Swiss chocolate producer Barry Callebaut and Japanese food group Morinaga have entered a strategic alliance.
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Under the deal, Callebaut will acquire production capacity in Japan and enter a long-term supply deal with Morinaga.
The two companies have entered a ten-year supply agreement for 9,000 metric tonnes a year – doubling Barry Callebaut’s sales volumes in Japan. Callebaut said the deal will allow it to gain a strong foothold in the Japanese market, where demand for super-premium and health-enhancing chocolate is growing.
Morinaga, meanwhile, will secure stable procurement of liquid chocolate, cut manufacturing costs and gain efficiencies from the deal.
Callebaut is to lease land and buildings from Morinaga and will operate the cocoa and liquid chocolate department at Morinaga’s factory in Amagasaki near Osaka. It plans to upgrade production lines, creating a total production capacity of 20,000 tonnes.
Patrick De Maeseneire, Barry Callebaut CEO, described Morinaga as a “pioneer” in the Japanese confectionery market. “Its passion for nutritious and superior tasting confectioneries fits well with Barry Callebaut’s focus on innovation and premium chocolate,” he said.
“The transaction with Morinaga is a milestone in our strategy to strengthen our footprint in the fast-growing Asian markets. Our planned expansions in Japan, China and India will give us access to more than 2.5bn potential future consumers.”
Gota Morinaga, chairman of Morinaga, said the alliance was a significant element in its business expansion plans. “The alliance will enable us to obtain up-to-date information on the world chocolate market and more opportunities for product development,” he said.
The deal, which remains subject to regulatory approval, is expected to be signed by the end of the year. No financial details have been disclosed. Barry Callebaut expects to begin shipping to Morinaga within 12 months of the signing of the final agreement.
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