Daily Black Chocolate Raises Over 100 Million Yuan in Series A+ and B Rounds, Source Code Capital Leads Series A+

源码资本·March 26, 2021·0·1

China's top-selling dark chocolate category on 2020 Double 11

On March 26, emerging consumer brand Daily Black announced that it had recently secured consecutive funding rounds exceeding 100 million RMB — an A+ round and a B round. The A+ round was led by Source Code Capital, with existing investor Greenwoods Asset Management following on and iQIYI also participating. The B round was led by 5Y Capital, with existing investors Source Code Capital and Yuanxing Capital following on.

The proceeds will be used primarily for team building, product R&D, and brand investment. In early 2020, Daily Black had just completed a $4.5 million Series A round.

Daily Black is an up-and-coming chocolate brand whose parent company is LANDBASE. Its products are characterized by sustainable sourcing, Swiss origin, low sugar, zero additives, and health benefits. Its first product, the Small Square Box dark chocolate, officially launched in July 2019. In August 2020, the brand moved into the more mass-market milk chocolate category with its second flagship product — "DARK MILK."

Daily Black's European Sustainable Chocolate Factory

Shelf space is the "battleground" for fast-moving consumer goods and also the "advertising slot" for building brand recognition. As a snack, chocolate brands need to get their products into channels closest to consumers to trigger impulse purchases. Accordingly, Daily Black's channel strategy this year is "convenience store-centric." Within just one year of launch, the brand has entered approximately 100,000 offline retail terminals, covering FamilyMart, LAWSON, 7-Eleven, and Bianlifeng stores.

Daily Black co-founder Lincy noted that compared with online-only brands, offline channels have helped Daily Black better convert traffic from major platforms. Additionally, when naming the brand, the team directly tied the brand name to the "dark chocolate" category, and reinforced the four characters "Daily Black" across packaging and in-store materials — using limited shelf space to maximally transmit the brand label to consumers.

Cocoa itself is a healthy ingredient with antioxidant properties, benefits for cardiovascular health, and energy-boosting qualities. "Health" has become the core of Daily Black's product strategy. Avoiding the highly concentrated milk chocolate segment, Daily Black initially targeted the fast-growing dark chocolate category with its Small Square Box product, priced at 19.8 RMB per box (7 pieces).

After establishing consumer mindshare in this niche category, Daily Black moved into the broader milk chocolate market with its "DARK MILK" product, extending the "health" selling point. Daily Black founder Ethan said this product has higher cocoa content than comparable channel products, yet sweetness at only 60-70% of typical milk chocolates, with unit price kept under 10 RMB. Daily Black is currently the only chocolate brand on convenience store shelves emphasizing health concepts like high dietary fiber.

In founder Ethan's view, the ceiling for chocolate products isn't the category itself, but the consumer demand behind it. Next, Daily Black plans to explore incremental markets based on different life scenarios, strengthening chocolate's functional attributes beyond its snack positioning. The team will conduct consumer education around cardiovascular health, energy supplementation for studying and workplace scenarios, and develop vertical channels.

Next, Daily Black plans to explore incremental markets based on different life scenarios, strengthening chocolate's functional attributes beyond its snack positioning. The team will conduct consumer education around cardiovascular health, energy supplementation for studying and workplace scenarios, and develop vertical channels. The company has also assembled a 10-person R&D team at its Swiss factory to strengthen functional product development and shift consumer perceptions of chocolate.

In 2020, Daily Black became the designated gift partner for ELLE, Esquire, Marie Claire, the China Film Festival, and Fashion Week events. This year, Daily Black launched co-branded products with Lane Crawford at three locations, and became the designated chocolate brand for Harrods The Residence in Shanghai. On the brand marketing front, Daily Black has pursued various collaborations, including a cocoa powder plant milk series co-developed with Yili Group's Zhixuan line.

As a board member of Daily Black, Dandan Chen of Source Code Capital said: "We're pleased that Source Code Capital was able to discover and support Daily Black, a company daring enough to challenge tradition, at an early stage. Chocolate as an imported product is an ancient industry dominated by century-old giants. Conventional wisdom would suggest that Chinese domestic brands have no advantage in this track. Yet Daily Black, as a one-year-young brand, achieved breakthroughs with 'zero-sugar dark chocolate' — delicious yet healthy — rapidly capturing the #1 position in China's dark chocolate category. Whether in product or brand, Daily Black demonstrates the innovation and vitality representing China's new domestic brands. Chinese brands are no longer just 'Made in China'; Daily Black has successfully built a global supply chain under a Chinese brand model — 'design in China, made in Switzerland' — combining the world's best chocolate supply chain to create a snack brand of China's own. Founder Ethan and co-founder Lincy are exceptional entrepreneurs with resilience, courage, and a drive for innovation. Source Code Capital will continue to firmly support the company's development and innovation."