The cocoa labeling crisis: Key lessons to be learned
- Nestle and Pladis have removed the word chocolate from certain UK products because the cocoa butter content is below the legal UK minimum of 20%.
- Low cocoa production and increasing prices are due to poor growing conditions, crop diseases and low yields.
- Cargill, Barry Callebaut and other firms are looking for alternatives in order to expand options but not eliminate cocoa.
- Replace cocoa with another organic ingredient to avoid issues of compliance.
- To avoid misinforming consumers, experts recommend transparency and strict compliance with food labeling regulations.
- Labelling laws will not relax. Legal experts say that regulators have not shown much flexibility during crisis like the Ukraine War.
Nestle and Pladis had to remove the term “chocolate” from white chocolate KitKats, and Digestives after the cocoa butter content fell below UK legal minimums of 20%. This was revealed last month by The Grocer.
KitKat and Digestives lovers were shocked by the news, but industry insiders weren’t surprised. They had watched cocoa prices steadily rise despite fluctuating harvest volume.
With the cocoa shortage, largely due to poor conditions for growing and diseased crops, several ingredient firms have begun exploring alternatives. The aim is not just to replace cocoa but to also meet the growing demand for clean-label, vegan and sustainable alternatives.
Cargill is one of the majors that has been focusing on alternatives over recent months. Last year, it invested EUR35m in a chocolate reduction facility. Cargill EMEA Group President for Food Solutions said that the focus of this initiative is to nourish the world “in a sustainable and responsible manner”.
This doesn’t mean that the cocoa industry has turned its back on it. Anne Mertens Hoyng, Cargill senior director of chocolate confectionery, ice cream and other categories, says that the industry is not abandoning cocoa.
She believes that providing choice can help build a resilient, inclusive and sustainable food system.
Exploration of Cocoa Alternatives
Barry Callebaut shares the same sentiment. A spokesperson stated that “we see exploring alternatives such as cocoa cells culture technology as not a replacement of traditional cocoa but rather as a means to expand the range of cocoa-based products available to our clients.”
We believe that many of our clients are open to sustainable and innovative solutions. Especially those which align with changing consumer expectations.
The two companies have a shared goal of expanding the sustainable sources of cocoa while supporting traditional farmers and communities.
(Nastasic/Image: Getty Images) Ingredient innovation has reshaped how chocolate is made and sold. (Nastasic/Image: Getty Images)
Alternatives are not without legal restrictions. It is very tempting to use less expensive, less volatile alternatives to cocoa due to its cost increase. Katiamerten-Lentz, a partner with Food Law Science & Partners, explains.
It is not easy to change a recipe, especially when it comes to large-scale production. Taste, texture and presentation are all important. Regulation is what really causes problems.
Merten-Lentz cautions that “replacements may also have legal implications.” For example, organic products that require organic ingredients only. “Or for chocolate-based food that must comply with the Chocolate Directive which only allows some substitutes to cocoa.”
Use cocoa substitutes
Are cocoa substitutes illegal? Not quite. She advises that you should update ingredient lists and adhere to the Food Information to Consumers Regulation.
She adds that “if the ingredient replaced is highlighted on the package – in name, description or image – this change must clearly be indicated to prevent misleading consumers.”
Cargill is in agreement. Mertens Hoyng says that naming and labelling is crucial when dealing with alternatives, particularly in categories such as chocolate.
Due to a shortage of cocoa, food manufacturers have adapted their recipes and labels. (Image: Getty)
It works with its customers to understand regulatory frameworks in different markets. She adds, “We know that in some regions (including the EU), terms such as ‘chocolate,’ have strict definitions and cannot be used without meeting specific cocoa content requirements.”
Could labelling laws be overdue for a change?
Not likely, says Merten-Lentz. She recalls a situation where last-minute replacements of commodities were required during the Ukraine War. The only concession made by the national authorities allowed for ingredient labels to be changed with stickers rather than reprinting packages.