Planet A Foods, a B2B sustainable ingredients company, has secured $15.4 million in Series A funding, as reported by TechCrunch.
Drs. Max and Sara Marquart, a sibling duo, established a Munich-based company with the aim of developing a sustainable substitute for cocoa. Initially, the company operated under the name QOA.
Max Marquart explained that the motivation for the name change stemmed from the realization that “there is no Planet B,” highlighting concerns about climate change and other environmental challenges facing the cocoa-producing industry.
“We need to pay attention so that our Earth survives,” he said.
Climate-related challenges have led to a 45-year peak in chocolate prices in 2023, as cocoa bean futures surged to $4,362 per tonne, marking an 84% increase from the previous year. This occurs against the backdrop of a projected 5.6% annual growth in the global chocolate confectionery industry until 2028.
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Planet A Foods employs fermentation technology to transform locally sourced, all-natural ingredients, such as oats and sunflower seeds, into ChoViva, their cocoa-free chocolate. This product boasts a delightful melt-in-the-mouth texture and rich chocolate flavor, available in milk, semi-sweet, and white varieties. Suitable for various culinary applications, from baking to ice cream, ChoViva contains up to 30% less sugar.
“I always say we want to be a ‘next-generation Cargill’ and a high-tech food ingredient company that delivers sustainable food ingredients to the industry,” Marquart said.
Planet A Foods’ Clientele and Collaborations
The company serves clients such as Griesson-de Beukelaer and Peter Kölln in the food manufacturing sector, as well as the renowned airline Lufthansa. Last year, the company introduced several products in collaboration with the German retailer REWE. Additionally, Lindt, the chocolatier, recently unveiled a vegan chocolate product that incorporates ChoViva.
Anticipating robust growth, Marquart envisions achieving an eight-figure revenue by the end of 2024. Planet A Foods is strategically expanding ChoViva internationally, starting with the United Kingdom and subsequently targeting other European markets, Asia, and the United States. Furthermore, the company plans to broaden its fermentation platform to encompass additional plant-based ingredients, with a series of new product launches slated for the first quarter of 2024.
He plans to utilize the fresh capital to recruit more scientists for Planet A Foods’ team in Germany, which currently consists of 50 individuals. The goal is to elevate the production of cocoa butter and palm oil alternatives to an industrial scale. The company has successfully expanded production at its facility, now capable of producing 750 kilograms of ChoViva per hour.
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Meanwhile, the Series A round, led by World Fund, saw participation from an investor group that included Omnes Capital, Cherry Ventures, Mudcake, Nucleus Capital, Triple Point Capital, and Feast Ventures.
“Sara, Max and the team have created the right product to tackle cocoa’s expansive climate impact,” said Daria Saharova, managing partner at World Fund, in a statement. “Within three years they have turned a proof-of-concept into an industry-ready product on shelves, and established partnerships with global giants. The fact that this Series A funding round was oversubscribed despite a wider downturn in food tech investment is testament to their success.”
