Polly Waffle, Violet Crumble maker ramps up in the US amid cocoa crisis

Chocolatiers may be increasing their prices, but the company behind the iconic Violet Crumble and Polly Waffle is finding new ways to tackle the cocoa crisis.

Menz CEO Phil Sims at the company’s factory in Glynde.

The brand power of iconic Australian treats Violet Crumble, Polly Waffle and Fruchocs is proving a winner for Adelaide-based confectioner Menz, which is doubling down on an expansion in the US following a string of successful licensing deals closer to home.

Menz has shared its three flagship chocolate brands with licensing partners behind products ranging from healthy shakes and hot chocolate powders to muesli bars, underwear and pyjamas.

Its first collaboration in the health and wellness space – a partnership between Violet Crumble and Melbourne-based The Collagen Co. – was recently a finalist for a global award run by Licensing International, where it competed with global heavyweights including Subway, Guinness, PlayStation, and McCain.

The Violet Crumble Collagen Dream hot chocolate powder and the Violet Crumble Glow Shake mark Menz’s first foray into the health and wellness segment, and the company’s chief executive Phil Sims said the success of the licensing deal represented the strength of the Violet Crumble brand.

Polly Waffle Bites hit the shelves for the first time last year. Picture: Supplied

“The two products are all sold online and the growth in demand through their online platform has been absolutely huge,” he said.

“Licensing has grown enormously – it is now a significant division in our business and we’re putting the investment in the ongoing growth and potential of it. It’s really come from nowhere in the last couple of years.

“And it’s not just confectionary, and we’re not just limited to food – the brand is really resonating across many other categories.”

Menz is currently licensing the Violet Crumble brand to manufacturers including protein bar, powders and supplements brand Body Science, Carman’s muesli bars, and ice-cream maker Bulla, which recently launched a Violet Crumble choc top sold at Hoyts cinemas nationally.

And there are plans to replicate the licensing model with the Polly Waffle brand, which Menz reintroduced to the Australian market last year after its acquisition from Swiss giant Nestle in 2019.

A year before that acquisition Menz took over the rights to produce Violet Crumble from Nestle, in a deal that has provided the company with a global market. The chocolate covered honeycomb treat is currently sold in countries including the US, Singapore, the Philippines and Canada.

With distribution across more than 6500 supermarkets, convenience stores and other retail outlets across the US, it is there that Mr Sims sees the greatest opportunity for growth.

“We’ve got a significant business in the United States now where we have our own business there, capitalising on the US market where Violet Crumble has been on sale there since the 1960s,” he said.

“We’ve got two people based in the United States that work exclusively for us – one on the west coast and one on the east coast. And we’re looking to now expand on that team, so that’s more people on the ground to further capitalise on the opportunity.

“We’re only really scratching the surface in the United States – there’s a hell of a lot more upside for us.”

Mr Sims said that while confectionary sales were typically immune to cost of living pressures, he conceded soaring cocoa prices remained a key challenge for the industry, and the rising costs had been passed on through higher prices to customers.

Cocoa prices more than doubled last year, and remain near record highs, as high temperatures and disease crimped supplies out of the main cocoa producing region of West Africa.

Some of the biggest food companies including Nestle, Mondelez and Hershey’s have signalled more price rises could be on the way in the coming months.

“Cocoa is a challenge in our business at the moment but every company that’s operating in the chocolate space globally has that,” Mr Sims said.

“There are price points where there becomes a ceiling ... and so you have to look at different varieties of innovation to try to work around still making your product very relevant while we tackle the cocoa challenge.”

Originally published as Polly Waffle, Violet Crumble maker ramps up in the US amid cocoa crisis