A global shortage of cocoa has led to a dramatic increase in chocolate prices. The International Cocoa Organization has identified production declines in the leading cocoa-producing countries, Côte d’Ivoire and Ghana. Over the last year, cocoa futures on the Nasdaq have surged from a low of $2,600 per ton to a staggering high of $11,064. J.P. Morgan analyst Ken Goldman noted in a research report, “We have observed a shift away from chocolate towards other products like cookies or salty snacks. Chocolate appears to be losing market share as consumers react to rising prices.”
While soaring commodity prices are expected to eventually decrease, food companies are seeking long-term solutions. According to J.P. Morgan, some firms are innovating recipes that require less cocoa. Additionally, forward-thinking businesses are aiming to eliminate cocoa entirely without forgoing chocolate products. Several startups are leading the way in creating “cocoa-free” chocolate, as reported by Crunchbase. These products are made using synthetic or lab-grown ingredients instead of traditional cocoa beans. The report highlighted four companies that have collectively raised over $110 million in recent months.
Voyage Foods, established in 2021, recently secured $52 million in funding, bringing its total to $94 million, primarily from existing investors, co-led by Level One Fund and Horizons Ventures. According to Crunchbase, it has raised the most equity in this sector thus far. Voyage Foods offers cocoa-free chips and melting wafers and utilizes proprietary technology to create nut-free spreads and bean-free coffee. The company achieved national distribution with Walmart in October last year.
Planet A Foods, based in Germany, ranks second on the list with just over $43.3 million raised. Also founded in 2021, this company employs its own technology to ferment plant-based ingredients for products like ChoViva Concentrate and ChoViva Butter, both of which contribute to cocoa-free chocolate. The latter can also serve as an alternative to palm oil.
Third on Crunchbase’s list is California Cultured, based in West Sacramento and founded in 2020. It has raised $4 million to develop sustainable coffee and chocolate products. The process for both products involves extracting cells from cacao and coffee bean varieties and cultivating them in large tanks that simulate their natural environments. Although it has yet to release any commercial products, it plans to launch cocoa powder soon.
Lastly, Nukoko, a U.K.-based startup, was officially launched in January 2023 and has raised over $1.9 million in equity funding. The company employs technology that mimics the fermentation process used for cocoa beans, but instead utilizes native U.K. beans. While Nukoko has not yet introduced any products to the market, its website indicates that offerings are on the way.
As these companies innovate, there are also discussions around the nutritional benefits of alternatives such as calcium citrate or calcium carbonate. The exploration of these alternatives may provide valuable insights into healthier options for consumers, further shaping the future of chocolate products in a time of cocoa scarcity.