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Koa
Fixing Chocolate's Billion-Dollar Waste Problem
“Taste Your Impact”
Koa is a sustainability-driven company revolutionizing the cocoa industry by upcycling the often-wasted cocoa pulp into high-value products like juices and concentrates.
🔗Check them out here: koa-impact.com
Welcome to a new edition of Ag Breakdowns, where we deep dive into the companies changing the future of agriculture! Today we are diving into the company KOA.
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Key Industry Metrics
Global Chocolate Market: Estimated at USD 130.72 billion in 2024, projected to reach USD 172.89 billion by 2030, growing at a CAGR of 4.17%.
Cocoa prices have tripled, surging from $4,000 to $12,000 in 1 year, not just due to a modest production decline but also because of severe weather disruptions, supply chain bottlenecks, and geopolitical tensions affecting exports.
About 70% of the cocoa fruit is typically discarded in traditional chocolate production.
Cocoa farmers typically earn only about 6% of the final value of chocolate products.
Africa contributes about 75% of the global cocoa supply, with Côte d'Ivoire and Ghana being the biggest producer with over 50% of global production.
Europe and North America dominate cocoa consumption, Asia pacific markets are growing.
We all love chocolate, but have you ever wonder what happens to the rest of the cocoa fruit after making your chocolate bar?
Here's something that might surprise you: 70% of each cocoa fruit gets thrown away.
That's right, for every chocolate bar you eat, more than half of the fruit it came from ended up as waste. In an industry worth $130 billion, that's like throwing money in the trash.
Why Your Chocolate Bar Has a Problem
Let's break down what's wrong with how we make chocolate today:
Farmers get only 30 cents from your $5 chocolate bar (about 6% of retail price)
Most of the cocoa fruit (70%) rots on the ground
2.5 million farmers struggle to make ends meet
All this waste hurts the environment
But in 2017, a company called Koa looked at this problem differently. They asked: "What if we could use the whole fruit?"
Let's look at how big this opportunity is:
The chocolate market is worth $130 billion in 2024
It's growing to $172.89 billion by 2030
That's a 4.17% growth rate each year
Premium chocolate (the fancy stuff) is growing even faster
Consumers are demanding healthier, more sustainable products!
The Koa Process Explained
Step 1: Saving What Others Waste
Think about an orange - you wouldn't just eat the seeds and throw away the juice, right? But that's basically what the chocolate industry does with cocoa fruit. Here's how Koa is different:
The Pulp Process:
Traditional way: The sweet, white pulp around the beans gets thrown away
Koa's way: They collect and process this pulp
What it becomes: A natural sweetener that replaces expensive sugar
Why it matters: Less waste, better taste, healthier product
The Shell Story:
Traditional way: The outer shell becomes trash
Koa's way: They grind it into a useful powder
What it becomes: A fiber-rich ingredient for chocolate
Why it matters: More nutrition, less waste
Step 2: Making Sure It Works
Getting this right wasn't easy. Koa had to solve some tricky problems:
Too much pulp makes the chocolate clumpy
Too little doesn't make it sweet enough
The chocolate needs to feel right in your mouth
Everything needs to taste great
The New Supply Chain: How It All Comes Together
On the Farm
Farmers harvest the whole cocoa fruit
They separate beans, pulp, and shells
Each part gets processed differently
Nothing goes to waste
At the Factory
Solar-powered equipment processes each part
Special machines turn pulp into sweetener
Quality checks ensure everything meets standards
Blockchain technology tracks payments to farmers
To the Customer
Premium chocolate makers buy the ingredients
They create new, healthier products
Customers get better chocolate
Everyone in the chain makes more money
What Makes It Better?
In the food industry, it's rare to find solutions that benefit everyone.
But Koa has proven it's possible, one cocoa pod at a time.
By using the whole cocoa fruit, they've created chocolate that's better for you, with more fiber, less sugar, and fewer artificial ingredients. Also, it’s better for everyone involved.
Out in Ghana's cocoa fields, the transformation is clear.
Where rotting fruit once released greenhouse gases into the air, solar-powered facilities now process 40% more of each pod. Farmers who used to throw away most of their harvest are seeing their incomes grow by 30%, with steady earnings throughout the year thanks to blockchain-tracked payments.
The Challenges They Face
Supply Chain Overhaul. Transitioning to whole-fruit chocolate production requires significant investment in new equipment and processes. Farmers need training to handle and store pulp and husks, while companies must adapt to new production methods.
