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Choc Betrayal: How Palm Oil and Vegetable Fats Substitutions Are Hijacking Real Chocolate
Blog / Whitakers News / Choc Betrayal: How Palm Oil and Vegetable Fats Substitutions Are Hijacking Real Chocolate

Choc Betrayal: How Palm Oil and Vegetable Fats Substitutions Are Hijacking Real Chocolate

Chocolate is having a moment in the headlines, and not for the reasons we’d like. 

Cocoa crops have been hit hard, prices have soared, and as costs climb, some big manufacturers are changing what goes into their bars and biscuits.

That can mean smaller products, but it can also mean something more subtle: recipe “tweaks”, including swapping some cocoa-based ingredients for cheaper vegetable fats (such as palm and shea). 

In some cases, the change is so significant the product can’t legally be described as “chocolate” anymore.

So what’s actually going on, how can you spot it, and what does it mean for the chocolate you’re buying?

Chocolate Ingredient Substitution in the UK - What’s Going On? 

When cocoa becomes expensive, manufacturers generally have three options:

  1. Put the price up.
  2. Shrink the product (same price, less chocolate).
  3. Reformulate the recipe (change ingredients to reduce cost).

It’s the third option that’s raising eyebrows.

Some products are moving away from a traditional chocolate coating and towards a “chocolate flavour” coating, which can contain more vegetable fats and less cocoa-derived ingredients.

This isn’t just marketing spin, in the UK, there are legal standards for what can be called chocolate, and reformulation can push products outside those definitions. 

https://www.legislation.gov.uk/uksi/2003/1659/schedule/

Is the Chocolate You Are Eating Really Chocolate?

It’s a question more and more UK consumers are asking as cocoa prices force changes in the industry. 

The truth is, not all "chocolate" on the shelves meets the legal definition — and that’s down to how recipes are being adjusted to cut costs.

In the UK, strict regulations from the Food Standards Agency define what can be labelled as chocolate. 

For milk chocolate, for example, it must contain at least 25% cocoa solids (including cocoa butter and cocoa mass) and a minimum of 14% milk solids. 

Dark chocolate requires at least 35% cocoa solids, and white chocolate needs 20% cocoa butter with no cocoa solids from the bean itself. 

These rules ensure the product delivers the rich, authentic taste and texture we associate with real chocolate.

But when manufacturers swap out cocoa butter for cheaper vegetable fats like palm oil, shea, or illipe, the product can fall below these thresholds. 

Suddenly, it’s no longer "chocolate", it becomes a "chocolate-flavoured" coating or compound. 

This isn’t always obvious on the packaging; the branding might still scream "chocolatey goodness," but a closer look at the small print reveals the switch.

The result? A product that might look and melt similarly but lacks the depth of flavour, smoothness, and health benefits (like antioxidants from cocoa) of the real thing. 

Plus, vegetable fats often come with their own concerns, such as sustainability issues with palm oil production linked to deforestation.

To check if your chocolate is the genuine article, flip the pack and scan the ingredients list:

  • Cocoa butter or cocoa mass should be high up, not buried after sugars and fillers.
  • Watch for phrases like "vegetable fats in addition to cocoa butter" — if they exceed 5% (the legal limit for added fats in chocolate), it might tip the balance.
  • Avoid anything labelled "chocolate flavour" or "compound" if you’re after authenticity.

At the end of the day, real chocolate is about quality ingredients that honour the cocoa bean. 

If you are unsure, opting for brands with transparent labelling and a commitment to traditional recipes is a safe bet for that true indulgence.

Have We Substituted Ingredients For Our Chocolate Products? 

At Whitakers, our approach is simple: we don’t believe you should have to compromise on real chocolate.

While the wider market is under huge pressure from cocoa costs, we focus on:

  1. Quality cocoa-based ingredients.
  2. Traditional recipes and craftsmanship.
  3. Clear labelling and transparency so customers know what they’re buying.

A good rule of thumb for any brand (including ours): always check the ingredient list. 

If you value “real chocolate”, look for products where cocoa-derived ingredients (like cocoa mass/cocoa butter) are central, and where “chocolate flavour” coatings aren’t doing the heavy lifting.

Which UK Brands Have Substituted Their Ingredients?

This is where the story gets very real, and very newsworthy.

