Fix your mix but keep it secret: Trade Secrets unlocked

Gayatri Dass*

Given that the Carnival season has recently come to a close, it seems a bit early to delve into discussions about alcoholic mixes. However, discussions about trade secrets as a sub-species of intellectual property (IP) are critical to entrepreneurial developments and innovation in Trinidad and Tobago (TT).

Trade secrets are all around us from the beverages and food we consume to the secret algorithms search engines such as Google utilise. Unlike other forms of IP, trade secrets are not registered with any government or regulatory body as this right is automatic, as long as the criteria for protection have been fulfilled (World Intellectual Property Organization, WIPO). In TT, information shall be considered “secret information” if (a) it is not generally known among or readily accessible to persons within the circles that normally deal with the kind of information in question, (b) it has commercial value because it is secret; and, (c) it has been subject to reasonable steps under the circumstances by the rightful holder to keep it secret (Section 9(3) Protection Against Unfair Competition Act Chapter 82:36).

A fantastic case study of a trade secret success story lies in Tobago Gold (TG) as told by CEO and Founder of the Tobago Gold Group, Lars Söderström.

Interview with Lars Söderström 

Tell me about yourself 

“My name in Lars and I am of Swedish origin with an educational background stemming from both Sweden and America. I studied engineering in Sweden and I also studied international marketing, languages, and business at Harvard’s Business School. I have lived and worked in America, four countries in Europe with roughly twenty one (21) years of experience in the Caribbean. In the Caribbean, I have been an advisor on entrepreneurship to the Inter-American Development Bank, formerly TSTT marketing vice president and ex-CEO of the Caribbean Broadcasting Corporation (www.cbc.bb). Given my experience, I believe I have a bit of a worldly outlook and networking abilities that I can use to contribute positively to TT.”

How did you develop Tobago Gold?

“When I came to TT, I loved hiking and the nature and serenity which Trinidad and Tobago provided. Through this hobby, I acquired a one hundred acre old cocoa estate in Maracas valley. I renovated the estate and learnt about growing cocoa and subsequently got certified in chocolate making in Canada. Since then I became a hobby cocoa farmer, certified chocolate maker and I was inspired by the beauty of Tobago as well as cocoa tea, dark chocolate and rum. An employee and I started experimenting in my kitchen in Plymouth, Tobago where we developed the first prototype which we modified based on taste, further developed the recipe, and then industrialised the product. We looked at aspects such as improving the product’s stability, quality, shelf life, and also forging partnerships for this venture. Not only is the recipe for my product secret but the business plan is also secret.”

“The Company has also engaged in massive brand protection where we have sought protection for the trademark in many countries. Initially, we had to change the trade mark and to avoid conflicting with other marks. It is intended that protection for TG is achieved in over fifty (50) countries. There are trade mark lawyers all over the world to assist us with applications for trademarks and occasional trade mark disputes. The TG trade marks, our trade secrets and the Company’s business plan is therefore critical to our success. In this respect, I hope to get support from agencies such as exporTT with trade related endeavours.”

What were some challenges you experienced on your TG journey?

“As it relates to the cocoa estate, millions of dollars were invested in this and yet there is a lack of access roads in the Maracas Valley area. Unfortunately, the current public access roads are not maintained which leaves the cocoa crop rotting on the trees and a loss of jobs in the village. Another major challenge faced is the lack of foreign exchange, coupled with high interest rates on corporate loans. There’s also an issue of sourcing cocoa beans from Trinidad due to low national production and also the ability to source Caribbean rum in Europe.

“In TT, we have also unfortunately experienced a level of frustration in dealing with certain agencies to chase after entrepreneurial loans, grants, and tax concessions. In some other countries by contrast, I received venture capital support from the Government. In Trinidad, the Agricultural Development Bank (ADB) supported my entrepreneurial vision. However, we have ‘cocooned’ the cocoa production from the lack of access. Despite the challenges, we are running a very successful start-up with top investors and international assistance. We invested 15 million TT dollars in TG with private capital support.”

“The Company presently is valued at 70 million dollars which indicates the power of entrepreneurship and creativity. If you want to develop this country, my view is we need to export more products and services. A vision is required to do this, and companies require the expertise, infrastructure and funding with a focus on user-friendliness and being a one stop shop for entrepreneurship. I encourage persons not to be hindered by challenges as in this case. The Company has embarked on roughly twenty (20) international markets in 1.5 years with its own funding and no government support to date. This success is thanks to the safeguarding of our intellectual property, our strong business and marketing plans, excellent management and talented people. With our base in TT, we grew very quickly and we have attracted investment to our venture.”

“The case of Tobago Gold is inspiring as we are creating jobs by hiring people and we are bringing in foreign exchange income to TT every month. We have a distribution presence abroad in roughly twenty (20) countries and hopefully forty (40) countries by end of the year. In this respect, we are heavily export based, so our intellectual property and marketing strategies are critical to us.”

What advice do you have for other entrepreneurs?

“The truth about a country’s challenges can guide a country to change and become successful. We need to focus not on strictly oil revenues but on developing human talent. We depend on leadership to implement changes so it is important that we also invest in leadership training. We need heroes to follow, such as the business acumen of Sir Arthur Lok Jack that young people can try to emulate. I note that the government plays a big role in solving the challenges the businesses sector faces. I would recommend the involvement of business chambers of commerce and the media to create business television programs focused on entrepreneurship.”

“Further, I would encourage young people to think big, go beyond TT and find people with the expertise and capital to help them compete internationally. In TT, we have a lot of talent and creativity to explore. There is also the need for the creation of a buzzing environment for businesses with a focus on building brands as well as exciting young persons with respect to wealth creation, implementing educational exchange programs, and providing training and support for IP and business ventures. Intellectual property development and IP protection is just one part of this endeavour but it plays a key role when you look at the patents, trademarks, and IP agreements such as licensing agreements.”

“Overall, there is a laundry list of problems which has a laundry list of solutions. My recipe is to inspire and invest in human capital learning from the examples of others. The question is, “what can we learn from our diaspora, our business leaders, and other nations?”

* Author can be contacted at gdassaal@gmail.com