Ending the Cocoa Crisis? | #PodSaveChocolate Ep 146
Episode 146 of #PodSaveChocolate explores industry responses to the ongoing cocoa crisis. Do any address root causes? (Spoiler Alert: No.)
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Episode 146 Overview
In a recent episode of #PodSaveChocolate, I took the International Cocoa Initiative to task when they identified the root causes of illegal labor in cocoa and then proposed only monitoring and remediation in response. Those two activities might tell us how big the problem is (in Ghana and Côte d’Ivoire), but monitoring and remediation are not solutions to the challenges of farmer livelihoods that are reeling from the effects of climate change, aging farms, aging farmers, and regulatory regimes that favor Big Chocolate over smallholder farmers.
Clay Gordon
Since that episode, there has been “news” in my feed on the topic of how big companies are addressing current challenges facing cocoa. I covered some of that reporting in my August News & AMA episode (#141)under the heading “The Future” of the Chocolate Value Chain.
In this episode of #PodSaveChocolate I will be taking a deeper dive into what companies are doing to “solve” the cocoa crisis – and compare that with what I think needs to be done.
Thesis
The global cocoa supply chain is confronting a systemic crisis, a confluence of climate-driven agricultural collapse, mounting ethical and regulatory pressures, and unprecedented price volatility. This disruption has catalyzed a paradigm shift within the ~$130 billion chocolate industry, transforming the search for cocoa alternatives from a niche sustainability initiative into a strategic imperative for many of the world’s largest food and beverage conglomerates.
Cargill
Cargill has entered into an exclusive global B2B distribution partnership with Voyage Foods, a direct competitor to Planet A Foods that also produces a cocoa-free “chocolate alternative.”
Hershey
The Hershey Company has invested in Blue Stripes, a startup focused on upcycling the entire cacao fruit.
Lindt & SprĂĽngli
Planet A Foods has a confirmed collaboration with Lindt for its ChoViva product line; there is no evidence of direct investment by Lindt in Planet A Foods.
Earlier this year, Lindt joined a seed round for Zurich-based startup Food Brewer, which is exploring methods of cell-culturing cocoa.
Mars
Donna Eastlake
Meiji & Puratos
Have both invested (Puratos via its Sparkalis investment arm) in California-based cocoa cell culture startup California Cultured.
Mondelēz International
Mondelēz, through its SnackFutures Ventures arm, has invested in Celleste Bio, an Israeli startup developing cell-based (cell-cultured) cocoa.
WNWN Food Labs was selected as one of nine startups for the inaugural Mondelēz International CoLab Tech accelerator.
Nestlé
Based on the reporting below, Nestlé is NOT investing in cocoa alternatives (made via cell culturing, precision fermentation, or some other technique), rather, they are looking to make more with less by using parts of the cacao fruit that are normally considered waste.
Flora Southey
What CocoaRadar has to say on this story.
Nestlé calls this technique “groundbreaking,” but admits they are not the first to explore it. However, they have patented the process (and here).
The present invention seeks to provide methods and products that utilise other portions of the fruit of the theobroma genus plants. These products and methods offer advantages in sustainability. Additionally, the present invention provides processes that allow potential ingredients in said plants to be commercially effective.
What is not disclosed in the patents in detail is how harvest and post-harvest processes are changed. From what I can glean, whole pods would need to be delivered to a new type of processing facility capable of performing all of the technical steps required.
I have many questions about those changes, who will pay for them, and how they will affect farmer incomes. And this is even before we address the regulatory question – does this new formulation comply with the standards of identity for chocolate in CFR 21.163 here in the US and in the Codex Alimentarius used in other parts of the world.
Recipe Changes
Nicholas Robinson
EUDR “Negligible Risk” Update
Date of Effect and Application: The regulation entered into force on 29 June 2023. Most obligations apply from 30 December 2025 (or 30 June 2026 for small/micro enterprises). Products produced before 29 June 2023 are not subject to EUDR.
Negligible Risk is defined as “no cause for concern regarding deforestation or illegality after a full risk assessment.”
Due Diligence Requirements: Operators must “establish and maintain a due diligence system,” and “submit a Due Diligence Statement (DDS) to the EUDR Information System.”
Legality: Products must be “produced in accordance with the laws of the country of origin, including land use, environmental protection, labor rights, and indigenous rights.”
Transit: Transit through a low‑risk country does not lower risk; origin of production governs risk. The guidance ties risk classification to where the commodity was produced (the plots/geolocations), not the route it takes or the country it passes through. Operators may use simplified due diligence only when they ascertain that all relevant commodities in the product were produced exclusively in countries or parts classified as low risk
Questions?
If you have questions or want to comment, you can do so during the episode or, if you are a ChocolateLife member, you can add them in the Comments below at any time.
Episode Hashtags and Socials
#Cargill #Hershey #Lindt #Mars #Mondelez #Nestle #EUDR
#chocolate #chocolat #specialtychocolate #craftchocolate #beantobarchocolate
#cocoa #cacao #cacau
#PodSaveChoc #PSC
#LaVidaCocoa #TheChocolateLife
Future Episodes
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Clay Gordon
Clay Gordon
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