Chocolates El Ray Business Case Review
Chocolates El Rey Case
Chocolates El Rey, a medium sized Venezuelan chocolate company, produces top-quality chocolate made with single-origin Venezuelan cocoa beans. Jorge Redmond, the CEO of Chocolates El Rey, called a meeting with senior management in late November 2006 to discuss the company’s growth strategy. El Rey can accomplish this task through many ways; growing the United States industrial market using its own brand name, relocating their plants to low-income countries, or to scale up the retail segment in the United States by using multi-origin cocoa bean chocolate. Each of these viable alternatives to expand El Rey have positive and negative side effects. El Rey has come a long way since its founding in 1929; yet, the company has to address limiting factors in order to become recognized worldwide. Chocolates El Rey is a Venezuelan Multi-Latina corporation that manufactures, transports, and sells chocolates and other baking goods. José Rafael Zozaya and his father-in-law Carmelo Tuozzo both started the company in 1929 under the original name Tuozzo Zozaya and Company. A product line that started with only chocolate bars for hot cocoa in the food services sector has expanded many types of cocoa powders, chocolate bars, drops, and discs. The modernity of the company came when Jorge Redmond joined the company as a partner in 1973 and then bought out both Zozaya and Tuozzo in 1976. Redmond is responsible for the growth of Chocolates El Rey with the principal vision to “build a world-renowned business spanning cocoa production to the marketing of chocolate.” Redmond’s vision can be attributed as the reason that El Rey branched out of their singular segment of food services into retail, industrial, and beverage markets. Growth in all segments was paired with increased profits until 2001 when the company was faced with sizable debt due to a lack of capital investments and machinery constraints. The following three years had results marginally
Chocolates El Rey, a medium sized Venezuelan chocolate company, produces top-quality chocolate made with single-origin Venezuelan cocoa beans. Jorge Redmond, the CEO of Chocolates El Rey, called a meeting with senior management in late November 2006 to discuss the company’s growth strategy. El Rey can accomplish this task through many ways; growing the United States industrial market using its own brand name, relocating their plants to low-income countries, or to scale up the retail segment in the United States by using multi-origin cocoa bean chocolate. Each of these viable alternatives to expand El Rey have positive and negative side effects. El Rey has come a long way since its founding in 1929; yet, the company has to address limiting factors in order to become recognized worldwide. Chocolates El Rey is a Venezuelan Multi-Latina corporation that manufactures, transports, and sells chocolates and other baking goods. José Rafael Zozaya and his father-in-law Carmelo Tuozzo both started the company in 1929 under the original name Tuozzo Zozaya and Company. A product line that started with only chocolate bars for hot cocoa in the food services sector has expanded many types of cocoa powders, chocolate bars, drops, and discs. The modernity of the company came when Jorge Redmond joined the company as a partner in 1973 and then bought out both Zozaya and Tuozzo in 1976. Redmond is responsible for the growth of Chocolates El Rey with the principal vision to “build a world-renowned business spanning cocoa production to the marketing of chocolate.” Redmond’s vision can be attributed as the reason that El Rey branched out of their singular segment of food services into retail, industrial, and beverage markets. Growth in all segments was paired with increased profits until 2001 when the company was faced with sizable debt due to a lack of capital investments and machinery constraints. The following three years had results marginally