Sagu Co Chocolate: From Risky Business Decision to International Success Story

2023-02-21 08:00:00

At 45 years old, Justiniano Salazar made one of the riskiest business decisions of his life: he sold all the agricultural crops to which for years he dedicated effort and sweat along with his parents and later with his children, to dedicate himself to growing cocoa.

Going from a varied agricultural tradition to a monoculture was a move that could make him lose a lot, and not just him, since the weight of his decisions could crush decades of family work. But it was not like that, since 2007 what came for Justiniano and his children were profits that exceeded his most ambitious dreams.

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Justiniano made the decision to give everything for cocoa because it was the best-selling product of all the products he grew, and livestock farming was not proving profitable. Added to this is the fact that his idea was to make export products and cocoa had the best international market.

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Furthermore, Justiniano showed that it is never too late to succeed in the business world. Just as Chespirito created his masterpiece El Chavo at age 44 and Colonel Sanders of KFC started his million-dollar business at age 40, Justiniano and his children created their brand Sagu when he was reaching his 50s.

On their 45 hectare farm in San Sebastián de Mariquita, Tolima, they dedicated themselves to planting only cocoa under the best possible practices.

Just as in the world of meat it is narrated as a myth – and it actually is – that the cows in the Kobe prefecture, in Japan, where the most exquisite and expensive meat in the world is produced; They listen to classical music and bathe them in hydromassage pools. Many stories are rumored about Justiniano’s cocoa trying to explain his secret to producing one of the best chocolates in the entire country.

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The quality of the grain was so good that it was saved for last. This allowed them to be the first packages to be reviewed, thus achieving faster inspection and approval of the entire cargo.

“When my children and I took our harvest to the collection centers, we noticed that the packages of cocoa that we delivered were separated to leave them at the end of the truck load. This caught my attention, and I asked the reason. The answer shocked me. The quality of the grain was so good, that it was saved for last. This allowed them to be the first packages to be reviewed, thus achieving a faster inspection and approval of the entire load. At that moment we discovered the potential we had with our product “says Justinian.

Now, seeing the potential of cocoa, he was motivated to increase cultivation, especially with trees of native and special varieties.

And together with their children Juan Diego and María Camila Suárez, both professionals in business administration and international business, they created the cocoa transformation company, to not only sell raw materials, but transform them into special chocolate products that will reach the best markets. of the world. María Camila is dedicated to the transformation of chocolate and product development, while her brother is in charge of the commercial management of the company.

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“From the beginning we focused on doing things well. Therefore, and despite having only a few years in the market, compared to other large processing companies, we have set ourselves the goal of having excellent quality inputs, and qualifying our suppliers. , not only in its raw material, but in its environmental and social processes,” explained Juan Diego.

Furthermore, they began to notice that the cocoa they produced, precisely because of the process they gave to cultivation, was highly desired by customers, and they began to gain recognition with it, which motivated them to reach the pinnacle of their production and quality. from which they would not go down any further and would be the definitive card to compete at an international level.

They insisted on acquiring the best machinery and excellent raw materials, coming from 13 areas of Colombia: Sierra Nevada de Santa Marta, Belén de los Andaquies, Caquetá; Santa Rosa, South of Bolívar; Pauna, Boyacá; Chigorodó, Antioquia; Mapiripán, Meta; Arauca, Putumayo, Antioquia, Huila, Tolima, Risaralda and Santander.

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This dynamic generates a productive chain where new jobs are created in the Colombian countryside, positively impacting several associations.

“We are looking for farmers who are willing to maintain quality, improve their crops, receive our training and guidance, manage planet-friendly processes through soil regeneration, shade crops, and recovery or control of water sources. This dynamic generates a productive chain where new jobs are created in the Colombian countryside, positively impacting various associations and therefore the cocoa families that make them up,” explained Juan Diego.

It should be noted that Sagú’s business model, in which it works directly with the farmer, avoids unnecessary intermediaries, resulting in a reduction in time, better grain quality and farmer satisfaction, by having a better payment for their product.

The company name has two meanings. “Looking for the benefits of the product, we want to highlight that Sa-Gu represents a Healthy Taste for chocolate and a Smooth Taste. We talk about Suave because of the pleasant notes and flavors that we highlight in each of our products,” adds Justiniano.

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What matters is the quality

According to figures from the United States Department of Agriculture (USDA), Colombia is a major cocoa producer, ranking tenth in the world in total production. Currently, the country registers 194,500 hectares cultivated in cocoa, and there is a potential of 2.8 million suitable for this crop.

But the quantity, in the case of Justiniano and his children, is not what is important, what is really valuable is the process – from the care of the tree, through the best selection of grains and the best treatment of the raw material – and the quality.

And, according to the USDA, the geographical location of Colombia, on the equator line, makes the country a privileged place, like few others in the world, for the planting of this crop, which makes Colombian cocoa one of the most desired in the world.

Its variety of soils and altitudes allows us to obtain cocoas with varied notes and aromas, classifying exports from Colombia as 95 percent Caco Fino or Aroma.

“Its variety of soils and altitudes allows obtaining cocoas with varied notes and aromas, classifying exports from Colombia as 95 percent Caco Fino or Aroma,” reported the International Cocoa Organization.

And an example of this cocoa is that of Justiniano and sons. And knowing this, they went from only selling the grain as raw material abroad to having their own chocolate factory.

“Having a finished product, with added value, with quality seals and great packaging, increases our income by 30 percent. In addition to this, the products that are exported represent an additional margin due to exchange issues. At this very moment, for example, the value of the dollar benefits us significantly, which is why sales to the United States are our market focus. From stores passionate about premium Colombian chocolate to the final consumer willing to try different flavors,” they explain from Sagú, adding that when they sold cocoa as raw material they depended on the market price, which was not always what was expected.

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Now, they explain, they concentrate on specialized areas, making customized products for each of their clients.

Currently, these Colombian products are in Europe and in several states in the United States, such as Florida, California, New Jersey, Maryland, Virginia and more distant states such as Hawaii, “both with our brand Sagu Co Chocolate and with private brands, to which which we carry out maquilas.”

Sagu’s growth has been exponential. Justiniano and his children went from having a dozen farmers on their 45-hectare farm to having more than 2,000 cocoa farmers from all over the country, who in turn have around four more people under them, managing to directly impact to more than 10 thousand cocoa growers throughout Colombia.

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We have several presentations, from 40 grams, 60 and 80 grams for the final customer and these are for the final public. The price is between 4 and 12 dollars.

And as for sales, Juan Diego explains that each year they reach one million units sold abroad.

“We have several presentations, from 40 grams, 60 and 80 grams for the final customer and these are for the final public. The price is between 4 and 12 dollars. Taking into account that to reach the end customer they must be distributed and marketed by local agents in the destination. We also arrived with the presentation of chocolate couvertures and intermediate products for other sales channels and chocolatiers in the United States,” says Juan Diego.

Sagu has more than 60 references of chocolates between bars or tablets and dragees, with fillings of freeze-dried fruits, spices, liquor, and in different percentages of cocoa concentration, from 50 to 100 percent cocoa.

“30 percent of our portfolio belongs to sugar-free references,” adds Juan Diego, and specifies that a part of the products are sold in Colombia, in supermarkets such as Carulla, Éxito, and through our social networks Sagu Chocolate. Everything else, which is more than 70 percent, goes abroad.

Finally, Sagu is ready for its biggest sale of the year. During Valentine’s Day, according to its managers, sales to the United States increase up to 70 percent.

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DUVÁN ÁLVAREZ DE LAS SALAS

Editor of NATION – EL TIEMPO

A Twitter: @Duvan_AD


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