The cocoa crisis is an opportunity for innovation

From my vantage point at a highly agile chocolate company, the crisis now raging through the cocoa market looks like it could spell good news for innovative businesses.

Cocoa’s value on London’s financial markets has experienced an extreme rise with values practically quadrupling within a 12-month period. What’s driving this? A year of poor harvests and low crop yields in African Cocoa belts, particularly Ghana and Ivory Coast, has pushed prices above $10,000 per tonne.

This is against a background where demand remains stable, but supply is catastrophically falling. When confectionary manufacturers’ hedging strategies become ineffective, they will either have to hike retail prices, find ways to save money or do both.

Interestingly, as a highly agile, flexible and innovative leader in chocolate, creams and high-quality ingredients, IRCA Group sees a unique opportunity in this situation. Our manufacturing lines are configured to be flexible; with shorter production cycles, quick changeovers and lower minimum order quantities. This agility is the essence of the IRCA Group.

Manufacturers might decide to replace traditional chocolate ingredients with fillings such as creams, cereals & biscuit pieces, fruit pieces, caramel pieces, or compound chocolates made from vegetable fats.

A trend in the marketplace for multitexture, multisensory experiences within our category is also becoming well developed. This could be a perfect opportunity where the consumer is asking for something, the manufacturer needs to do it, and we’re ready to supply it.

We are big suppliers within extruded cereals, biscuit pieces, creams and fillings. These products are up to 60% cheaper than chocolate in today’s market, so the more you use, the more affordable you make your proposition, at the same time generating more consumer appeal. This is a unique opportunity for those that recognise it to pivot on cost, drive innovation and satisfy the new multisensorial trend. That’s a unique hat-trick!

Andy Fleming, IRCA’s Chief Commercial Officer