In June of this year, it was announced that efforts to end child labor were unlikely to achieve success by the previously set 2025 target. While the number of children engaged in child labor worldwide is on the decline, some 138 million are still affected, and roughly 60% of these are engaged in agriculture, forestry and fisheries. In the cocoa-producing regions that supply the key ingredient for chocolate, child labor has long been a persistent issue. It is vital for key stakeholders, including major manufacturers, trading companies involved in cocoa distribution, and civil society organizations, to collaborate for achieving an ambitious target of solving these complex and interwoven structural problems.

Against this backdrop, Yuraku Confectionery Co., Ltd., known for its popular Black Thunder chocolate bar, came forward as one of the first Japanese chocolate manufacturers to act, collaborating with major companies and NGOs to promote initiatives on this issue. Since 2019, the company has been promoting the Smile Cacao Project (in Japanese), switching the ingredients used in its chocolate to cocoa sourced from suppliers committed to eliminating child labor, and introducing a system of paying a premium^* when purchasing cocoa. The premiums paid are used in initiatives monitoring the supply chain to prevent the occurrence of child labor, as well as in activities aimed at providing benefits to producers, support for improvements in productivity, and reducing environmental impacts.

Given that many SMEs in Japan position sustainability as part of their social responsibility efforts, we asked Yuraku Confectionery, who plays a key role in sustainable cacao, about their approach to tackling this issue as a brand strategy.

* This refers to the additional amount paid to producers over and above the standard market rate.

Interviewee:
Hiroo Maki, Management and Quality Department, Yuraku Confectionery Co., Ltd.

Making CLMRS the standard in selecting suppliers

 Q: The eradication of child labor calls for thorough implementation of traceability measures that achieve full supply chain transparency and identify and verify instances of child labor. At the same time, it seems that SMEs face difficulties in implementing such initiatives.

In the European chocolate industry, a segregated sourcing model has been established where farms that do not engage in child labor are identified, and the cocoa harvested from these farms is managed and shipped separately from that sourced from other farms. Chocolate made from cocoa procured via this system is now becoming mainstream. In the Japanese market, however, procuring ingredients through the model is not easy and incurs procurement costs, making it impractical at least for now. That is why we at Yuraku Confectionery have adopted mass balance sourcing (a certification model where cocoa purchased from certified farms is mixed with cocoa from non-certified farms during the shipping process), where we guarantee both the certified sources and the quantities we purchase.

Q: How does your current system ensure that no child labor is involved?

When selecting suppliers to purchase raw ingredients from, one key criterion we use is whether they have implemented Child Labor Monitoring and Remediation Systems (CLMRS) in their operations. During the study tour (in Japanese) in Ghana organized by the Japan International Cooperation Agency (JICA) that we participated in last year, we did not see any children working on farms. However, when visiting a large marketplace, we saw children carrying heavy loads, which gave us a firsthand sense of how child labor has been normalized in these environments. The Ghanaian government was also participating in the program, which highlighted that it recognizes child labor as one of the country’s major social challenges.

Recognizing that child labor is a prevalent social issue, we prioritize whether a supplier consistently uses CLMRS to identify and monitor instances of child labor, and take corrective and preventive measures.

Cocoa pods in Ghana (Photo provided by Yuraku Confectionery)

Cocoa beans extracted from a pod (Photo provided by Yuraku Confectionery)

Q: How are you measuring the impact of the project, such as whether circumstances are actually improving toward correcting and preventing child labor?

We work to assess the impact through partnership with other companies and NGOs that provide direct support on the ground. For example, we draw on data from Cocoa Horizons Foundation established by Barry Callebaut AG. The foundation reports overall outcomes achieved by premiums and allocates figures to each company according to the amount paid, enabling us to assess our impact and consider our future course of action.

Also, stable procurement can be cited as one example of the project’s positive impact on our business. In recent years, the chocolate industry has faced supply chain disruptions caused by poor cocoa harvests. Despite this, farmers receiving our support have reported that their yields have remained relatively stable. Through these initiatives, a relationship of trust has been built between the farmers and us, the manufacturers, which in turn contributes to stable supply.

Rapid progress through collaboration, led by flagship product

 Q: Last year, Yuraku Confectionery announced (in Japanese) its achievement in transitioning to 100% cocoa sourced from suppliers verified to be free of child labor. How were you able to achieve this a year ahead of your original target?

Firstly, we began the initiative with our flagship product. At first, some suggested starting with a product that would have minimal impact on sales. However, as our goal was to make a significant impact on the industry and society as a whole, we decided to start with our popular Black Thunder bar, which accounts for over half of our total sales. We achieved a 100% Smile Cacao rate for Black Thunder in September 2022, which naturally allowed us to move forward with extending it to our other products at a brisk pace.

Collaboration with raw material manufacturers and NGOs has also served as a driving force for our activities. When we first launched the initiative, we approached several major Japanese manufacturers we work with to express our vision to use ingredients free from child labor, but we were initially turned down. At that point, we decided to make the switch for a portion of our ingredients. The following year, a raw material manufacturer we had previously worked with also began taking serious measures to eliminate child labor, and they now collaborate with us as a partner in tackling this problem. In addition, ACE, an international cooperation NGO working to eradicate child labor in Ghana, has provided guidance from various perspectives, including the knowledge and networks needed to carry out our initiatives.

Amplifying reach through brand power and collaboration

Q: After achieving your initial target, what new goals or challenges are you looking to take on next?

Our next goal is to spread this wave of change throughout society. As one example, starting with the Black Thunder Waku-Zaku Factory (in Japanese), the tour facility we opened in May 2025, we aim to carry out initiatives that raise awareness and encourage people to think about what they can do to end child labor. With an exhibition on child labor and Smile Cacao, we are considering collaborating with local governments to have elementary and junior high school students visit the facility as part of extracurricular lessons.

Exhibition on the Smile Cacao Project at the Black Thunder Waku-Zaku Factory (Photo by Chiaki Iwamura)

We also aim to promote our Smile Cacao initiatives through strategic collaborations with other companies to reach different customer segments.

Q: With Black Thunder’s strong brand power and affordable price, it seems there’s an enormous potential for expanding a positive impact of the Smile Cacao Project.

Ever since its founding, Yuraku Confectionery has upheld its corporate mission of creating delicious, affordable sweets that inspire dreams, with the goal of becoming Japan’s most exciting confectionery company. Our Smile Cacao Project was born from a desire to bring smiles not only to those who enjoy our chocolate but also to those who make it. However, some people may feel reluctant to confront the harsh reality of issues like child labor. Even so, there is no hope of overcoming the systemic issues with only a small number of players working towards a solution. It’s crucial to develop plans that inspire more and more people to choose our products out of an aspiration to be part of the effort. We hope to infuse a sense of excitement into our efforts and help spread this initiative to more companies and individuals through collaboration so that we can play our part in eradicating child labor.

(Interview and text by: Takeshi Nozawa and Chiaki Iwamura, Translation by Andrew Berdon)