Ask the Alchemist #337
Level: Novice
Read time: 9 minutes
Hey folks. I’m alive and Chocolate Alchemy is hanging in there. But it is scary out there and I’ll be honest, the current chaos has had an impact on me and those around me. I’ve not really wanted to talk about it. I was listening to a podcast recently and they mentioned they had avoided bring up the current hot mess America is in right now and some listeners took it as a sign of them not caring, or not being affected or just being part of male white privilege. The podcaster said they wanted to give people a safe respite zone from all the very important but very tiring drama out there. I’m feeling pretty similar.
I have also found it challenging to answer questions about recipes or why this or that technique is viable or any other number of questions I’ve answered many times before when the country I live in is going to hell.
I keep wanting to do or say something helpful or meaningful and I also keep feeling that I just need to get some of these things out of my head. There isn’t going to be a ton of chocolate specific Q&A here, but there will be a little and I’ll try not to tangent too terribly.
Let’s go ahead and dive into the questions and see where they take us.
I am researching the possibility of starting a small scale chocolate business. When thinking about the trial and error process of refining recipes, is it possible to stay consistent considering the availability of the cocoa beans or is that a constant issue?
I want to open a small scale chocolate making business but the tariffs that are happening make me a little nervous. Will they apply to cacao beans?
Do you have any idea when the cocoa market is going to get back to normal?
Why is cocoa so expensive suddenly?
I’ve been watching many bean to bar business close. Will you be closing?
You ok alchemist? Is Chocolate Alchemy ok? I have learned so much from you and hope everything is alright.
I am researching the possibility of starting a small scale chocolate business. When thinking about the trial and error process of refining recipes, is it possible to stay consistent considering the availability of the cocoa beans or is that a constant issue?
Even though it seems a bit counter to running a good business, my gut feeling right now is that it is NOT the time to be starting a new business. Inflation is going crazy and predictability of supply chains is at a near all time low. If you could run it on the side and not jeopardize other income streams, that might work. If you can do it on the low down with minimum financial investment, do that. At this point I have seen 5 bean to bar makers go out of business. They were all established, strong and not business newbies. All were folks that I considered 1st or 2nd generation old guard, meaning people who learned from Chocolate Alchemy back in the aughts before bean to bar and craft chocolate was even a thing. If they folded, knowing what they know of business and chocolate making, you should maybe learn from them.
It is a real catch 22. Money is tight so you look at making more yourself and being an entrepreneur and because money is tight, other people are cutting way back on luxuries and like it or not, chocolate is a luxury. My advice is to hunker down and see what plays out in the next couple years and take this window of time to focus on your craft.
As for the consistency of product, the way I have ALWAYS looked at the craft market is that it is much like the wine industry. A company will often have a style or brand, but much of the fun and excitement is seeing how the 2022 vintage compares to the 2023 vintage. Are they the same? Nope. Is there consistency of quality? Yeah, there should be. So I think framing becomes important. Are the differences from crop to crop an issue or are they simply a know factor to be dealt with. I clearly think they are not an issue but instead a factor to be highlighted.
I want to open a small scale chocolate making business but the tariffs that are happening make me a little nervous. Will they apply to cacao beans?
Tariffs absolutely should make you nervous as there is no ducking telling what the head cheeto of the usa is going to do next week. At this point there is no answer I can give you if the tariffs will apply or not. As of this writing they have been put on hold but I’ve already paid some. This is one of the many reasons I’m suggesting just hunkering down and surveying the damage if and when the storms start to settle.
Do you have any idea when the cocoa market is going to get back to normal?
Why is cocoa so expensive suddenly?
Yeah....never. This IS the new normal. Or as close to normal as we are going to get any time soon as the cocoa market is too volatile for meaningful prediction.
5 years ago the commodity price for cocoa was in the ball park of $2000 per metric ton. Give or take, the specialty market (fair trade, direct trade, farm gate, etc) was 2-3 times that price. We, the specialty market, were not really affected by the stock market.
Then Covid hit and the supply/demand variable started to affect both markets. Shipping costs for containers went from $1500 to $18000. That went up and down.
Suppliers started re-evaluating costs and prices inched higher.
Then in the last couple years we saw unprecedented fires in Africa and the supply of cocoa dropped. Not unlike the banking collapse of 1929 that kicked off the Great Depression, where people’s response to fear of money being scarce ended up kicking off a self fulfilling cycle. Money was made scarce by folks pulling it out of banks and fueling the collapse. In cocoa, holders of cocoa futures started calling in their cocoa holdings and there was not enough to go around and prices skyrocketed. Last year a metric ton of commodity cocoa was going for $7000-8000 and this year it has steadily been over $11K and specialty cocoa had to follow suite. In a couple cases I’ve paid over $20K/MT.
We are in crazy times.
All I can say is that we suppliers are struggling to find where the new normal is just as much as you are. What might look like price gouging in some instances is instead just a lack of ability to gauge how much to raise prices to make sure there is cash enough to restock.
I’ve been watching many bean to bar business close. Will you be closing?
My goodness, I certainly hope not. I’m trying to find the proper level of how much stock to have on hand, but it’s a struggle given how much sales have dropped due to the increased prices.
At this point I have to say a heartfelt thank you to everyone that isn’t asking about prices going up. I know I no longer question why a burger and pint now costs me nearly $30 when 3 years ago I could often get it for $12. I guess it is similar here but I want everyone to know I appreciate the trust that I’m not gouging.
You ok alchemist? Is Chocolate Alchemy ok? I have learned so much from you and hope everything is alright.
Oh my goodness, what a question. I’m Schrodenger’s Alchemist. I’m both fine and completely not fine.
