FDBusiness.com

Barry Callebaut, the world’s largest manufacturer of cocoa and chocolate products, and Kraft Foods, the world’s second largest food company and a global leader in confectionery, have signed a long-term global product agreement. Under the terms of the agreement, Barry Callebaut will deliver the majority of Kraft Foods cocoa products and industrial chocolate requirements around the world. The agreement, which also includes some of the Cadbury liquid chocolate deliveries under the current outsourcing agreement, is expected to more than double Barry Callebaut’s existing business with Kraft Foods.

Juergen Steinemann, chief executive of Barry Callebaut.

As a result of this agreement, Barry Callebaut will increase its production capacities primarily in the US, Canada, Cote d’Ivoire, Malaysia as well as in Europe and invest approximately $65m (SFr66m, Eur51m) over the next two years. The additional volumes will be built up gradually over a period of three years, starting immediately.

“This long-term global supply agreement with Kraft Foods ranks amongst the largest strategic deals our company has ever signed. It means that we have succeeded in firmly establishing ourselves as a leading supplier for cocoa and chocolate products to the international food industry,” says Juergen Steinemann, chief executive of Barry Callebaut. “We are excited about this partnership between two leading companies in their field which is evidence of the ongoing outsourcing and partnership trend in the chocolate industry.”

With annual sales of about SFr4.9b (Eur3.2b) last year, Zurich-based Barry Callebaut is present in 26 countries, operates more than 40 production facilities and employs about 7,500 people.