Callebaut looking to partnerships for further global expansion

By Helen Glaberson

- Last updated on GMT

Related tags: Barry callebaut, Chocolate, Cocoa butter, Cocoa solids

Barry Callebaut plans to expand its strategic partnerships with local food manufacturers in order to “tap into the full potential” of emerging markets.

The company’s outsourcing deals now account for about 10 per cent of the company’s sales volume, said Juergen Steinmann, CEO of Barry Callebaut at the recent analyst conference for the company’s 2009/10 results.

“This agreement confirms the trend towards outsourcing and strategic partnerships in the chocolate industry. It also shows that we have firmly established ourselves as a leading supplier of cocoa products to the global food industry,”​said Steinmann.

The industrial chocolate supplier recently outlined, in its full-year 2009/2010 results, its intention to implement “strategic partnerships”​ with manufacturers as part of the company’s future growth strategy.

Raphael Wermuth, external communications manager, told ConfectioneryNews.com that as well as enhancing its potential in recently entered emerging markets, such as Russia, China, Japan, Mexico and Brazil, the company is also looking expand in markets across the globe where it sees potential for income growth.

He added that the Swiss company is looking to secure outsourcing deals with regional and local food manufacturers as a way of achieving this goal.

One market under consideration includes South America, but Wermuth said it was currently too early to reveal any further information.

For manufacturers that form a relationship with the supplier, the spokesperson said Barry Callebaut can provide both semi-finished products, such as cocoa liquor, cocoa powder and cocoa butter or it can deliver finished chocolate products.

Cost savings

According to Wermuth, companies benefit “threefold”​ in terms of global footprint, innovation and cost savings.

In addition, Wermuth said a partnership with the supplier could introduce cost savings for a manufacturer: “Our customers benefit from our cost-efficient structures, manufacturing processes and the economies of scale we have at our end. From a cost stand-point, it can be more attractive to give away production to us,”​ he added.

In September, Barry Callebaut secured a key, long-term supply contract with Kraft Foods, which saw the firm invest €51m to expand production capacity in North America, the Ivory Coast, Malaysia and Europe.

The signing of a ‘long-term global master product agreement’ meant that Barry Callebaut will more than double its existing business with the US food group.

Related topics: Outsourcing, Ingredients

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