Recently, as the price of cocoa, the main ingredient in chocolate, has soared, global investors are becoming interested in food technology corporations that produce alternative chocolates. The rise in cocoa prices is attributed to supply shortages caused by climate change, so this trend is expected to continue for the time being. Additionally, the chocolate production process itself negatively impacts the environment, suggesting that interest in 'cocoa tech,' which produces alternative chocolates, will grow in the near future.
According to the industry on the 13th, Planet A Foods, a Germany-based corporation, received $30 million (approximately 43 billion won) in series B funding last December. Planet A Foods was established in 2021. After receiving $15.4 million (22.7 billion won) in series A funding in February last year, the next investment was made in less than a year. Planet A Foods produces 'ChoViva,' a chocolate alternative made by fermenting and roasting oats and CIAAT.
Maximilian Marquart, the founder of Planet A Foods, noted, "There is no taste difference between popular products like M&M's and Snickers and ChoViva. Regular snack chocolates implement 80% of their flavor not from the cocoa beans themselves but from the processing. Cocoa beans are not strictly necessary for making chocolate."
Currently, Planet A Foods produces 2,000 tons of ChoViva annually. With the investment, the company plans to increase its annual production to 15,000 tons. It currently has around 20 customers based in Germany, Austria, and Switzerland, and plans to expand to the United Kingdom, France, and the United States in the future.
Italy-based Foreverland received 3.4 million euros (5.1 billion won) in seed funding last October. Foreverland uses the carob tree's fruit as a key ingredient. The carob tree is a leguminous plant that grows in the Mediterranean region and is said to contain a sugar level comparable to molasses.
Mondelez International, the American confectionery company that manufactures Oreo, participated in the seed funding of the Israeli startup CelesteBio. The total investment amount is $4.5 million (6.6 billion won). CelesteBio is focused on producing cocoa through cell cultivation, with the goal of launching a commercial product by 2027. Expanding cocoa production through cell cultivation could help stabilize cocoa prices.
◇ Record-high cocoa prices
The reason global investors are focusing on alternative chocolate companies that produce chocolate without cocoa is that last year, cocoa prices showed the most pronounced rise among major raw materials. According to reports from the Wall Street Journal (WSJ) and other foreign media, in December last year, the cocoa price recorded a record high of $12,565 per metric ton in the New York futures market. Last year's price increase rate was 178%, higher than the 122% surge in Bitcoin, according to WSJ.
Cocoa prices soared due to heavy rains and heat waves caused by El Niño in West Africa. Over 70% of the world's cocoa production is grown in Africa, with Ivory Coast being the largest producer. According to the International Cocoa Organization (ICCO), from September 2023 to September last year, Ivory Coast's cocoa production decreased by 22% year-on-year. During the same period, Ghana saw a 27% decrease.
ING Bank of the Netherlands told CNBC, "Cocoa production in West Africa is expected to increase slightly this year, but prices will remain at high levels." It takes several years to cut down and replant cocoa trees that have rotted due to heat and heavy rain before they can bear fruit.
Another reason alternative chocolate companies are gaining attention is that they can reduce environmental pollution caused by cocoa production. Until recently, before the decrease in production, more cocoa was cultivated in the West African region by deforesting and planting cocoa trees. The cocoa processing also uses a significant amount of water. An average of 17.196 million liters (ℓ) of water is used per ton of chocolate. Each time a 50-gram chocolate bar is purchased, it requires the equivalent of three bathtubs of water.
Planet A Foods stated, "Our vegan version of ChoViva emits up to 80% less carbon than traditional chocolates, and has even lower emissions than that."
However, there is a skeptical view regarding the economic feasibility of alternative chocolate companies. An industry insider said, "The chocolate produced by alternative chocolate companies accounts for only a fraction of the global cocoa bean harvest, which amounts to 4 million to 5 million tons annually, and production capacity must be significantly increased to become a viable alternative for chocolate."