Planet A Foods, based in Munich, has announced a successful raise of $30 million in Series B funding to bolster its sustainable food products. The company, known for creating innovative chocolate alternatives, aims to meet the rising demand for eco-friendly ingredients. This investment round highlights the growing interest and necessity for sustainable options within the food industry, particularly as environmental concerns continue to impact traditional ingredients like cocoa.
Over time, many companies have struggled to navigate the challenges posed by climate change, which affects agricultural supply chains, including cocoa, a critical ingredient in the chocolate industry. Historically, cocoa prices have been volatile due to environmental factors and overfarming, pushing the industry to seek more sustainable and stable alternatives. Planet A Foods’ decision to focus on sunflower seeds for a chocolate alternative is a strategic move addressing these ongoing issues. This reflects a shift towards reducing dependence on environmentally vulnerable resources.
What Does Planet A Foods Offer?
Planet A Foods has developed a product named ChoViva, a chocolate alternative made from sunflower seeds. This innovation addresses the challenges faced by the $130 billion global chocolate industry, which includes threats from climate change, environmental degradation, and unstable cocoa prices. By utilizing a proprietary fermentation process, ChoViva achieves similar taste and texture to traditional chocolate, but with significantly lower carbon emissions.
ChoViva has already been integrated into over 20 products through partnerships with several major companies, including Lindt and Rewe Group. The company’s commitment to sustainability is evident in its efforts to promote a cocoa-free future in food production. According to Dr. Sara Marquart, co-founder and CTO of Planet A Foods, their mission is to create food products that are sustainable, ethical, and scalable, reducing the reliance on traditional supply chains.
Capital Utilization
The newly secured funds will enable Planet A Foods to expand its production capacity significantly, from 2,000 to over 15,000 tons annually. The company also plans to increase its presence in new markets, such as the UK and France, in 2025, with further strategic partnerships targeting the US and Asia. This expansion is crucial for meeting the growing demand for sustainable alternatives in the food industry.
The investment was co-led by Burda Principal Investments and Zintinus, with significant contributions from World Fund and Cherry Ventures. Julian von Eckartsberg from Burda Principal Investments expressed commitment to supporting initiatives that address global challenges in sustainable food production. The company’s latest funding round underscores its readiness to transition from a startup to a significant player in the foodtech sector.
This development signifies an important step for Planet A Foods, marking its evolution from a small startup to a leading force in sustainable food technology. Their primary objective remains providing ingredients that are not affected by the volatility of traditional resources. Moving forward, the company is not only focusing on scaling its production but also on ensuring that its products deliver at a global scale to major confectionery brands.
