Love + Chew navigates cocoa price hikes to expand Whole Foods partnership
“What has become really clear to me in the past year is that your customers are extremely important, and sales is important, but your suppliers and your manufacturing are just as important. If you do not have raw material or the ability to create finished goods, then you have nothing to sell to your customers ─ that is just the truth of CPG,” Lauren Chew, founder and CEO of Love + Chew, told FoodNavigator-USA.
Cocoa shortages push Love + Chew to rethink ingredient sourcing
Food and beverage brands faced record-high cocoa prices this year, as crop failures constrained the supply chain. Additionally, the EU Deforestation Regulation (EUDR) ─ a law requiring companies to document that they sustainably source various raw materials like cocoa ─ is pressuring the cocoa supply chain further, Chew noted.
Last month, the European Commission proposed to postpone the application of the EUDR to December 2025 following pressure from governments and industry players. Sustainable chocolate brand Tony's Chocolonely urged against the delay in EUDR's implementation due to concerns that "huge areas of Ghana [and] Côte d’Ivoire are projected to become unsuitable for cocoa production" by 2050, the company shared in a LinkedIn post.
Love + Chew's uses Fair Trade Dark Chocolate, which has become increasingly harder to source, Chew explained. Thus, Love + Chew evaluated ways to offset cocoa challenges, including raising prices and reformulation, but found working directly with ingredient suppliers was the most efficient way to secure raw materials, she added.
“I do not think the situation will improve for a while, and so the way that we are dealing with it is we are trying to get contract pricing right now and trying to go directly to the suppliers versus through distribution and buy larger quantities because it is crazy out there,” Chew elaborated.
Fueling R&D with innovative ingredients, new functional offerings
Love + Chew also will add its Peanut Butter Chip protein cookie to its Whole Foods roster, as consumer demands for protein increase, Chew shared. International Food Information Council found in its annual Food & Health Survey that 71% out of 3,000 American consumers surveyed try to consume protein, and 20% follow a high-protein diet.
The protein cookie launched a year ago on the brand's website and is formulated with chickpea protein concentrate for 10 grams of protein. Whole Foods will be the exclusive retail partner for 90 days after the retail launch, Chew added.
“I do not think the situation will improve for a while, and so the way that we are dealing with it is we are trying to get contract pricing right now and trying to go directly to the suppliers versus through distribution and buy larger quantities because it is crazy out there” — Lauren Chew, founder and CEO of Love + Chew.
Formulating the product proved tricky given the high protein content, she added.
"The more protein you put into a cookie, the worse it tastes. So, it was a very long R&D process, but I feel like we have a formulation that is quite tasty but still functional. ... I am looking to formulate more cookies with higher protein. I think that is what consumers want. We are all trying to live a healthier lifestyle, and protein is a huge part of the puzzle," Chew said.
Love + Chew is going “heads down in R&D” in 2025, exploring innovative ingredients to deliver new products, Chew explained.
“I just got back from Supply Side West, and there are so many different interesting ingredients, and I feel so inspired. How can I incorporate [these ingredients] into our products and offer something interesting to our existing customer base?” Chew said.
