{"id":24635,"date":"2017-11-15T18:31:27","date_gmt":"2017-11-15T23:31:27","guid":{"rendered":"https:\/\/digital.hbs.edu\/platform-rctom\/submission\/ben-jerrys-should-be-more-cocoa-for-cocoa-sustainability\/"},"modified":"2017-11-15T18:31:44","modified_gmt":"2017-11-15T23:31:44","slug":"ben-jerrys-should-be-more-cocoa-for-cocoa-sustainability","status":"publish","type":"hck-submission","link":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/ben-jerrys-should-be-more-cocoa-for-cocoa-sustainability\/","title":{"rendered":"Ben & Jerry\u2019s Should Be More Cocoa for Cocoa Sustainability"},"content":{"rendered":"

As an ice cream lover, I can see at least one benefit of climate change. Rising temperatures justify my nightly ritual: mint chocolate chip ice cream. At first glance, Ben & Jerry\u2019s wins: warmer weather translates to increased ice cream demand. A Kepler Cheuvreux<\/em> report suggests 1 degree Celsius corresponds to 5-10 percentage points of sales.[i]<\/a><\/p>\n

Despite the potential sales lift, climate change should be a concern for Ben & Jerry\u2019s and its cocoa supply chain. Many Ben & Jerry\u2019s flavors require chocolate, and the changing environment poses a threat to cocoa suppliers\u2019 production. C\u00f4te d’Ivoire and Ghana represent more than half of global production, but a 2013 study cited in Climatic Change<\/em> suggests that 89.5% of land in the region will be less suitable for cocoa production by 2050.[ii]<\/a><\/p>\n

In 2016, Ben & Jerry\u2019s revealed the \u201cEndangered Pints List,\u201d highlighting flavors whose ingredients are affected by climate change. The first ingredient listed was cocoa with commentary about scientists predicting its production could drop 50% by 2050. [iii]<\/a> While further diligence suggests this 50% decline may be a stretch, Ben & Jerry\u2019s clearly knows climate change is hurting cocoa.[iv]<\/a><\/p>\n

A cocoa shortage would likely correspond with higher prices. In this scenario, Ben & Jerry\u2019s may choose to increase its pricing to account for the higher ingredient cost and maintain its margin structure; however, retailer and consumer demand could suffer because its ice cream is already considered expensive. Conversely, Ben & Jerry\u2019s could maintain its pricing, but accepting lower margins would reduce free cash flow and likely disappoint its parent, Unilever.<\/p>\n

Ben & Jerry\u2019s Plans to Mitigate Climate Change\u2026<\/em><\/strong><\/p>\n

Since its founding, Ben & Jerry\u2019s has considered social mission equally important as product and economic missions. Not surprisingly, the company has long been fighting for \u201cclimate justice,\u201d launching a carbon offsets program in 2002 and organizing an advocacy campaign in 2007.[v]<\/a><\/p>\n

Over the short-term, Ben & Jerry\u2019s has plans to continue pursuing climate change mitigation initiatives. On its website, consumers can sign a petition to \u201cJoin the Climate Movement\u201d asking world leaders to transition to 100% clean energy by 2050. Ben & Jerry\u2019s is expected to achieve 100% clean energy at its U.S. sites by 2020.[vi]<\/a> Other initiatives for the next couple years include manure separation, reforestation and hydrocarbon refrigeration.[vii]<\/a><\/p>\n

Ben & Jerry\u2019s has not provided information on its medium-term plans. Given its social mission roots, Ben & Jerry\u2019s could be expected to maintain its commitment to the environment.<\/p>\n

\u2026 But Should Also Adapt to Realities\u2026 <\/em><\/strong><\/p>\n

While Ben & Jerry\u2019s is admirable in its pursuit of mitigation, the company should simultaneously pursue an adaptation strategy. As Ben & Jerry\u2019s is a single company, its initiatives are unlikely to materially reduce climate change\u2019s impact on cocoa land suitability. Accordingly, the company should also institute policies that accommodate climate change.<\/p>\n

In the near-term, Ben & Jerry\u2019s should work with the farmers and governments of C\u00f4te d’Ivoire and Ghana. First, the company can partner with agricultural specialists to teach cocoa producers about sustainable practices. In Sustainability Science<\/em>, Fran\u00e7ois Ruf et al. claim \u201csupply chain actors [e.g., Ben & Jerry\u2019s] should help farmers in the technological and social adaptation process that is necessary for a stable, permanent farming economy.\u201d[viii]<\/a> \u00a0With investment from Ben & Jerry\u2019s, these specialists can demonstrate to the cocoa producers the benefits of pest control, less deciduous shade trades, and plant spacing.[ix]<\/a>[x]<\/a> While Ben & Jerry\u2019s would ideally have its distributors and retailers co-invest, they are unlikely to be incentivized because of cocoa pricing\u2019s minimal impact on their more diversified product portfolios.<\/p>\n

