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Surveying Chocolate’sApplications, Trends

HILE CHOCOLATE PRODUCTS are ubiquitousin candy sets, front ends and countlessother alternative retail outlets, not allchocolate is equal. Different grades andformulations serve varying purposes, from

chocolate designed for fillings such as ganache tocouvertures used in enrobing and baking.

As the category’s largest segment, chocolate productsexperienced sales growth of 3.8 percent during 2012,reaching $19.9 billion in U.S. sales, according to NCASweet Insights.

Although all true chocolate contains cocoa liquor andbutter, the formulations vary depending on the applicationand market.

“You have milk chocolate that can range from 35%cocoa up to maybe 50%. There are a lot of different typesof milk chocolate,” says Gary Guittard, president and CEOof Guittard Chocolate Co. “There are a lot of differenttypes of dark too, especially when you throw in all thevarieties of beans. It’s as individual as people want tomake it, and a consumer could spend a lifetime trying thedifferent varieties.”

While milk chocolate is still favored by consumers,dark chocolate doesn’t trail far behind, according to KateThomson, director of insights & strategy for Sterling-RiceGroup.

Rose Potts, manager of sensory and product guidancefor Blommer Chocolate Co., agrees with this assessment,telling the NCA Journal that it is about an 80/20 ratiobetween the two varieties. She explains that darkchocolate hit a peak around 2007, as studies surroundingantioxidant and other benefits of chocolate with highercocoa percentages began to reach consumers.

“People were discovering the health benefit claims,and single-origin chocolates were also big then,” Pottssays. “Everyone was coming out with dark chocolate.”

She says it was about a 60/40 ratio around that time,

but since has gone back to milk being the dominantvariety. However, she says, dark still has growth potential,especially with baby boomers, as dark is the preference forthe older-than-35 crowd. Potts explains: “That crowdcontinues to grow and as boomers gray into seniors it willprobably continue. The preference for dark is a result ofchanges in taste buds, as older consumers crave flavorswith more impact.”

A number of sources point to continued growth fordark chocolate products. “Whether it’s health benefits orthe developing palates of consumers, the demand for dark chocolate has seen significant growth worldwide,”says Dave Johnson, president, region Americas for BarryCallebaut AG. “It is likely dark chocolate will continue toincrease its market share and popularity with time.”

The greatest growth in dark chocolate will come fromproducts made with a minimum of 50% cacao content,explains Andrew Jacobs, president of Wolfgang Candy Co.“This is because popular diets, such as the Mediterraneandiet, allow people to eat as much chocolate as they wantas long as it is made with at least 50% cacao.”

He adds that support for the aforementioned diet fromorganizations such as the Mayo Clinic will lead to moredark chocolate product introductions.

Concerning white chocolate, Potts says it has seengrowing success in recent years, particularly among non-traditional chocolate lovers, resulting in an uptick inproduct launches.

Chocolate formulations havekept pace with sales growth as ingredient suppliers look to consumer trends and manufacturers’ needs to develop products.

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CHOCOLATE BASED ON APPLICATIONSChoosing the right chocolate depends on its intendedapplication and price point, according to Potts.

She says that when developing chocolate varieties,Blommer gathers as much information as possible. “Welearn what a customer wants or needs, includingfunctionality, price point and flavor, and then try to matchtheir needs with our products. We have hundreds, if notthousands, of chocolate formulations.”

A number of factors can affect the flavor of chocolate,including the production process, according to Guittard,who explains: “Machines affect chocolate differently, soyou have those aspects as well.”

Kim Vessa, vice-president of bench-top processingequipment supplier Bottom Line Process Technologies,Inc., agrees, noting that flavor can be affected throughoutthe production process.

“Each step can play a role in influencing the finalflavor,” she says, giving for example the bean grindingprocess. She explains grinding that incorporates a highdegree of shear quickly generates heat, which might notbe good from a flavor standpoint.

Vessa says roasting also impacts flavor. For example, if

a fine flavor cocoa beanhas cherry top notescertain steps must betaken in processing topreserve that flavor.

“In our system it ispossible to do a low-temperature roast to a lowend point, 225 to 250degrees at the most,” sheexplains.

Potts says viscosityalso plays a large part inchoosing a chocolate type,explaining: “Coatings for enrobing, generally speaking,need a much lower viscosity so the product can be thinand allow for an even coating, much lower than for a solidtablet.”

Impacting the viscosity is the amount of cocoa butterincorporated, she notes.

Guittard adds: “Chips have very little cocoa butter, soyou can’t use them to coat a nut, bonbon or ganachebecause it’s so thick. You need something with more cocoabutter, such as couverture.”

Joe Sofia, Cargill, Inc. account manager and chocolatespecialist, says that compound fillings are often made withvegetable fats, which produce a soft, creamy texture. Henotes the company has developed a peanut butter melt asa ready-to-use center in its Wilbur chocolate portfolio.

Finished product suppliers are showing a growinginterest in confectionery coatings, or compound, whichCourtney LeDrew, cocoa and chocolate marketingmanager for Cargill, attributes to the variety of flavors andcolors that can be used.

