Planet A Foods, a German-based food-tech company, has successfully raised $30 million in Series B funding to enhance the production of Chivova, a groundbreaking alternative to traditional chocolate.
This announcement comes amid rising chocolate prices in the commodities market, likely driven by supply struggles in major cocoa-producing countries like Ivory Coast and Ghana.
In 2024, adverse weather conditions heightened market volatility, causing global cocoa prices to spike 180%, with the futures rising from $4,209 in January to $11,800 by mid-December.
In response to these challenges, Planet A is introducing Chivova, an organic cocoa-free chocolate substitute made from a blend of sunflower seeds and vegetable oils. It uses advanced fermentation techniques that replicate traditional cocoa processing methods like drying, roasting, and winnowing.
According to the company, ‘’Chivova not only mimics the taste and texture of conventional chocolate but also significantly mitigates environmental impact.’’
The company also claims it can lower carbon emissions by up to 80% compared to conventional chocolate production, tackling issues like deforestation, supply chain instability, and child labor linked to cocoa farming.
However, while innovations like Chivova promise eco-friendliness, they also pose potential economic challenges for cocoa-dependent nations like Ivory Coast and Ghana.
Series B funding
Planet A Foods successfully raised $30 million in Series B funding to boost production of ChoViva, with the round co-led by Burda Principal Investments (BPI) and Zintinus.
- This funding also attracted a diverse group of investors, including World Fund, Cherry Ventures, Omnes Capital, Bayern Kapital, Tengelmann Ventures, and BayWa Ventures.
Dr. Maximilian Marquart, CEO and Co-founder of Planet A Foods, celebrated this significant achievement, stating, “This Series B round marks a major milestone for us. With $30 million in fresh funding and an industry-leading product, we’re ready to scale.”
Highlighting the urgency of sustainable practices, Daria Saharova, founding partner at World Fund, remarked, “Building world-class food tech is critical for the future of our planet. We urgently need to stop overfarming threatened natural resources like cocoa.”
- This successful round follows a $15.4 million Series A funding in early 2024, where Planet A focused on creating organic alternatives that combat deforestation, and the soaring prices of raw materials linked to cocoa production.
Backstory
In Ghana, the world’s second-largest cocoa producer, winds and low rainfall in March disrupted the harvest, pushing prices up by 60% earlier in the year.
- While conditions stabilized between March and October, heavy rains in Ivory Coast’s southwestern regions in late September disrupted cocoa bean drying and delayed transport to ports, adding further to supply problems.
- With supply issues lingering into December, cocoa prices have climbed to $11,300, a sharp increase from $9,417 at the start of the month.
- The persistent supply imbalance, fueled by climate-related disruptions and strong seasonal demand, has likely driven prices to fresh highs.
However, increased search for cocoa alternatives could significantly challenge the economies of Ivory Coast and Ghana, which are heavily reliant on cocoa bean exports.
About Planet A Foods
- Planet A Foods is a German food-tech startup dedicated to creating organic raw materials that replace carbon-intensive ingredients in popular products.
- Founded in 2021 by chocolate enthusiasts Sara and Max, the company combines expertise in food technology, marketing, and supply chain management.
- Using cutting-edge techniques like chromatography, mass spectrometry, and genetic engineering, they identify sustainable alternatives that minimize carbon emissions while still delivering delicious flavors.
