So, you offer the whole range! Who will actually use or buy your product?
Our products are B2B ingredients especially tailored for the whole confectionery industries like snack bars, baking applications, cookies with chocolate chip and pralines. For the current partnerships, we're targeting food service, cafeterias, restaurants, but also catering companies. Don't wonder if you will find our chocolate as a small gift in an airline or a train very soon.
How seamless is the integration of your cacao concentrate into existing production processes? Do the manufacturers have to change the processes or is Nocoa the perfect alternative?
Thank you for asking that question. I love it. Actually, they don't have to change their processes because it works plug and play with the same machines. For sure there's a short transition phase to scale up the process but that is it. In October, we will produce the first batches in a bigger scale with a partner in their production plant to prove that it works not only in the lab but in an industrial setup as well.
Yeah, that's nice. What quantities do you currently look at in production?
We are currently looking at 400 kilograms per hour. We bought a production line near Nurnberg that we are now setting up together with a partner. We expect it to be ready in September and in October we will hit those 400 kilograms per hour. Everyone is happily invited to come by to take a look and put their heads into our big chocolate melting pot. At the moment, we have a small production line in Munich that can produce 15 to 20 kilos per day which is a lot lower, but 20 kilos are still enough for a chocolate party.
I will take you up on that invitation! Last question regarding the product is a price point. How price competitive are you at the moment?
I think price competitiveness is crucial. People are not willing to pay a premium. We want to enable our B2B consumers to sell their products at the same price with the same margin when using our products. If you look at how the cocoa prices are evolving currently and at how we can scale up our processes, I dare to say that we might even be cheaper than conventional cocoa in the future. I'm not talking about now, but I'm confident about the future. This also links to our plans with other fat derivatives. The challenge with palm oil is that it is rather cheap and we currently cannot produce it for the same price point. However, if you introduce new products to the markets, you want to start where you can really be price competitive early on. That's why we started with cocoa butter. Our fermentation process for sure allows to also produce palm oil and other oils in the future but it's a question of when to introduce which product.