CONTENTS
Foreword by Dr. A'ngel Cabrera and Dr. Mary Teagarden of Thunderbird School of Global Management ix
Acknowledgments xii
Introduction: One Country, Three Centuries 1
Chapter 1: China and Chocolate: East Meets West 9
China’s Road from Communism to Market Socialism 12
The Evolution of the Global Chocolate Industry 20
Chinese and Chocolate: A Foreign and Exotic Curiosity 22
The Size of China’s Chocolate Prize 28
Selling Chocolate 31
Selling Chocolate in China 33
Chapter 2: Ferrero Rocher: Accidental Hero 40
Ferrero’s Journey Along the Modern-Day Silk Road to China 44
China’s Emancipated Consumers 46
Establishing a Route-to-Market in China 49
Ferrero’s Struggle with Local Copycats 56
Did Ferrero Succeed in China? 62
Chapter 3: Cadbury: One Billion Consumers 70
A Brief History of Cadbury Chocolate 71
Cadbury China 73
Cadbury’s China Morass 76
Attempting to Turn the Tide 85
The Battle for Chocolate Bars 88
The Final Blow: A Breakdown of Leadership 91
Chapter 4: Hershey: Back to Basics 95
The Hershey Company 96
Hershey’s International Business 98
Hershey China 103
The First Season: 1995–1996 113
The Second Season: 1996–1997 120
The Third, Fourth, and Fifth Seasons: 1997–2000 126
The Sixth Season: 2000–2001 134
Under New Management 138
Epitaph 140
Chapter 5: Nestle': China’s Chocolate War Sideshow 141
A Brief History of Nestle' 143
Nestle'’s Arrival in China 145
The Birth of Nestle' China 151
Sweating the Assets and Reducing KitKat’s Cost 156
The Launch of Nestle' Wafer 159
In the Shadow of Nestle' Wafer 165
Nestle' Could Have Been a Contender 171
The Last Word on Nestle', Chocolate, and China 174
Chapter 6: Mars: A Well-Regulated Militia 176
A Brief History of the Mars Candy Company 179
Mars’s International Expansion 182
Mars’s China Market Entry 183
Mars Versus Its Big Five Chocolate Competitors 190
Mars’s Commitment to Market Leadership 193
Chapter 7: Going the Distance: China’s 10K Chocolate Race 201
The State of the Chocolate Market: 2008 203
The Threat from Local Competitors 213
Managing China’s Multitier Market Going Forward 220
Notes 225
Index 238
Lawrence Allen is a former senior executive for both Hershey and Nestlé in China. He has spent more than 20 years building consumer brands for multinational companies in China.
"Chocolate Fortunes captures the essence of China's fast-moving
consumer market. It tells the story of the global chocolate
industry's entry into China in a style which is captivating and
informative. Allen presents a compelling story with personal
anecdotes, historical perspective and some clear lessons for the
future. Chocolate Fortunes is a delightful book to read that is
strongly recommended for those seeking to understand this most
dynamic of markets." --Lorna Davis, President and Chairman, Kraft
Foods China
"a fascinating look at the process of establishing business
connections in [China]" --Women's LifeStyle
"a scintillating glimpse inside one of the most hard-fought
cross-cultural indulgence battles since the Opium Wars" --Global
Times
"Allen focuses exclusively on China's nascent chocolate market, but
he makes sure to write his book so the lessons learned by the five
companies can be applied to other industries looking to break into
an emerging economy." --Houston Business Journal
"For anyone thinking of bringing their product to the Chinese
consumer market, or even simply interested in the cultural
characteristics of the Chinese consumer, Chocolate Fortunes offers
valuable, hard-won insight from a true industry expert. The
branding and marketing case studies alone make this book a
worthwhile read, but Allen's skillful prose -- which at times is as
smooth and enjoyable as the chocolate he describes -- and deep
understanding of Chinese culture and history make Chocolate
Fortunes much more than just another business-in-China book."
--Jing Daily (www.jingdaily.com)
"For anyone who is thinking of going into consumer products or food
or retail in China (and who out there is willing to ignore 1.3
billion customers?) this book is a must read." --China Law Blog
(www.chinalawblog.com)
"In Chocolate Fortunes, Allen describes these strategies in detail,
offering a fair, informed and often fascinating assessment of where
they succeeded and where they failed.... Chocolate Fortunes is a
case study that delivers broad, transferable advice to Western
corporations looking to move into one of the world's largest and
most potentially lucrative markets. Offering unusual insight into
the complexities of manufacturing and selling Western goods in
China for Chinese consumers, the stories of the Big Five combine
the emotional power of the cautionary tale with the practical
precision of the how-to book. Far more elementally, Chocolate
Fortunes is a helpful primer on basic business practice."
--Knowledge@Wharton
"Informative, cautionary and essential, this book is a must-read
for executives currently doing business, or planning to, in this
most volatile and critical market." --Publishers Weekly
Ask a Question About this Product More... |