Latio is a brand produced by well known Canadian chocolatier Green Chocolate Works. The company’s only factory located in China, Green Chocolate Food Manufacturing (Hainan) Company, opened in Haikou's Jiangdong New Area in September 2021.

The brand's relationship with Hainan was forged at the first China International Consumer Products Expo (also known as the "Hainan Expo") held in May 2021.

Latio chocolates. (Photo: Hainan Daily)

“We originally only planned to participate in the exhibition,” said Meng Weiwei, General Manager of the Hainan Green Chocolate Food Manufacturing Company. “But during the event, we found we really liked the preferential policies of the Hainan Free Trade Port (FTP), especially the policy that allows goods originating in Hainan or containing imported materials and parts that undergo value added processing of 30% or more to be exempted from tariffs when entering the Chinese mainland. So we decided to set up a processing plant in Hainan to produce chocolate for the domestic and international markets.”

Setting up the factory wasn’t completely smooth sailing, however.

“We encountered difficulties in selecting a location at the very beginning,” said Meng. Processing and producing chocolate requires a location with consistent temperatures, with no air or water pollution sources nearby, and a reliable 24-hour power supply. They also needed convenient shipping options as well as a clean, hygienic area. “We looked all over and didn’t find anywhere that seemed suitable.”

The Haikou Jiangdong New Area Administration listed the Hainan Green Chocolate Food Manufacturing Company as a key high-end premium processing and manufacturing company eligible for investment promotion in the district, and began to offer support and services. Finally, the factory had found a home in the Luoniushan Industrial Park.

In order to help the company get up and running quickly, Jiangdong not only assists in handling licensing, but also works closely with the provincial Food and Drug Administration and other departments to break through red tape, guiding companies to use the green channel, which can cut licensing times in half or even less.

Making handmade chocolate at the factory. (Photo: Hainan Daily)

After successfully setting up the factory, the company participated in the second Hainan Expo in 2022.

Latio Chocolate, which was on display at the expo, was so popular that supplies soon ran out.

"Initially, we just planned to set up the factory here, we didn’t plan to open a store." Meng explained that when opening a store, many factors including local spending levels, market size, and brand influence all have to be taken into consideration. However, their experiences at the second Hainan Expo made the company realize that there is a consumer base with high purchasing power and brand acceptance here, and that the Hainan market has an excellent potential for sales.

After conducting thorough market research, the company decided to open a physical store to explore the Hainan market. After nearly a year of preparation, two chocolate experience stores opened in Haikou on the same day in April, one on the city's historic Qilou street and the other at the Qiongshan Fudi Night Alley. The company has already selected another three or four more areas to expand into, and will continue to open up the Hainan market even further when the time is right.

One of the Latio chocolate experience stores in Haikou. (Photo: Hainan Daily)

Currently, the company has invested in three production lines in Hainan, giving them the ability to produce over 40 types of chocolate, with a combined planned annual output value of 30 million yuan ($4.18 million). Thanks to the policy benefits of the Hainan FTP, this locally produced chocolate is making life a little sweeter all around the world.