Analysis
9/3/13
Scharffen Berger Chocolate Maker
Scharffen Berger Chocolate Maker
Company Overview
• Scharffen Berger was founded in 1996 by Robert Steinberg and John Scharffenberger. • The chocolate maker in US market competing for $1.2 billion premium quality chocolate segment. • Company had 60 employees and operated from a 27,000 sqft facility with 20,000 sqft production area, office space of 5,000 sqft and retail space of 2,000 sqft * Facing high market demand which is outstripping production. High growth in demand is expected for its premium chocolate products and hence planning capacity expansion
Business Overview
Primary products at Scharffen Berger were • Unsweetened (99% cacao) , Extra Dark (82% cacao) , Bitter sweet (70% cacao), Semi-sweet , Mocha, Mint (all have 62% cacao), Milk Chocolate (41% cacao) • Others: chocolate sauce, drinking chocolate, cocoa powder and chocolate covered figs Pricing Retail: $0.50 for 5 gm, $2.00 for 1 ounce, $4.00 for 3 ounce, $10.00 for 10 ounce. Wholesale: approximately $0.35 per ounce Sales $0.6 million in 1998, $10 million in 2004, Over $15 million estimated revenues for 2005
Production Process At Scharffen Berger
[http://4.bp.blogspot.com/DY6txg73x5Q/T_sE8WZl4SI/AAAAAAAAF1M/1SWqEdAZvW4/s1600/Untitled.png]
Current Capacity and expansion
• Monthly production capacity of 40,000 kgs i.e. around 29 chonc of chocolate (each approximately worth $ 30,000 in sales) • Expansion options being considered – Purchasing more of same machines already being used mbacase.blogspot.in/2012/07/scharffen-berger-chocolate-maker.html 1/5
9/3/13
Scharffen Berger Chocolate Maker
– Adding a new ball mill at $ 300,000 (assuming quality remains same). Expected time reduction to 15 hrs from avg. 60 hrs of choncing. – When ball mill is installed, Mixer will be next bottleneck. Additional mixer could be purchased & refurbished at $ 50,000. – Outsourcing the tempering and molding process to co-packers and remove duplication.
Scharffen Berger Chocolate Maker
Scharffen Berger Chocolate Maker
Company Overview
• Scharffen Berger was founded in 1996 by Robert Steinberg and John Scharffenberger. • The chocolate maker in US market competing for $1.2 billion premium quality chocolate segment. • Company had 60 employees and operated from a 27,000 sqft facility with 20,000 sqft production area, office space of 5,000 sqft and retail space of 2,000 sqft * Facing high market demand which is outstripping production. High growth in demand is expected for its premium chocolate products and hence planning capacity expansion
Business Overview
Primary products at Scharffen Berger were • Unsweetened (99% cacao) , Extra Dark (82% cacao) , Bitter sweet (70% cacao), Semi-sweet , Mocha, Mint (all have 62% cacao), Milk Chocolate (41% cacao) • Others: chocolate sauce, drinking chocolate, cocoa powder and chocolate covered figs Pricing Retail: $0.50 for 5 gm, $2.00 for 1 ounce, $4.00 for 3 ounce, $10.00 for 10 ounce. Wholesale: approximately $0.35 per ounce Sales $0.6 million in 1998, $10 million in 2004, Over $15 million estimated revenues for 2005
Production Process At Scharffen Berger
[http://4.bp.blogspot.com/DY6txg73x5Q/T_sE8WZl4SI/AAAAAAAAF1M/1SWqEdAZvW4/s1600/Untitled.png]
Current Capacity and expansion
• Monthly production capacity of 40,000 kgs i.e. around 29 chonc of chocolate (each approximately worth $ 30,000 in sales) • Expansion options being considered – Purchasing more of same machines already being used mbacase.blogspot.in/2012/07/scharffen-berger-chocolate-maker.html 1/5
9/3/13
Scharffen Berger Chocolate Maker
– Adding a new ball mill at $ 300,000 (assuming quality remains same). Expected time reduction to 15 hrs from avg. 60 hrs of choncing. – When ball mill is installed, Mixer will be next bottleneck. Additional mixer could be purchased & refurbished at $ 50,000. – Outsourcing the tempering and molding process to co-packers and remove duplication.