Fermtech, a biotech company developing fermentation technology to unlock more value from existing crops, has raised £2.5 million in a seed round led by Elbow Beach, with participation from Carbon 13 and Empirical Ventures. The funding will enable it to scale production of its Koji Cocoa™ product and expand its platform in the United Kingdom and internationally.
It produces Koji Cocoa™, a cocoa alternative made from cocoa shells using solid-state fermentation. The product delivers 25%-33% cost savings in chocolate and baked goods and achieves up to 98% lower carbon emissions without requiring additional farmland. By using side streams of the cocoa plant that are normally discarded, the process preserves natural cocoa flavours while breaking down indigestible components into soft, nutritious ingredients. This allows manufacturers to maintain taste, colour and texture while reducing reliance on traditional cocoa and improving supply chain resilience.
The launch comes as climate change and crop disease have contributed to an estimated 30% decline in cocoa yields, creating pressure on manufacturers through rising prices and supply volatility. Operating in the $27 billion+ global cocoa ingredients market, Koji Cocoa™ enables a more sustainable and circular approach to ingredient production. It is already engaged with leading players in the global food and snacking industry, demonstrating versatility and indicating market potential.
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.
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.
