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Barry Callebaut to use segregated certified palm oil

April 19, 2013

Leading cocoa and chocolate products manufacturer, Barry Callebaut, announced on 23 February that it would use fully segregated certified sustainable palm oil for compounds and fillings in all its European factories starting from January.

Leading cocoa and chocolate products manufacturer, Barry Callebaut, announced on 23 February that it would use fully segregated certified sustainable palm oil for compounds and fillings in all its European factories starting from January. In addition, the Zurich-based company said three of its plants in Asia-Pacific were already certified and able to offer Roundtable on Sustainable Palm Oil (RSPO)-certified palm oil on a mass balance basis on request.

Barry Callebaut Americas is also working towards being able to offer customers mass balance sustainable palm oil during 2013 if and when requested. “The demand for food products produced in a responsible way continues to grow, and we’re seeing this as well in our compound and fillings business,” said Steven Retzlaff, president, global sourcing and cocoa.

Compounds and fillings contain vegetable fats, such as palm oil, in place of cocoa butter. In addition to its chocolate products, Barry Callebaut offers a range of dark, milk and white compound products, and a variety of fillings for bakery, pastry, biscuit and confectionery applications. 

World’s largest cocoa processor
Barry Callebaut announced in December that it had agreed to buy the cocoa ingredients division of Singapore’s Petra Foods Ltd for US$950M, making it the world’s largest global cocoa processor.
Barry Callebaut operates around 45 production facilities globally and had annual sales of some US$5.2bn in fiscal year 2011/12.
The acquisition of Petra Foods’ cocoa ingredients division is expected to be completed in mid-2013, subject to regulatory and shareholder approval.
Barry Callebaut said the division was one of the world’s major manufacturers and suppliers of cocoa ingredients. It had a global sales volume of 265,000 tonnes, 47,000 tonnes of co-manufacturing volumes for large accounts and sales revenue of US$1.3bn in fiscal year 2011.

It provides customised cocoa ingredients (cocoa liquor, cocoa butter, cocoa powder) to food and beverage companies which are marketed internationally under the Delfi brand, and the Nord Cacao brand in Europe. The division has 405,000 tonnes of grinding capacity in seven processing facilities in Brazil, France, Germany, Indonesia, Malaysia, Mexico and Thailand.
Barry Callebaut’s deal also includes a long-term agreement with the Petra Foods’ branded consumer division to supply it with 75% of its cocoa product needs. The division is one of the leading players in Southeast Asia, marketing and distributing its own brands of chocolate and sugar confectionery products.

Barry Callebaut said the acquisition would boost sales volume in fast growing emerging markets – mainly in Asia and Latin America – by 65% to almost one-third of group sales volume; and add Asia as a key cocoa sourcing base besides West Africa.

Leading position in Scandinavia
On 18 January, Barry Callebaut announced it would take a leadership position in the Scandinavian market through its purchase of ASM Foods AB in Sweden from Denmark’s Carletti AS. The deal – expected to close  in the middle of this year –  includes a plant in Mjölby which produces speciality compound chocolate and fillings, adding a total production capacity of 35,000 tonnes.
In addition, Barry Callebaut will take over the industrial chocolate and compound production of Carletti A/S in Denmark including sales to third parties. It will also sign a long-term outsourcing agreement to supply Carletti A/S with liquid chocolate and compound products.  

The total cash-out from the three transactions will amount to US$36M and the total additional volume for Barry Callebaut will be some 25,000 tonnes of chocolate, compound and fillings.


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