Meiji Holdings Co. Ltd. (Meiji), the leading chocolate manufacturer in Japan, announced on February 9, 2024 that it had reinvested an undisclosed amount in the cell-cultured cocoa and coffee producer California Cultured Inc., which was founded in 2021.
Why did Meiji invest in California Cultured?
From its headquarters in West Sacramento, California Cultured makes cocoa in fermentation tanks, a climate-resilient approach that also addresses deforestation and labor exploitation. Its products have captured the palates of consumers, as well as chocolate makers.
Enter Japanese conglomerate Meiji, which realized the value in the sustainable supply chain solution that California Cultured provides.
“Meiji’s collaboration with California Cultured involves the seamless integration of the startup’s cocoa powder, cultivated from cells rather than traditional cocoa beans, into an array of confectionery and wellness products tailored for both the US and Japanese markets,” California Cultured Head of Strategy Steve Stearns said in an interview with Indie Bio’s Green Queen.
Stearns further explained that California Cultured’s unique cocoa production process not only aligns with Meiji’s sustainable and environmental practices but also allows them to create wellness-enhancing chocolate products designed for consumer use.
As reported by Indie Bio, Meiji’s investment in California Cultured comes with a 10-year commercial partnership that incorporates the U.S. startup’s cocoa powder into several packaged goods distributed by Meiji.
What does the future of the global Cacao industry look like?
Global consumption for cocoa products is expected to increase in the next few years until 2028.
According to Statista, revenues for the Chocolate Confectionary market is projected to reach $254.10 billion in 2024. Top markets include the United States, Indonesia, Japan, India, and Mexico. The same report predicted that the average consumption of cocoa and coffee per person will grow to 2.4kg per year.
