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Ebook About In the early nineteenth century the major English chocolate firms -- Fry, Rowntree, and Cadbury -- were all Quaker family enterprises that aimed to do well by doing good. The English chocolatiers introduced the world's first chocolate bar and ever fancier chocolate temptations -- while also writing groundbreaking papers on poverty, publishing authoritative studies of the Bible, and campaigning against human rights abuses. Chocolate was always a global business, and in the global competitors, especially the Swiss and the Americans Hershey and Mars, the Quaker capitalists met their match. The ensuing chocolate wars would culminate in a multi-billion-dollar showdown pitting Quaker tradition against the cutthroat tactics of a corporate behemoth. Featuring a cast of savvy entrepreneurs, brilliant eccentrics, and resourceful visionaries, Chocolate Wars is a delicious history of the fierce, 150-year business rivalry for one of the world's most coveted markets.Book Chocolate Wars: The 150-Year Rivalry Between the World's Greatest Chocolate Makers Review :
One of the best ways I’ve found to explore the factors that influence the grand sweep of modern history is to examine the stories of individual companies, industries, and commodities. And among the books I’ve found that have helped the most are The World in a Grain: The Story of Sand and How It Transformed Civilization by Vince Beiser, Empire of Cotton: A Global History by Sven Beckert, and Citizen Coke: The Making of Coca-Cola Capitalism by Bartow J. Elmore. Now chocolate joins sand, cotton, and Coke as a key to explore the depths of business history: Deborah Cadbury‘s Chocolate Wars: The 150-Year Rivalry Between the World’s Greatest Chocolate Makers. Herself a descendant of the illustrious Quaker family that built one of the world’s biggest chocolate manufacturers, Cadbury provides an intimate view of an extraordinary company that pioneered a radical new approach to business.Shareholder value versus stakeholder capitalismThe modern corporation began taking shape late in the nineteenth century. But only in the past four decades or so has it evolved into the form we recognize today in the United States—a massive, often highly diversified enterprise driven by “shareholder value” and run by professional (often grossly overpaid) managers. Under the precepts of shareholder value, the directors and managers of an enterprise regard it as their overarching duty to deliver ever-rising stock prices to those who “own” the company. In practice today, this means they look to the quarterly profit statements demanded by Wall Street and the City of London as the true measure of their success.Business wasn’t all about money in the 19th centuryIn the mid-nineteenth century, when Cadbury and other Quaker-owned chocolate companies were laying the foundation for their future wealth, business was still largely a personal affair. Companies were owned and run by the families of their founders, many were managed paternalistically, and they were closely tied to the communities where they were located.The “chocolate Quakers” were outliersBut the Quakers who built the early chocolate industry were outliers in their unwavering commitment to quality and the welfare of their employees. They “believed that ‘your own soul lived or perished according to its use of the gift of life.’ For them, spiritual wealth rather than the accumulation of possessions was the ‘enlarging force’ that informed business decisions.” The approach they took to their businesses is what today we would call “stakeholder capitalism“—a commitment to make business decisions based on how they would affect all stakeholders, not just those who own the shares.Yes, there were chocolate wars—twiceChocolate Wars follows the trajectory of Cadbury and other chocolate manufacturers founded in Britain by Quakers in the nineteenth century. These pioneering companies have long since been absorbed into immense, multinational corporations that have shed the humane Quaker values on which they were grounded. A century and a half ago, Cadbury (founded 1824), Rowntree’s (founded 1862), and Fry’s (founded 1761) accounted for the lion’s share of chocolate sales in the United Kingdom. Here’s what happened to them:** Fry was absorbed by Cadbury and later disappeared entirely.** Today, Rowntree’s is part of Nestlé, the Swiss multinational that is the largest food company in the world.** And Cadbury is wholly owned by Mondelez International—a business once called Kraft Foods—and is the world’s second largest confectionary company after US-based Mars, Incorporated.The eponymous “chocolate wars” can refer to the usually decorous rivalry among the big three British companies in the nineteenth century. But more often it’s taken to mean the no-holds-barred struggle for dominance in the twentieth century primarily involving the Swiss (Nestlé), Americans (Mars and Hershey), and British (Cadbury and Rowntree).Even if you’re unfamiliar with the company names, you’ve surely come across—and quite likely consumed—some of their leading brands: Cadbury’s Dairy Milk; Rowntree’s Kit Kat and Rolo; Hershey’s Hershey Bar and Hershey’s Kisses; Nestlé’s Nescafé and infant formula; and Mars’ M&Ms, Milky Way, and Snickers.A cast of larger-than-life characters in Chocolate WarsGeorge and Richard CadburyGeorge