THE Body Shop International, the ethical retailer recently acquired by the multinational L’Oréal, is handing its 14 per cent stake in the maker of Divine fair trade chocolate back to the cocoa farmers who founded the brand.

Body Shop invested £250,000 in 1997 to help to establish The Day Chocolate Company, which was founded by a co-operative of farmers in Ghana that also supplied the retailer with cocoa for its beauty products.

Day Chocolate, which had turnover of £7.67 million and profits of £618,081 in the year to September 2005, is currently one-third owned by Kuapa Kokoo, the cocoa farming co-operative, and 52.5 per cent owned by Twin Trading, a firm that backs fair trade ventures.

Analysts suggested yesterday that the step may be a tidying-up exercise by L’Oréal, as Body Shop’s new owner. Body Shop wrote off the value of its stake in Day Chocolate some time ago.

Peter Saunders, of The Body Shop, said: “The Day Chocolate Company was a fledgeling business in 1997 and we believe that we have helped it grow to be a profitable, dynamic, ethical business. It is now right that we hand our stake to the cocoa farmers who have made the company such a success story.”

Kuapa Kokoo, which has 47,000 members in 1,200 villages, will continue to supply cocoa to The Body Shop through its Community Trade programme.

Sophi Tranchell, the managing director of The Day Chocolate Company, welcomed Body Shop’s move. She said: “From the outset, Divine couldn’t have become the dynamic brand it is without the support of The Body Shop. They have shared our mission to improve the livelihoods of smallholder farmers in West Africa through fair trading practices and been a great business partner.”

Divine has a range of 15 fair trade products, including six types of chocolate bar, which are sold in supermarkets and promoted by charities such as Christian Aid and Comic Relief.

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