Re-writing recipes: With cocoa butter at $41,890, more companies go for ‘chocolatey’

Foodmakers that have already shrunk packaging and raised chocolate prices to weather this year’s run-up in cocoa costs are rapidly rewriting recipes to use none of the stuff at all.

That’s according to the growing number of companies that supply cocoa-butter alternatives. They’re rapidly launching new product lines and growing volumes as demand for their cocoa-free products soars alongside the price of cocoa beans.

Cocoa butter prices are near $US28,000 ($41,891) a tonne, according to data from KnowledgeCharts — more than quadruple last year’s costs and about the same price as a sedan.

Alternatives are roughly 40 per cent cheaper, said Aaron Buettner, president of food solutions at crop trading company Bunge Global, meaning deploying them could help keep sweet treats affordable during a time of prolonged food inflation.

“Chocolate quite often is an impulse purchase,” Niall Sands, president of commercial development and innovation at alternatives maker AAK, said. “It’s in everybody’s interest in the industry to retain that”, rather than allow chocolate to become a high-priced luxury item.

Companies generally don’t telegraph ingredient swaps that might not be unanimously popular, and suppliers are reticent to name names.

In general, the swaps are easiest to pull off in treats where chocolate isn’t the snack’s star flavour, especially in secondary applications like coatings or drizzles. These reformulated treats might be branded “chocolatey” or boast a “chocolate-flavoured coating.”

AAK’s chocolate and confectionery fats segment — the unit that makes ingredients designed to supplement or completely replace cocoa butter — saw volumes surge 14 per cent in the latest quarter, the Swedish company said on Thursday, local time.

Others are expanding in the space, too. Bunge has in the past year introduced two new cocoa-butter swaps — one shea butter-based equivalent and another that aims to match the texture and taste of 61 per cent dark chocolate.

Both were launched for the Asian and Middle Eastern markets, but may eventually be rolled out globally, Mr Buettner said. Non-cocoa substitutes have long been more common in warmer climates, where cocoa butter’s low melting point can pose a problem.

American company Blommer Chocolate last month launched a new product line of cocoa-butter equivalents that it says offers “a fabulous chocolate-like sensory experience.”

It uses sunflower and palm oils, which can give customers 20 per cent or more in savings, said Jenna Derhammer, its R&D corporate manager for innovation.

The increased interest in alternatives follows months of elevated prices for cocoa. The futures contract hit a record intraday high of $US11,722 a metric tonne in New York in April following shortages in top West African producers.

Cocoa bean prices have eased somewhat since then but are generally seen as unlikely to return soon to levels that until last year averaged well below $US3500 a metric tonne for decades.

Cocoa production in West Africa is expected to rebound next season on better weather, though fears remain that structural issues like disease will continue to plague crops and keep cocoa prices higher for longer.

As cocoa stays high, so does cocoa butter, a product made by grinding beans that lends chocolate its signature texture.

Foodmakers had hoped to wait out the high cocoa prices without reformulating their products — something they don’t do lightly as it can risk losing shoppers if the product ends up tasting different.

With the Halloween and Christmas chocolate seasons fast approaching, it’s now or never for brands who need to finalise products to share with retailers preparing to stock their shelves for the holidays, said Billy Roberts, a senior economist for food and beverage at CoBank.

Companies making cocoa swaps are saying “their product allows them to provide an economically viable alternative that doesn’t compromise on quality. That’s definitely the promise”, Mr Roberts said.

“But that’s also an ultimate decision that will be made by the consumer.”