Sweet on chocolate: Cargill taps into Asia’s cocoa growth potential with Aalst acquisition

25 Aug 2021 --- Cargill is set to acquire Aalst, a Singapore-based chocolate manufacturer, in an investment that expands the company’s Asia-Pacific cocoa and chocolate offerings and capitalizes on APEC’s tremendous growth potential. The financial terms of the acquisition have not been disclosed.

In an in-depth interview, the managing director for Cargill Cocoa & Chocolate Asia-Pacific, Francesca Kleemans, examines how the region is a significant emerging cocoa and chocolate market, allowing Cargill to diversify its product portfolio and expand its value-added product offerings and enhance its operational and R&D competencies.

“Customers will benefit from our expanded product portfolio that brings together both cocoa and chocolate, and capabilities to create customized product offerings that leverage Cargill’s unparalleled access to sustainably sourced ingredients. Not only this, but enhanced operational and R&D competencies will better support product development and business growth aspirations, through fast response and locally customized solutions,” she tells FoodIngredientsFirst. 

The Asia-Pacific region is a significant emerging cocoa and chocolate market.

Chocolate footprint grows in Asia
The acquisition, pending regulatory approval and closing conditions, comes as the rapidly growing Asian marketplace increasingly wields its international influence, sparking inspiration and driving global trends. 

Joining with Aalst strengthens Cargill’s position in this critical region, enabling the company to become the “supplier-of-choice for industrial and foodservice customers,” stresses Kleemans. 

It follows last year’s decision to partner with a local manufacturer in western India to launch Cargill’s first chocolate manufacturing operation in the country.

“The acquisition marks the company’s growth expansion into chocolate in APAC for industrial and foodservice customers, reaffirming our commitment to customers and long-term growth in the region,” Kleemans continues.

“Aalst Chocolate fits perfectly into Cargill’s vision, as a leading chocolate supplier in Asia. With its modern facilities, advanced R&D capabilities, and competitive location, Aalst has established itself as a pioneer in the industry with the potential to serve customers for an accelerated future growth,” she says. 

The experimentation of Asian consumers 
The growth of the cocoa and chocolate industry in Asia over the last 20 years has been “truly remarkable,” and it’s clear to Cargill that Asia holds the keys to the future for the global cocoa and chocolate industry in terms of demand growth for another 20 years. 

“We project Asia to overtake North America, as the second-largest cocoa and chocolate consuming region in the world, in the next five to ten years,” Kleemans reveals. 

“Of all consumers in the world, Asian consumers have the highest propensity to try new foods and experiment with ingredients, flavors and textures. As populations and incomes rise in Asia, consumers’ access to new foods and ingredients to explore is also growing, and this opens the door to a large potential for innovation.”

“Chocolate is a fantastic food, and an ingredient that lends itself very well for the experimentation crave of Asian consumers. hanks to chocolate’s versatility and richness of flavors and colors and textures, the ingredient enables great storytelling and serves the consumer’s need to understand more about the origins of their foods and inspire their creativity.”

New food experiences 
By learning from Asian consumers, the experiments and excitement of new food experiences can be a mine of inspiration for innovators worldwide.

“In this regard, by bringing together Cargill’s and Aalst’s collective R&D strengths and technical capabilities at our multiple innovation centers across the region, our new venture will bring product innovation within the industry to the next level, opening up to customers an unparalleled world of possibilities to co-create recipes that would respond well to consumer demand for great-tasting, unique and quality chocolate products,” Kleemans says. 

The acquisition also makes Cargill one of the few integrated cocoa and chocolate suppliers in the industry, strengthening the value it can bring to customers, notably in the form of global supply chain efficiencies, access to a robust cocoa sourcing network and complementary raw materials for chocolate production such as specialty fats. 

Cargill discusses chocolate trends toward premium products, indulgence and novel food experiences.

What lies ahead?
In addition to trends toward premium products, indulgence and novel food experiences, Cargill sees that consumers are also looking for fun sensory experiences that are easy to enjoy at home. 

“Consumers are spending more time experimenting in their kitchens, but they need inspiration for their creativity and want to avoid the boredom of repeating the same recipe or the complexity of traditional preparations. This is a great opportunity for food manufacturers to innovate and create new solutions, combining trusted flavors with convenience and fun,” Kleemans adds. 

This space is an opportunity for food manufacturers to create value and innovation. 

“With the ongoing COVID-19 pandemic, consumers are prioritizing health and wellness when it comes to theirF&B choices. So, the agility of the food manufacturers and suppliers is very important to deliver these innovations effectively, fast and at an affordable price.”

Aalst’s extensive customer base spans more than 50 countries, exporting to industrial, retail and foodservice clients in key markets such as India, China, Southeast Asia, Oceania, Korea and Japan. 

Its portfolio features six distinct brands, with offerings that include both bake-stable and artisan chocolates and compounds, in addition to a range of premium retail chocolate products and luxury pralines.

Upon completing the transaction, all Aalst assets, including its manufacturing plant in Singapore, R&D capabilities in Singapore and Shanghai, and over 200 employees across the region, will join Cargill’s cocoa and chocolate Asia-Pacific operations. 

With its unparalleled supply chain infrastructure and extensive international trade agreements, Singapore remains Cargill’s strategic regional business hub.

“Singapore and made-in-Singapore products are both highly regarded and reputed for meeting stringent world-class standards. We are proud of Aalst Chocolate’s heritage as a Singapore company with a renowned presence of over 18 years in Asia’s chocolate industry. Together with Cargill’s global expertise and experience, we believe that this new venture will be well-positioned to harness the full potential of exciting synergetic growth possibilities and become an ideal integrated chocolate solution provider for our customers,” says Richard Lee, founder and CEO of Aalst Chocolate.

By Gaynor Selby