Freek Wessels, former CFO of Tony Chocolonely is now making an impact with Cashews.
From chocolate to cashews, as long as it makes an impact.
Impact: more than just a trendy term, it is a true change in thinking in the business language. Marble Myrna sat down with Freek Wessels, former CFO of Tony’s Chocolonely and now co-owner and Cashew Captain at Johnny Cashew. They provided us with deeper insights into what impact means and what financial challenges it reveals.
“At Johnny Cashew, we consider the entire chain of our product. This is a crucial difference from my experience with non-impact organisations.”
What distinguishes impact organisations from others?
The welfare of the cashew farmers and the people working in our shell factory in Tanzania is of huge importance to us
We look beyond our own operating results. At Johnny Cashew, we consider the entire chain of our product. This is a crucial difference from my experience with non-impact organisations. The welfare of the cashew farmers and the people who work in our shell factory in Tanzania is of huge importance to us; our aim is to support them, even in obtaining financial resources. This leads to stability for us, the farmers and the factory.
We pay an additional Johnny Cashew premium on top of the Fairtrade premium
Another challenge lies in the higher cost structure of sustainable business, which comes from our ‘impact premium’. In addition to the Fairtrade premium, we also pay an additional Johnny Cashew premium. Together they add up to the so-called Living Income Reference Price. We are proud to be the only one paying a Living Income to cashew farmers. While it presents opportunities, it also brings uncertainty. Having to constantly defend this premium to suppliers requires determination and perseverance. Ultimately, retailers are still looking at price and -often unfairly distributed- margins. For us, there is no concession when it comes to our mission, in spite of price- and margin pressure from the market.
Impact entrepreneurship also brings positive dynamics
It is SO much fun to work on a business that produces an honest and beautiful product. Impact entrepreneurship also brings a positive dynamic.
You must be ‘auditable’ and thus be able to show that everything is correct and truly sustainable
Transparency and traceability are very important here. You must be ‘auditable’ and thus be able to show that everything is correct and truly sustainable. We are constantly questioned and obviously have to be able to justify everything. For example, our packaging does not seem very sustainable but after research it turned out to be the most sustainable option, we get questions about this often.
“Shouldn’t an equal and sustainable way of doing business be rewarded much higher”
And you don’t drive a gasoline car, do you? 😉
(Freek laughs) As for my personal lifestyle, people rightly expect me to be strongly committed to sustainability. And environment. And of course, I do, but I also like to go on winter sports and fly occasionally.
Can you make money with an impact product?
Yes. In fact, an equal and sustainable way of doing business should be rewarded much higher than polluting the world or not paying fairly in the chain. Not that we have much to show for it at the moment. We invest a lot and still make a loss. We also pay ourselves minimal wages. That is not sustainable eventually, of course, so we not only have to increase our volume to make more impact but also to create a sustainable economic future for ourselves.
“Those around me thought I was crazy that I was willing to take a step back in working conditions”
Where does your drive to be an impact entrepreneur come from?
After my time at Heineken, I took a sabbatical and then volunteered in Kenya. At the Macheo Children’s Center, which provides breakfast and lunch daily for 15,000 children, I immediately saw the impact I could have. Returning to Heineken, I realized that working for a purely commercial company gave me less satisfaction.
Those around me thought I was crazy that I was willing to take a step back in terms of employment conditions and started working for Tony’s Chocolonely. I had an exciting time there. Tony was really a pioneer of sustainable business at the time. I owe a lot to them. Everything I learned at Tony’s paved the way for my work at Johnny Cashew.
“What will you do if things go differently? As CFO, you have a plan B”
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