Koa - Impact in cocoa business tastes good

It all started with the question of how to contribute to sustainable economic growth in rural Ghana and included the usage of solar power in that idea. Then, in 2017, today's founders of Koa sparked their life-changing idea. The idea is based on the fact that the cocoa fruit has much more to offer besides the beans, the only part of the pulp that was broadly valued in the cocoa industry until today. The cocoa fruit, however, was neglected, even though it has a wonderful flavor and juice. By using the fruit of the cocoa and not just its beans, farmers can increase their income, create new jobs in rural areas and avoid food waste.

Purposeful business creates triple impact

The idea might appear obvious, but Koa is a first mover in processing the cocoa fruit on a commercial scale while still collaborating with small-scale farmers. The business case is loaded with social responsibility and sustainability, which SEF.Growth experts like Peter Balsiger acknowledged. He said: "This company basically does everything right."

• 100% transparent extra income for small-scale farmers
  
  More than 2200 farmers earn an additional income thanks to the partnership with Koa. Farmers receive the money on the same day as production. 100% of the payments are verified with blockchain. "We want to have an impact. A fair trade certificate would have been below the standards that we have set for ourselves. So, we looked for more radical ways to prove social responsibility and build trust. The blockchain was the solution for us", Marketing Director Andrea Werdin explains their choice.
   
• Boosting economic growth by creating new jobs in rural Ghana
  
  Koa creates jobs in Ghana that majorly get staffed with young people from the surrounding communities who gain know-how on processing the cocoa fruit and have a new outlook on life. Additionally, Koa hires internationally experienced experts, making valuable contributions towards sustainable growth in their home country.
   
• 40% less food waste for responsible use of resources
  
  Koa uses a natural resource previously thrown away by processing the cocoa pulp. The surplus part of the fruit is removed through solar power from their solar panels. The beans remain unharmed, and proper fermentation of the beans for chocolate production continues to be guaranteed.

This impactful business DNA paired with high-quality products has made Koa an impressive client base, including names like Lindt, Felchlin, Sprüngli Confiserie, and more. So far, the product is mainly used as a new flavor and natural sweetener for chocolate products, ice cream, or soft drinks.

Cocoa fruit products might remain a luxury as the pulp needs to be harvested and preserved within a single day. To process the fruit, it's even only three hours. This limited timeframe places extraordinary constraints on logistics and ties up many resources, people, and capital. On the other hand, overcoming this challenge is a competitive advantage, as every competitor will face the same circumstances and it brings speed into the business.

Scaling up is a challenge mastered with a strong WHY

Koa's business has many intersections and dependencies, making scaling up challenging. "It has a million puzzle pieces," says Anian Schreiber, Koa’s Co-Founder and Managing Director. "But from the past years' growth – we are now a team of 100 people on two continents in four locations – we have learned that having a clear why is key to orchestrating all divisions and ensuring they grow simultaneously. Everyone in the company must deeply incarnate the reason why we do what we do, and with a sense of empowerment, contribute to its achievement. And even when selecting our partners, we pay great emphasis that they are also committed to our mission." The important step was the opening of the second production site on 25 August 2023. Two hundred fifty local people will work there and contribute to increasing production tenfold in the medium term, a target validated in the SEF.Growth program by experts with an outside view of the company. 

A further outlook on Koa's future involves broadening its business model. Andrea explains: "Using the cocoa fruit is a first step in efficiently using the cocoa plant. But there are more opportunities around it. And we want to explore them to work further towards closing the living income gap for the small-scale farmers." The mission continues.