The cocoa supply chain is in crisis, with the cost of raw materials rising by as much as 30-40% and retail prices increasing by 15%.
This is largely driven by climate change, which is causing rising temperatures and reduced precipitation — especially in Ghana and Ivory Coast, which together produce around 60% of the world’s cocoa. These factors, combined with seasonal floods, have allowed diseases and parasites that attack cocoa crops to proliferate.
Simultaneously, child labour in the industry is on the rise, increasing from 31% to 45% in West Africa between 2008 and 2019; an estimated 1.5 million children are now being exploited in the region. Geopolitical instability and increases in transportation and energy costs are introducing further challenges.
These issues have highlighted the need for innovation in the cocoa supply chain. Two Italian startups chosen through FoodSeed, the food tech acceleration program of Italy’s National Network of CDP Venture Capital SGR, are working towards this goal.
The startups
Foreverland has developed Freecao, a cocoa alternative made from carob (a resilient crop native to the Mediterranean). Compared to regular cocoa, it cuts carbon emissions by 80% and water use by 90%. Freecao chocolate is vegan, free of caffeine, and lower in sugar than regular chocolate. For Easter, the brand has introduced what is claimed to be the world’s first cocoa-free chocolate Easter egg.
Another startup, Trusty, is developing digital infrastructures to make agri-food supply chains transparent using blockchain technology. Currently, Trusty is collaborating with cocoa stakeholders across multiple nations, including farmers, cooperatives, and logistic operators. The technology is aligned with European regulations like EUDR and helps to foster transparency in international trade.
This Easter, Trusty is collaborating with renowned Italian pastry chef Loretta Fanella to launch the first blockchain-tracked chocolate egg. The egg features a QR code to certify its sustainable origins. The cocoa mass used to produce the egg is purchased through Trusty’s marketplace, which allows businesses to easily source ethical cocoa.
Ethical, sustainable, and innovative
The two startups are supported by backers and co-investors such as Fondazione Cariverona, UniCredit, and Eatable Adventures; the latter is a prominent global food tech accelerator serving as a co-investor and operational program manager.
“The cocoa sector holds fundamental importance both in gastronomy and in the economies of European countries. However, it is evident that there is a need to redefine the future of the entire supply chain, which today is among the most unsustainable globally,” said Alberto Barbari, Regional VP Italy of Eatable Adventures. “With Foreverland and Trusty, we are moving towards a more ethical, sustainable, and innovative direction, helping confectionery companies tackle the significant new challenges of the chocolate production chain under the banner of Open Innovation.”