Interview with Jeffrey Stern, chocolatier and chocolate advocate in Quito, Ecuador
Jeffrey Stern is a chocolatier, chocolate advocate, entrepreneur, and blogger based in Quito, Ecuador. I recently asked Jeff to answer a long list of questions about his life and work, and he was kind enough to oblige. Below, in the first half of this interview, Jeff details the missions of his companies and his educational and work background (which, I should note, left him singularly well prepared for his current work). He also explains many of the challenges that small batch production chocolatiers face in relation to direct trade, marketing, and domestic/international bureaucracy, as well as the travel and learning opportunities that forever changed the way he tastes and understands chocolate.
Photo courtesy of Jeffrey Stern
Interview with Jeffrey Stern, Part 1, October 2011
Carla Martin (CDM): What is the focus of your two companies, and what are their missions?
Jeffrey Stern (JS): The focus of my Ecuador based company, Gianduja Chocolate, is to provide high quality, sophisticated bonbons and chocolate products for the local market, using almost all local ingredients. I use only Ecuadorian chocolate, local fruits, cream, and butter, and the only imported items I use are those not available here like transfer sheets, real vanilla, and colored cocoa butters.
My other company, Aequare Fine Chocolates, had as its original mission the goal of importing, wholesaling, and retailing to the United States fine chocolates made in Ecuador with top quality Ecuadorian chocolate. Also, I made it a point of this company to have contact with and knowledge of the chocolate and its origins from bean to final product. I knew the grower of the beans and how he managed his farm, I knew the factory and operations where the chocolate was made, and of course I made the final chocolates myself. We imported into the United States and retailed through the website and worked with a few brokers. Ultimately, the idea was to add value to cacao in the country of origin, and have direct trade relationships with all our suppliers here in Ecuador.
Unfortunately, I think the story was somehow not compelling enough for consumers and what I envisioned as an artisan product being made in Ecuador simply ended up being perceived as another consumer packaged good once it was in the US. Sort of a “lost in translation” problem, as well as the difficulty of explaining a “direct trade” story when you don’t have a multimillion dollar marketing campaign behind the product(s), a big PR budget, etc.
Also, the lack of any US physical presence and someone who could do tastings and trade shows made it difficult to get the product exposure. I think if I had had a physical location somewhere that would have helped a lot. Finally, I see the whole marketing system in the US as such a giant machine, with brokers, distributors, etc. It’s really hard to get your product recognized and noticed, as well as costly if you want to do trade shows. Because the US market and system is so massive, I see it as causing an unfortunate disadvantage for the consumer who, despite the increasing growth and interest in artisan and handmade foods, remains highly disconnected from foods’ origins. And with chocolate, coming all the way from a far off country, it’s even harder to establish and tell a compelling story that offers the authenticity and traceability that consumers often want.
CDM: What are the primary activities of your chocolate and cacao education and training services?
JS: Primarily, I work with companies outside of Ecuador who usually know nothing about the country or the cocoa trade, and want to source either cacao from Ecuador or a semi-processed product such as cacao liquor or powder, or want to have a cacao-based product contract manufactured in Ecuador. I have also worked with artisan bean to bar companies who are looking to source cacao beans from Ecuador. Finally, I act as a “chocolate expert” for chocolate tours — these can be either groups who just have a casual interest in chocolate, or professional groups. I am currently working with three tour operators in Ecuador offering 3-5 day tours centered around chocolate activities, including visits to artisan chocolate makers, visits to plantations, fermentation and drying centers, brokers, and chocolate tastings. I have also been hired to work as a chocolate expert for a well known online chocolate school which will be offering a professional tour in June of next year for chocolatiers and bean to bar chocolate makers.
CDM: How were your companies started?
JS: I moved to Ecuador with my wife and family in May of 2007, with the intention of opening my chocolate business. I had lived in Ecuador from 1994 to 1995, first while getting my Master’s in Community and Regional Planning, and then returned to work for USAID after graduating. I then traveled to Ecuador almost annually until 2007. I got the idea of starting the chocolate business several years after I changed careers (2001, when I attended culinary school). We did some test marketing in trips to Ecuador in 2005 and 2006, and found there was a good market for chocolate. I founded my other company, Aequare, in 2008, with the intention of exporting chocolates from Ecuador. After our first year here, I realized the market wasn’t as big as I had initially expected, and decided to export.
CDM: How are your companies structured, and how many employees work with the companies?
JS: Our local company in Ecuador, Gianduja Chocolate, is a sole proprietorship. I am the chocolatier, my wife takes care of administration and accounting, and I have one employee who knows about 80% of what I do. My other company is an LLC. I am the only employee. When the need arises, I occasionally hire an additional person, but due to very onerous labor laws in Ecuador which make part-time or hourly payment nearly impossible, it’s rare.
CDM: What is your educational background and training?
