Fermtech raises US$2.9M to scale Koji Cocoa sustainable alternative amid global cocoa supply challenges
Fermtech secures £2.5M funding to scale Koji Cocoa, a low-carbon cocoa alternative, as the industry faces rising costs, supply shortages, and sustainability pressures.
UK – Fermtech, a biotechnology company specializing in crop-value fermentation, has raised £2.5 million in seed funding to scale production of Koji Cocoa, a sustainable cocoa alternative made from cocoa shells.
The funding round was led by climate-focused investor Elbow Beach, which contributed £2 million (US$2.34M), with additional participation from Carbon 13 and Empirical Ventures.
The investment will support the international scale-up of Fermtech’s fermentation platform and the commercial rollout of Koji Cocoa in the UK and other markets.
Koji Cocoa offers a cost-efficient and sustainable solution for food manufacturers, delivering 25% to 33% cost savings in chocolate and baked goods while achieving up to 98% lower carbon emissions compared to conventional cocoa.
The product does not require additional farmland, making it a viable option for addressing environmental and supply chain challenges.
The launch comes at a critical time for the global cocoa industry, where climate change and crop diseases have contributed to an estimated 30% decline in cocoa yields. These pressures have resulted in rising prices, tighter margins for manufacturers, and increased focus on supply chain resilience.
Fermtech’s Koji Cocoa is produced using solid-state fermentation, a method rooted in centuries-old practices. The process utilizes cocoa side streams that are typically discarded, transforming them into a clean-label ingredient while preserving the natural flavor, color, and texture of cocoa.
By reducing reliance on traditional cocoa, the ingredient enables manufacturers in the global cocoa ingredients market, valued at over $27 billion, to maintain product quality while adopting more sustainable and circular production methods.
Jonathan Pollock, CEO of Elbow Beach, highlighted the innovation’s commercial and environmental potential. “Fermtech exemplifies the type of bold innovation we back – one that is commercially resilient and scalable while solving a real market problem,” he said.
“By significantly reducing input costs and improving supply chain resilience, Koji Cocoa supports adoption at scale. Fermtech is creating sustainable, scalable ingredients that reduce environmental and social impact and pioneer a circular economy approach benefiting food producers, consumers, and the planet,” Pollock added.
Andy Clayton, CEO of Fermtech, emphasized the company’s long-term vision. “Fermtech has been committed from the start to extending the value we get from our crops, using the power of biology to unlock flavour and nutrition,” he said.
“This investment allows us to scale our production and get delicious foods into consumers’ hands,” Clayton added.
Investors appear keen to help grow the chocolate alternative market in the UK, with foodteh firm Win-Win securing £3 million as part of a Series A funding round last year.
The company has since announced an exclusive partnership with ingredients supplier Keylink to distribute its cocoa-free chocolate products across the UK and unveiled a new bake-stable chocolate chip range designed specifically for bakery and foodservice sectors.
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