Win-Win Raises $4M, Scaling Cocoa-Free Biz

Cocoa-free chocolate maker Win-Win (formerly WNWN Food Labs) has landed a new $4 million Series A investment round led by the Oetker Collection and German sustainability investment group FoodLabs, with participation from Mustard Seed Maze, Gota Ventures, Paulig, and Kapital.

Win-Win has raised $8 million in total since the company was established in 2021. As part of the deal, the U.K.-based food technology company has reaffirmed its partnership with German bakery giant Martin Braun-Gruppe with a distribution agreement.

Martin Braun will use Win-Win’s milk and dark chocolate alternatives in two glazes, offering a more sustainable option than traditional cocoa-based products. Previously, Win-Win completed the Mondelēz’s CoLab Tech accelerator, linking it to the multinational chocolate company.

The company will use its new funding to expand in the U.K. and various European markets by building out a larger team and resourcing new innovation.

The food tech business, founded by chef and materials science Ph.D. Johnny Drain and former investment banker Arhum Pak, makes a one-to-one replacement for chocolate using fermented cereals, legumes and carob. Win-Win’s products are used as ingredients to make any chocolate without the use of cacao fruit or cocoa.

In February, veteran CPG leader Mark Golder (formerly an executive at PepsiCo UK and Quest Nutrition) took over the CEO role at Win-Win. Co-founder Pak has moved into the role of chief strategy officer.

“We’re delighted to conclude this funding round, which provides us with extra resources to continue on our mission and deliver a sustainable and affordable alternative to chocolate,” Golder said in a statement. “The industry is at an inflection point and needs alternative solutions that are stable and more environmentally and socially sustainable.”

While the price of cocoa is down from its high point in 2024, it is double what it was two years ago thanks to deforestation issues, extreme weather, crop disease and increased demand. The elevated pricing has had chocolate makers and ingredient suppliers searching for alternatives that can be used to offset the high commodity costs.

“We founded Win-Win having noticed the potential for fermentation to create flavors and aromas from unexpected sources, and made the link to this offering a solution to major food systems (like chocolate) which are becoming unsustainable due to climate change,” the company said in a statement.

Win-Win is just one of many food tech businesses scaling chocolate alternatives as cocoa pricing weighs on margins and increases consolidation among category players. Voyage Foods, Planet-A-Foods (under the ChoViva brand) and Ardent Mills are a few of the suppliers offering cocoa replacements.