Cargill's chocolate footprint grows in Asia with launch of first ever manufacturing operation

24 Jun 2020 --- Agri-food heavyweight Cargill is partnering with a local manufacturer in western India to launch its first chocolate manufacturing operation in the country as it makes its foray into the chocolate business in India. Cargill plans to scale up operational capabilities quickly in the fast-growing chocolate category. The facility is expected to begin operating mid-2021 and will initially produce 10,000 metric tons (MT) of chocolate compounds.

“We find the Asian market has the widest range in the world in terms of the colors and flavors preferences, which is true also in chocolate. For example, the consumers in some regions prefer a soft and mild taste, while for others it is all about boldness and delivering a punch. These differences are rooted in the exceptional human and geographic diversity across Asia, as well as across India, which is a sub-continent on its own right,” Francesca Kleemans, Managing Director at Cargill Cocoa & Chocolate, Asia Pacific, tells FoodIngredientsFirst.

From the perspective of manufacturers of consumer goods, she notes there are also increasing ways to stand-out and differentiate chocolate offerings with signature sensory experiences. “The ability of a supplier to play into the breadth of the scope of sensory preferences in Asia can be a challenge and there have been limitations so far in the market.”

“At Cargill, we bring a strong differentiator to tackle this challenge successfully, which is in the access to our unique and advanced raw materials, for example our renowned Gerkens cocoa powder. We aim to expand the market opportunities,” she expresses.

In recent months, the spotlight of Cargill’s market research widened to cover consumer cravings across broader international markets. In April, a study from the agribusiness explored global shifts in consumer attitudes and behaviors via four macro trends, which have been identified through work with research partners.

The diversification of chocolate offerings drawing inspiration from new flavors in Asian cuisine may be seen as tapping into Cargill’s third trend, coined “Experience It.” “Consumers have a lot of product choices these days, and they have high expectations. They want to be surprised and delighted, and no product is too small to have a large experiential impact,” noted Ilco Kwast, EMEA Sales & Marketing Director of Cocoa & Chocolate at Cargill, at the time of the study’s release.

Cargill is experimenting with local flavors forapplications in bakery, ice cream and confectionery.Inspired by local flavors
Cargill oversees a R&D network of food scientists and experts located at its state-of-the-art regional innovation centers in Singapore, Shanghai and India. This is to collaborate on chocolate products that bring sensory experiences in terms of colors and flavors specific to regional and local tastes and consumption patterns.

“Asia is a key growth market for Cargill. Opening a chocolate manufacturing operation in India allows us to increase our regional footprint and capabilities in Asia to better support the needs of our local Indian customers as well as multinational customers in the region,” says  Kleemans.

“Combining local insights from our experience and long-term presence as a food ingredient supplier in India with our global cocoa and chocolate expertise, we aim to become the leading supplier and trusted partner for our bakery, ice cream and confectionary customers in Asia. They will use our chocolate compounds, chips and paste to create products that will delight local palates,” adds Kleemans.

Cargill established its cocoa presence in Asia in 1995 in Makassar, Indonesia, with a team designated to support trading and supply management of cocoa to Cargill processing plants in Europe and Brazil. In 2014, Cargill opened a cocoa processing plant in Gresik, Indonesia, to make premium Gerkens cocoa products. 

Earlier this month, Barry Callebaut similarly made moves to grow its chocolate footprint in the dynamic Asian market. The Belgian heavyweight added a fourth chocolate production line to its Singapore facility with the aim of boosting the volume of chocolate for the Asia Pacific market. It has also recently partnered with Yuraku Confectionery to help drive the growing eco-conscious sentiment in Japan.

On a global scale, confectionery is building on premiumization in a market that is mature but continuing to grow modestly. Even given the rising concerns around sugar intake, consumers continue to demand more indulgent treats and snacks.

NPD in the sweets sector has been very strong over the past year, with double-digit growth in global confectionery launches recorded by Innova Market Insights over the 12 months to the end of September 2019. Among these, premium ingredients and flavors were some of the most important trends seen in 2019.

For more insights on rising chocolate themes setting the confectionery stage this year, readers may be directed to FoodIngredientsFirst’s Special Report on this topic.

By Benjamin Ferrer

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