Consumer Education. Convincing consumers to pay a premium for whole-fruit chocolate requires effective storytelling and marketing. Highlighting the health benefits and sustainability aspects will be crucial.
First-Mover Advantage. Companies like Koa that adopt this model early can differentiate themselves in a crowded market. With a patented recipe and strong partnerships, Koa is well-positioned to capitalize on this opportunity.
Why This Matters
Koa’s approach is a masterclass in aligning business goals with social and environmental responsibility. By transforming waste into value, the company addresses systemic issues in the cocoa industry while meeting consumer demand for sustainable products. It’s a win-win-win for farmers, consumers, and the planet.
As the global chocolate market evolves, Koa’s innovative model could set a new standard for the industry, proving that profitability and sustainability can go hand in hand.
Here you can see all their products: koa-impact.com/products
Behind the Business
Business Model
Koa transforms the cocoa fruit by upcycling its pulp, reducing food waste by 40% and generating additional income for farmers. The company emphasizes sustainability through solar-powered operations and direct partnerships with over 6,800 cocoa farmers. Their products include cocoa juice, concentrates, and dried pulps, used in chocolate, ice cream, and beverages. Major partners include Lindt, Sprüngli, Felchlin, Valrhona.
Traction
Farmers: Engages over 6,800 farmers, aiming for 10,000 more.
Production: Opened a new factory in Ghana to scale production tenfold.
Recognition: Certified B Corporation, aligned with Sustainable Development Goals (SDGs).
Jobs: Focuses on rural youth employment in Ghana.
Fundraising
Series B: Raised $15M in December 2023, led by the LDN Fund.
Total Funds: $25M to date, including Series A.
Allocation: Scaling operations, product development, and marketing expansion.
Founder Story
 Benjamin Kuschnik | Co-founder |  Anian Schreiber | Co-founder |
Benjamin, Koa’s Group Finance Director, brings a strong finance background from roles at Yingli Solar and ecolutions. Fluent in four languages, with expertise in international business and sustainability, he ensures Koa’s financial health and strategic growth.
Anian, Koa’s Managing Director, is the visionary behind the company’s strategic direction. Focused on sustainability and innovation, he leads efforts to upcycle cocoa fruit and empower rural communities.
Jobs
Spontaneous application | Switzerland
Lead Financial Planning and Analysis | Cologne
Quality Manager | Cologne
Senior Finance Manager | Cologne
Our Analysis
The chocolate industry has a big problem: it wastes 70% of each cocoa fruit. While chocolate makers only use the beans, the rest of the fruit rots on farms. In an industry worth $130 billion, this waste hurts both farmers and the environment.
Koa is changing this by using the whole cocoa fruit. Started in 2017, the company saw an opportunity in what others were throwing away. They collect the sweet, white pulp that surrounds the cocoa beans and turn it into natural sweeteners. They also grind the outer shell into a powder rich in fiber. These new ingredients make chocolate healthier while creating extra income for farmers.
What makes Koa different is their complete approach to solving industry problems:
First, they've built solar-powered processing facilities in Ghana, where much of the world's cocoa comes from. These facilities can process 40% more of each cocoa pod than traditional methods. This means less waste and more useful products.
Second, they use blockchain technology to track payments, ensuring farmers get paid fairly and quickly. This has helped increase farmer incomes by 30%. Instead of earning only 6% of a chocolate bar's value, farmers now make money from parts of the fruit they used to throw away.
Third, they're helping chocolate makers create better products. By using Koa's natural sweeteners and fiber-rich powder, companies can make healthier chocolate with less sugar and more nutrients.
The timing couldn't be better. Cocoa prices have jumped from $4,000 to $12,000 per ton in just one year, making Koa's efficient use of the whole fruit even more valuable. The global chocolate market is also growing, expected to reach $172 billion by 2030, with customers wanting healthier and more sustainable products.
However, Koa faces some challenges. They need to convince more chocolate makers to change how they make chocolate, which means investing in new equipment and changing old recipes. They also need to train farmers to handle and store the pulp and shells properly.
Despite these challenges, Koa is showing how innovation can transform an old industry. By turning waste into value, they're helping farmers earn more, making chocolate healthier, and protecting the environment. As cocoa prices rise and customers demand better products, Koa's approach could become the new standard for chocolate production.
More Resources
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