The term ‘functional chocolate’ could well be new to you, but as we continue to look for healthier alternatives to the treats we all love, it is a term that you are likely to become more familiar with in the very near future. It looks as though functional chocolate will share a very similar rise in popularity to ‘alt chocolate’.
WHAT IS FUNCTIONAL CHOCOLATE?
Regular chocolate is produced purely for the consumer’s enjoyment. Functional chocolate, on the other hand, is designed to do something, quite literally to perform a function. As a result, the consumer enjoys more than just the taste. These benefits almost always link to specific health concerns like low energy, poor sleep, stress, and lack of focus by using ingredients like vitamins, minerals, botanicals, amino acids, and nutraceuticals.
Finding the right balance of ingredients is a challenge for manufacturers.
If the aim is to relieve stress, the product is likely to contain high levels of magnesium and antioxidants, as these may ease certain symptoms of stress and anxiety. For brain health, manufacturers could use cocoa that contains flavonoids alongside superfoods like blueberries, goji berries, and golden berries. And if the aim is to aid sleep, the manufacturer could use ingredients like chamomile, valerian, and melatonin.
If the idea is to address energy levels, there needs to be a delicate balance of fats and carbohydrates, which will likely involve using the fats to coat sugar molecules so they can be released into the consumer’s bloodstream over time. Alternatively, energy-boosting supplements like taurine, L-Tyrosine, schizandra berry, and caffeine could be used.
The potential of using chocolate to boost energy is arguably the most commercially exciting. If the manufacturers of energy supplements could get their taste and their branding just right, functional chocolate could provide an instant and highly profitable diversification opportunity.
HOW IS THE FUNCTIONAL CHOCOLATE SECTOR EXPECTED TO DEVELOP?
Now the first functional chocolate products are finding not only the shelves but also the attention of consumers; manufacturers look set to take their products in various directions:
- Increased health and wellness benefits, potentially employing more protein-rich options.
- Experimentation with more unusual flavours like chilli and exotic fruits to sustain consumer interest and offer product ranges with that all-important differentiation.
- Increasingly sustainable practices to meet the demand of an increasingly ethical audience.
- More plant-based products to meet the growing popularity of vegan and dairy-free options.
- More premium products, potentially with more diverse flavours and more high-end products stemming from the health food and energy supplement brands consumers have already embraced.
- The introduction of smaller products to take on the traditional chocolatiers’ ‘fun-sized’ options.
WHO ARE THE FRONTRUNNERS IN THE FUNCTIONAL CHOCOLATE MARKET?
Although it is still relatively early days, a few companies have already established a strong market position; these include:
- The Functional Chocolate Company offers a range of vegan, health-focused products designed to address sleep, energy, focus, and stress.
- Alice Mushrooms uses mushrooms, adaptogens, and nootropics to produce products designed to improve their consumers’ general well-being.
- Joya specialises in producing low-sugar chocolate ‘superfoods’ packed with antioxidants, fibre, protein, healthy fats, and magnesium to help consumers fight stress and balance their nervous systems.
- Seven Summits Snacks’ Endurance Bars boast ingredients that provide sustainable energy without the crash and burn or upset tummy, allowing athletes to focus solely on improving their performance.
WHAT ARE THE KEY IP ISSUES YOU NEED TO CONSIDER?
As functional chocolate grows, competition within the sector will only increase. This means the most valuable elements of your products and processes will be at increased risk of misuse by your competitors. You need to identify and protect these elements to ensure you can legally keep hold of all the things that make your products unique.
These could include:
- The formulations of ingredients and supplements you use. These can be protected by patents.
- Your name, logo, and the other aspects that make up your brand identity. These can be protected by trade marks.
- Your manufacturing processes, recipes, and marketing data. These can be protected by trade secrets.
- The physical properties of your product, its packaging and shape, and any design aspects you use in your marketing or branding. These can be protected by designs.
However, as functional chocolate is predominantly marketed as a health-focused product, there are a range of regulatory issues you will also need to consider.
From a strictly regulatory perspective, you need to be aware of the relevant labelling, packaging, and traceability regulations within all the geographic markets you plan to sell.
Although most European countries fall under the relevant EU regulations, some will not. More importantly, other global markets will definitely not! You must make sure you are fully compliant with all local regulations before you sell, as the financial and reputational cost of being challenged can be damaging.
The other aspect to consider is the language you use to describe your products within your marketing material. Healthwashing is the term used to describe the act of making claims that make products appear healthier than they actually are. These claims could be any non-mandatory food information, message, or communication that indicates, suggests, or implies specific characteristics of a food product, beyond what is legally mandated. You can find out a little more about healthwashing here.
Potter Clarkson’s dedicated FMCG team contains UK and EU attorneys and IP solicitors who specialise in helping new and novel food brands safely take their products to market. If you would like to discuss any of the issues we’ve covered in this blog, please contact us today.
