Barry Callebaut to boost bottom line with new deal

Swiss group Barry Callebaut is to supply Unilever, the world's third-largest consumer goods group, with 70 per cent of its global cocoa and chocolate needs.

The company, which already makes chocolate for groups such as Hershey and Nestlé, will invest SFr22 million ($24 million) in its global factory network to boost capacity.

The additional volumes have a ramp-up period of 12 months, starting immediately, said Barry Callebaut, the world’s largest chocolate maker, in a statement.

“The announcement of a new outsourcing contract with Unilever is again a confirmation that the outsourcing trend is going on and not only with large chocolate producers, but can be with all kind of confectionery producers,” Vontobel analyst Claudia Lenz said.

Barry Callebaut expects volumes to grow six to eight per cent on average through 2012/13 and is banking on outsourcing deals, such as with Unilever, to help it reach this goal. 

The two groups have already worked together, with Barry Callebaut helping develop Unilever’s ice cream brand Magnum. The latest deal will see the Swiss firm, whose earnings reached SFr4.6 billion in its last financial year, double its volumes with its partner.