Cadbury (1839-1922) and Richard Cadbury (1835-99) were the younger sons of their company’s founder John Cadbury, who took over a failing business in 1861 and built it into a behemoth. Along the way, they constructed a model village-factory at Bournville, which remains the Cadbury headquarters to this day. They were both exceedingly generous philanthropists who believed the causes they supported were more deserving of their accumulated wealth than their children—and the children agreed.Joseph RowntreeJoseph Rowntree (1836-1925) was the Quaker industrialist and philanthropist from York who ran Rowntree’s, one of the Cadburys’ principal competitors. Rowntree was an active social reformer who founded several trusts to improve the quality of life of his employees.Forrest Mars Sr.Forrest Mars Sr. (1904-99) was the hard-driving force behind the Mars candy empire. After his erratic father forced him out of the business they’d built together, Mars built his own company and eventually absorbed the old firm. Mars’ values, and those of his family, are far removed from the ideals that motivated the Quakers. The family is widely reported to have been instrumental in the repeal of the estate tax in the United States—the antithesis of the attitudes that drove the Cadburys and Rowntrees.Milton HersheyMilton Hershey (1857-1945) pioneered the manufacture of caramel, then built a new company that was the first to mass-produce milk chocolate. He built the model town of Hershey, Pennsylvania and gifted his controlling interest in the Hershey Company to a trust. The philanthropy benefits the Hershey Industrial School (now the Milton Hershey School) he had founded there for underprivileged orphan boys. The trust remains the controlling shareholder of Hershey’s to this day. Hershey’s values were grounded in the Mennonite faith of his parents and of the community where he grew up, Lancaster, Pennsylvania.What these remarkable men have in common is the extraordinary persistence they brought to their work. Every one of them struggled for many years against often great odds to develop the products and build the businesses that would ensure their future.Reourceful and inventive Swiss, Dutch and French entrepreneurs also enter into Chocolate Wars, notably Henri Nestlé, Daniel Peter, Rodolphe Lindt, Jean Tobler, Coenraad Van Houten, and Johan Rudolf Sprüngli. You may recognize most of their surnames, too, in some of the other products you’re likely to encounter if, like me, you’re a chocoholic.Family ownership is (mostly) long gone in the chocolate industryBut the days of family ownership and management have long gone by the wayside in the chocolate industry, with the exception of Mars, Inc., which remains family-owned. “When Dominic [Cadbury] stepped down in 2000, for the first time in the firm’s 170-year history, there was no longer a member of the family on the board, and less than 1 percent of [the] shares were in family hands. Over the years, the shares held by the Cadbury benevolent trusts had also declined.”This is solidly grounded business historyDeborah Cadbury has done a superb job relating this complex tale in such a readable and insightful way. Chocolate Wars is solid business history. In nearly 400 pages, I came across only one error. She notes, in explaining the discrimination still directed at Quakers in Victorian England, that university education was not open to them. Both Oxford and Cambridge then denied entry to Quakers, Nonconformists, and Jews, as she correctly notes. However, University College, London was founded in 1826 with the express purpose of admitting students regardless of their religion.About the authorBritish author and documentary filmmaker Deborah Cadbury is the author of ten nonfiction books and the producer of more than a dozen documentary films and television series, for which she has won many international awards. In Chocolate Wars, she refers to “the chocolate branch of the family.” She is a descendant of the oldest son of John Cadbury, who founded the original company that much later grew into Britain’s largest confectionary business. She is not herself affiliated with the company. This is Deborah Cadbury of THE Cadbury family. She writes about Cadbury, Hershey, Nestle, and other companies and the development of chocolate as a food product. It begins with people wondering what to do with this bean to make money with it. It includes information about developing these products, finding the cocoa beans, growing the beans in new locales around the world, marketing to different cultures i.e. convincing people they need it and on and on and is fascinating. For me the most interesting part however, was about the business models used. I learned how a business can grow from that one individual businessman with decent morals, to an international corporation willing to use slave labor for a buck. Is it grow or die or are their alternatives? My favorite quotation:"The problem with the way we have developed our system of shareholder capitalism is that the shareholder is being divorced from his role in ownership," explains Sir Dominic Cadbury, the last family chairman.Cadbury and a few other chocolate makers were practicing Quakers and wanted to use their business in service of their faith. Some of their guiding beliefs for business are:Keep your word.Do not go into debt or bankruptcy.Watch over other Quaker