Barry Callebaut and Kraft Foods sign global supply agreement

Barry Callebaut and Kraft Foods sign global supply agreement

  • Barry Callebaut to become Kraft Foods key global cocoa and industrial chocolate supplier under a long-term global master product agreement

Barry Callebaut, the world’s largest manufacturer of high-quality cocoa and chocolate products, and Kraft Foods Inc. (NYSE: KFT), the world’s second largest food company and a global leader in confectionery, today announced the signing of a long-term global master product agreement. Under the terms of the agreement, the parties expect Barry Callebaut to 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. The parties agreed not to disclose any further terms of the agreement.

As a result of this agreement, Barry Callebaut will increase its production capacities primarily in the United States, Canada, Côte d’Ivoire, Malaysia as well as in Europe and invest approximately USD 65 million (CHF 66 million / EUR 51 million) over the next two years. The additional volumes will be built up gradually over a period of three years, starting immediately.

Juergen Steinemann, Chief Executive Officer of Barry Callebaut, said: “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. 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.” 

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About Barry Callebaut:
With annual sales of about CHF 4.9 billion / EUR 3.2 billion / USD 4.3 billion for fiscal year 2008/09, Zurich-based Barry Callebaut is the world’s leading manufacturer of high-quality cocoa and chocolate – from the cocoa bean to the finished product on the store shelf. Barry Callebaut is present in 26 countries, operates more than 40 production facilities and employs about 7,500 people. The company serves the entire food industry, from food manufacturers to professional users of chocolate (such as chocolatiers, pastry chefs or bakers), to global retailers. Barry Callebaut is the global leader in cocoa and chocolate innovations and provides a comprehensive range of services in the fields of product development, processing, training and marketing. The company is actively engaged in initiatives and projects that contribute to a more sustainable cocoa supply chain. 


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