Barry Callebaut and Hershey extend strategic supply agreement in North America

06 Sep 2021 --- The Hershey Company and Barry Callebaut have extended their strategic supply partnership signed initially in 2007. Under the agreement, Barry Callebaut will continue to supply Hershey’s North American business with liquid chocolate and finished products.

The move will enable both companies to continue to drive strategic, long-term growth in North America.

“The renewed agreement is a continuation of our good relationship and, since Hershey has been growing in the market, we are optimistic for the potential for additional volumes,” Frank Keidel, head of media relations at Barry Callebaut, tells FoodIngredientsFirst. 

Reliable and premium experience 
According to Steve Woolley, president and CEO Americas of Barry Callebaut, the extension of the long-term supply partnership with Hershey underscores how Barry Callebaut’s reliability and premium chocolate expertise make it “the partner of choice” for industry players.

Barry Callebaut will continue to supply liquid chocolate and finished products to Hershey in North America under its renewed long-term agreement.“We are pleased to extend our relationship with Barry Callebaut, who has been a key partner to our business for many years. We look forward to their support of our continued sustainable growth in high-quality chocolate products,” adds Tricia Brannigan, vice president of procurement for The Hershey Company. 

Barry Callebaut supplies products to Hershey across the US, Canada and Mexico. These three countries alone account for a quarter of the global confectionery market, adds Keidel. 

Sustainability strides
In March, The Hershey Company revealed its latest new commitment to ending deforestation includes a crackdown on any cocoa supplier who breaches the policy, which may lead to suspension or complete removal from the company’s supply chain. 

The chocolate giant is also conducting a multipronged strategy to lead the better-for-you chocolate category – a market worth an estimated US$1.3 billion or 6 percent of category retail sales. 

Last month, Barry Callebaut launched a scorecard to define and develop sustainable practices in coconut production and address “untackled challenges” across the sector, together with Nestlé and Proforest.

As part of the Swiss chocolate giant’s Forever Chocolate plan to make sustainable chocolate the norm, the supplier aims to be carbon- and forest-positive by 2025.

By Elizabeth Green