JS: I have a Bachelor’s in Latin American Studies from New York University and a Master’s Degree in Community and Regional Planning from the University of Texas at Austin. I am also a 2001 graduate of L’Academie de Cuisine in Gaithersburg, Maryland, where I earned a degree in culinary arts.
CDM: What type of work were you involved in before beginning these companies? Was it related to or unrelated to chocolate?
JS: My first career after college and graduate school was primarily in foreign aid; specifically, I spent several years working with USAID based in Ecuador. I also worked with a consulting firm in Washington, DC for one year that was focused primarily on World Bank, Inter-American Development Bank, and USAID projects. I spent two years in Nicaragua working in population and health programs with USAID as well. None of the work was related to chocolate.
After completing my culinary training, I worked in restaurants, catering operations, and as a personal chef. I later worked in a chocolate shop part-time.
CDM: What are some of the challenges that you have encountered while running your businesses?
JS: Ecuador’s environment, both on the private sector side and the public (government) side is all about friction. There seems to be a genuine lack of cooperation — it sounds amusing, but it’s not.
While getting permits and paperwork for operating has gotten a little bit more transparent in recent years, things still seem very arbitrary and ambiguous. It used to be that you had to hire an “expediter” to get almost anything done — that’s doublespeak for someone who you pay to grease the wheels of bureaucracy and issue you permits in a timely fashion. Now you can get many permits directly yourself, but the amount of time and money involved makes it just as costly as if you had hired the expediter.
When you go to an agency, be it the Municipality, the tax agency, the Ministry of Health, you can get one answer one day, and the next day you go back with the same question, and you’ll get an entirely different answer. You get the feeling that nobody really knows the rules, and that they’re being made up as things move along. So you never are really sure if you’re doing things right. It’s very frustrating and unnerving.
On the private sector side, there are difficulties in getting paid. No one uses the mail here, and messenger services only occasionally. Electronic payments are the exception, not the rule. Most companies pay from 2pm-4pm on Friday afternoons at their offices. So if you can’t make it to pick up your check, you have to wait another week to get paid. Fortunately, I have enough business now and a unique product that allows me to have a “cash only — take it or leave it” policy. That is, if you want the product, it’s cash or check on delivery, with few exceptions only for longstanding clients.
There’s very little collaboration or cooperation among similar types of businesses to help each other out. For example, there is no organization or association in Quito of chocolate makers who might attempt to work together for publicity or other ends to grow the market cooperatively for their products. Businesses jealously guard their secrets. I call this an economy of scarcity, not abundance, and thus, because even information is scarce, no one shares it. I think in the long run it’s detrimental to business, and while this is a broad generalization, I think the lack of trust and cooperation is one of the factors that hinders economic growth.
CDM: How do you keep up to date with new developments in chocolate?
JS: I mostly use the web to learn about what is going on in the chocolate world. Here in Ecuador, I have regular contact with people in the cacao and chocolate industry from growers to manufacturers of chocolate and semi-processed products such as liquor and powder. We have recently formed a group of professsional industry people involved in chocolate at all points in the supply chain called the “Academia de Chocolate,” which is another forum for sharing and gathering information.
CDM: Why chocolate? What about it is fascinating to you?
JS: I got interested in chocolate when I started working part-time in a chocolate shop. I hadn’t really gotten a good understanding of how to work with chocolate in culinary school, so I got some books and started to study on my own. There are very few sources that clearly explain what tempering chocolate actually is; when I was finally able to read about the polymorphism of cocoa butter and how temperature affects crystal formation in chocolate, I was able to wrap my head around it. Not only does chocolate taste good, of course, but it’s a fascinating substance to work with.
After almost 5 years in Ecuador in the chocolate business, my knowledge has expanded far beyond just the technical know-how of chocolate making. I have knowledge of bean to bar operations, identifying quality cacao, import/export operations, and how the cacao industry works in Ecuador.
CDM: What was your “aha” moment in relation to chocolate?
JS: I never really understood what chocolate was and how its flavor was developed until I actually went to a plantation and tasted several chocolate liquors (pastes) made on the spot from beans. When I tasted various liquors side by side from beans from different areas, with different fermentation, I suddenly realized just how important the beans are and just how different beans with different fermentations, roasts, etc can be. It was like a light bulb went on in my head — a total epiphany. Now when I taste chocolate I have a much better picture in my head (or taste map, however you’d call it) of what’s good or off about a chocolate’s flavor than I ever did before.
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Visit Jeffrey Stern’s blog here to learn more about his adventures with chocolate just south of the equator, and follow his company Gianduja Chocolate on his website and on Facebook. Also, stay tuned for Part 2 of this interview, as well as details on Jeff’s upcoming Kickstarter campaign — he is currently working to launch a direct trade project to promote Ecuador’s heritage Nacional cacao and benefit small farmers.
Update (November 8, 2011): Part 2 of the interview can be read here.
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Bittersweet Notes is an open source research project on chocolate, culture, and the politics of food. I invite you to join me as I explore the story of chocolate and the life stories of those involved with chocolate at its many stages of production and consumption.
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