Business: Chocoholics, turning addiction into fruition

 by Mark N. Spencer

Cacao is a plentiful resource in Nicaragua and has been for thousands of years. Surprisingly, this major precursor for chocolate has yet to put Nicaragua on the map as a major manufacturer of chocolate.
A pair of Dutch nationals now living in the verdant, scenic, cool central highlands two hours northeast of Managua may be changing all that.Harm Van Oudenhoven and his wife, Anita, moved to Nicaragua in 2005 with their two children upon Anita’s employment with the Matagalpa office of the SNV (Netherlands Development Organization).
The Dutch couple’s taste and addiction for chocolate has led them to take advantage of this most edible extravagance, sparking an industry that is bringing worldwide attention to Nicaragua.
Unabashed and self-affirmed chocoholics, the Van Oudenhovens took no chances in their preparations for moving to Nicaragua. “We packed 50 bars of 75% cacao with us for our three-year contract,” Harm said, knowing full well there was little chance of them finding the quality chocolate that Central Europe is renowned for.

Found on the ground
On arriving in beautiful Matagalpa – Nicaragua’s fifth largest city at more than 3,000 feet above sea level and a veritable cornucopia of food production –, Harm was instantly struck by the amount of cacao growing in the region. Harm recalls now that most of the cacao was falling ripe off the trees and rotting away on the ground. It did not take long for his mind to figure out the relationship between his desire for chocolate and the cacao that was simply lying about. Harm now set his mind on chocolate and “El Castillo del Cacao” or “The Chocolate Castle” was conceived and in gestation.
Originally started by Harm in a small stone shed, his chocolate factory has evolved into a  unique castle-like structure on a hillside close to Matagalpa on the road to La Dalia, pumping out treats for the palate which are now sold all over Nicaragua and receiving acclaim from all around the world.
“Initially we started with three partners, registering the business and making our first sales,” Van Oudenhoven recounts. “We competed for and won first prize in the BID Challenge 2005 a worldwide business plan competition for entrepreneurship in developing countries supported by the Dutch Ministry of Foreign Affairs and the Rabo Bank of Holland.
“We used the prize money to expand production and buy some new machines we now use,” he says proudly.
“The prize also gave us international recognition, interviews in several magazines, and the interest of other investors,” says Harm. “One of these investors joined the company and provided a significant financial boost in 2006.”
The Van Oudenhoven brand of chocolate was created just like any other great recipe. A little bit of this, a little bit of that, and Voila! Finally they hit on a product which produced not only the perfect pucker but a great deal of pride and satisfaction for the Van Oudenhovens themselves.

It’s good for you, too
Harm says, “Our basic chocolate is made from cacao and sugar. We use no additives, no preservatives, nor other fats.”
“Our chocolate castle is nearby the cacao producers, so we have an excellent choice of quality cacao. With mild roasting and limited milling, we maintain all the original flavors and essential vitamins and minerals found in cacao. We buy both organic cacao as well as cacao in transition to being organic.”
Van Oudenhoven points out, “Most cacao in Nicaragua was abandoned for years with prices so low that harvesting the beans was not worth the hassle; so most cacao in the country is organic simply because no one used chemicals on the crops!”
This fits in naturally with the “El Castillo” brand principle of working as environmentally soundly as possible. “Buying only organic cacao is a good step in that direction,” says Harm. “We, of course, see a good market for organic chocolate with demand on the rise in both Europe and the United States.”
Van Oudenhoven’s chocolate line is also distributed in Nicaragua and sells well. The product line consists of chocolate bars of different flavors, bonbons, cooking chocolate, and cacao nibs. “It is amazing how the product and the business have been welcomed in Matagalpa and throughout Nicaragua,” beams Harm. “We notice that more and more people bring chocolate as gifts as they visit other cities or go abroad. We have received mail from as far away as Bolivia and the Czech Republic from people saying how they love the product.”
The Van Oudenhovens are also causing quite a stir – and drawing curious onlookers – in the Matagalpa region with their unusual and distinct chocolate-manufacturing facility.
With the help of his construction expert Don Camilo, Van Oudenhoven has built not a run-of-the-mill factory, but a stone castle in the hills northeast of Matagalpa.
“Maybe the castle is a childhood dream,” says Harm. “Castles are places where kids can play and adults can fantasize. Our castle is a reaction to the modern-day factory building. Nothing is worse than the straight, featureless buildings of today’s factories that do not denote the creation of ideas and show nothing beautiful to the outside world except their professionally marketed products.”
The castle is not just for show – it is quite functional. Visitors are welcome to view the process from cacao to chocolate – and, oh, that aroma! Van Oudenhoven, gracious and outreaching, provides various courses to area cacao producers on how to make chocolate using basic tools available in every Nicaraguan village.
“Tours of the ‘El Castillo del Cacao’ factory can be arranged through Matagalpa Tours (http://matagalpatours.com) on Saturday or Sunday,” Harm says, giving a plug to another local business start-up. “On normal production days, in order to maintain hygienic standards, one cannot enter the factory when we are making chocolate. You can, however, visit our shop and walk around the extensive garden and enjoy the view of Matagalpa.”
Although trying to make his company the premier manufacturer, Van Oudenhoven is very open to supporting his fellow competitors. “Our strongest local competitor is Chocolate Momotombo, which also uses only natural ingredients, but their tastes are very different. We are actually not rivals, but often exchange views on cacao quality and chocolate recipes. I encourage everyone to visit the Chocolate Momotombo shop in Los Robles in Managua and try the guava or mango flavored chocolate.”
Van Oudenhoven and The Castle are not planning to rest on their laurels or the mouth-watering taste of their chocolate.
“Many tasks remain ahead as we aim to produce an internationally accepted and marketable chocolate,” the chocolatier confesses. “This month we are being certified as an organic producer and we aim to acquire a Fair Trade label and HACCP certification in 2008. This will make us compliant with most requirements for direct sale in the US and Europe.”
Turning an addiction into a dream: for the Van Oudenhovens, life just doesn’t get any better than this. 
For more details and to purchase goods online go to www.elcastillodelcacao.com

 

Explore Waves magazine: In this Issue, Business, Issue 22: March - May 2008
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