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Penguin and Club bars no longer classed as chocolate

Penguin and Club bars can no longer be classified as chocolate after the pladis-owned McVitie’s brands turned to cheaper alternatives amid the ongoing cocoa crisis.

McVitie’s has cut the products’ cocoa content and replaced it with chocolate flavouring, meaning that both treats must now be described as "chocolate flavour".

Higher prices and restricted supply are driving confectionery companies to replace cocoa with other alternatives, including palm oil and shea butter.

“Brands have used chocolate flavouring in the past and [it] will no doubt be used by others in future, particularly given skyrocketing cocoa prices,” Dan Crossley, executive director of the Food Ethics Council, told Ingredients Network.

He added: “Only so much shrinkflation is possible before brands feel they have to switch to alternative, cheaper ingredients.”

Transparent communication crucial to avoid ‘chocolate-wash’

After cocoa has been processed, a cocoa bean becomes cocoa liquor, which contains 50% each of cocoa solids and cocoa butter.

In the European Union (EU), regulations state that for chocolate to be classified as such, it must comprise at least 25% cocoa solids. In the UK, this sits at around 20%.

Previously, Club bars bore the marketing slogan: “If you like a lot of chocolate on your biscuit, join our club.”

However, the reformulation move means both brands will need a rethink when it comes to sales strategies.

Transparent communication about chosen ingredients, sourcing credentials, and production methods is vital to navigate cocoa reduction and replacement plans, Crossley argued.

“We need to avoid chocolate-wash,” he said.

Join our sustainable sourcing Club, anyone?

Approaches to marketing content and claims are likely to differ between big brands like Penguin and Club and emerging startups.

In contrast to legacy brands, smaller companies may want to promote themselves as authentic, with ethically sourced ingredients and higher cocoa content.

“There’s not room in our diets, or on the planet, for us to eat too many chocolate-flavoured, sugary palm oil bars in the future,” said Crossley.

“The irony is that if the Penguin brand makes it to its 100th anniversary in 2032, some of the already endangered penguin species in the world may no longer be around.”

However, he added: “I would love all food brands to put more of their energy into sustainable sourcing than into new marketing strategies.”

A temporary trade-off?

West African countries, notably the Ivory Coast and Ghana, account for approximately 60% of the world’s cocoa production.

In recent seasons, climate change has led to poor harvests and severe droughts in these cocoa-producing countries. Weather disruptions have led to rising cocoa prices and dwindling production volumes.

However, in September, the International Cocoa Organization’s Cocoa Market Report found that in both London and New York, cocoa prices fell by 11%, dropping to $6,357 and $6,735 per tonne respectively.

Although the 2025/26 cocoa season anticipates a global production surplus, it is not solely the result of increased output, but also down to improved weather conditions in West Africa, higher farm gate prices, and expanded production in Ecuador.

Structural challenges remain in West Africa, with ageing cocoa trees, persistent crop diseases, and developing climate-related risks influencing the outlook for the cocoa supply for the remainder of the season.

The industry may see the use of flavouring ingredients instead of conventional chocolate ingredients as a temporary measure while the cocoa season remains volatile. Yet manufacturers may also consider whether they need to prepare their research and development (R&D) plans and formulation strategies for a more permanent switch.

“It’s hard to say whether switches away from ‘real chocolate’ will be permanent, but I’d be surprised if cocoa prices come down soon, so expect to see even more chocolate flavouring in the near future,” Crossley concluded.