Topic > A political aspect of the macro environment affecting...

A political aspect of the macro environment affecting the chocolate market in New Zealand is the policies regarding the importation of the ingredients needed to produce chocolate. Cocoa beans are on the list of prohibited or restricted imports, according to New Zealand's Customs and Excise Act, 1996 (Legislation.govt.nz, 2015). This is an important market factor for Whittakers as a brand because, as they produce all their chocolate from imported cocoa beans in their New Zealand factory, they must comply with these restrictions and pay the appropriate import duty on their cocoa beans. Changes to this legislation pose a threat to Whittakers, as a potential increase in taxes on cocoa beans will mean that the total cost of producing the chocolate will be higher for the company, meaning the retail price may need to be increased of their products. This could cause price-conscious consumers to look elsewhere for products that are better suited to them financially and will cause Whittakers to lose sales. As the demand for cocoa increases globally, the price of cocoa is also increasing at a rapid pace as cocoa farmers in Africa and South America struggle to meet the demand, which is an extremely relevant aspect of the macro environment for the chocolate market . Many factors contribute to the supply problem: many cocoa farmers in Africa, particularly in Côte d'Ivoire (the largest cocoa-producing nation in the world) are underpaid, and their share of profits from chocolate products is in increase, with West African cocoa farmers seeing earnings on average 3.5% to 6.4% of the products' total retail value (The Guardian, 2013). This results in less productive workers and also results in a decrease in the number of emerging cocoa farmers, as it is often not mid-card and has the potential to increase sales for Whittakers as consumers want to try this softer chocolate and refined. It is becoming increasingly important for consumers to know that the products they are purchasing are made in an environmentally friendly way and a big focus of this is to support chocolate companies that do not use palm oil in their production. Palm oil production is considered one of the largest industries responsible for deforestation globally, posing a threat to wildlife, and consumers were made particularly aware of this in 2010, when Cadbury replaced cocoa butter with palm oil . This increase in consumer awareness represents an opportunity for Whittakers, as the brand pledges not to use palm oil, making Whittakers attractive to consumers on an eco-friendly level and possibly increasing sales for the company..