Barry Callebaut, the Swiss chocolate giant, has secured a deal to supply cocoa products and industrial chocolate to US food giant and Cadbury owner Kraft Foods.

The deal, announced today (9 September) is a step-change for Kraft, which had previously only outsourced a small part of its production.

However, Cadbury, which Kraft acquired earlier this year, already had a major supply agreement in place with Barry Callebaut.

The agreement announced today includes some of the liquid chocolate Barry Callebaut supplied to Cadbury but is expected to double the Swiss firm’s business with Kraft.

The deal also means Barry Callebaut will increase production capacity in markets including the US, Canada, Cote d’Ivoire and Malaysia. Barry Callebaut will spend US$65m on the upgrade.

Barry Callebaut CEO Juergen Steinemann said: “This long-term global supply agreement with Kraft Foods ranks amongst the largest strategic deals our company has ever signed. It means that we have succeeded in firmly establishing ourselves as a leading supplier for cocoa and chocolate products to the international food industry.”