Rebecca Wright04.27.07
The Hershey Company, Pittsburgh, PA, and Barry Callebaut, Zurich, Switzerland, have formed a strategic supply and innovation partnership. The cooperation will enable the companies to work together to drive long-term growth in the global chocolate market.
The companies will partner on a wide range of research and development activities with a focus on driving innovation in new chocolate taste experiences, premium chocolate, health and wellness, ingredient research and optimization.
Under the agreement, Barry Callebaut will construct and operate a facility to provide chocolate for Hershey’s new plant in Monterrey, Mexico. Barry Callebaut will also lease a portion of Hershey’s Robinson, Ill., plant, and operate chocolate-making equipment at the facility. The partnership includes a long-term global agreement under which Barry Callebaut will supply Hershey with a minimum of 80,000 tons per year of chocolate and finished products.
The agreement will significantly increase Barry Callebaut’s production capacity in the Americas. Over the next three years, production capacities will increase by 130,000 tons, with a significant portion of this production dedicated to supplying Hershey. The total investment by Barry Callebaut will amount to $50 million.
The two companies also will work together on efforts aimed at building a sustainable cocoa supply, including the World Cocoa Foundation’s Sustainable Tree Crops Program, the International Cocoa Initiative Foundation and industry efforts to implement a certification system in West Africa. Hershey will also participate in Barry Callebaut’s proprietary corporate social responsibility and sustainable cocoa-bean sourcing programs. The two parties expect the final agreements to be signed by the end of May 2007.
Earlier last week, Barry Callebaut announced that it was exploring the health benefits of cocoa butter for diabetics. Studies conducted by the Center for Molecular Medicine (CMM) in Stockholm, Sweden, found that cocoa butter might be better for diabetics than other fats. As a result, Barry Callebaut is funding a research project at the CMM to find out which component of the cocoa butter is responsible for this effect and whether it would be possible to develop a health enhancing chocolate for diabetes sufferers.
Earlier last week, Barry Callebaut announced that it was exploring the health benefits of cocoa butter for diabetics. Studies conducted by the Center for Molecular Medicine (CMM) in Stockholm, Sweden, found that cocoa butter might be better for diabetics than other fats. As a result, Barry Callebaut is funding a research project at the CMM to find out which component of the cocoa butter is responsible for this effect and whether it would be possible to develop a health enhancing chocolate for diabetes sufferers.