Recent UK reporting has highlighted examples where reformulation (often linked to cocoa costs) has led to products being reclassified from “chocolate” to “chocolate flavoured”:

  • McVitie’s Club and Penguin: recipes changed and no longer legally described as “chocolate”, now positioned as “chocolate flavoured”. ITVX+1
  • KitKat White: reported as falling below the threshold to be sold as “white chocolate” in the UK. Sky News+1
  • Nestlé Toffee Crisp and Blue Riband: reported as no longer legally labelled “chocolate” after recipe changes, now using a “milk chocolate flavour coating” with more vegetable fats. The Guardian

To be clear: reformulation isn’t automatically “bad”.

But it does change what you are eating, and consumers deserve to know when “chocolate” becomes “chocolate flavour”.

Why Has the Price of Chocolate Sky Rocketed?

Chocolate prices aren’t rising because brands feel like it — the supply chain has been squeezed from multiple directions:

1) Cocoa prices have surged

The UK’s Food and Drink Federation has highlighted cocoa as a major pressure point, describing cocoa prices as being at a multi-decade high. The Food & Drink Federation

2) Poor harvests and lower global supply

Which? reports that global cocoa production is estimated to have fallen significantly in the 2023–24 season, linked to poor harvests in West Africa — a key cocoa-growing region. Which?

3) Retail price inflation shows up in-store

Which? found chocolate inflation running notably high (double digits year-on-year in their analysis). Which?

The BRC has also pointed to high cocoa prices as a driver pushing up chocolate prices. Research Live

4) Brands adapt: price, size, or recipe

UK reporting has connected the cocoa squeeze to manufacturers choosing shrinkflation or reformulation to manage costs. The Guardian+1

Sky news paid a visit to our factory in Skiption and asked our managing director William Whitaker exactly this question:

What Are Whitakers Doing to Cut Costs and Avoid Ingredient Substitution?

At Whitakers, we’re working hard behind the scenes to manage rising cocoa costs while staying true to the quality and recipes we’ve been perfecting for over 135 years.

One key focus is improving factory efficiencies and increasing automation, allowing us to reduce production costs without compromising on craftsmanship or ingredients.

Streamlining processes helps us work smarter and keep costs as controlled as possible.

We also keep a very close eye on the global chocolate market.

By securing our chocolate contracts at the right time and for longer periods, we can achieve more consistent pricing and protect our customers from sudden market spikes wherever possible.

Alongside this, we’re continuing to grow our range of non-solid chocolate products, such as chocolate-enrobed Brazil nuts, marzipan, fruits and Turkish delights. 

These products still deliver the indulgence you expect from Whitakers, while using chocolate as a coating rather than the main ingredient — helping us balance costs without changing our core chocolate recipes.

And for those looking to save a little more, we regularly share discount codes, special offers and sale updates with our subscribers.

Signing up to our email newsletter is the best way to make sure you don’t miss out.

What Does the Future of Chocolate Pricing Look Like?

While cocoa prices have eased slightly from their recent peaks, most industry experts agree that chocolate pricing is unlikely to return to historic lows in the near future.

Climate change continues to pose long-term challenges for cocoa-growing regions, particularly in West Africa, where extreme weather and crop disease are expected to remain ongoing risks.

At the same time, global demand for chocolate remains strong, meaning any supply disruption can have an immediate impact on prices.

Industry bodies such as the British Retail Consortium and the Food and Drink Federation have also highlighted wider cost pressures — including energy, labour, packaging and transport — which continue to affect food manufacturers and retailers alike. 

Even if cocoa prices stabilise, these additional costs mean prices across the supply chain are likely to remain elevated.

That said, volatility is expected rather than constant increases.  

Cocoa prices may fluctuate year-to-year depending on harvest conditions and market dynamics, but the overall trend points towards higher average prices than we’ve seen historically.

For consumers, this means chocolate may continue to cost more than it once did — but it also places greater importance on quality, transparency and value. 

Buying from brands that invest in ingredients, heritage and long-term sustainability ensures that higher prices reflect genuine quality rather than compromise.

Box of Coconut Creams with a cup of tea and coconut halves on a marble surface

Where Can You Buy Tasty Chocolate Without Breaking the Bank?

Whitakers Chocolates has been crafting delicious, affordable chocolate for generations, with a wide range to suit everyone — including vegetarian, vegan and gluten-free options. 

While cocoa prices continue to disrupt the industry, one promise we will always keep is never to compromise on our ingredients, recipes or the quality of our products, so customers can buy with confidence. 

Customer favourites such as Coffee Creams, Neapolitans, Chocolate Wafer Thins, Stem Ginger, Chocolate Brazils and Luxury Chocolate Truffles are perfect for enjoying alongside your favourite coffee or as an everyday treat..

Click here to see our full range of delicious chocolates…

 

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