Additionally, Ben & Jerry\u2019s has a history of being politically involved, evidenced by the aforementioned petition, and can take a similar strategy with local governments to encourage their support of cocoa production. While this government engagement should begin immediately, regulation may not occur until the medium-term; Ben & Jerry\u2019s could lobby for tax credits for sustainable cocoa production investments.<\/p>\n

Moreover, Ben & Jerry\u2019s should explore product diversification over the coming decade. Ben & Jerry\u2019s has many chocolate-less flavors, and the company could add more. Of course, other ingredients are going to face similar challenges, so the company should think about which ingredients are less susceptible to the perils of climate change.<\/p>\n

Looming Questions\u2026 <\/em><\/strong><\/p>\n

Ben & Jerry\u2019s plans to reduce its contributions to climate change, but should also pursue measures that accommodate the shifting environment. Both mitigation and adaptation could promote social responsibility, and such association would likely grow the brand and sales. Given the merits of both, how should the company determine the appropriate level of investment? Also, since rising temperatures can support ice cream demand, is there any point where such socially responsible initiatives should not be pursued?<\/p>\n

(778 words)<\/p>\n

[i]<\/a> Erwan Cr\u00e9halet, et al., \u201cDemystifying Climate Effects<\/em>,\u201d Kepler Cheuvreux, 2013.<\/p>\n

[ii]<\/a> Peter L\u00e4derach et al., \u201cPredicting the future climatic suitability for cocoa farming of the world\u2019s leading producer countries, Ghana and C\u00f4te d\u2019Ivoire,\u201d Climatic Change, 119(3-4), 2013, p. 841-854.<\/p>\n

[iii]<\/a> Ben & Jerry\u2019s Homemade, Inc., \u201cBen & Jerry\u2019s Flavors We Could Lose to Climate Change,\u201d http:\/\/www.benjerry.com\/whats-new\/2016\/endangered-pints<\/a>, accessed November 2017.<\/p>\n

[iv]<\/a> Martin Parry et al., Climate Change 2007: Impacts, Adaptation and Vulnerability<\/em>, (New York: Cambridge University Press, 2007).<\/p>\n

[v]<\/a> Ben & Jerry\u2019s Homemade, Inc., <\/em>\u201cB Corp | Ben & Jerry\u2019s,\u201d http:\/\/www.benjerry.com\/about-us\/b-corp<\/a>, accessed November 2017.<\/p>\n

[vi]<\/a> Ben & Jerry\u2019s Homemade, Inc., \u201c<\/em>Join the Climate Movement<\/em>,\u201d http:\/\/www.benjerry.com\/values\/issues-we-care-about\/climate-justice<\/a>, accessed November 2017.<\/p>\n

[vii]<\/a> Ben & Jerry\u2019s Homemade, Inc., \u201c<\/em>Ben & Jerry’s is Fighting Climate Change,\u201d<\/em> http:\/\/www.benjerry.com\/values\/issues-we-care-about\/climate-justice\/fighting-global-warming<\/a>, accessed November 2017.<\/p>\n

[viii]<\/a> Fran\u00e7ois Ruf et al., \u201cClimate change, cocoa migrations and deforestation in West Africa: What does the past tell us about the future?,\u201d Sustainability Science, 10(1), 2014, p.101-111.<\/p>\n

[ix]<\/a> Marius Wessel and P.M. Foluke Quist-Wessel, \u201cCocoa production in West Africa, a review and analysis of recent developments,\u201d NJAS – Wageningen Journal of Life Sciences, 74-75, 2014, p.1-7.<\/p>\n

[x]<\/a> Peter L\u00e4derach et al., \u201cPredicting the future climatic suitability for cocoa farming of the world\u2019s leading producer countries, Ghana and C\u00f4te d\u2019Ivoire,\u201d Climatic Change, 119(3-4), 2013, p. 841-854.<\/p>\n","protected":false},"excerpt":{"rendered":"