The company recently released an improved version ofWilbur Chocolate brand’s Pristine white confectionerycoating, which LeDrew says has a bright white color thatenables it to be enhanced with oil-based pigments toproduce a variety of color options for decorating noveltyproducts.

She also says that fortifying compound coating isbecoming more prevalent, explaining: “Nutritive claimsare important because consumers want to be able toindulge while doing something good for their health.” Sheadds this has resulted in an increase of protein-fortifiedproducts.

Concerning value-added compounds, Potts says thereis more leeway in what inclusions suppliers can use thanwith traditional chocolate. “We have some products thathave extra fiber, reduced sugar and protein fortification.We also have Greek yogurt-style coatings — that’s beenone of the hottest trends this past year.”

The company also offers coatings to improveprocessability, such as its Chardonnay Dark and Whiteand Brandt Dark, which has a low viscosity and moreimpactful cocoa flavor, the company claims.

Another trend is the use of cocoa butter equivalents(CBEs), which can replace cocoa butter in chocolate. Theyare typically blends of fats such as shea, sal and illipe mixedwith palm mid-fraction, a palm oil product, according toagribusiness consultancy LMC International, Ltd.

Top: Moulded bars are inspected on the production line at BarryCallebaut AG’s Brazilian chocolate plant. Below: Chocolate ispoured into moulding blocks at Callebaut’s Brazilian facility.

‘Nutritive claims areimportant becauseconsumers want to beable to indulge whiledoing somethinggood for their health.’COURTNEY LEDREWCargill, Inc.

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CBEs are commonly used to reduce costs, as they areless expensive than cocoa butter and improvefunctionality such as melting point, hardness and bloomreduction.

For example, ADM’s Chocovit Plus 250 CBE has 70percent solid fat content (SFC) and a higher meltingtemperature compared with cocoa butter, which has 80percent SFC and melts at around 35 degrees Celsius. Thecompany reports that its Chocovit CBE lines can replaceup to five percent of the cocoa butter in chocolate, whileChocovit Plus 250 can be used as a total replacement insupercoatings.

Under its Chocovit Plus line, the company also offerscocoa butter improvers that can raise the melting point inproducts above 40 degrees Celsius and increasecrystallization speed while minimizing migration and fatbloom.

Other CBEs can also increase quality while productsare in storage. For example, AarhusKarlshamn AB (AAK)offers a number of options under its Illexaco line that canmitigate fat migration and improve bloom stability up tofour-fold, the company claims. In addition, the line canraise the melting point of chocolate, making it ideal formarkets in warmer climates.

While improving shelf life and stability, CBEs can raisehealth profiles. AAK’s Cebes line is non-hydrogenatedand free of trans fatty acids, while the Cebes LS varietyalso has reduced saturated fat content compared with

cocoa butter andother CBEs.

Blommer’s Pottsalso notes the risingpopularity of

flavored chocolateproducts, explaining it islargely driven bymillennial tastepreferences. “New andexciting flavors keep themillennial populationinterested,” she explains.“Baby boomers are verybrand loyal, butmillennials aren’t, andthey need something newand exciting to keep theirinterest. A lot ofcustomers are coming outwith seasonal and short-run items, such as products with an apple pie coating forthe fall.”

“Confections made with herbs and spices includinglavender, lemon zest and ginger are gaining popularity,”Cargill’s LeDrew tells the NCA Journal.

Callebaut has experienced an increase in requests forchocolate products that include fruits, exotic blends withingredients such as ginger and wasabi as well astraditional inclusions such as caramel and almonds,according to Johnson.

Concerning the last two, almonds are the mostcommon nut used in chocolate globally, included in 58percent of products that contain a nut, according toSterling-Rice’s Thomson. She adds that in the U.S.caramel is the most popular inclusion, followed byalmonds, peanut butter, cashews and pecans.

“Almonds are the number one or two inclusion inmost markets and have a wide global appeal,” Thomsonsays, adding that in developing markets such as India andChina, the popularity of chocolate with almonds is evenhigher, surpassing the 70 percent mark in both countries.

Introductions of chocolate products containingalmonds increased 33 percent between 2011 and 2012,comprising 9.2 percent of new chocolate items during thispast year, according to Lu Ann Williams, head of researchfor Innova Market Insights.

HEALTH, SUSTAINABILITY IMPACT SEGMENT“Chocolate is still an indulgent category, but now it is seenas a permissible indulgence,” Williams says. “Darkchocolate can be indulgent and also have a benefit —that’s the consumer perception. Even products makingantioxidant claims still promote indulgence on-pack.”

Johnson, of Callebaut, confirms consumers are seekingchocolate with health attributes, noting: “They areincreasingly mindful of the health aspects of chocolate,such as those items with lower sugar, fruit sugar and othersugar replacers including stevia.” He adds reduced fat andantioxidant-rich varieties are also becoming more popular.

Guittard says chocolate is seen as a healthier snackingalternative, with organic and sustainable products gainingrecognition, as well as both milk and dark varieties withhigher cocoa percentages.

Sustainability in the cocoa supply chain has been a hottopic in the industry for some time, but currently only

‘The application andhow the product isgoing to be used aremajor deals to us.Application tells us where the flavorhas to be.’GARY GUITTARDGuittard Chocolate Co.

