Munich-based foodtech startup Planet A Foods (formerly QOA) has secured a $30 million Series B funding round to scale its production of ChoViva, a sustainable, cocoa-free chocolate alternative. The round, co-led by Burda Principal Investments and Zintinus, will be used to increase production capacity by around 7.5 times, with plans to open its first U.S.-based production facility and expand into the U.K. and France in the first quarter of 2025.

The startup, which has already produced 2,000 tons of ChoViva per year, aims to increase production to over 15,000 tons as it adds capacity and kicks off international expansion. Currently, ChoViva is used in food products by major European food manufacturers, including Lambertz, Lindt, Rewe Group, and Deutsche Bahn. The company has around 20 customers for its alt chocolate ingredients, mostly major European food manufacturers but also some U.S. brands.

Planet A Foods is tackling the environmental and ethical issues associated with traditional cocoa-based chocolate production, which contributes to deforestation and has a high carbon footprint. The startup's mission is to supply the food industry with a sustainable, cocoa-free chocolate alternative that can be baked into or folded onto snack products like breakfast cereals, confectionary, and cakes. By switching bulk chocolate production away from cocoa beans to its more sustainable method, the startup estimates that an annual toll of around 500 million tons of CO2 could be avoided.

The ingredients used to produce ChoViva have been selected to be grown locally, resulting in a carbon footprint that's up to 80% lower than conventional chocolate. The startup's co-founder and CEO, Dr. Maximilian Marquart, stresses that they are not against chocolate, but rather targeting the bulk business of mass market confectionary, where environmental degradation occurs at a terrible scale. He argues that the quality of the chocolate used in mass market products is generally lower, making ChoViva an attractive switch for the industrial food industry.

The economics of ChoViva also make it an attractive option, as the product is not subject to the price volatility that can hit cocoa beans as a limited resource. However, to make a significant impact, the startup needs to be able to produce its alternative at the volumes that food giants demand, requiring giant leaps in production capacity. The company is already automating and improving processes, commissioning new machines, and planning another facility in the U.S.

Planet A Foods is also exploring how the business might respond to demand from Asia, recognizing that as a startup, they need to focus on key markets. The company is working on further research and development, including an alternative to cocoa butter, which is another key ingredient for the food industry. They are also working on replacing palm oil, which creates huge sustainability problems, and believe their approach could work to replace other specialty fats used in food production.

The startup's fermentation technology has enabled them to produce bio-identical cocoa butter at a lower price than conventional cocoa butter, which could be a game-changer in the future. However, the use of precision fermentation, a biotech method that involves genetically engineered microorganisms, requires approval as a novel food before it can be sold, and may hit the U.S. market first due to more stringent European regulations.

With its Series B funding, Planet A Foods is poised to make a significant impact on the food industry, offering a sustainable, cocoa-free chocolate alternative that can help reduce the environmental and ethical issues associated with traditional chocolate production.