Fermtech, a biotechnology company focused on enhancing crop value through fermentation, has successfully secured £2.5 million in seed funding to expand the production of Koji Cocoa. This innovative cocoa substitute aims to protect food producers from the severe price fluctuations common in the global cocoa market.
The funding round was spearheaded by Elbow Beach, a climate-oriented investment firm, which contributed £2 million. Additional investors included Carbon 13 and Empirical Ventures. This capital will facilitate the global scaling of Fermtech’s fermentation technology and support the market rollout of Koji Cocoa across the UK and beyond.
The launch comes at a challenging time for the $27 billion cocoa ingredients sector, which has been severely impacted by climate change and crop diseases. These factors have led to a 30% decline in cocoa yields, increasing prices and squeezing profit margins for confectionery and bakery businesses.
Koji Cocoa represents a circular economy solution, utilizing cocoa shells—traditionally considered waste. Through the application of centuries-old solid-state fermentation techniques, Fermtech converts these shells into a clean-label ingredient that maintains the flavor, color, and texture attributes associated with conventional cocoa.
For food producers, the advantages of Koji Cocoa are significant:
1. Cost efficiency: This ingredient offers a 25%–33% reduction in costs for chocolate and baked products, serving as a critical hedge against escalating commodity prices.
2. Environmentally friendly: Its production results in up to 98% lower carbon emissions compared to traditional cocoa methods and requires no additional agricultural land.
3. Robust supply chain: By deriving greater value from existing crops, Fermtech ensures a domestic and scalable source of cocoa-like ingredients, less vulnerable to the environmental challenges that affect the Cocoa Belt.
In contrast to many synthetic alternatives, Koji Cocoa is generated through natural biological processes that transform indigestible materials into nutritious, palatable ingredients.
“Fermtech has been dedicated from the beginning to maximizing the value derived from our crops, harnessing biological processes to enhance flavor and nutrition,” stated Andy Clayton, CEO of Fermtech. “This investment enables us to increase our production capacity and provide consumers with delightful food options.”
Jonathan Pollock, CEO of Elbow Beach, claimed that the technology represents a “bold innovation” that is both “commercially resilient and scalable, addressing a genuine market challenge.”
Fermtech is actively collaborating with major players in the global food and snack industries, positioning Koji Cocoa not merely as a niche sustainable alternative, but as a vital resource for manufacturers aiming to maintain product excellence while adhering to increasingly rigorous ESG standards.