businesses and advise their owners when they appear to be in trouble or making poor or unethical decisions, and take influence from them yourself.As the Industrial Revolution built momentum, they were warned against paper credit and that warning was added to their written guidelines.They had meetings monthly with other Quaker business leaders and discussed business principles, check that their ethics and beliefs are in line with their actions and if not, after repeated warnings were given, they would be disowned by the Society of Friends. As wealth grew, additional guidelines were added warning Friends that accumulation of riches for oneself was not acceptable. Annually they met with other Quaker business leaders from a larger geographic area requiring travel, to address these ideas also. They thus developed written ethical guidelines and business guidelines and helped each other succeed financially also. As wealth continued to build, guidelines were also written for children of rich Quakers to ensure they were not corrupted. Of course those are basically just decent principles for living, right? This book is the story of the attempt to fulfill that Quaker purpose. Many succeeded as did the Cadburys initially, but when problems continued to arise with the growth of industrialization, the first break for the Cadburys with their ethics was they began advertising. Other companies were having great success advertising already, and Cadbury joined in. They believed they were selling an excellent product in their drinking chocolate that was both good for health, and an optional substitute for alcohol which was causing great problems. In this way they justified their decision to advertise, but it was a definite break from their religious ethics.Some other things these Quaker businessmen did was build housing for their employees and help them to buy them. The housing community areas included green space, gardens (with gardeners to teach them how to raise food), swimming pools, tennis courts and other amenities. Cadbury also provided education and health care. These sound admirable at first glance, but seem to some to be rather paternalistic. How about you pay your employees a fair living wage so that they can afford to choose their own housing, education and medical care? The Cadburys and others also did much philanthropical work but again, how about you pay people enough that they don't need your charity? This idea is also addressed in the book with a quotation from a theologian from Dartmouth, William Jewitt Tucker, "I can conceive of no greater mistake, more disastrous in the end to religion, if not to society, than of trying to make charity do the work of justice."There are just a multitude of ideas in this book that are so important, and really have not changed today. As the Cadburys (and other families also) attempt to do good things, they keep getting stymied. This might be a good place to discuss the existence of altruism - is there such a thing? At any rate, they are almost universally stymied in their efforts, whether altruistic or not. For example, they learn that slavery is being used by their cocoa bean sources. When they decide to boycott those growers, or go to another supplier, the British government suggest that other buyers will just take their place, whereas if they wait and work with the British government they can put pressure on the Portuguese government to not only end slavery but reform labor practices holistically. Cadbury agrees to do this somewhat undercover, but word gets out and they are crucified in the press for not boycotting immediately. Again, when Cadbury decides to buy a newspaper or two to disseminate information (read propaganda) supporting their beliefs, that is antiwar and pro labor, they are again accused of hypocrisy when it is made known that their newspaper has continued advertising for gambling, while they preach against it. Cadbury believed the paper would go bankrupt without that advertising (based on previous experiences) and decided it would be better to have a paper with gambling info and antiwar sentiments, rather than just the one paper with gambling advertising and pro war sentiments. Cadbury also addresses the effects of two world wars on business. When WWI began, Cadbury put a lot thought of thought into what would be the appropriate use for a Quaker's wealth under those circumstances. One of the things that came out of that was ambulance support and workers. I can appreciate conscientious objectors, but what does this ambulance support mean? I support your war enough to risk my life taking care of you but not to kill someone else, only to make it easier for YOU to kill someone else? Interesting interpretation.The end of the story is basically, everyone gets taken over and becomes too large to be accountable. What remains today of the philanthropy or good works of Cadbury and I believe Hershey also, are trusts that are separate from the business.If you look at corporations today and wonder how the heck we got in this greedy mess, with CEOs who make 300 times what their workers do, this is a good example of how it all works. 4.5 stars - would have been 5 but it was sometimes hard to track the info and stories because of the breadth of info. I haven't even begun to touch on the material covered in this book.. 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