Most made of nation's sweet tooth

Mark Donovan is intent on growing the brand internationally. Photo / Herald on Sunday

Local confectioners and multinational chocolate-makers know the true meaning of the Christmas silly season.

In the run-up to Christmas Day, they operate at full capacity, feeding the nation's sweet tooth. "Our sales spike from October to December, when nearly 60 per cent of all our sales take place," says Donovan's Chocolates CEO, Mark Donovan.

"We get increased seasonal allocations through the supermarkets, we go from low distribution of 30 per cent to 75 per cent distribution."

The Hamilton-based artisan chocolate-maker is taking on the likes of the No1 chocolate brand, Cadbury's Roses, with its own selection of twist-wrapped chocolates. They have been one of the company's strongest areas of sales, a proportion sold individually through Prolife Foods' Alison's Pantry self-help cabinets in the New World and Pak'n Save supermarkets.

The Prolife business has "allowed us the economies of scale that companies need to make further developments", Donovan says.

Family-owned Donovan's Chocolates produces about 500 tonnes of chocolates a year. It has a turnover of about $5 million and a staff of 25. The business, which trades as The Chocolate Factory, was bought in 1991 by Donovan's father, Patrick, a veteran of the confectionery industry who learned his trade from a Russian master confectioner.

Patrick and his brother ran HB Confectionery in the 1980s. Patrick's two sons, Mark and Paul, now run Donovan's, although their parents retain a 50 per cent stake in the business. The two brothers each own 25 per cent of the company and their wives are also involved - Mark's wife, Viv, does the HR and accounts and Paul's wife, Lea, has helped set up a cafe at their Te Rapa factory. Its famed iced chocolates draw people from as far afield as Auckland.

Paul is the chief chocolate-maker, trained in Australia and Singapore. "The intellectual property was very old school, it was all kept in Dad's head. Paul shadowed him and learned all the quirky techniques," Mark says.

Four years ago, Paul, who has worked in Holland, bought a machine there which enables Donovan's to make chocolate the European way. "We are the only ones in New Zealand manufacturing chocolate to the same technical levels as Lindt."

While Donovan's chocolates are of a European standard many of the ingredients other than cocoa - such as feijoa and manuka honey - are sourced from New Zealand.

Since the brothers took over, their most popular products have been Turkish delight and feijoa and root ginger chocolates. Fudge is another main product. The confectioner also sells a small selection of chocolate bars with unusual flavours, such as dark chilli and lime.

Mark has driven the sales and marketing nationally and internationally. Donovan's exports to Australia, selling there in independent retailers and Kmart through the sub-brand Patrick Donovan. The CEO is waiting to hear about a big deal in Australia, in which Donovan's would supply Australia's largest department stores, Myer's and David Jones.

The most important date in the brothers' calendar is the world's biggest confectionery and snack trade fair, ISM, held at the end of this month in Cologne, Germany.

"We are hoping for further international sales to department stores, destination retailing, duty free and high street stores," Mark says.

Donovan's sells to the United States and also to Hong Kong and Singapore. Japan is its second-largest export market after Australia.

Back in New Zealand, Donovan's will focus on building the Donovan's Chocolates brand, says Mark. The upmarket confectionary is currently sold at Farmers, Smith and Caughey's, Kirkaldie & Stains, Ballantynes, Nosh and some New World supermarkets.

BEST SELLERS

* Chilli & lime chocolate bar

* Assorted milk and dark chocolate scorched almonds

* Dark chocolate ginger chocolates, one pound box

* Donovan's Fine Selection Gift Box of twist wrapped chocolates