Barry Callebaut and Morinaga to enter alliance

by Staff
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ZURICH, SWITZERLAND — Barry Callebaut and Morinaga, one of Japan’s largest food companies, have made plans to enter a strategic alliance.

As a part of the alliance, Morinaga will sell cocoa and chocolate production equipment to Barry Callebaut, and the companies will enter a 10-year supply agreement for 9,000 tonnes a year, doubling Barry Callebaut’s sales volumes in Japan.

Morinaga also plans to secure stable procurement of liquid chocolate, realize manufacturing cost reduction and change its business model for more efficient operations and a further strengthened chocolate business.

"Morinaga pioneers the Japanese confectionery market since 1899," said Patrick De Maeseneire, chief executive officer of Barry Callebaut. "Its passion for nutritious and superior tasting confectioneries fits well with Barry Callebaut’s focus on innovation and premium chocolate. The transaction with Morinaga is a milestone in our strategy to strengthen our footprint in the fast-growing Asian markets."

Barry Callebaut also will lease land and buildings from Morinaga as well as operate the cocoa and liquid chocolate department at a factory in Amagasaki, where it will upgrade production lines.

"This alliance will enable us to obtain up-to-date information on the world chocolate market and more opportunities for product development," said Gota Morinaga, chairman of Morinaga. "It will also help us to realize further manufacturing cost reductions and change our business model for more efficient operations."

The companies expect to sign the final agreement by the end of 2007, and Barry Callebaut will begin deliveries to Morinaga within 12 months of the signing of the final agreement.

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