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IngredientsFormulationFlavors & Seasonings & SpicesCost Reduction

Butter Buds: Keep Chocolate Flavor, Reduce Cost

Butter Buds’ Cocoa Butter Buds delivers chocolate flavor, cost-effective cocoa powder alternative

By Prepared Foods Editorial Staff
Butter Buds logo 2025
IMAGE COURTESY OF: Butter Buds Inc.
January 20, 2025

Butter Buds Inc., a global leader in dairy and non-dairy concentrates, recently highlighted Cocoa Butter Buds. This concentrated powder is made with real cocoa fat that provides formulators with a cost-effective alternative to cocoa powder and closely mimics delicious, real-chocolate flavor consumers know and love. Moreover, it comes at a time when cocoa prices reach historic highs. 

“Cocoa Butter Buds uses our proprietary enzyme modification and real cocoa fats from the cocoa bean to create a concentrated ingredient solution that helps manufacturers improve chocolate flavor in their formulations at a fraction of the cost of chocolate,” said Michael Ivey, National Sales Director, Butter Buds Inc. “Rich chocolate flavor is based on an ideal ratio of cocoa fat to cocoa solids, and chocolate flavorings with imbalanced ratios make it challenging for formulators to add enough cocoa fat to balance flavors without adversely affecting texture and nutritional profiles while also keeping costs affordable. Using Cocoa Butter Buds, formulators can cost-effectively achieve the elusive real-chocolate flavor consumers are sure to love without breaking the bank.”

Consumers have continued to experience rising chocolate prices on shelves—with retail prices up 10% in 2023.1  On the New York commodities market, cocoa prices reached as high as $11,722 in 2023—a historical new height caused by declining production in Africa, where Ghana and the Ivory coast produce 60% of the globe’s chocolate supply.1 This is the third year in a row of declining cocoa production in these countries, meaning costs will continue to climb in 2025. In response, baking, snack and confectionery manufacturers will need to adjust their pricing or learn to adjust formulations with lower-cost alternatives, such as Cocoa Butter Buds.

Cocoa Butter Buds rounds out chocolate flavor and adds rich, longer-lasting cocoa fat notes to any food or beverage where cocoa powder is used. With very low cost-in-use rates, typically 0.5%, Cocoa Butter Buds creates the taste and texture consumers desire with real cost optimization with minimal formulation and nutritional profile adjustments. 

This Butter Buds solution has had proven success in a variety of chocolatey formulations, such as:

- Chocolate Frosting: With a combination of Cocoa Butter Buds with other Butter Buds ingredients—Buttermilk Buds and Butter Buds-Ghee—30-40% reduction in cocoa powder was reached while maintaining real chocolate flavor.

- Instant Hot Chocolate Powder: Using Cocoa Butter Buds reduced cocoa powder usage from 10% to 8% and was able to round out sweetness and restore perception of cocoa bitter notes.

“Anywhere you use cocoa powder, you can use Cocoa Butter Buds, from snacks and baked goods to beverages and more,” said Ivey. “It’s an easy-to-use, water-soluble solution that helps manufacturers improve chocolate flavor like never before. It contributes less than 0.07% fat to the final formulation yet provides complete chocolate flavor without adding significant fat or cost and is also Kosher and Halal certified.”

“Now manufacturers can achieve meaningful cost savings while also benefitting from our team of experienced food scientists to develop successful formulations,” added Ivey. “We are here to help manufacturers overcome challenges in the market and Cocoa Butter Buds will ensure their next product delivers all the rich, chocolatey taste, texture and long-lasting cocoa fat notes that are sure to satisfy consumers.”

Learn more about Cocoa Butter Buds.

References
1 Food Institute. (2024, October 20). The scariest thing this Halloween might be chocolate prices. The Food Institute. 

KEYWORDS: chocolate cocoa food supplier

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