Haigh’s Chocolates: A Legacy of Craftsmanship and Sustainable Growth
Haigh’s Chocolates, a cherished name in Australian confectionery, is navigating the complexities of modern manufacturing while staying true to its artisanal roots. Under the leadership of CEO Alister Millard, the company is focused on maintaining its high-quality standards and nurturing the skills of its chocolatiers, all while adapting to the evolving market landscape.
The Art of Chocolate Making
At the heart of Haigh’s success is its commitment to craftsmanship. Millard emphasizes that producing chocolate is not as simple as turning on a tap. “When you’re a real craft manufacturer like we are, we can’t just say we’re going to sell more. You’ve actually got to build the skills in the people that make the chocolate,” he explains. This dedication to skill development is evident in the company’s workforce of 200 chocolatiers, many of whom have been with Haigh’s for over a decade. They meticulously source cocoa from certified farms in Ghana and Peru, ensuring that every batch of chocolate is crafted with care, from cleaning and roasting to tempering and molding.
However, fostering a culture of knowledge sharing has posed challenges. Millard notes that some employees were initially reluctant to train others, fearing job security. Overcoming this mindset has required time, confidence, and a shift in company culture. “We are still very artisan, so that’s our challenge today,” he adds.
Economic Pressures and Strategic Investments
The chocolate industry has faced significant economic pressures, particularly in recent years. Prices for cocoa reached record highs earlier this year, although they have since stabilized. Despite this, they remain approximately three times higher than the long-term average. Millard points out that while cocoa prices are a concern, the primary driver behind Haigh’s price increases-approximately 25% over the past four years-has been rising wages.
In response to increased demand following the lifting of pandemic restrictions, Haigh’s has invested $130 million in a new manufacturing facility designed to double sales over the next decade. This facility, spanning 36,000 square meters in Salisbury, northern Adelaide, is equipped with simple, flexible machinery that aligns with the company’s artisanal approach. “We want to buy stuff that can make it the way we used to make it,” Millard states, emphasizing the importance of maintaining traditional methods.
A Long-Term Vision
Haigh’s Chocolates is not driven by short-term profits. The company is family-owned, and its leadership is committed to a long-term vision. “We’re in this for the long term,” Millard asserts. This philosophy is reflected in their gradual growth strategy, which prioritizes quality over rapid expansion. “We don’t want to get there in a day. We want to get there over a few years, because we can’t outpace the talent that we bring in,” he explains.
A Unique Market Position
What sets Haigh’s apart from its competitors is its deliberate choice to avoid supermarket sales. John Haigh, the founder and father of Millard’s predecessor, made a strategic decision decades ago to maintain control over the product by selling exclusively through high-end retail stores and their website. This approach has allowed Haigh’s to avoid the complexities of price negotiations and maintain a premium brand image.
Despite the allure of international expansion, Haigh’s remains focused on strengthening its presence in Australia. Millard acknowledges the company’s reputation as one of the world’s best chocolatiers but emphasizes that there is still ample opportunity for growth within major Australian cities like Sydney, Melbourne, and Adelaide. “We don’t imagine we’re going to be a global brand. We’re going to be a great Australian brand, until we run our limit out of that,” he states.
The Future of Haigh’s Chocolates
As the chocolate market continues to evolve, Haigh’s Chocolates is committed to preserving its artisanal heritage. Millard notes that the gap between supermarket chocolate and premium products has widened over the years. “Twenty years ago, the product you’d buy in the supermarket was a lot closer to the product you might buy in Haigh’s. I think they’re getting further apart,” he observes.
The company aims to ensure that when Australians host guests from abroad, they can proudly showcase their local chocolate. “We want to make sure that when people in Australia have a guest from Switzerland, they say, ‘Well, you can come and see our chocolate shop, and it’s pretty special,'” Millard concludes.
Conclusion
Haigh’s Chocolates stands as a testament to the enduring value of craftsmanship and quality in an increasingly commercialized world. By investing in its people, maintaining a commitment to artisanal methods, and focusing on sustainable growth, Haigh’s is not just preserving a legacy; it is actively shaping the future of chocolate in Australia. As the company continues to navigate economic challenges and market dynamics, its dedication to excellence remains unwavering, ensuring that Haigh’s will remain a beloved brand for generations to come.
