It’s all good…
Kate Hamilton and Jane Shandley are the co-founders of ’functional‘ chocolate brand iQ Chocolate.
Hamilton started out working in the dairy food industry for a manufacturing/distribution company, while Shandley has a sales and marketing background. “While working together, we discovered that we covered all the bases and made a very good team,” Hamilton explains.
Brands like Innocent Drinks provided inspiration for the new venture, proving there is a market for products that taste great and have health benefits.
“Jane wants to live for a very long time, but wants to enjoy the journey, while I have an interest in the effect of nutrition from natural foods on general health,” explains Hamilton. “We both adore chocolate,” she adds. So, they set out to develop a delicious chocolate product that contained no artificial additives or unhealthy fats.
Market research confirmed the emergence of terms such as ‘functional foods’, ‘superfoods’, ‘nutraceuticals’ and eating ‘clean’ alongside huge growth in the small artisan chocolate market.
“We were lucky to secure a grant from Scottish Enterprise Innovation Funding as well as interface funding to support work with three academic institutions,” says Hamilton.
But the biggest boost to the business came when it attracted the interest of private investors Steve and Heather Leach. “They took on the rebranding and enabled us to scale up production facilities so that we could relaunch in 2013 with an exciting new range and market ready brand,” she adds.
Product development Hamilton and Shandley received support and advice on the taste and texture of the chocolate from chef Mark Greenaway and chocolate connoisseur Chloe Doutre-Roussell.
“It was critical to be able to scientifically prove the health benefits of our chocolate and we were fortunate to receive assistance from the Rowett Institute of Nutrition and Health at Aberdeen University, Robert Gordon’s University and Queen Margaret University,” Hamilton explains.
The idea was to capture the ’free from‘ market and avoid allergens. “Dropping lecithin from our recipe was a challenge, but with a few tweaks we got there. We also tried a variety of what we felt were fairly unpalatable sweeteners and sugar alternatives before settling on coconut blossom sugar,” she says.
IQ Chocolate is intended to appeal to a range of consumers, including: anyone who is interested in their mental and physical health; those who are interested in ethical, sustainable living; people who enjoy contemporary innovative products; and those who are interested in looking/feeling good.
“Time pressed people increasingly rely on snack foods as a substitute for meals,” says Hamilton. “These consumers are interested in vivid flavours, quality ingredients and high nutritional value,” she adds.
Brand promotion
An initial range of six iQ chocolate bars was formally launched at the Speciality and Fine Food Fair at Olympia in London. The brand has also been exhibited at a number of other food festivals.
Regular tasting sessions provide direct access to consumers and social media opportunities. “This level of engagement turns our customers into ambassadors,” says Hamilton. “iQ is now available in 13 countries via a network of seven UK and seven overseas distribution networks,” she adds.
Stockists include Whole Foods, Planet Organic, Harvey Nichols and Selfridges, as well as a range of health food stores, farm shops and health, wellbeing, beauty and yoga facilities.
The USA and Middle East are the main target markets for the brand this year and exclusivity contracts with distributors based in Qatar and Kuwait are currently under discussion.
The range
Bestsellers include Original Bean to Bar, Orange and Wild Raspberry and Espresso-Kick Coffee flavours. This year has also seen the launch of MilQ, a milk chocolate bar aimed at healthy eaters. “This will enable us to reach a much wider audience,” says Hamilton.
The brand has also created products aimed at new market segments. “Last year we launched our YogiQ bar, which is infused with ginseng and ginger, as well as our BeautiQ bar, which is infused with Sea Buckthorn,” she adds.
To capitalise on seasonal spikes in chocolate sales, IQ chocolate introduced a Christmas themed bar called AngeliQ. “This year we added two new limited edition bars for Valentines and Easter,” says Hamilton.
And what does the future hold for the brand. “Based on the results of our work with Queen Margaret University and The Scottish Rugby Union, we are currently developing a sports bar,” says Hamilton. It’s all good!
