Nestlé Has A Plant-Based Break: Vegan KitKat Discontinued in All Markets Except the UK
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In a blow for the vegan chocolate industry, Nestlé has taken its KitKat V off shelves in all markets except the UK.
Nearly four years after it was first introduced, the vegan KitKat is going off the market amid poor sales, a setback for both the plant-based industry and Nestlé’s climate goals.
The dairy-free chocolate had reportedly not been available in stores or online for some time, and Nestlé has now confirmed that the KitKat V has been discontinued in all countries barring the UK.
“We know that KitKat vegan was popular amongst those looking for dairy or vegan alternatives. Unfortunately, the sales were reducing to the point where production was adding significant complexity to our manufacturing operations, which could not be sustained,” a Nestlé spokesperson told Green Queen.
“We have therefore made the difficult decision to discontinue KitKat Vegan. The vegan chocolate segment is still a niche market. Classic chocolate products continue to dominate the confectionery category and contribute to the vast majority of sales,” they added.
“Our emphasis with the KitKat brand for the foreseeable future will be on classic chocolate variants, as they continue to be the preferred choice among consumers.”
The company couldn’t confirm whether the continued availability in the UK was a case of backstock, or if it would continue to produce the vegan KitKat for this market.
For the plant-based chocolate segment, though, the withdrawal of a flagship product from the world’s largest food company is a major blow.
Vegan KitKat withdrawal a setback for Nestlé’s climate goals
KitKat V burst onto the scene in summer 2021, and was born out of consumer demand. “One of the most common requests we see on social media is for a vegan KitKat,” Alexander von Maillot, then head of confectionery at Nestlé, said at the time.
The rice-based bar contains ingredients like cocoa butter, wheat flour, corn fibre, and vegetable fats, and was an instant hit when it was first piloted in the UK and several other countries. This success led to a wider rollout in 2022, with 800,000 bars set to be produced every day.
It was a sign of confidence in the vegan industry, with Nestlé bringing out a non-dairy version of one of the CGG world’s most popular, hardest-to-replicate food products. Every second, the equivalent of 560 bars of KitKat are eaten around the world.
Many brands have tried coming up with copycat versions of the KitKat, including German retailer Aldi and startups like vegan producer Trupo Treats – but these products have either failed during development, or been discontinued soon after launch.
The innovation was also slated to help Nestlé’s Net Zero plans for 2050. KitKat V has an 18% smaller carbon footprint than the original, so if it could take even a small chunk of the market share, the climate dividends would have been significant for the company.
But it seems that, almost four years down the line, sales haven’t picked up as much as Nestlé would have liked, and the vegan KitKat faces an uncertain future.
High prices and climate change keep chocolatiers innovating
KitKat turns 90 this year, but it leads an industry faced with historical supply chain and cost challenges, thanks to the climate crisis. The global demand for chocolate has wiped out large swathes of land in Ghana and Ivory Coast, the two largest producers of cocoa. And in a business-as-usual scenario, only a third of cocoa trees will die out by 2050.
That has translated into high prices, with cocoa futures shooting up three- to fourfold last year to reach all-time highs. In New York, this peaked at $12,931 per tonne in mid-December, following weather-induced low supplies for the fourth successive season in West Africa.
In fact, global cocoa stocks have dropped to their lowest levels in a decade, and it outgrew every other commodity in the value chain in 2024, with prices likely to stay high this year.
Nestlé’s KitKat V was always more expensive than its classic counterpart, but more sustainable too. The bar’s individual climate reduction journey is now in limbo – especially since its maker abandoned the pledge to make the product carbon-neutral by this year after facing allegations of greenwashing.
Confectionery, meanwhile, is the company’s second-smallest business segment, making up only 9% of its total revenue. But while it is divesting from plant-based chocolate, its European competitors are going all-in. Lindt already has several dairy-free chocolates, including its oat milk bars, Lindor truffles, and offerings under its Hello! brand. Ritter Sport and Cadbury have had vegan options for a while now too.
And Ferrero released vegan Nutella last year to similar fanfare, after years of demand and countless replicas that didn’t quite hit the spot. It has also just begun rolling out a plant-based version of its Hanuta wafers.
Meanwhile, Nestlé and other chocolate producers are in a legal dispute with German confectioner Katjes, whose patent for oat milk chocolate is being challenged – a sign that vegan products remain desirable in the industry. And with cocoa-free chocolate becoming a hot commodity too, the future for climate-friendly treats seems exciting, Nestlé’s KitKat decision notwithstanding.