‘World-class quality’: Barry Callebaut extends partnership with Garudafood in bid to conquer Indonesian chocolate market

11-Dec-2018 - Last updated on 11-Dec-2018 at 02:00 GMT

Barry Callebaut has extended its partnership with Indonesian food and beverage giant Garudafood, with an eye on capturing a bigger share of country’s chocolate market. ©Getty Images

Related tags Barry callebaut Chocolate Indonesia Garudafoods

Barry Callebaut has extended its partnership with Indonesian food and beverage giant Garudafood, with an eye on capturing a bigger share of country’s chocolate market.

Via an official release, the two companies have confirmed an agreement where Barry Callebaut will be providing an additional 7,000 tonnes of compound chocolate to Garudafood’s biscuit factory in Rancaekek, Indonesia starting mid-2019.

Barry Callebaut Asia Pacific President Ben de Schryver said that: “This business expansion will […] solidify our footprint in Indonesia, the world’s fourth most populous country with more than 260 million people and one of the most vibrant economies in Asia Pacific.”

At present, Barry Callebaut has already established a chocolate factory within the premises of Garudafood’s Gresik factory, and currently already supplies over 10,000 tonnes of compound chocolate to Garudafood yearly.

“This collaboration is also part of our ‘open innovation’ strategy and in support of Industry 4.0, so that our products made are of world-class quality,” said Garudafood CEO Hardianto Atmadja.

“We further intensify the collaboration with Barry Callebaut which will support the performance of Garudafood in producing innovative products to provide added value for Indonesian and foreign consumers.”

Also on the books is an IDR 40bn (US$2.8mn) investment by Barry Callebaut which will be used to build another ‘plant in the plant’ within the Garudafood Rancaekek factory.

At present, Barry Callebaut operates five chocolate factories which are based in Asia, in China, Indonesia, Japan, India and Singapore respectively. It also owns two cocoa factories in Indonesia, and in Malaysia is has one cocoa factory and another combined chocolate-cocoa plant.

Mintel predicts that the Indonesian chocolate market will reach over US$1.6bn by 2020, with a CAGR of 12%.

More on Barry Callebaut in the APAC chocolate market

In APAC, the company has described its strategy as ‘boringly consistent’.

“[We] want to be heart and engine of the cocoa industry,” said de Schryver.

“We don’t want to do anything else or move into any other commodities. We want cocoa expansion, especially in APAC, which is the consumption market of the future.”

The company is also known for its launch of ‘the world’s fourth category of chocolate’: The Callebaut ruby RB1, unveiled in APAC for the first time earlier this year.

"We are proud to offer this fourth category of chocolate — after milk, dark and white — under the Callebaut brand and our Finest Belgian Chocolate range,” said Vice-President for Barry Callebaut Global Gourmet, Pascale Meulemeester.

“Offering ruby chocolate to artisans and chefs in China will unleash a wave of creativity that will lead to exciting new products and concepts for people to enjoy."

China is very clearly a prime market for the company, with its Chief Executive Antoine de Saint-Affrique having previously said: “China has the potential to become the biggest gourmet market in the world. The question is not if it will happen; only how fast it will happen.”