Needful confection: Nurturing nature of chocolate keeps it recession-proof
Pat West-Barker | The New Mexican
Posted: Sunday, July 20, 2008
- 7/21/08
     
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In the 2000 movie Chocolat, a mother and daughter drift into a dreary French town and open a chocolate shop that lifts the spirits (and dispels the burdens) of the townspeople.

But would the shopkeepers have been so successful — and the townspeople so willing to buy — in these troubled times, when the economy is down and the price of cocoa (from which chocolate bars, truffles and drinks are made) has reached its highest level in 22 years?

Kari Keenan, owner of Santa Fe's ChocolateSmith, prepares gourmet chocolate in her Second Street shop right in front of her customers. Because of increases in the prices of all the ingredients that go into her candy, she says, as well as her shipping costs, she has recently had to raise the retail prices of all her products by $2.25 per pound.

But, rather than lose customers, Keenan has seen her business grow in recent months.

"I know that's not the case for a lot of businesses," she says, "but luckily, chocolate is a mainstay. Even during times of inflation and recession, people still tend to come in and make that purchase, so it's actually been an interesting period of growth of us."

Keenan believes chocolate is "one small indulgence" that people are still willing to pay a little extra for — "especially with our product, where they know it's all handmade and they know that we're trying to use lots of local and organic ingredients — I feel like they understand that they are getting a little more bang for their buck when they come here," she says.

Keenan and Chuck Higgins, owner of C.G. Higgins Confections, are among four small New Mexico chocolatiers to be featured on a new Food TV program — Road Tasted with the Neelys — on Aug. 12.

Higgins, whose Web site proffers "handcrafted nourishment for body and soul," agrees with Keenan's observation of the recession-proof nature of chocolate.

"The nice thing about chocolate," Higgins says, "is that people buy it as a luxury item even when they're feeling down and out because it's good stuff and makes them feel good."

Higgins, who has been busy for the last few weeks making more than 2 tons of caramel sauce for his 15th year at the New Mexico State Fair, hasn't noticed "a huge spike" in his costs and has not raised his prices at this time.

His Niñita Street retail store has only been open about a year, Higgins says, so it's hard to say if business is better or worse in the current economy. "We're stable," he says. "We're doing fine."

Santa Fe-based Señor Murphy Candymaker operates retail shops in Santa Fe and Albuquerque and sells wholesale to other outlets. Unlike Higgins, owner Rand Levitt has noticed about a 15 percent increase in the price of the 50-pound blocks of chocolate he buys. But he hasn't raised the price of any of his products — yet.

"We've just been absorbing the increases," Levitt says. "But I don't know if we are going to be able to continue to do that. We may have to increase our prices this fall," but it won't be by 15 percent.

He has noticed that many merchants near his stores downtown and in the Santa Fe Place mall are hurting, Levitt says, but he hasn't seen any decrease in his business. On the contrary, like Keenan, Señor Murphy has seen an increase in business this year, "but we've seen an increase in business every year since I've owned the business," he says.

Like Keenan and Higgins, Levitt believes in that hard economic times, people may not buy "really high-end luxury items, but they will spend the money on feel-good items." Even for presents, he says, "they may not spend $75 on a Nambé bowl, but they will spend $25 on a box of chocolate."

Chocolate cost likely to trickle down

Shawn Askinosie, who owns an artisanal chocolate factory in Springfield, Mo., believes part of Santa Fe's apparently recession-proof chocolate business is because of the nature of the product — and part is because of the nature of the city itself.

"I think that you are going to find more affordable luxury items not being touched by the recession in an economy like Santa Fe than in any other part of the country," he says.

Askinosie, a criminal-defense lawyer for more than 20 years, visits Santa Fe often, and credits chef Jeff Copeland, then in charge of the kitchen at Pranzo, with inspiring him to make the transition from law to chocolate.

"I started grilling after a couple of high-profile murder cases just to have a hobby," Askinosie says, "and then I started baking. Then I started making chocolate desserts."

