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- calendar_today November 15, 2026
Innovative Cocoa Substitute Targets Chocolate Market
Amid rising cocoa prices impacting the chocolate industry, a Halifax entrepreneur is betting on a novel solution: a cocoa substitute made from used coffee grounds. The new product, developed by Kaffika, promises significant cost savings for chocolate manufacturers while offering a sustainable approach to food production.
Kaffika: Repurposing Waste for Food Innovation
Quinn Cavanagh, co-founder of Kaffika and a Dalhousie University graduate with a master's degree in applied science, leads the effort to bring this cocoa extender to market. The company’s process transforms used coffee grounds, mainly sourced from industrial producers of canned and bottled iced coffee, into a powder that can replace up to 60 per cent of the cocoa powder in products such as milk chocolate and chocolate milk.
Testing and Quality Claims
Cavanagh first tested the cocoa extender in his own kitchen, using it in recipes for chocolate cake, cookies, and brownies. According to Cavanagh, "You’d be hard-pressed to find any difference. In fact, sometimes it improves the quality. It adds complexity. It adds richness." Early feedback from commercial manufacturers has reportedly been positive, aligning with Kaffika’s theory that the food industry would welcome a high-quality, economical alternative to cocoa powder.
Addressing High Cocoa Costs
Cocoa prices have climbed in recent years, shrinking profit margins for companies producing chocolate bars and related goods. "Cocoa powder has simply gotten too expensive," Cavanagh stated in a recent interview. By complementing cocoa powder with their extender, Kaffika aims to help food manufacturers improve their bottom line while continuing to offer products their customers enjoy.
From Waste to Value: The Kaffika Mission
The product originated from experimentation by Cavanagh and his business partner, Gordon Neal, a 74-year-old entrepreneur who previously mentored Cavanagh. The team tested various uses for spent coffee grounds—including mushroom cultivation and creating furniture—before deciding that food applications held the greatest potential impact.
"There are companies all over the world that are doing things with spent coffee and we tried many of those," Neal said. However, they ultimately chose food innovation as it leveraged a valuable input that is often treated as waste.
Commercial Launch and Future Prospects
Kaffika’s cocoa extender entered the commercial market last month and is now sold directly to food manufacturers. The company's proprietary process is currently patent pending. Cavanagh summed up the company’s vision: "Part of our mission is changing that narrative of the perceived value of the ingredients, because this is valuable food input that we’re letting go to waste. It’s not waste."
With chocolate manufacturers continually seeking ways to offset high cocoa costs, Kaffika is hoping its sustainable, cost-effective cocoa substitute will become a staple ingredient in the industry.
Source: cbc.ca.
