The classic British lunchbox favourites, Penguin and Club biscuits, have been officially downgraded from "chocolate" to "chocolate flavour" due to a quiet reformulation driven by a global cocoa crisis. The manufacturer, Pladis, reduced the cocoa solids content in the coating below the legal UK minimum of 20% to offset record-high cocoa futures prices—which recently soared to over $11,000 per tonne following poor harvests in West Africa caused by climate change. To replace the cocoa fat, the company increased the use of cheaper vegetable fats like palm and shea oils. This cost-cutting move has had immediate brand consequences, forcing the retirement of the iconic Club slogan, "If you like a lot of chocolate on your biscuit, join our Club," in favour of a less memorable alternative, sparking a considerable social media backlash from consumers who feel they are receiving an inferior product. This trend highlights the increasing cost pressures on confectioners, making real chocolate a growing luxury.
BBQ - What is the potential impact of this strategy on the company's profitability and brand image?
