Italian confectionery major Loacker has backed Danish alternative chocolate start-up Endless Food Co.
The chocolate wafers producer has committed to investing €1m ($1.2m) a year in a new corporate-venture programme.
In a social media post on LinkedIn, the business said it is "backing high-growth startups that are ready to transform the food ecosystem".
Copenhagen-based Endless, which produces a chocolate alternative from upcycled ingredients like spent grain from breweries and cacao shells, is one of two businesses that have received backing from Loacker.
The second is an Italian tech start-up called Dr Taste, which is building a predictive platform that uses market, sensory and neuroscientific data it says helps food businesses understand consumer responses to products.
Loacker added in its post: "Our focus centres on key areas of strategic synergy: pioneering natural ingredients, developing balanced nutrition without compromising on taste, driving circular economy solutions and enhancing supply chain transparency through smart data."
In a separate press release, the group said it would provide businesses with funding, as well as "industrial expertise, market knowledge, development capabilities, and access to an established corporate ecosystem".
The group also said that start-ups for the programme would be selected based on "industrial and strategic synergies" with its namesake confectionary business A. Loacker and its AgroSelect Ingredients business which sources the raw materials for its products.
Andreas Loacker, vice chairman of the board of Loacker Group and A. Loacker, said: "Well-established companies and startups possess distinct yet complementary strengths: on one hand, deep industry experience, manufacturing scale, and market knowledge; on the other, agility, specialisation, and disruptive perspectives. Our Corporate Venture Capital program is designed to bridge these two worlds to address the structural challenges of the coming years together."
Founded in 2022, Endless produces its chocolate alternative called THIC (this isn't chocolate) in several formats, including chips and powders.
According to its website, the group supplies 7-Eleven stores in Denmark with its chocolate alternative for the retail chain's baked cookies. It also supplies bakeries across Europe as well as restaurants.
Reflecting on the investment on LinkedIn, Christian Bach, the co-founder and CCO of Endless, said: "Loacker Group didn't get to a century in confectionery by chasing every new ingredient trend. They got there by understanding their space better than almost anyone. If anyone knows where indulgence is headed, it's them. That they're betting on us to help take it there is one of the most validating things that's happened for us yet."
In a separate joint release, Endless said Loacker would help it with "technical development, product innovation, and market growth".
Food manufacturers have been showing a steady growing interest in alternatives to traditional chocolate, with much of this interest being in cocoa-free options.
Earlier this year, Mars launched a trail mix product in Germany with local cocoa-free ingredient supplier Planet A Foods.
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