Recently, shoppers at Tokyo Midtown had an extra treat when they were greeted at the entrance to NOKA Chocolate by founders Noah Houghton and Katrina Merrem. The pair were making their first visit to Japan since opening their flagship store at Tokyo Midtown last March.

NOKA is one of the newer entries in the high-end chocolate market. Houghton (president) and Merrem (co-founder and chocolatier), both Canadian CPAs, were inspired one day in 2002 while viewing the Matterhorn in Switzerland. Two years later, they moved from Toronto to Dallas to set up NOKA. Since then, NOKA has been ranked the No. 1 luxury chocolate in the world by the food editors of TASTE, and Best Chocolate in America by the Nikkei. The Tokyo Midtown boutique is the company’s only other flagship store outside Dallas. The chocolates are available in eight Neiman Marcus locations in the U.S., Dean & Deluca in Taiwan, Harrod’s in the UK and at four Globus Gourmet locations in Russia.

NOKA’s single-estate dark chocolates and truffles are hand-crafted with couverture made from cacao beans grown and harvested on exclusive estates in such countries as Venezuela, Ecuador and Trinidad, rather than a blend of beans from different countries. None of the products contain any preservatives, additives or artificial ingredients. Nor do they contain vanilla or emulsifiers. Fresh organic cream is used. The collections are presented in unique and elegant keepsake gift boxes, designed to encourage an appreciation by all the senses including the look, aroma, flavor and texture.

Japan Today editor Chris Betros met Houghton and Merrem during their visit to Tokyo to hear more.

Merrem: We did a lot of reading and visited a lot of chocolatiers in Europe. It was just the two of us at first, with me making the chocolates. 

Houghton: We spent a year developing recipes. Then in 2004, we opened the business in the Dallas area.

Why Dallas?

Merrem: We fell in love with the Dallas area. The people are very friendly. It is a very entrepreneurial place which was very inspiring to be around for two people like us who were starting out with something new. 

Houghton: Our flagship stores are in Dallas and Tokyo. In the U.S., we are in eight Neiman Marcus stores. We sell in Russia on a wholesale basis and we’re at Harrod’s in London.

How is business overall?

Houghton: Year on year, our sales are up over 100%. That sounds significant but we are still a small company. Our plan is not to grow too quickly. When we go into different countries, for example, the UK, we just select one company, which is Harrod’s. Then we won’t sell anywhere else in that country. We will not be a mass market brand. Our plan over the next five years is to open 10 of our own retail stores.

Why did you decide to open your 2nd flagship store in Tokyo?

Houghton: We noticed that many Japanese tourists were buying our chocolates at Neiman Marcus in Hawaii. So we did some research and worked with Japanese distributor Le Chocolat du Diamant Co for a year and a half. At first, we sold our chocolates in department stores to build up the brand, and we still sell in Mitsukoshi, Hankyu and Takashimaya for Valentine’s Day.

Do you think Japanese consumers know you are a Dallas-based company?

Merrem: We have a big cactus in the store and we have a video clip running that shows the skyline of Dallas, so I think most Japanese customers are aware of where we are based.

What are NOKA’s strong points?

Merrem: Our three founding principles are No. 1: Purity and quality. That means we focus on having pure ingredients, no added flavoring, no emulsifiers, no preservatives. No. 2 is the tasting experience. We want people to slow down and savor the taste. And No. 3 is the importance of gifting and presentation. All three principles are important in the Japanese market.

Merrem: We chose to make only dark chocolate in order to really taste the authentic flavors of the cacao.

Houghton: Luxury dark chocolate is a niche market and that’s how we are different from a lot of European confectioners. A lot of their focus is on flavorings and fusions, whereas we just focus on natural pure dark chocolate.

How has the first year been in Japan?

Merrem: We’ve had a great reception from customers in Japan. All chocolates are made in Dallas and shipped by air. Sometimes, we’ve been sold out with truffles because they have a short shelf life. But we are very excited for the future.

Are there any import restrictions on certain ingredients?

Houghton: We have a short ingredient list, so we don’t have to worry about food dyes and things like that. That can be an issue for many chocolate companies. 

Can consumers order online?

Merrem: Yes, but we can’t service every country. Japan has an online store, so there’s no problem here.

Houghton: From the U.S., we ship as far away as Australia, England, Canada, Qatar and Iraq for the American service personnel.

What differences have you noticed in the Japanese market?

Houghton: In Japan, the emphasis is on quality not quantity. A typical American consumer is interested in buying per pound. In Japan, it’s more of a tasting experience. And of course, presentation is all-important.

Merrem: It is still a learning environment for us. We still have a lot to learn about the Japanese market.

Merrem: I couldn’t believe it when I heard about that custom. When we tell people in America, all the men say we need to adopt it there.

Houghton: It certainly presented us with a challenge at first about how to market our chocolates in Japan.

Did you enjoy meeting customers during your in-store visits?

Merrem: Yes, very much. Some customers were so excited that we actually came to Japan all the way from Dallas. We did some tasting with customers. 

Do you visit all your stores throughout the year?

Houghton: We’re pretty much in Dallas most of the time, but we try to get to each Neiman Marcus store at least once a year. 

Do you both eat chocolate every day?

Houghton: I eat a little bit every day.

Merrem: Yes, but not a lot. Dark chocolate is very rich in flavor and very satisfying. You don’t need to eat much of it.

Do you ever check out the competition?

Merrem: It is interesting to check out the competition. At Mitsukoshi during the Valentine’s Day sales, they had over 100 brands. We saw flavors offered there that are not offered overseas.

Merrem: I recommend eating them with still water at room temperature. Mineralized water interferes with the flavor of the cacao. It’s also nice to enjoy the chocolates with a full-bodied red wine, champagne, Scotch or cognac.

For further info, visit www.nokachcolate.com or www.noka-chocolate.jp

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