How Pana Organic is navigating the cacao shortage in the lead-up to Easter

Pana Organic, founded by founder Pana Barbounis in 2012, is one of the many specialty chocolate brands having to adapt in real-time to the cacao shortage.Global cacao commodities sat at around US$2000 a ton for several years but soared to US$12,000 a ton in 2024 – now in the lead up to Easter it averages US$10,000 a ton and Easter chocolate is expected to rise up to 20 per cent as a result.Cacao, the raw unprocessed version of cacao, is what Pana Organic strictly uses in the production of its vegan range.“Pana Organic sources its cacao exclusively from Peru, a region known for its rich biodiversity, high altitude and favorable growing conditions for cacao,” Barbounis told Inside Retail.“Peru, has a long tradition of cacao cultivation and is recognized for producing high-quality, organic cacao beans. Pana Organic has always sourced single-origin cacao from South America,” he added.While the global shortage of cacao is due to bad weather and crop disease in West Africa, where the majority of the critical ingredient is grown, even Pana Organic is not immune to the supply chain breakdown despite sourcing its raw ingredient from Peru.As cacao continues to be a rare and expensive commodity, brands like Pana Organic are having to raise prices and limit production.A worldwide shortage The global cacao shortage didn’t strain Pana Organic’s supply chain but the brand has started to feel the impact in the last few months.“Initially, the company was able to maintain stability with long-term, established suppliers,” shared Barbounis.“However, as the cacao shortage intensified, the prices of raw materials – especially cacao—have risen significantly,” he added.Only recently has Pana Organic felt prompted to re-evaluate its approach to both pricing and sourcing to mitigate the pressure of the ongoing cacao shortage. “Previously, the expensive part of production was the inclusions such as nuts or fruits, but now, with the cacao shortage, the pricing structure has shifted, and cacao has become a larger factor in the cost of production,” Barbounis elaborated.“Our prices have been maintained and not increased over the past six months yet the pressure of price increases continues to climb so we are working through what the future looks like now,” he added.Pana Organic’s diverse range of products spanning categories including frozen, spreads, baking, and drink blends has made it less reliant on 100 per cent chocolate products.“This broader product mix helps the company manage fluctuations in cacao prices while still providing consumers with a diverse selection of organic treats,” explained Barbounis.“This diversification has also allowed the brand to stay competitive and develop innovative products across several categories,” he added.Raw ingredients are everythingFor Barbounis, clean eating aligns with his beliefs and values so it makes sense that his eponymous brand would follow suit.Pana Organics commitment to organic ingredients goes beyond providing high-quality products to consumers – it’s about caring for the land and the whole ecosystem.“Organic farming practices have a lower environmental impact compared to conventional farming,” Barbounis stated.“My personal values and the company’s focus goes beyond the final product; it’s about ensuring the journey of the cacao—from cultivation to harvest—preserves the health of the land, promotes biodiversity, and supports the people working the land,” he added.Pana Organic is certified organic, with most of the ingredients being organic, always sourced as fair trade and most often supporting small-scale farmers and producers who use sustainable methods.When Barbounis first established Pana Organic it was difficult to find suppliers that aligned with his personal and brands’ beliefs around sustainability. “Back then, the availability of organic ingredients was more limited, and many suppliers weren’t fully equipped to meet the stringent standards for organic certifications,” he elaborated.“It wasn’t just about finding the right cocao, but also ensuring that most ingredients, from oils (such as our essential mint oil) to butters, complemented each other in their natural state.”This level of environmental consideration extends down Pana Organic’s supply chain all the way down to its packaging which is created with vegetable dyes and inks.An easter egg shortage Pana Organic’s key objective is to create delicious organic treats for every day, not just special occasions – but it’s bringing back its flat eggs in time for the Easter holiday due to consumer demand.“We have received a lot of requests to bring back the egg range which includes limited edition flavours including a Hot Cross Bun flavour. This year the interest in Pana organics eggs is stronger than in years past so the brand is anticipating a solid holiday season but with one catch.“Hop to it though as the batches are limited this year because we could not overproduce, given the cost of cacao,” concluded Barbounis.