Food has been influencing culture for ages—emotions and expressions of our lives have been very much co-dependent on food. Besides, each generation passes its own culture to the next through the means of traditional cuisines. It is also believed that the majority of childhood experiences revolve around the food we consume. Similar experiences were felt by Andreas Ronken, who is currently serving as the CEO of Ritter Sports—A Germany based chocolate company founded in 1912 under the brand name of Ritter. Speaking about his experiences, he says, “I like food and have always been fascinated by the production and marketing of food because it`s great to constantly search for better ways to create a pure and pleasureful experience for consumers.”
Andreas acclaims that producing and marketing food helps him in building a direct connection with the social and cultural background of the local community. Food production is a very important part of his life. As consumers, we need chocolate with less artificial flavors involved and produced in harmony with nature. “The difference lies with the choices we make on how to produce really good chocolate—not only good tasting but good for nature and the people,” shares Andreas.
Believing its values, the company is already distributing in 100 countries and is the third-largest chocolate maker in Europe. Though, the company considered itself as a mid-size company whose only focus is on producing chocolates and is passionate to make very good chocolate even better from the cacao tree to a chocolate bar.
A Clean Label-Good Chocolate
Andreas strongly believes that pure and clean label-good chocolate does not need many ingredients. He says, “We have developed strict guidelines for our developers what ingredients can be used and which not, i.e. the use of natural or artificial flavorings is not allowed. Our cacao class range includes only three/four ingredients—cacao mass, cacao butter, sugar, and in one case milk powder.” To ensure the quality of chocolate, Ritter Sports has maintained good relations with farmers. It has been more than 30 years now that the company is directly working with cacao farmers in Nicaragua. Andreas and his team believe in striving for long-term fair partnerships with cacao farmers impacting positively on the farmers and their families. Since 2018, keeping sustainability at the center of the process, it has been sourcing 100% sustainable cacao. Moreover, the company has managed to maintain 100% transparency in the cacao supply chain which has helped in engaging the origin of cocoa.
In terms of CO2, Andreas utters, “Our goal is to become CO2 neutral in a very short time within our own cacao supply chain. For us, this is possible because we have our own cacao farm in Nicaragua where we are employing more than 300 employees and where we have already planted more than 1 million cacao trees!” Further, he adds, “I am the CEO of a great family business with a very value-oriented family for whom it is a pleasure to work. I feel very fortunate that my personal beliefs and attitudes are very much in line with the ones of the Ritter family.”
A 100 Years of legacy
Ritter Sports has over 100 years of history. In 1932, Clara Ritter, the founder’s wife recognized that the common rectangular chocolate bar didn’t fit well into the pockets of the so-called sports jackets, people were wearing in their leisure times. This led to the discovery of the square chocolate format of Ritter Sport which is now protected as a trademark in Germany. In the seventies, another very important milestone was established when the decision was taken to give every type of chocolate an own and distinguished color. It was one of the pioneering ideas of the time, and the brand had gained the reputation of a disruptor in the market. The coloring of the chocolate wrapper did not only hit the spirit of the age but was also providing orientation for the buyers to quickly find their favorite Ritter Sport flavor. Over the years, the company has been constantly reinvented to the needs of the market. Recently, it reinvented a ‘snap open pack’, a solution to open the wrapping foil quick and clean, and reclosable. The chosen dimensions of the 100g square format allow it to put whole and even bigger ingredients and fillings into the chocolate.
Creating a Winning Culture
The constant reinvention and human-friendly environment in Ritter Sports have helped to create a reputation for a startup especially when the visitors are visiting the company. “We are a start-up with more than 100 years of experience to make really good chocolate,” says Andreas. The company works with a mantra of making really good quality chocolate. It doesn’t believe in doing business at the expense of others. The profit generated via business is utilized to reinvest making positive impacting creating Win-Win situations. This quality helps employees to connect with the company on a more personal level. “People want to have a sense in their work, today more than in the past. If the people can connect to the purpose, you don`t need that much additional external motivation and it provides orientation why the company exists,” says Andreas.
He believes that creating a good winning culture is more important than developing an excellent strategic roadmap. The key to long-term and sustainable success is the right culture in the company. This helps him to deliver strategic goals serving for a real clear good purpose.
Towards a Sustainable Future
As Ritter Sports is a family business, the company plans for the long term—it thinks in generations, not in quarterly results. The strategic goal is to further strengthen the 100% autonomy of the company. Within the sustainability and purpose framework, it wants to continue growing profitably. “We have a clear growth and innovation strategy called Chocolate S 2025 which we will implement. And of course, we are constantly looking for new and better ways to make our chocolate even more enjoyable and delicious and sustainable,” expresses Andreas.
Response to COVID-19
Conversing with Andreas Ronken about Ritter Sports’ response towards COVID-19 outbreak
- Please share with us how COVID-19 has affected the industry. How are you dealing with this crisis?
No doubt! COVID-19 has drastically affected industries globally.
Chocolate is not very much dependent on business cycles as most food products. Keeping the supply chain running and also helping cacao farmers in the origin was much more challenging and also costly than in normal times. In some markets, we have higher sales than in normal years, but we have also business-like travel retail, which is very much affected by the reduction of travel activities.
The most important thing in the crisis was and is to protect the people and to break potential infection chains. We are still in the middle of the crisis. The second priority is to keep the operational business going and to make sure that the supermarkets are well equipped with chocolate. We have established multiple installations and procedures to protect our people, had daily crisis meetings, etc. like everybody in the business, who cares for people. Furthermore, we communicated daily with our teams in person or in video sessions. Up to now, we do not have infections we know of in our headquarter in Germany, but it is not over yet.
- Being a business leader, how do you advise our audience and aspiring entrepreneurs to tackle the current crisis? Also, please share your experiences with us.
I feel not to be in a position to advise others in other businesses. The pandemic is a severe crisis for all of us, which accelerates positive and negative trends. My experience is that in crises 100% focus on the essential core business is super important—forget about the small things. In the pandemic, the first priority must be on the health of people, second priority is the reviewing and remodeling of the operating business model.
I am very much sure and positive that we will come out of the crisis within the next 12-18 months, but I am also sure that the world will be somewhat different than before. The ones who have done good homework in the crisis and the ones who had a good corporate culture to start with will be the first to grab the new opportunities.
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