Barry Callebaut and Bunge Sign Distribution Agreement in Brazil

Bunge will assume the exclusive distribution of artisanal chocolate products made by Barry Callebaut in Brazil through the Food Service channel.

02/04/09 Barry Callebaut Brasil S/A, subsidiary of the world’s leading manufacturer of high-quality cocoa and chocolate products, and Bunge Alimentos, a subsidiary of Bunge Limited and major agribusiness company in Brazil, signed a distribution agreement for Brazil whereby Bunge will assume the exclusive distribution of artisanal chocolate products made by Barry Callebaut in Brazil through the Food Service channel.

Furthermore, Barry Callebaut and Bunge will jointly develop a range of compound and chocolate products under the Sicao (Barry Callebaut) and the Gradina (Bunge) brand, respectively, designed to meet the specific needs of the food service/bakery market in Brazil, leveraging on Barry Callebaut’s manufacturing expertise and Bunge’s strong distribution network in the country. Bunge also plans to offer tailor-made services to food service customers, such as technical advice or training courses, benefiting from Barry Callebaut’s expertise in other regions of the world.

The Brazilian food service segment which includes, among others, restaurants, fast food restaurants, bakeries, pastries, in-store bakeries, buffets, caterers, hotels, chocolatiers, hospitals and schools, is estimated to have a size of about 60,000 tonnes p.a. for chocolate and compound products (source: ECD Consulting). The target volume for Barry Callebaut and Bunge is to capture a share of about 10,000 tonnes within 2-3 years.
 
Patrick De Maeseneire, CEO of Barry Callebaut, said: “South America is the only significant chocolate market worldwide where we do not have a chocolate factory of our own yet. Our renewed focus on our core business with industrial and artisanal customers allows us now to fully concentrate on expanding our business in South America. Bunge has the largest distribution network in Brazil. Every day, it serves about 25,000 points of sale and, therefore, is an excellent partner for us in the commercialization of our products that will be made in Brazil. Based on the distribution agreement with Bunge, we are planning the construction of a chocolate factory in the southeast region of Brazil. Our goal for this factory is to have an annual production capacity of about 20,000 tonnes and to be operational by the end of 2009.”

Barry Callebaut started chocolate imports to Brazil in 1994. In 1999 Barry Callebaut acquired Chadler (renamed into Barry Callebaut Brasil), including a cocoa factory in Ilhéus, in the State of Bahia.