Copeland gave Askinosie the recipe for an Italian chocolate pudding — the first chocolate dish he tried — and told him he needed to buy good chocolate to make it. "It started there," Askinosie says.

Askinosie buys his beans directly from 20 farmers in San José del Tambo, Ecuador, and another 20 in Soconusco, Mexico, near the Guatemala border.

"I deal mainly in microeconomies when it comes to the price of cocoa," he says, so he's not really affected by fluctuations in the world market. "These farmers don't care what the world market price is. They care what the price is right there in their neighborhood on any given day."

Still, he's always paid above the world market price and above the fair-trade price, Askinosie says. He also practices open-book management (the company's financial records are open to all) and shares 10 percent of the company's profits with both his employees and the farmers from whom he buys his beans.

Even though he is insulated from the price of cocoa beans on the world market, Askinosie says, he is paying 40 percent more for raw beans this year than during his last buy in 2006 — and that doesn't include increases in the price of shipping. To help compensate for rising costs, he has just raised the price of his popular 3-ounce dark chocolate bar from $7.50 to $8.

"The price of beans is 40 percent higher, and I'm not raising the prices 40 percent," Askinosie says, "but I'm trying to make up some of it and run a business and do everything we can to help our customers and help them educate their customers about chocolate."

The price increases faced by the Missouri-based chocolate manufacturer may soon be felt locally. Askinosie sells some of his chocolate to Whole Foods Market, Kakawa Chocolate House and Todos Santos in Santa Fe.

Kakawa's Mark Sciscenti buys seven different kinds of chocolate from four different chocolate makers, including Askinosie, to create the flavor profile for his own artisanal chocolate drinks, truffles and pastries.

"High prices for cacao is definitely affecting business," Sciscenti says. El Rey, one of the high-end companies he buys from, has more than doubled its price. "And my prices are already high because of what I use."

To get the quality and flavor of chocolate he wants, and to support sustainable agricultural practices and fair prices for the growers, Sciscenti says, he already pays between four and six times more for his chocolate than most confectioners. So he hasn't yet raised his prices — already among the highest in Santa Fe. "If I have to raise my prices, I will, but most likely what it's going to do is lower my margins," he sighs.

Even though the economy is tight, Kakawa Chocolate House is looking for investors "to tighten up its organization in order to reinvigorate and maintain its spiritual chocolate perspective and vision," Sciscenti says.

And, affordable luxury theories aside, what may keep his — and all of the town's artisanal chocolate businesses — afloat in these rough economic seas, the chocolatier says, is the bean's "nurturing quality" — and its chemistry.

"Most scientists and doctors would say (chocolate) is not addictive," Sciscenti says, "but the people I talk to say, 'Look, I can't go without chocolate for over a week. I have to have it.' An opera singer who came into the shop recently said he has to have it three times a week."

There are lots of vitamins and minerals and lots of chemicals that affect the brain in a very positive way, Sciscenti says. (A handout at his shop summarizes all the major chemicals and their effects.)

The main effect, he says, is that chocolate induces the body to produce the neurotransmitter serotonin, "which helps your brain to function better," and endorphins, painkillers that he calls natural "bliss molecules."

Chocolate also contains a natural antidepressant and two stimulants related to caffeine, which can also help lift mood and energy.

While he admits his conclusion is completely anecdotal, Sciscenti says that after observing hundreds of people drink his historical chocolate elixirs, he believes they feel the liquid chocolate's mood-elevating effect within about 10 minutes. They just sit back and look much more relaxed, much happier, he says.

And that's not an easy thing to give up. Especially in hard times. No matter what it costs.

Contact Patricia West-Barker at 986-3085 or pwest@sfnewmexican.com.



ON THE WEB

• www.ashkinosie.com

• www.cghigginsconfectionssantafe.com

• www.chocolatesmith.com

• www.kakawachocolates.com

• www.senormurphy.com










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