Barry Callebaut Inaugurates Its First Chocolate Factory in South America

The new factory will make high-quality dark, milk and white chocolate as well as compound for artisanal and for industrial customers, but no end-consumer products. Capacity utilization at the plant is expected to rise rapidly.

28 May 2010 --- Barry Callebaut AG, the world's leading manufacturer of high-quality cocoa and chocolate products, inaugurated a new chocolate factory located in Extrema, Minas Gerais, near Sao Paulo, Brazil the company's first chocolate factory in South America. The factory marks another cornerstone in Barry Callebaut's strategy to selectively expand its geographic presence to emerging markets that offer above-average growth opportunities.

Barry Callebaut has been present in Brazil with a cocoa factory in Ilheus, Bahia, since 1999, and employs more than 300 people in the country. Today, the company operates nine cocoa and chocolate factories across the Americas.

The new chocolate factory in Extrema has been designed to meet the highest quality and food safety standards and has an annual production capacity of around 20,000 tonnes which can be doubled based on the same infrastructure. The total investment amounted to approximately USD 15 million (BRL 28 million / CHF 18 million). At the start of chocolate production in Extrema, Barry Callebaut offers 70 new jobs going up significantly with new lines to be implemented in the future depending on market development.

The new factory will make high-quality dark, milk and white chocolate as well as compound for artisanal and for industrial customers, but no end-consumer products. Capacity utilization at the plant is expected to rise rapidly. 80% of the factory's production will be delivered to the main target customer segment, namely the rapidly growing food service market which includes restaurants, fast food restaurants, bakeries, pastries, in-store bakeries, caterers, hotels, chocolatiers, hospital and school canteens.

For the distribution of food service products manufactured in Extrema, Barry Callebaut signed an exclusive distribution agreement with leading agribusiness company Bunge in 2009. Every day, Bunge serves about 25,000 points of sale in Brazil and is, therefore, an excellent partner for Barry Callebaut in the commercialization of products "made in Brazil".