Barry Callebaut and Kraft Foods join forces to produce more chocolateIn the city of Zurich, Switzerland, Barry Callebaut has been producing high-quality cocoa and chocolate products since 1996, currently to the tune of $4.3 billion annually. Now, this artisan company is joining forces with the second-largest food producer in the world, Kraft, in a deal that will increase the efficiency of both companies' supply chains.

Under the agreement, Barry Callebaut will deliver the majority of Kraft Foods' cocoa products and chocolate needs around the world.

Over the next three years, Barry Callebaut will also increase its production capacities, primarily in the United States, Canada, Côte d'Ivoire and Malaysia, as well as in Europe. The company will invest approximately $65 million over the next two years.

"This long-term global supply agreement with Kraft Foods ranks amongst the largest strategic deals our company has ever signed," said Juergen Steinemann, CEO of Barry Callebaut. "It means that we have succeeded in firmly establishing ourselves as a leading supplier for cocoa and chocolate products to the international food industry. We are excited about this partnership between two leading companies in their field which is evidence of the ongoing outsourcing and partnership trend in the chocolate industry."

"This is a very good deal and one we have been expecting for a while, given that Barry is the biggest outsourcer in town and Kraft needs to retool its supply chain after its takeover of Cadbury," Kepler analyst Jon Cox added.
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