Rising temperatures may support demand for Ben & Jerry\u2019s ice cream, but climate change poses a serious threat to the company\u2019s cocoa supply chain.<\/p>\n","protected":false},"author":10381,"featured_media":24673,"comment_status":"open","ping_status":"closed","template":"","categories":[2000,1320,1218,1795,3848,1815,1466,2001,44,1403,1102],"class_list":["post-24635","hck-submission","type-hck-submission","status-publish","has-post-thumbnail","hentry","category-ben-jerrys","category-chocolate","category-climate-change","category-cocoa","category-cote-divoire","category-food-and-beverages","category-ghana","category-ice-cream","category-supply-chain-management","category-sustainable-farming","category-unilever","hck-taxonomy-organization-ben-jerrys","hck-taxonomy-industry-food-and-beverage","hck-taxonomy-country-united-states"],"connected_submission_link":"https:\/\/d3.harvard.edu\/platform-rctom\/assignment\/rc-tom-challenge-2017\/","yoast_head":"\nBen & Jerry\u2019s Should Be More Cocoa for Cocoa Sustainability - Technology and Operations Management<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/ben-jerrys-should-be-more-cocoa-for-cocoa-sustainability\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Ben & Jerry\u2019s Should Be More Cocoa for Cocoa Sustainability - Technology and Operations Management\" \/>\n<meta property=\"og:description\" content=\"Rising temperatures may support demand for Ben & Jerry\u2019s ice cream, but climate change poses a serious threat to the company\u2019s cocoa supply chain.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/ben-jerrys-should-be-more-cocoa-for-cocoa-sustainability\/\" \/>\n<meta property=\"og:site_name\" content=\"Technology and Operations Management\" \/>\n<meta property=\"article:modified_time\" content=\"2017-11-15T23:31:44+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2017\/11\/2444-CleanEnergyNow-graphic.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"779\" \/>\n\t<meta property=\"og:image:height\" content=\"280\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data1\" content=\"5 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/d3.harvard.edu\\\/platform-rctom\\\/submission\\\/ben-jerrys-should-be-more-cocoa-for-cocoa-sustainability\\\/\",\"url\":\"https:\\\/\\\/d3.harvard.edu\\\/platform-rctom\\\/submission\\\/ben-jerrys-should-be-more-cocoa-for-cocoa-sustainability\\\/\",\"name\":\"Ben & Jerry\u2019s Should Be More Cocoa for Cocoa Sustainability - Technology and Operations Management\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/d3.harvard.edu\\\/platform-rctom\\\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\\\/\\\/d3.harvard.edu\\\/platform-rctom\\\/submission\\\/ben-jerrys-should-be-more-cocoa-for-cocoa-sustainability\\\/#primaryimage\"},\"image\":{\"@id\":\"https:\\\/\\\/d3.harvard.edu\\\/platform-rctom\\\/submission\\\/ben-jerrys-should-be-more-cocoa-for-cocoa-sustainability\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/d3.harvard.edu\\\/platform-rctom\\\/wp-content\\\/uploads\\\/sites\\\/4\\\/2017\\\/11\\\/2444-CleanEnergyNow-graphic.jpg\",\"datePublished\":\"2017-11-15T23:31:27+00:00\",\"dateModified\":\"2017-11-15T23:31:44+00:00\",\"breadcrumb\":{\"@id\":\"https:\\\/\\\/d3.harvard.edu\\\/platform-rctom\\\/submission\\\/ben-jerrys-should-be-more-cocoa-for-cocoa-sustainability\\\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/d3.harvard.edu\\\/platform-rctom\\\/submission\\\/ben-jerrys-should-be-more-cocoa-for-cocoa-sustainability\\\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/d3.harvard.edu\\\/platform-rctom\\\/submission\\\/ben-jerrys-should-be-more-cocoa-for-cocoa-sustainability\\\/#primaryimage\",\"url\":\"https:\\\/\\\/d3.harvard.edu\\\/platform-rctom\\\/wp-content\\\/uploads\\\/sites\\\/4\\\/2017\\\/11\\\/2444-CleanEnergyNow-graphic.jpg\",\"contentUrl\":\"https:\\\/\\\/d3.harvard.edu\\\/platform-rctom\\\/wp-content\\\/uploads\\\/sites\\\/4\\\/2017\\\/11\\\/2444-CleanEnergyNow-graphic.jpg\",\"width\":779,\"height\":280},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/d3.harvard.edu\\\/platform-rctom\\\/submission\\\/ben-jerrys-should-be-more-cocoa-for-cocoa-sustainability\\\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\\\/\\\/d3.harvard.edu\\\/platform-rctom\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Submissions\",\"item\":\"https:\\\/\\\/d3.harvard.edu\\\/platform-rctom\\\/submission\\\/\"},{\"@type\":\"ListItem\",\"position\":3,\"name\":\"Ben & Jerry\u2019s Should Be More Cocoa for Cocoa Sustainability\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/d3.harvard.edu\\\/platform-rctom\\\/#website\",\"url\":\"https:\\\/\\\/d3.harvard.edu\\\/platform-rctom\\\/\",\"name\":\"Technology and Operations