Bakers Journal

New partnership for Barry Callebaut and Unilever

January 24, 2012
By Bakers Journal

January 24, 2012, London – Barry Callebaut and Unilever have signed a new long-term global partnership agreement.

Under the terms of the agreement, Barry Callebaut will become Unilever's strategic global supplier and innovation partner of choice for its cocoa and chocolate needs.

This new global supply agreement builds on the existing long-standing working relationship and will nearly double Barry Callebaut's current volumes with Unilever. Ultimately Barry Callebaut will provide 70 per cent of Unilever's global cocoa and chocolate products. This will be achieved under a wide-ranging joint business development plan involving close co-operation across the areas of innovation, sustainable sourcing, capacity expansion and value improvement.

"Our ice cream category has a significant role to play in Unilever's sustainable growth model to deliver our ambition of doubling the size of our business whilst reducing our environmental impact. Our leadership position has been built on great taste, innovation and increasingly sustainable ingredients. We need partners like Barry Callebaut to help us extend this position and achieve our overall aim," said Kevin Havelock, president of Unilever's refreshment category.

Barry Callebaut will invest approximately $24 million USD in its worldwide factory network in order to prepare the capacity required to fulfill the long-term partnership agreement. The additional volumes have a ramp-up period of 12 months, starting immediately.

"We are honored that we can announce this long-term partnership with Unilever today and be part of their 'Partner to Win' strategy. This agreement is based on a successful long-standing collaboration between our two companies," said Juergen Steinemann, CEO of Barry Callebaut. "Once again, it confirms that by living our four strategic pillars we can accomplish and deliver on the requirements of our customers."

The company's four strategic pillars are expansion, cost leadership, innovation and sustainable cocoa.

Barry Callebaut has already been an active partner in developing one of Unilever's Magnum ice cream brand, including supporting the launch of the brand across various regions in the last year.

Barry Callebaut has also been working closely with Unilever to meet its sustainable cocoa sourcing commitments.

The parties agreed not to disclose any further terms of the agreement.

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