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McVitie’s New Ingredients Take the Biscuit: A-level Business In the News

Mike Mills

30th October 2025

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What's the story?

Snack manufacturer switches to new “chocolate flavour” for Penguin and Club products.

The products, which were traditionally marketed with memorable slogans emphasising their chocolate coating, now use an alternative.

The main reason for this is issues importing cocoa beans, predominantly from West African countries that have experienced extended dry periods. This has impacted cocoa harvests, in turn reducing supply in global markets.

Consequently, raw material costs have increased substantially, rising from approximately £2,600 per tonne to over £8,500 per tonne.

To manage increasing cost costs, parent company Pladis has altered some of its products by using “chocolate flavouring” instead. The new coating" contains cocoa mass but less than 20% of ingredients derived directly from cocoa beans. According to company research, consumer taste perception remains unchanged.

Manufacturers can legally substitute expensive cocoa butter with alternatives like palm oil or shea butter, provided minimum regulatory thresholds are met.

This reformulation represents a calculated trade-off between maintaining profit margins, controlling retail prices, and ensuring key products like Penguin and Club remain available.

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Mike Mills

Mike is an experienced Head of Department, teacher and A-level Business examiner. Mike is also a popular presenter on tutor2u CPD courses and student workshops.