Ice cream parlour tests new cocoa as shortage drives up costs

The global cocoa shortage has hit a P.E.I. ice-cream shop, jeopardizing a fan favourite.

Holman’s Ice Cream Parlour in Summerside is testing new cocoa powders after its go-to was taken off the shelves amid a global shortage, owner Daniel Meister says.

The shop has backup batches in the freezer while it searches for the right replacement with similar fat content, pH and colour. Alternatives exist, but some cost up to four times more than before.

“We wouldn’t dare take chocolate ice cream out of the lineup. It’s a very, very popular flavour,” Meister said. “It’s a staple… it’s not really something we can take off the menu.”

Holman’s previously paid $9.99 for 700 grams. Over the last couple of years, that rose to $20. But the shop needs much bigger quantities. One product they’re testing goes for $600 for a 20-kilogram bag. Meister says that bag might cover five or six batches.

“It makes a significant difference in our cost,” he said. “Can we find something that matches the quality that we’re expecting while also not bankrupting ourselves or having to pass on that cost to our customers?”

Holman’s isn’t alone, Meister says. Recently, another business in the area couldn’t find cocoa and posted on social media asking for a supplier. The Holman’s team ran over with a few packages they had in store to tide them over.The math matters even more for small businesses managing their margins. Holman’s raised prices by $1 across the board earlier this year and hopes to keep them steady next.

Cocoa costs have surged since late 2023 due to production challenges in countries including Ghana and the Ivory Coast, which experts link to climate change.

Some companies have cut cocoa-related products altogether, says food expert Sylvain Charlebois, a visiting scholar at McGill University’s Faculty of Agriculture.

“They knew they couldn’t sell some of these products at a higher price, essentially. So, they stopped carrying some of these products,” Charlebois said.

His advice to businesses and manufacturers across the Maritimes and the country is not to rely on a single source. Instead, he said it’s safer to have a few suppliers for important ingredients.

“I wish I could say that there is some good news, but it’s quite problematic,” Charlebois said. “The same is happening with coffee…prices are way up.”

Holman’s is known for making more than 100 handcrafted flavours, with 16 on the daily rotation. The shop says that while some recipes may shift, the standard won’t.