{"id":30361,"date":"2018-11-12T23:01:44","date_gmt":"2018-11-13T04:01:44","guid":{"rendered":"https:\/\/digital.hbs.edu\/platform-rctom\/submission\/the-future-is-customized-chocolate\/"},"modified":"2018-11-12T23:08:19","modified_gmt":"2018-11-13T04:08:19","slug":"the-future-is-customized-chocolate","status":"publish","type":"hck-submission","link":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/the-future-is-customized-chocolate\/","title":{"rendered":"The Future is Customized Chocolate"},"content":{"rendered":"

Imagine if you could create and design your own chocolate from the comfort of your home?<\/p>\n

While this may seem like a distant dream for chocolate lovers, this in fact is already possible. In 2013, a company called Choc Edge created its first 3D chocolate printer and made it available for sale at a $3,200 price point[1]<\/a>. The Hershey Company, an iconic American chocolate company and one of the largest chocolate manufacturers in the world is already taking some small, yet important steps to incorporate additive manufacturing as part of the company\u2019s operations. In 2014, the company partnered with a leading additive manufacturing company 3D Systems, to produce CocoJet 3D printer that can print uniquely designed candy and showcased it to consumers in 2015 at its headquarters\u2019 exhibits in Pennsylvania[2]<\/a>.<\/p>\n

The U.S. chocolate industry though has seen a slow growth of 0.7 percent, with Hershey\u2019s gradually losing market share[3]<\/a>. Even in a declining market, the products themselves have undergone very minimal changes over the years and remain largely standardized.\u00a0Customization through additive manufacturing provides an opportunity for Hershey\u2019s to tap into new revenue streams and reverse its financial trends. \u201cThe market for 3D printed food is expected to reach $425 million by 2025 and North America is expected to hold the largest share of the market\u201d[4]<\/a>. Additive manufacturing can be a valuable way for Hershey\u2019s to test a variety of designs, texture and shapes with its consumer\u2019s around the world and use the data to make informed decisions on which products to scale.<\/p>\n

\"\"<\/a>
Source: www.cnbc.com\/2018\/04\/24\/not-just-a-chocolate-company-hershey-plots-its-future-in-snacking.html.<\/figcaption><\/figure>\n

 <\/p>\n

Slow Start in the Right Direction<\/strong><\/p>\n

In the short-term, Hershey\u2019s has partnered with the Culinary Institute of America to focus on exploring real-world application. The Hershey\u2019s Chocolate World Attraction which attracts over four million visitors a year to the Hershey\u2019s HQ, the company is also surveying public on their customization preferences after they have interacted with CocoJet 3D[5]<\/a>. This information is used to gain consumer insights, understand psychological barriers to adoption of 3-D chocolate printing and explore opportunities for co-creation[6]<\/a>. In the medium-term, the company\u2019s strategy is still unclear. While 3-D printing brings efficiency to customization, much of the chocolate Hershey\u2019s makes is standardized and mass produced. At its current price and technological capacity, 3-D printers cannot provide the same economies of scale that traditional machines do.<\/p>\n

A World Where a Chocolate is More Than Just a Chocolate<\/strong><\/p>\n

While consumer\u2019s may be reluctant to experiment with customized food on staple products, there is an opportunity to do so for \u2018fun\u2019 categories like chocolates that are likely to be buys for special occasions like birthdays and anniversaries.<\/p>\n

As one of the first mover\u2019s and leaders in the 3-D chocolate printing space, Hershey\u2019s has the ability to move up towards the high-end chocolate segment and compete with brands such as Godiva. To do so, Hershey\u2019s should seriously consider investing in store fronts in upscale areas and installing the CocoJet 3D technology to its stores. The ability to customize would be a value add for the customer\u2019s and in return would also provide the company with important data around customer preference. \u00a0In the short-term it would help Hershey\u2019s compete with the high-end chocolate brands. In the long term it would allow Hershey\u2019s to continue to stay competitive since eventually, customer\u2019s buying chocolate to gift to their children or significant other\u2019s may see the ability to customize as a necessity, instead of a luxury. Additionally, additive manufacturing also provides a way for Hershey\u2019s to diversify into snack food, a strategy that the company has been trying dating back to its inception, but has largely failed[7]<\/a>. Imagine if stores with Hershey\u2019s printing machine could make bite size chocolate snacks in customized designs and sizes? In addition to getting customer engagement, a \u2018customized\u2019 strategy would position Hershey\u2019s as an innovative brand, instead of the age-old monolith that it is often seen as.<\/p>\n

***
\nMoving forward, should Hershey\u2019s invest more heavily in 3-D printing? More broadly, what possible challenges do you think the food industry faces to adopt 3-D printing more widely? Is customization the new future or do we still need some degree of standardization?<\/p>\n

_______________<\/p>\n

[1]<\/a> Goulding, Charles. \u201cR&D Aspects of 3D Printing Chocolate.\u201d\u00a03DPrint.Com | The Voice of 3D Printing \/ Additive Manufacturing<\/em>, 17 May 2018, 3dprint.com\/213896\/rd-3d-printing-chocolate\/.<\/p>\n

[2]<\/a> Buhr, Sarah. \u201cHershey’s Chocolate 3D Printer Whips Up Any Sweet Design You Want.\u201d\u00a0TechCrunch<\/em>, TechCrunch, 16 Sept. 2015, techcrunch.com\/2015\/09\/16\/likeachocolateselfie\/.<\/p>\n

[3]<\/a> Hirsch, Lauren. \u201cAfter 124 Years, Hershey Tries to Be More than Just a Chocolate Company (Again).\u201d\u00a0CNBC<\/em>, CNBC, 24 Apr. 2018, www.cnbc.com\/2018\/04\/24\/not-just-a-chocolate-company-hershey-plots-its-future-in-snacking.html.<\/p>\n

[4]<\/a> Orosz, Caitlin. \u201cThe Future of Food Manufacturing: 3D Printing.\u201d\u00a0Blacksmith Applications<\/em>, 9 July 2018, blacksmithapplications.com\/future-of-food-manufacturing-3dprinting\/.<\/p>\n

[5]<\/a> Eagle, Jenny. \u201cHershey Continues to Explore the Possibilities of 3D Printing.\u201d\u00a0Confectionerynews.com<\/em>, William Reed Business Media Ltd., 4 Dec. 2017, www.confectionerynews.com\/Article\/2017\/12\/04\/Hershey-continues-to-explore-the-possibilities-of-3D-printing.<\/p>\n

[6]<\/a> CSP Daily News. \u201cCan 3D Printing Replace the C-Store?\u201d\u00a0CSP Daily News<\/em>, CSP Daily News, 30 Oct. 2018, www.cspdailynews.com\/snacks-candy\/can-3d-printing-replace-c-store.<\/p>\n

[7]<\/a> Hirsch, Lauren. \u201cAfter 124 Years, Hershey Tries to Be More than Just a Chocolate Company (Again).\u201d\u00a0CNBC<\/em>, CNBC, 24 Apr. 2018, www.cnbc.com\/2018\/04\/24\/not-just-a-chocolate-company-hershey-plots-its-future-in-snacking.html.<\/p>\n

(Words: 795)<\/p>\n","protected":false},"excerpt":{"rendered":"

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