Mondelēz International, the maker of popular chocolate brands such as Cadbury and Toblerone, has made a strategic investment in the innovative cocoa-tech company Celleste Bio. The company, which specializes in cell-cultured cocoa production, has secured $4.5 million in funding from a group of investors, including Mondelēz’s venture capital arm, SnackFutures Ventures. The investment, led by Supply Change Capital, aims to help Celleste Bio accelerate its research and development efforts, as well as enhance its infrastructure and technology, enabling the company to scale up its production of lab-grown cocoa.
Celleste Bio, founded in 2022 in Israel, utilizes a combination of agtech, biotech, and AI computational models to produce cocoa ingredients in a controlled, indoor environment. The company’s approach involves growing cocoa from just one or two beans, generating 100% natural cocoa, including cocoa butter, from a single cocoa pod. With this innovative method, Celleste aims to produce one ton of cocoa butter from a single cocoa pod, potentially transforming the way cocoa is grown and harvested.
The development of cell-cultured cocoa comes at a time when the cocoa industry is facing a series of challenges. Climate change has put immense pressure on traditional cocoa farming, particularly in regions such as West Africa, where the majority of the world’s cocoa is produced. Deforestation, child labor concerns, and rising prices have also led to growing scrutiny of the cocoa supply chain. These challenges have heightened the need for sustainable and scalable alternatives to traditional cocoa farming.
The growing demand for chocolate, which reached a record $21.4 billion in confectionery sales in the last year, has further intensified the pressure on the cocoa supply. A recent report found that 65% of consumers regularly indulge in chocolate, but cocoa shortages and price hikes have started to impact the profitability of chocolate manufacturers. Companies like Hershey and Mondelēz have raised prices in response to soaring cocoa costs, warning that additional price increases may be necessary. Consumers have begun to react to these price hikes by reducing their chocolate consumption or opting for other snack products. As a result, chocolate makers are looking for ways to secure a stable supply of cocoa while mitigating costs.
For Mondelēz, the investment in Celleste Bio aligns with its broader strategy to address cocoa supply chain issues and to secure a sustainable future for its iconic brands, such as Milka, Cadbury, and Toblerone. Richie Gray, who heads Mondelēz SnackFutures Ventures, acknowledged the supply chain challenges facing the company but emphasized that Celleste Bio’s cell-cultured cocoa technology could complement traditional farming practices, offering a potential solution to some of these problems. Mondelēz had previously invested in Celleste during a funding round in 2022, further solidifying its commitment to exploring innovative solutions for the cocoa industry.
Despite the promise of lab-grown cocoa, it remains to be seen whether it can become a mainstream option in the chocolate industry. For lab-grown cocoa to become a viable alternative to traditionally grown cocoa, it must be able to compete on cost and scale. While Celleste Bio and other companies in the space are working on these challenges, the majority of cocoa production will continue to come from traditional farming for the foreseeable future. However, as the demand for chocolate grows, and as environmental and ethical concerns surrounding conventional cocoa farming persist, lab-grown cocoa may play a crucial role in ensuring a stable and sustainable supply.
Michal Beressi Golomb, CEO of Celleste Bio, stressed the environmental and financial challenges posed by conventional cocoa farming, particularly in light of deforestation and the depletion of rainforests. He noted that the $100 billion chocolate industry is facing unprecedented difficulties in meeting the demand for cocoa. Celleste’s innovative approach to growing cocoa indoors is seen as a potential game-changer, providing a more sustainable and scalable solution for the future of the cocoa industry.
The push to cultivate cocoa in controlled, indoor environments reflects a broader trend in the food industry, where lab-grown products such as beef and chicken are being developed as alternatives to conventional animal agriculture. While progress in this area has been slow and expensive, the successful scaling of lab-grown cocoa could pave the way for a more sustainable and ethical future for the chocolate industry. However, to achieve this, the technology must overcome significant hurdles, including cost competitiveness and the ability to produce enough volume to meet the needs of the global market.