Management\",\"description\":\"MBA Student Perspectives\",\"potentialAction\":[{\"@type\":\"性视界Action\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\\\/\\\/d3.harvard.edu\\\/platform-rctom\\\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Ben & Jerry\u2019s Should Be More Cocoa for Cocoa Sustainability - Technology and Operations Management","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/ben-jerrys-should-be-more-cocoa-for-cocoa-sustainability\/","og_locale":"en_US","og_type":"article","og_title":"Ben & Jerry\u2019s Should Be More Cocoa for Cocoa Sustainability - Technology and Operations Management","og_description":"Rising temperatures may support demand for Ben & Jerry\u2019s ice cream, but climate change poses a serious threat to the company\u2019s cocoa supply chain.","og_url":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/ben-jerrys-should-be-more-cocoa-for-cocoa-sustainability\/","og_site_name":"Technology and Operations Management","article_modified_time":"2017-11-15T23:31:44+00:00","og_image":[{"width":779,"height":280,"url":"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2017\/11\/2444-CleanEnergyNow-graphic.jpg","type":"image\/jpeg"}],"twitter_card":"summary_large_image","twitter_misc":{"Est. reading time":"5 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/ben-jerrys-should-be-more-cocoa-for-cocoa-sustainability\/","url":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/ben-jerrys-should-be-more-cocoa-for-cocoa-sustainability\/","name":"Ben & Jerry\u2019s Should Be More Cocoa for Cocoa Sustainability - Technology and Operations Management","isPartOf":{"@id":"https:\/\/d3.harvard.edu\/platform-rctom\/#website"},"primaryImageOfPage":{"@id":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/ben-jerrys-should-be-more-cocoa-for-cocoa-sustainability\/#primaryimage"},"image":{"@id":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/ben-jerrys-should-be-more-cocoa-for-cocoa-sustainability\/#primaryimage"},"thumbnailUrl":"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2017\/11\/2444-CleanEnergyNow-graphic.jpg","datePublished":"2017-11-15T23:31:27+00:00","dateModified":"2017-11-15T23:31:44+00:00","breadcrumb":{"@id":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/ben-jerrys-should-be-more-cocoa-for-cocoa-sustainability\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/d3.harvard.edu\/platform-rctom\/submission\/ben-jerrys-should-be-more-cocoa-for-cocoa-sustainability\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/ben-jerrys-should-be-more-cocoa-for-cocoa-sustainability\/#primaryimage","url":"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2017\/11\/2444-CleanEnergyNow-graphic.jpg","contentUrl":"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2017\/11\/2444-CleanEnergyNow-graphic.jpg","width":779,"height":280},{"@type":"BreadcrumbList","@id":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/ben-jerrys-should-be-more-cocoa-for-cocoa-sustainability\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/d3.harvard.edu\/platform-rctom\/"},{"@type":"ListItem","position":2,"name":"Submissions","item":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/"},{"@type":"ListItem","position":3,"name":"Ben & Jerry\u2019s Should Be More Cocoa for Cocoa Sustainability"}]},{"@type":"WebSite","@id":"https:\/\/d3.harvard.edu\/platform-rctom\/#website","url":"https:\/\/d3.harvard.edu\/platform-rctom\/","name":"Technology and Operations Management","description":"MBA Student Perspectives","potentialAction":[{"@type":"性视界Action","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/d3.harvard.edu\/platform-rctom\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"}]}},"_links":{"self":[{"href":"https:\/\/d3.harvard.edu\/platform-rctom\/wp-json\/wp\/v2\/hck-submission\/24635","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/d3.harvard.edu\/platform-rctom\/wp-json\/wp\/v2\/hck-submission"}],"about":[{"href":"https:\/\/d3.harvard.edu\/platform-rctom\/wp-json\/wp\/v2\/types\/hck-submission"}],"author":[{"embeddable":true,"href":"https:\/\/d3.harvard.edu\/platform-rctom\/wp-json\/wp\/v2\/users\/10381"}],"replies":[{"embeddable":true,"href":"https:\/\/d3.harvard.edu\/platform-rctom\/wp-json\/wp\/v2\/comments?post=24635"}],"version-history":[{"count":0,"href":"https:\/\/d3.harvard.edu\/platform-rctom\/wp-json\/wp\/v2\/hck-submission\/24635\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/d3.harvard.edu\/platform-rctom\/wp-json\/wp\/v2\/media\/24673"}],"wp:attachment":[{"href":"https:\/\/d3.harvard.edu\/platform-rctom\/wp-json\/wp\/v2\/media?parent=24635"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/d3.harvard.edu\/platform-rctom\/wp-json\/wp\/v2\/categories?post=24635"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}