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Chocolates El Rey
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In late November 2006, Jorge Redmond, CEO of Chocolates El Rey, called a meeting with senior management to discuss the company's growth strategy. A relatively small firm with sales of around $14 million, El Rey produced top quality chocolate made with single origin Venezuelan cocoa beans. The firm sold its chocolates in four different segments--food services, industry, retail and beverages--and exported 17% of its production, mostly to the United States, Europe, and Japan. El Rey needed to grow, but Redmond wondered how to achieve growth and how to market the "El Rey" brand to its different target segments and international markets. With only 0.5% of the cocoa's world production, was it worth the effort to try and establish a country-of-origin image for Venezuelan chocolate? If so, how could El Rey go about it?