IN Brief:
- Fermtech has raised £2.5 million to scale production of Koji Cocoa.
- The ingredient is made from cocoa shells using solid-state fermentation.
- The company says the product can cut cocoa input costs while preserving flavour performance in bakery and chocolate applications.
Fermtech has raised £2.5 million in seed funding to scale production of Koji Cocoa, its fermentation-derived cocoa ingredient designed to help manufacturers manage volatile cocoa markets without sacrificing flavour performance.
Koji Cocoa is made from cocoa shells and other cocoa side streams using solid-state fermentation, turning a low-value by-product into an ingredient aimed at chocolate and bakery applications. The company says it can deliver 25% to 33% cost savings in end products while preserving the colour, flavour, and handling characteristics manufacturers expect from conventional cocoa powder in uses such as brownies, cakes, muffins, milk chocolate, creams, and fillings.
The timing is difficult to ignore. Cocoa supply has been under sustained pressure from weather disruption, disease, and lower harvests in West Africa, pushing procurement teams and formulators to explore substitutes, extenders, and process changes that can reduce dependence on conventional cocoa. Fermtech’s proposition is not cocoa elimination for its own sake, but a way of stretching crop value further using material already within the cocoa chain.
The round was led by Elbow Beach, with Carbon 13 and Empirical Ventures also participating. The funding is expected to support manufacturing scale-up in the UK and broader commercial rollout as ingredient buyers continue to look for more stable options in confectionery and baked goods.
