Photo/Illutration A kit sold by Dari K Co. offers hands-on experience to make chocolate from cacao beans. It also contains information on cacao producers. ((c) Dari K)

Leading confectionery maker Lotte Co. purchased a 100-percent stake in Dari K Co., a purveyor of fine chocolate products operating in Kyoto, to make it a wholly owned subsidiary.

Dari K is highly regarded for its work with cacao producers in Indonesia as part of U.N. Sustainable Development Goals (SDGs) to protect Earth’s environment and cope with other challenges in the business.

Lotte’s move is aimed at addressing environmental and human rights issues associated with its chocolate business in light of growing consumer sensitivity about how products are made and workers’ conditions.

Established in 2011, Dari K supported farmers in Indonesia’s Sulawesi island to produce quality cacao beans by teaching them fermentation techniques and other methods.

Key issues concerning the farming of cacao beans, the main ingredient of chocolate, include workers toiling at exploitive rates, children forced to work in the fields and the environmental impact caused by forest logging.

Dari K shop buys cacao beans at prices to match their quality, thereby raising the incomes of producers. It also introduced measures to mitigate climate change, such as encouraging a mixed plantation of mango, banana and other crops in farmlands.

As a result, the company won plaudits at international fairs for its chocolate products and attention to farming techniques, such as adding various fruits to cacao beans during the fermentation process to achieve a superior taste.

With its chocolates already sold at major department stores and convenience stores, it had been seeking ways to expand its operations through involvement in a larger distribution system.

Leading confectioners also face greater scrutiny from potential investors over their track record on corporate social responsibilities in their procurement activities and other aspects of their businesses.

Based in Tokyo’s Shinjuku Ward, Lotte has set a midterm goal of increasing the procurement ratio of child labor-free cacao beans to at least 20 percent by 2023 and 50 percent or more by 2028.

In January, the confectioner started selling products made from beans it is involved in from the cultivation stage in Papua New Guinea.

It intends to beef up its efforts with the acquisition of Dari K.

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