The world’s biggest food company made waves last month when it announced a big bet on cocoa-free chocolate.
Nestlé, ranked the fourth largest confectionery company globally, is teaming up with alt choc innovator Planet A Foods to replace conventional cocoa with a cocoa-free ingredient in its new line of Nestlé Choco Crossies Snack Vibes. Targeting Gen Z consumers, the product is due to launch in Germany this month.
Multinationals like Nestlé launch new products and extend existing ranges all the time. That’s nothing new. What is novel is the amount that’s riding on the success of this particular launch.
If cocoa-free Choco Crossies are a hit, it will open doors to a new era of alt chocolate innovation. But a flop could spell the end for this burgeoning sector. Nestlé’s big bet on alt chocolate is make-or-break for cocoa-free.
Alt choc bet a ‘tortoise and hare’ moment for Nestlé
Nestlé’s move into cocoa-free is unique for many reasons. Not only is the food company the biggest on the planet, it’s also the last of the confectionery majors to invest in alternative cocoa.
In true ‘tortoise and hare’ style, the multinational has come from behind to become the first among its contemporaries to launch a permanent cocoa-free ‘chocolate’.
For years, big-name chocolate makers have been publicly backing chocolate alternatives. Barry Callebaut is collaborating with scientists to develop cell-cultivated cocoa, while also distributing cocoa-free chocolate. Mondelēz International, too, is helping fund developments in cell-based cocoa-butter, while Cargill is backing chocolate-like innovations made with sunflower kernels and grape seed paste.
And then there was Nestlé, appearing to pass on the cocoa-free movement, while behind the scenes it was quietly trialling and testing products with Planet A Foods. It turns out the start-up, which makes its cocoa-free ChoViva ingredient from sunflower seeds, had been in discussions with Nestlé Germany for “three to four years”.
What a successful cocoa-free launch means for industry
In being the first permanent cocoa-free launch for a confectionery giant, Nestlé’s line extension is big news.
But it also means there’s a lot riding on the product’s success. If the new Nestlé Choco Crossies land with its Gen Z target market, other big names in the business are much more likely to dip a toe in cocoa-free chocolate.
With market traction comes start-up revenue, and with orders on the books comes higher valuations for cocoa-free innovators. At this point, venture capital firms investing in next-gen food ingredients will breathe a sigh of relief: the bet was worth it. Next steps could even include an exit – whether via FMCG integration or an IPO on the stock market.
And success for alternative cocoa makers would not purely be financial. The more brands incorporate cocoa-free ingredients into product formulations, the more resilient cocoa supply chains become. Weathered by skyrocketing and plummeting prices, the cocoa sector has shown its vulnerability in recent years. Securing supply for the future depends on diversifying supply, from different regions and yes, potentially from different sources.
As long as consumers buy into cocoa-free, it’s a win-win-win for shoppers, businesses and the planet.
A riskier launch for some more than others
But what if the product fails? Well, for Nestlé, that would certainly be a disappointment. It’s invested in R&D, new packaging, and retailer negotiations to bring the product to shelf.
But for a company selling $14bn worth of confectionery every year, it can absorb the loss.
The bigger question isn’t what happens to Nestlé if its new Choco Crossies fail to resonate with shoppers, but what happens to the future of cocoa-free ‘chocolate’. Flagging investor confidence and waning manufacturer interest could snowball into a full stop for the category.
In a world where the resilience of cocoa supply chains continues to be challenged, cocoa prices are expected to rise amid disease pressures and climate volatility. Chocolate makers may increasingly turn to cheaper ingredients, like “compound chocolate coating”. It’s already happening.
If ever there were a make‑or‑break moment for cocoa‑free chocolate, it’s now. A small line extension for Nestlé in Germany represents a major bet on a new generation of ingredients. Who wouldn’t want Nestlé to win?
