When John Scharffenberger and Robert
Steinberg founded Scharffen Berger Chocolate Maker in 1996, the American palette
was just awakening to the exotic—read European—world of dark chocolate. Today,
from their factory in Berkeley, Calif., they struggle to keep up with demand
from a growing customer base besotted by the piquant flavors of the cacao bean
that most American confectioners mask with sugar. In the wake of the recent sale
of their boutique operation to Hershey, the two spoke with Worth
features editor Douglas McWhirter about growing a high-end brand and working
with a multibillion-dollar partner.We live in a country that seems perfectly content with the
Hershey bar. What inspired you to start a gourmet chocolate
company?
Scharffenberger: You may say
that, but almost everyone who visits Europe comes home with chocolate. We think
Americans are following a path that was blazed by the wine business, the beer
business, the cheese business, the bread business and the coffee business. Those
various sectors have driven tremendous changes in what Americans like to eat. What makes your chocolate taste different?
Steinberg: We make chocolate
in which the cacao—the actual beans—is the most prominent feature. We allow
multiple flavors of the cacao to come through, and we do not cover them up with
sugar and other flavorings. From a marketing standpoint, we also want to make
our process transparent, because we believe that the more people understand how
our chocolate is made, the more they can appreciate its taste. When you started this company in 1996, was this a passion that you
were able to monetize, or did the business plan come first?
Scharffenberger: The passion
came first. I’ve worked in food production all my life, so I love to make food
that I like to eat. When Robert brought this idea to me, I said, "I eat
chocolate every day, and it’s almost all European. Let’s try it. Let’s have fun.
We’ll sell it to some of our friends in San Francisco in the food business, and
have a nice weekend project." Well, it turned into something much more. Robert, you were working as a doctor at the time?
Steinberg: I was diagnosed
with chronic lymphocytic leukemia in 1989. I was told it was not curable, and
that I had a 10-year median life expectancy. I wasn’t feeling well and I was not
able to continue my practice. Although I wasn’t looking for anything else to do,
I was open to a lot of things. I began taking piano and drawing lessons; I went
to live in Italy for a couple of months. All of these things contributed to a
sense that I could do whatever I wanted to do. I looked at my life and there was
a hole. It sounds like a negative, but it was a positive. Relative to dealing
with the illness, there were a lot of risks that I was taking. When John started
talking to me about chocolate, I began pursuing it because it was so complex,
interesting and challenging.
Who is your customer?
Steinberg: There is
currently a huge interest in food in general, and we are part of that wave. Our
customers are people who love to cook and explore various products for cooking.
They are individuals who want the best of what’s available. Our product is sold
in stores located in neighborhoods that are well-off, yet chocolate is an
affordable luxury. You can buy it in small quantities and enjoy it for what it
is. Do you call your product "gourmet" chocolate or "premium"
chocolate? What’s the difference?
Scharffenberger: I think
those are old-fashioned terms. Everyone tried to put a dollar demographic on it,
like you had to be rich to enjoy it. They did that in the wine business, and it
didn’t help very much. We just try to deliver high quality—it is a quality
distinction rather than one connoting wealth. The people who have learned to
like an espresso or a latte, or a glass of Chardonnay or Sauvignon Blanc—those
are the kinds of people who like our chocolate.
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