An Israeli startup, Celleste Bio, says it has made chocolate bars using lab-grown cocoa butter at a site run by Mondelez International (MDLZ). The firm calls it a key step for an industry that has faced sharp price swings and supply stress in recent years.
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Cocoa prices rose from under $3,000 to about $12,000 per ton in 2024 and 2025. That jump has put pressure on margins for major food firms. As a result, many are now looking for ways to reduce reliance on farm output in West Africa.
Celleste says its product can fit into current lines with no major change. “It performs identically to conventional cocoa butter. It’s a drop-in replacement,” said chief executive Michal Beressi Golomb. The firm grows cocoa cells in tanks and feeds them sugar and nutrients to form the same fats and flavor.
Meanwhile, MDLZ shares rose 0.32% on Friday, closing at $57.25.
Early Stage with Cost Questions
However, the path to scale is still unclear. Celleste aims to reach about 50,000 tons a year and targets a price of $12,000 to $15,000 per ton. That is still above current market levels. In addition, the firm expects to seek approval in the U.S. and Israel, with a target launch by 2027.
Meanwhile, rivals are testing other routes. Some use plant cells, while others make cocoa-free blends. Large firms like Cargill and Lindt & Sprüngli (GB:0QKN) are also backing new ideas. Still, these options account for less than 1% of the total market.
At the same time, this move highlights a broader trend. Israeli innovation has long shaped fields like tech, water, and farm tools. Drip irrigation and smart water use are prime examples. Now, food tech is adding a new layer to that track record.
For investors, the key point is simple. Lab-grown cocoa is not ready to replace farm supply. Yet it could serve as a hedge if price swings persist.
Is Mondelez Stock a Good Buy Now?
Turning to the Street, Mondelez boasts a Moderate Buy consensus, based on 19 analysts’ ratings. The average MDLZ stock price target stands at $66.11, implying a 15.48% upside from the current price.
