From bean to bar - the production process
A Nestlé case study

Page 1: Introduction

Most of us love chocolate in one form or another and every week a typical UK citizen spends around £1.80 on it. Amazingly, UK consumers have a choice of over 5,000 chocolate lines available from 150,000 outlets. Because it is so widely and readily available, we tend to take chocolate for granted, and few of us probably ever consider what is involved in producing it. This case study...
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Page 2: Resources needed for production

All goods and services depend on resources for their production, these are known as factors of production. One key factor is enterprise: the risk-bearing associated with any business. In the past, many firms owed their existence to perhaps just one person, who set it up. Nowadays, with the growth of companies, business risk tends to be born by shareholders, whilst managers exercise day to day...
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Page 3: Issues in the supply chain

As a major buyer Nestlé seeks to be as closely involved in the supply chainas possible, to ensure quality and fairness. Currently Neslé is participating in a process to examine potential problems of forced child labour on cocoa farms in West Africa. This is being done on an industry wide basis, in consultation with governments, labour organisations and Non-Governmental...
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Page 4: Chain of production

The supply chain is the sequence of activities and processes required to convert raw materials and components into consumer goods and services and to deliver them to the consumer. For cocoa, the chain is often complex and varies from one country to another. However, a typical pattern would pass through the following stages. Primary producers The first stage is to grow the cocoa beans. Often...
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Page 5: Production

Chocolate production consists of many stages. Farmers are at the start of the production chain. Cocoa plants are generally grown in low lying areas and planted in the shade of other trees such as banana or coconut. It takes up to five years for a new plant to fruit, after which it may have a life span of 30 years, unless severe weather or disease destroys it. Ripe pods are cut from the tree...
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Page 6: Conclusion

Large confectionery companies meet customer requirements with a wide selection of different types of chocolate products to meet a variety of tastes. A company like Nestlé is involved at every stage of the production chain. It gets to know as many people as possible in the supply chain, providing growers with technical advice, advising intermediaries about quality issues, and of course...
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