I mean, I’m ok, my family and friends are currently safe and I’m not fearful for my life on an active and daily basis. I’m deeply insulated by my male white privilege and feeling helpless to make any meaningful impact in everything that is currently going on.
But I’m also completely not fine. I don’t think anyone that is sane and moral can be fine right now.
I’m conflicted because I think rampant capitalism is so much what is wrong with this country and I’m running a company for profit. I’m by no means a big company. Chocolate Alchemy gets by. But it chaffs at me that I have to fit into an economic model based on the goodness of endless growth, when in reality there are real limits to growth, and collectively we are encountering them on multiple levels.
I am deeply conflicted that cocoa has not a small carbon footprint and that I’m in that industry. But others are so much worse. I know.
I have not hidden how much I utterly loathe Amazon and gave up my account 15 years ago. They are hideous for small businesses, they are hideous for sellers, they are hideous for employees. I’ve been watching others give up their accounts and it crossed my mind to try and support that trend. Something like if you show me proof you have quit Amazon and I’ll give you some amount off your next purchase to soften the blow.
My number one Ruzz thinks it is a terrible idea; that it does not help Chocolate Alchemy.
/ruzz here: it is a terrible idea. it will have zero real impact and amazon, like it or not, powers almost every bit of the web you care about in some form or other. which btw, is PRO small business. Moreover, giving away money that could help us keep things in stock for makers to scratch your impotent itch seems anti small business, and anti us.
What do you think?
That right there is what I’m struggling with. It is something I feel I can do. Will I stop Amazon? Of course not. No one protestor thought they could change anything either but they could not just do nothing. Do you run a small company and would you give a discount to folks that give up their Amazon account? Consider the planting of an idea that could do some good.
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Well damn. I seem to have written my existential self into a point of no good transition to other things to talk about. I’m not even sure if I should tell you all about things that are coming up, acting like everything is just fine. Things are not fine. Should be pretend they are? We very much should not. But still....
Ok, I’m going to do it this way. I mentioned there have been a number of businesses that have gone out business. The most recent I know about is Lillie Belle Chocolates. Jeff Sheppard is, in his own words, a complete asshole but I’ve never seen him as such. He just doesn’t suffer fools. He is one of the best people I know, albeit maybe slightly crazy, in all the best ways. He made Covid- and zombie- bunnies and could never make enough of them. When he announced he was selling out I got all of his beans and consequentially, you also got access* too them. Although we sold out of 2 of the 3 in just a couple hours, you can still get some of the commercial grade molds I got from him. Why is this noteworthy? Because they are commercial grade molds that can go for over $50 each but because they are WELL USED he let them go for a fraction of the price and I’m passing that along without price gouging. So there is my shitty narrative connection to the issues above, exploring things we can do — those things are knowing we are all in this together and doing what we can for each other no matter how small it is.
*if you were subscribed to our emails.
What else? I had fun creating the up coming Kit of the Month. Just because we all need to laugh and chuckle, here is the unpolished bit I wrote for it.
For Immediate Release - Alchemist turns gold into chocolate
For Immediate Release - Alchemist turns gold into chocolate
“Eureka, I’ve done it!”
Late last week reports indicate the Alchemist was found frantically exclaiming and running around his laboratory. He was yelling that he had cracked the secret that has eluded alchemists for centuries.”
Once neighbors got the fires on his robe and hair put out and got him into some less revealing clothing they were finally asked how he was able to turn lead into gold.
“Why the duck would I want to turn lead into gold? Have you ever tried to eat gold? Duck that shite, only dumbass cheetos try eating gold and you can see this the kind of brain damage that causes.”
The Alchemist went on to explain.
“You know those pale ass criollo beans that everyone holds in such high regard. They are basically chocolate gold. Rare, hard to obtain, pretty and basically shite for being usable as they are, just like 24 carat pure gold. Valuable but basically useless.
It got me thinking. 18 carat gold is so much better than 24 carat gold if you actually want to enjoy it. Look at what the Oracle G has to say about gold.”
For everyday wear, 14K or 18K gold is generally considered the best choice due to its balance of durability, affordability, and appearance. While 24K gold is pure gold, it's too soft for everyday wear. 14K gold, containing 58.3% gold and 41.7% alloy, provides a good balance of gold content and strength, making it suitable for rings, necklaces, and other daily wear. 18K gold contains 75% gold and is alloyed with 25% other more durable metals most often silver and copper.
“I’ve finally unlocked the mystery for making those pale criollo beans into something I want to eat. You mix in just the right blend of alloy beans and you have 18K chocolate.”
When asked when he was going to start making the 18K chocolate for people to buy, the Alchemist replied:
“I’m not making ducking chocolate. Do I LOOK CRAZY?”
<silence> the alchemist looks down.
“shut up. fine.”
<mumbles>
“I guess I can make something up.”
<low grumbling>
“But they’re going have to do some work themselves. Tell ‘em to go get the April Kit of the month and they can taste it there. Maybe I’ll even include a piece of 18K chocolate for them to taste.”
When pressed for more information he grumbled more about “stupid ass gold eating fascist cheeto” and said we should talk to “his ruzz”.
There you have it folks. Gold into chocolate....no cheetos required.
I had fun writing that. We all need a little fun right now. And kindness.
I’m pretty stressed right now. I suspect you are too. Kindness will go along way. Be kind where you are able.
To that end, one of my absolutely gems of a customer, Mimi ( you know who you are), sent me chocolate covered candied oranges that she made. I’m pretty sure I could make them. But having them show up and being able to indulge in that utterly sweet gift brought me so much joy. That would have been absent if I had made them myself. Thank you Mimi for being such a kind person and for your gift.
My turn to think more about how I can pay that forward.
I urge you to do the same.
Existential Alchemist signing off.
