UK start-up Win-Win secures backing for European expansion of cocoa-free chocolate production

Cocoa-free chocolate maker Win-Win has secured £3 million (US$4 million) in series A funding to boost expansion into key European markets.

The UK firm aims to establish new product lines domestically and in Germany, the Benelux and Nordic regions, France, and Switzerland.

Unprecedented price hikes are squeezing the cocoa sector, driven by climate change and chronic underinvestment in key cocoa-growing regions like Ghana and Côte d’Ivoire.

Additionally, the industry faces ethical and environmental challenges, such as inadequate farmer compensation, child labor, and deforestation.

“We all love chocolate, but the way it’s currently produced isn’t sustainable. Climate change is leading to reduced yields, causing spiralling prices and supply-chain uncertainty. As consumers, we’re already seeing the impact of this in the form of rising prices and shrinkflation, and the cacao industry continues to be troubled by issues relating to deforestation,” says Mark Golder, CEO of Win-Win.

“The industry is at an inflection point and needs alternative solutions that are stable and more environmentally and socially sustainable.”

Sustainable ingredients

Amid such uncertainties, Win-Win says it leverages affordable and sustainable ingredients, including rice and carob, to produce various chocolate alternatives, including milk, white, and vegan “M.lk” chocolate, as well as dark couverture and compounds.

While the process removes cocoa from chocolate-making, the traditional techniques of fermentation, roasting, grinding, refining, and tempering help achieve the final product.

According to the company, the products use up to 80% less water, release 82% fewer CO2e emissions, and are made at scale in the UK.

“The team has developed patented breakthrough technology to deliver a cocoa-free alternative to chocolate that doesn’t compromise on appearance, taste, or usage,” says Golder.

“We now have an incredible portfolio of chocolate alternative products, and this investment will help us to give manufacturers, food service providers, and other businesses that use chocolate a delicious alternative that is better for both the planet and its people.”

The round was led by Oetker Collection and FoodLabs, along with other venture capitalists. It brings the company’s total funds raised to date to £8 million (US$10.8 million).

“Win-Win’s approach to reimagining ingredients like chocolate is not only groundbreaking from a scientific perspective, but also incredibly timely given the environmental and ethical challenges facing the industry,” says Sven Wiszniewski, head of venture and growth capital investments at Oetker Collection.

The funding follows Win-Win’s recent DACH distribution partnership with baking ingredients producer Martin Braun.