more supportive of small business today?

Working with great people is my favorite part.  It’s also great that people tend to be really excited to hear stories from entrepreneurs. I think it’s easier to integrate new values into a company in its formative years than it is to change the culture of larger companies.  People intuitively understand this, and they like supporting small businesses because they understand that small businesses have a unique opportunity to offer something new in terms of how businesses are run.

Do you think small businesses have an effect on the community?

Absolutely.  We particularly love selling chocolate at Farmer’s markets and holiday Markets.  It feels good to know your customers, and to know that you share a  community with the folks enjoying the fruits of your labor.   We meet young students from Brooklyn when they come with teachers to pick up cocoa shell for their gardens.  It’s great showing kids the factory.

How has your business changed in the past few years?

We’ve recently begun selling in Whole Foods.  This has placed new demands on us surrounding production efficiency. Because all of our chocolate is currently poured, trimmed, wrapped and labeled by hand, we spend a lot of money on payroll.  We’re looking for more efficient ways to make chocolate, so that we can be more competitive with larger companies that have economies of scale on their side.

What are some of your favorite small businesses?

We love many Brooklyn-based small businesses.  SustyParty, Recycled Brooklyn, Sprout Skincare, Runa Tea, and Alchemy Creamery, to name a few.

What is the best advice you could give to someone starting a business today?

It’s not a sprint.  Depending on how you approach it, it’s either a marathon, or a marathon of sprints. Because starting a business can make such large demands on your time, it’s critical to have a life structured such that you have time for relaxation.  You can’t do it alone.  Also, you can’t do it only with you and great employees. Family, friends, and investors all play critical roles in starting a successful business.