The global cocoa market has been a roller coaster ride in recent years, with no signs that the fluctuating prices and other supply chain woes will level off anytime soon. The uncertainty has bakers and others in the food field seeking solutions that help alleviate the concerns while still delivering the chocolatey taste and indulgent flavors consumers crave.

Ardent Mills recently unveiled Cocoa Replace, a wheat-based ingredient intended to substitute for a portion of cocoa powder in formulations. To learn more, we connected with Sergio Machado, senior director of research development and applications with Ardent Mills.

Jenni Spinner: Could you please talk about the growth in cocoa demand and production?

Sergio Machado: From iconic chocolate bars to decadent cakes and muffins, cocoa is a consumer ingredient staple, primarily known for indulgent, familiar flavors across categories like bakery, confectionery, and snack foods. However, this growth has been met with tightening supply, creating pressure across the supply chain and heightening the need for formulation strategies that offer both resilience and flexibility.

JS: Then, please share some of the challenges the cocoa supply chain has wrangled with in recent years—please feel free to mention anything from climate change, regional instability, labor challenges, tariffs, etc.

SM: Climate change, ongoing geopolitical instability, and labor shortages have certainly created volatility in both supply and price. Furthermore, over the past decade, we’ve seen cocoa prices rise significantly—up nearly 400% in the last decade—and that instability directly impacts food manufacturers’ ability to manage ingredient costs and ensure consistent sourcing. In turn, this has made cocoa a prime example of why resilient formulation strategies are increasingly critical for our customers—and directly informed our approach to innovation and R&D at Ardent Mills.

JS: How have food producers typically been managing these challenges? 

SM: We’ve heard directly from our customers, particularly in the snack and bakery space, that ongoing volatility in cocoa pricing and supply has forced them to revisit their product and formulation strategies. In many cases, that’s meant evaluating where substitutions or partial replacements are feasible without sacrificing quality or consumer trust. Our focus has been on helping customers reformulate smarter, with ingredient solutions that are simple to integrate, preserve flavor and texture, and align with clean-label expectations. Cocoa Replace is one example of how we’re supporting that shift: a wheat-based, single-ingredient alternative that offers meaningful cost savings with minimal disruption to labeling or sensory performance.

JS: Let’s talk about cocoa extenders/replacers—what types of products have been available in recent years, and are there any challenges or problems with these products?

SM: Traditionally, cocoa replacers have included starches, carob powder, and other blends designed to mimic cocoa’s functional or visual attributes. However, these often fall short in terms of cocoa’s indulgent sensory experience or require complex adjustments to labeling and formulation. Many contain multiple ingredients or additives, which can complicate reformulation for brands focused on transparency or “fewer, simpler” ingredients.

JS: Ardent Mills recently introduced Cocoa Replace—could you tell me what the product is composed of, the types of products it is best suited for, and what benefits the ingredient offers compared to similar offerings currently on the market?

SM: Cocoa Replace is a wheat-based, single-ingredient alternative to cocoa powder, specifically designed to help food manufacturers and bakers replace up to 25% of cocoa powder in formulations for cakes, brownies, cookies, and muffins. Because it’s made from wheat and delivers a similar sensory experience to cocoa, it’s especially well-suited for baked applications. What sets Cocoa Replace apart is its simplicity—unlike multi-ingredient blends, it requires minimal label change in wheat-based goods and supports cost-effective reformulation without sacrificing product eating experience. 

JS: How does Cocoa Replace appear on ingredients lists?

SM: As a single-ingredient product—wheat—Cocoa Replace was designed to minimize label changes. However, food manufacturers will need to determine the most accurate declaration for products where it’s incorporated. Additionally, its position within the label depends more on the type of product and its formulation. For example, wheat-based products may only require a minor label change. 

JS: What advice do you have for bakery or snack producers considering incorporating Cocoa Replace in reformulations of current products or in launches of new items?

SM: Beyond replacement, the key is to think about Cocoa Replace as a formulation tool - reducing reliance on cocoa in a way that’s operationally simple, label-friendly, and cost-effective. We would also encourage looking at Cocoa Replace in tandem with other cost-saving innovations. like our Egg Replace product, as part of a larger strategy to help brands navigate market volatility with confidence.

JS: Anything to add?

SM: Part of our larger portfolio of ingredient replacement solutions, Cocoa Replace is one example of how we’re investing in innovation that directly solves for critical customer pain points. Whether it’s ingredient volatility, supply disruption or the push toward cleaner labels, we’re focused on developing solutions that help our customers stay ahead of change. As the market continues to evolve, our goal is to be the partner that makes formulation challenges easier.

Related: Ardent Mills introduces cocoa replacement ingredient