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Australia's pioneering 'plantation to plate' chocolatier Daintree Estates has entered liquidation almost two decades after its first grower-founders diversified from cane farming into cocoa, marking a bitter end to a celebrated Queensland food breakthrough.
The world's $182 billion-plus chocolate industry primarily sources its cocoa beans from West Africa, and to a lesser extent South America and Indonesia, but around 2007 a group of producers made a bet on the potential of the fruit in the Mossman region near Port Douglas in Far North Queensland.
The trees take around six years to reach peak production, but by 2011 the cooperative of producers at Daintree Estates achieved the feat of making Australia's first chocolate from commercially-grown domestic cocoa, starting off with manufacturing in Melbourne before moving processing to Mossman in 2015.
Sugar used in the manufacturing process was also locally grown, and in 2015 Daintree Estates was also a finalist at the 2015 World Cocoa Awards, its quality feted by foodies from around the world and featured by the likes of SBS Food Safari and The Guardian.
But following a period of financial challenges, a disputed related-party claim ultimately led to the appointment of Matthew Kucianski from Worrells as administrator on 1 May.
A statement shared with Business News Australia by Worrells today notes there was no Deed of Company Arrangement (DOCA) proposed following the appointment, and no restructuring options available either, so creditors resolved to place the company into liquidation on 5 June.
"Daintree Estates is known for producing and distributing premium chocolate products across Australia. Prior to the external administration, manufacturing had been completely outsourced, and business operations had significantly reduced," Worrells said.
"The company had faced ongoing financial challenges over an extended period, despite efforts to continue trading with the support of director and shareholder funding."
Once described as just a co-operative, documents filed with the Australian Securities and Investments Commission (ASIC) show an additional $1.46 million worth of shares had been issued to various parties in addition to the original grower shares.
Worrells is yet to provide an estimate of how much is owed to creditors, but believes a return to them at this stage is not expected.
"As liquidator, Mr Kucianski will continue the asset realisation process and conduct investigations into the company’s affairs," Worrells said.
"The asset realisation process includes the sale of remaining stock, together with various intellectual property assets of the company which were recently sold following a successful expressions of interest campaign.
"Where viable, recoveries may be pursued in relation to voidable transactions, insolvent trading, or breaches of director duties.
"Worrells acknowledges the significance of this development to those connected with the business and brand and appreciates the understanding and patience of all stakeholders throughout the process."
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