Global cocoa prices have been under significant pressure in recent years since 2021 the commodity price of cocoa has surged. According to the recent coverage in Australia, some manufacturers in the UK have already responded by modifying their recipes so that their products can no longer legally be described as “chocolate”.
Higher cocoa prices are driving cost-saving measures resulting in product formula’s containing less cocoa, inferior substitutes, and lower solid content. In turn this brings brands to relabel their products away from the legal definition of “chocolate” in the market.
Consumers may be misled if the label uses the term “chocolate” or a similar term when the composition no longer meets the legal standard, opening the risk of regulatory enforcement, product recall, and reputational damage. Under the Food Standards Australia New Zealand (FSANZ), a product labelled as “chocolate” must meet certain compositional criteria. Similarly, in the UK, a product described as “milk chocolate” must meet minimum cocoa solids and minimum milk solids thresholds.
When those changes push the composition below the legal threshold for “chocolate”, brands sometimes adopt terms like “chocolate-flavoured”, “choc-coated”, “choc variety” or even “choc” in their branding/packaging. While from a marketing vantage this may be tempting, there are regulatory risks.
Given the current cocoa cost pressure, labelling teams and compliance functions should analyse recipes, cocoa measurement content, ingredient substitutions and ensure that the product names and descriptors are legally supported.
The rising cocoa prices and tight regulatory definitions of what may be labelled “chocolate” mean that food businesses are facing an evolving risk landscape.
When cocoa prices spike, recipe change becomes tempting. But if you reduce cocoa solids below the legal threshold for “chocolate”, you must change the name or descriptor on the pack and review your export packaging. The cost of ignoring this may greatly exceed the short-term savings from the cheaper recipe.
Brands reformulating products due to rising cocoa costs should work closely with regulatory and labelling teams to verify that the product name, composition, and market claims remain compliant. Failure to do so can expose brands to enforcement action, recalls, and reputational damage, often far costlier than the savings gained from reducing cocoa content. Contact us today to enquire.
