FDBusiness.com

Barry Callebaut, the world’s leading manufacturer of high-quality cocoa and chocolate products, has signing a new, long-term outsourcing agreement with Chocolates Turin, a leading Mexican Group, which has been operating since 1928 and it present in the consumer and food service/gourmet markets in Mexico, as well as in 25 countries.

Through this long term agreement, Barry Callebaut will supply all of Turin’s liquid chocolate demand to be delivered directly to Turin’s manufacturing facilities. Furthermore, Turin, through its food service division, will become the exclusive distributor in Mexico for Barry Callebaut’s gourmet business, including the Cacao Barry, Callebaut and Sicao brands. To support the distribution agreement, the two companies will jointly develop new chocolate, compound and decorations products for the local market, and it is planned to jointly open the first Chocolate Academy in Mexico.

Juergen Steinemann, chief executive of Barry Callebaut

As a part of the transaction, Barry Callebaut will acquire a production facility from Turin, close to the new state-of-the-art Turin chocolate complex, located in Toluca, 65 km southwest from Mexico City. Barry Callebaut will invest to expand capacity, for a total planned investment in fiscal year 2011/12 of approximately SFr28.5m ($30.0m; Eur20.8m). This production site will be a platform to serve a variety of customers throughout the region. Deliveries from the facility will commence immediately, projected to achieve 20,000 metric tons in the near term, with capacity to capitalise on other market opportunities.

Juergen Steinemann, chief executive of Barry Callebaut, says: “With this additional production facility, combined with our existing facility in Monterrey, we are well positioned to serve the Mexican market as well as other emerging markets in Latin America. Last but not least, we have found in Chocolates Turin a good partner to also further develop our Gourmet business in Mexico.”