KojiCocoa™ delivers over 25% cost savings versus cocoa and cuts carbon emissions by up to 98%

Elbow Beach is pleased to announce a £2m seed investment in Fermtech, the biotech company pioneering fermentation technology to unlock more value from existing crops. The funding will be used to scale production of its Koji Cocoa™, a sustainable cocoa alternative made from cocoa shells. The product delivers 25%-33% costsavings in chocolate and baked goods and achieves up to 98% lower carbon emissions - all without requiring additional farmland.

The launch comes at a critical time for the global chocolate industry, where climate change and crop disease have contributed to an estimated 30% decline in cocoa yields. Manufacturers are facing compressed margins, rising consumer prices and increasing pressure to secure resilient supply chains, resulting in cocoa price volatility.

Koji Cocoa™ is a true-tasting, clean-label cocoa ingredient produced using centuries-old solid-state fermentation. Unlike other cocoa alternatives, it is produced using side streams of the cocoa plant that are normally discarded. The process preserves the natural flavours of cocoa while breaking down indigestible components into soft, nutritious ingredients. By reducing the amount of traditional cocoa needed, Koji Cocoa™ delivers substantial cost savings for end products. It helps manufacturers in the $27 billion+ global cocoa ingredients market maintain taste, colour, and texture while adopting amore sustainable, circular approach.

Koji Cocoa™ is Fermtech’s first commercial product and a proof point for its natural fermentation technology at scale. Fermtech is already engaged with leading players in the global food and snacking industry, demonstrating the product’s versatility and indicating strong market potential.

The round was led by Elbow Beach with a £2 million seed investment. The total £2.5 million round investment includes participation from Carbon 13 and Empirical Ventures and will enable Fermtech’s scale-up of Koji Cocoa™ and broader platform in the UK and internationally.

Jonathan Pollock, CEO ofElbow Beach, said:  

“Fermtech exemplifies the type of bold innovation we back – one that is commercially resilient and scalable while solving a real market problem. By significantly reducing input costs and improving supply chain resilience, Koji Cocoa™ supports adoption at scale. Fermtech is creating sustainable, scalable ingredients that reduce environmental and social impact and pioneer a circular economy approach benefiting food producers, consumers, and the planet.”

Andy Clayton, CEO of Fermtech,added:

“Innovation in food has to be about great tasting, nutritious products, produced affordably. Fermtech has been committed from the start to extending the value we get from our crops, using the power of biology to unlock flavour and nutrition. This investment allows us to scale our production and get delicious foods into consumers hands.

Thanks to Elbow Beach and our investor partners, we’re excited to now be able to deploy Koji Cocoa™ with local and global partners, demonstrating its flavour, functionality, and cost benefits at scale. This is our next step to building a manufacturing and supply chain for cocoa and baking ingredients that is more resilient, secure, and lower carbon.”

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