This audio is generated automatically. Please let me know if you have any comments.
Diving overview:
Mondelēz International’s SnackFutures Ventures, the company’s venture capital arm, was one of the investors participating in a $4.5 million funding round for Celleste Bio, a producer of cell-cultured cocoa ingredients. This investment was led by Supply Change Capital.
Celleste, which was founded in Israel in 2022, will use the funds to accelerate R&D, infrastructure and technology needed to test and scale production. used by the company AugtechUsing biotechnology and AI computational models, we grow 100% natural cocoa from one or two beans under controlled conditions all year round. It is said that one cocoa pod can make one ton of cocoa butter.
The development of lab-grown cocoa comes as the crop faces challenges from climate change, concerns about the labor used to grow and harvest the crop, deforestation and recent price fluctuations.
Dive Insights:
Chocolate accounted for a record $21.4 billion in confectionery sales last year, with 65% of consumers enjoying chocolate, according to an October report from the National Confectioners Association.
However, as the global cocoa shortage continues, prices have soared. Hershey, Mondelēz and other users of cocoa products have raised prices and warned that further increases could occur if cocoa prices reduce profitability. As their favorite chocolate-based snacks become more expensive, some consumers have already decided to cut back on their purchases.
“We have seen a shift away from chocolate and toward other products such as cookies and salty snacks,” JP Morgan analyst Ken Goldman said in a research note earlier this year. “We think the share of chocolate is shrinking a bit, so consumers are definitely responding to higher prices.”
Cocoa production, mostly in Ivory Coast and Ghana in West Africa, has also long been plagued by child labor issues, environmental concerns and claims that companies that rely on producers do not provide sufficient financial support.
As demand for chocolate continues to grow, cocoa users, researchers and startups must find solutions to ensure a reliable and sufficient supply of the ingredient. Some food companies are developing recipes that use less chocolate, switching to ingredients that taste like chocolate, or exploring synthetic and lab-grown ingredients.
“As one of the world’s largest chocolate producers, we understand the supply chain challenges we must overcome to produce iconic chocolate brands such as Milka, Cadbury and Toblerone, while also making a positive impact on our business, consumers and the environment. ” Richie Gray, who runs Mondelēz SnackFutures Ventures.
He added that Celleste is “in its early stages, but (the company) has great potential as a complementary technology to traditional agricultural practices.” Mondelez It previously invested in Celleste in its 2022 funding round.
Certainly, cocoa production will continue to be supplied by West Africa and other regions for the foreseeable future. The case of laboratory-grown cocoa celeste For it to be a viable option for and other companies, it must be cost-competitive with traditionally grown products and produced in sufficient quantities to be incorporated into chocolate products manufactured on a large scale.
“Climate change and conventional farming methods are depleting our lives. rainforest — The result is unprecedented environmental and financial challenges in growing enough cocoa to meet the needs of the $100 billion chocolate industry.” Michal Beressi golom, Celeste CEOsaid in a statement. “This round provides the financial and strategic support needed to accelerate product development, scalability and commercial readiness.”
The move to grow cocoa indoors mirrors a similar push for beef, chicken and other products grown in labs. Progress in this sector is slow and expensive, and some startups are going out of business. Two restaurants that first sold the farmed chicken withdrew the product within months.
