Askinosie Chocolate secures Target deal

Target Corp. has Askinosie Chocolate in its crosshairs.

The Minneapolis-based retailer (NYSE: TGT) will sell three of the Springfield-based company’s chocolate bars made exclusively for 400 of its 1,900 stores this fall as part of the Made to Matter-Handpicked by Target initiative.

Askinosie Chocolate LLC founder and CEO Shawn Askinosie said his company will ramp up production 15 percent this year and hire a few part-time workers to meet new expectations with Target. He said Target hasn’t yet disclosed where the chocolate will be sold, but it will debut in September and be on store shelves through the end of the year.

“For us, the reason it’s the biggest deal is because it’s an opportunity for us to spread the message of craft chocolate in America – what it is, its value,” Askinosie said, declining to disclose production volumes at his Commercial Street factory. “It’s an opportunity for people to try premium craft chocolate that they might not have otherwise had.”

Askinosie said beans for the three new bars – which are currently “a secret” – are sourced from Tanzanian farmers, who share profits with Askinosie Chocolate.

“We also get to tell the story of our company and what it represents,” Askinosie said of his chocolate business founded in 2007.

Askinosie Chocolate is one of 31 brands featured in the second year of Target’s program, including Ben & Jerry’s, Paddy’s Bathroom, Mrs. Meyer’s Clean Day, Pacifica, Happy Family and Kind. In the inaugural initiative last year, 16 companies participated.

“A bigger program means the opportunity to have a lot more impact,” said Mike Hockenberry, Target vice president and merchandise manager, in a video announcing the 2015 initiative.

“Made to Matter is a collection of some of the most innovative brands in the marketplace that all have a few things in common. One is that they all play in a space that we call wellness.”

Target this year expects sales to hit $1 billion for the Made to Matter program, which emphasizes high-quality organic and sustainable products. Attempts to reach representatives from several companies involved in the Made to Matter program were unsuccessful by press time.

For Askinosie Chocolate, the opportunity to enter Target stores came from a chance encounter during a small food show in New York City in August 2013. Askinosie was invited to speak.

“The vice president of marketing for Target was at my presentation. There were probably only 20 people, and he was one of them,” Askinosie said. “He really connected with the story of our little factory and said that he was going to invite me to Target to talk to the marketing department.”

In May last year, Askinosie and his daughter, Lawren – the company’s director of sales and marketing – visited Target’s Minneapolis headquarters, which ultimately led to Askinosie Chocolate’s inclusion in the Made to Matter program.

“We’re a very small, little place – there’s 16 full-time people here – and Target knows that, too,” Shawn Askinosie said. “I think it’s cool for them to pick a really small company with a good story and a meaningful product, and to have that opportunity to share that with other people.”

Askinosie said he’s followed Target for years, and the opportunity represented a good fit for his company.

“Target is one of the most philanthropic companies on the planet. They give away about $4 million a week mainly to educational efforts domestically,” he said. “They don’t really talk about that part a lot, about the giving nature of the company, but it really runs deep. It was something that was really attractive to us that they behaved that way corporately.”

The attorney-turned-chocolatier said while there will be a production push to get products out to Target stores, it does not represent a larger growth strategy.

“This is not a foreshadowing of explosive growth for our company, explosive increased production. It doesn’t mean that,” he said. “It’s a limited time. We’ll be talking with Target in the coming weeks and months about whether or not we’ll be part of their 2016 efforts.”

Target Corp. reported 2014 sales of $72.6 billion, a 1.9 percent increase, but posted a net loss of $1.6 billion for the year, citing the closure of its Canadian operations. The retailer earned $2 billion in 2014, according to a filing with the U.S. Securities and Exchange Commission.

TGT shares closed at $77.15 on Feb. 25, compared to a 52-week range of $55.25 to $78.40.[[In-content Ad]]