Pedro López, Chairman and CEO of Chocolates Valor, at ESADE: "Differentiation fosters pride in belonging to the Company"

"Differentiation is one of our pillars, and it has been one of the keys to the success of our company," commented Pedro López, Chairman and CEO of Chocolates Valor, at the fourth session of the 10th ESADE-Deloitte Lecture Series, "Family Businesses of the 21st Century: Challenges and Opportunities", held today on ESADE's Madrid campus. According to Mr. López, differentiation – one of the key themes of the session – "allows us to renew ourselves without losing sight of our values and fosters pride in belonging to the company". Mr. López is the youngest member of the fourth generation of this family business. Founded in 1881 by Valeriano López – the great-grandfather of Pedro López – Chocolates Valor is a leader in the Spanish chocolate industry with nearly 136 years of history.

With nearly 350 employees, Chocolates Valor produces an average of 20,000 tonnes of chocolate per year at factories in Ateca (Zaragoza) and Villajoyosa (Alicante). The company had more than €101 million in net sales last year, is growing at a rate of 12% per year, and holds a 17.5% share of the chocolate bar market (and is the leader in the dark chocolate, sugarless chocolate, chocolate with nuts, and hot chocolate segments). Because the company owns a variety of brands – such as Valor, Huesitos and Tokke – it is present in multiple markets, including snacks, bonbons, industrial chocolate coatings, and even the hospitality industry, through its 34 chocolate shops (including both company-owned establishments and franchisees). The company operates in more than 60 countries, focusing especially on Colombia, Chile, the United States, Canada and the Philippines. Its products are also distributed through all major Spanish retailers.

Pleasure: the company's mission

"Our mission is to offer pleasure through our products and services by differentiating and ensuring the quality of these products and services," commented Mr. López. "We like being a premium yet accessible brand of chocolate." By way of example, he cited two milestones in the company's history. First, he explained that in the 1960s the company introduced a "pure chocolate" line consisting of "chocolate bars with a higher percentage of cocoa, sold in larger units than were normally available at that time". He added: "It was a risky decision when my father made it, but today it is a differential element and a concept generally associated with our brand." Second, Mr. López mentioned the company's decision to open its first chocolate shop in 1984. "We were pioneers in the franchise system," he noted. "We made a consolidated brand available on this basis, offering an experience of pleasure and delight, the chance to enjoy chocolate in the company of family and friends."

Family legacy

"More than our industrial or commercial heritage, our values are the greatest legacy that the previous generations passed on to us," explained Mr. López. "With values, the most important thing is not just to talk about them but to really feel them." Mr. López recognised the value of "trusting the professionals who make up the company", adding: "When it comes to professionalism, it doesn't matter whether you're talking about family members or not." He also stressed the importance of "fostering good communication with the family" through a family protocol "that is renewed periodically, with the active participation of the next generations" and implementing a "proper and adequate policy for dividends".

Mr. López wrapped up his remarks by mentioning some of Chocolates Valor's goals for the future: "To lead the Spanish market for chocolates and chocolate shops, to grow internationally, and to keep offering high quality and pleasure in dark chocolate, chocolate with almonds and sugar-free chocolates."

The session also featured the participation of Fernando Ruiz, Chairman of Deloitte; Pedro Navarro, Deputy Executive Chairman of the ESADE Foundation Board of Trustees; and Alberto Gimeno, Associate Professor at ESADE.