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Left: Dark ChocolateDove bite-size pieces in one of the finalproduct stages at Mars Chocolate North America’sElizabethtown, PA,facility.Below: Dove chocolatebeing deposited intomoulding trays.

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about seven percent of the global supply is certifiedsustainable, according to Potts. She notes that numberneeds to reach about 55 percent by 2020 to meet majorfinished product suppliers’ sustainability commitments.

Sustainability measures impact cost by about 20 centsper pound, according to Potts, who says that price can goup, depending on the formulation. She explains: “A darkchocolate with more chocolate liquor would cost more.”

Potts adds that cost is also impacted by certifications.For example, The Fairtrade Foundation’s mass ballotapproach, which allows for certified and uncertified beansto be mixed for logistic and cost reasons, is a lessexpensive certification. On the other hand, there aregroups such as the Rainforest Alliance, which requires itsbeans to be separate through transportation andprocessing. “Rainforest Alliance is fully traceable, andthat’s where the upcharge is,” she explains.

BEAN VARIETIES PUSH FLAVORS“Certainly for us, we are driven by flavor,” says Guittard.“The application and how the product is going to be usedare major deals to us. Application tells us where the flavorhas to be.”

While the options for chocolate are robust, Guittardsays that 50 years ago there were even more because ofthe wider variety of beans available.

“We used to get beans from around the world, but notmany beans are coming from Samoa anymore,” heexplains. “There are no traders there; maybe they grow alittle bit for local consumption. That has happened all over.But still you can look at all the countries from SouthAmerica and each has probably five or six types of cacaotrees. That adds up.”

While there are many varieties of cocoa beans, thethree main types are Forastero,Criollo and Trinitario.

Known for its disease-resistant nature and heartygrowth, Forastero is the mostcommon, accounting for anestimated 90 percent of theworld supply, according toGuittard. With a strongchocolate flavor, Forastero beans areidentified by dark purplish cotyledons, the significant partof a seed’s embryo, and flat shape.

More rare because of their susceptibility to disease andrelative low yield, Criollo beans have a mellower chocolateflavor with fruit notes. As the trees grow naturally inSouth American jungles, several types of Criollos andcrossbreeds exist. However, because of the plant’s disease-resistance and yield issues, only a few places in the world

produce the variety, with Venezuela, Madagascar and Javabeing chief growing areas for both pure and hybrid types.

Recognizable by its pinkish interior, Trinitario are anatural hybrid of the Criollo and Forastero beans. Thisvariety is more productive and disease resistant thanCriollo, and has the potential to combine the complexflavors of Criollo with the intensity of Forastero.

Guittard notes that even when using the samevarieties of beans, chocolate flavors canvary as a result of fermentation anddrying processes. He says these factorsare impacted by the season and weather.

“Those processes are not totallycontrollable,” Guittard explains. “The keyfor any good manufacturer is to have aproduct with a consistent flavor. It’s achallenge and you have to be careful and

watch the processes.” Bottom Line’s Vessa says that for big manufacturers,

blending cocoa beans can help keep a consistent flavorprofile from batch to batch. However, she notes forartisanal products this is less of an issue, as consistency istrumped by the desire to showcase the different cocoavarieties and their flavor attributes. NCA

DIFFERENTIATING CHOCOLATEVARIETIES

NOT ALL CHOCOLATE IS EQUAL, and the FDA has setguidelines for cocoa-based products to helpdistinguish them by ingredient types and amounts.

Milk Chocolate: Must contain a minimum of 10percent chocolate liquor, 12 percent milk solids and3.39 percent milk fat. Standards allow for onlynutritive carbohydrate sweeteners, such as tablesugar, high-fructose corn syrup and naturallyoccurring types of sugar. In addition, cocoa butter,dairy products, emulsifiers and optional flavors, exceptthose that imitate milk, cream or butter, can be added.

Dark Chocolate: Also known as bittersweet andsemisweet chocolate, according to the FDA, there isno technical difference between the two terms. Theadministration’s guidelines require dark chocolate tocontain at least 35 percent chocolate liquor and lessthan 12 percent milk solids. However, traditionalchocolate of this kind contains 50 percent or more ofchocolate liquor. Ingredients such as sugars, cocoabutter and vanilla can be used.

White Chocolate: The FDA defines whitechocolate as a combination of sugar, cocoa butter,milk solids, emulsifiers and optional flavoring, with aminimum of 20 percent cocoa butter and 14 percentmilk solids. In addition, sugars cannot surpass the 55percent mark. Colors are prohibited.

Compound Chocolate: A blend of sugar,vegetable fat and other products, which might includecocoa powder and chocolate liquor, FDA standards ofidentity for compounds are more flexible thanchocolate standards. As a result they can bedeveloped into a number of varieties for flavor, colorand performance. Since compounds do not containcocoa butter, they do not require tempering. NCA

‘Coatings for enrobing, generally speaking,need a much lower viscosity so the productcan be thin and allow for an even coating.’ROSE POTTSBlommer Chocolate Co.

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