Barry Callebaut signs long-term outsourcing agreement in South America

Swiss chocolate manufacturer Barry Callebaut has signed a long-term outsourcing agreement with Industria de Alimentos dos en Uno (Arcor-Dos en Uno), a subsidiary of Argentinian food firm Arcor.

The deal marks Barry Callebaut’s first long-term outsourcing agreement in South America.

Under the agreement, Barry Callebaut will supply liquid compound and chocolate products to Arcor-Dos en Uno – a Chilean business of Arcor which manufactures products for the local market and exports to Peru, Ecuador, Colombia, Uruguay and Paraguay.

Barry Callebaut will also set up a CHF13m ($14m) facility in Santiago de Chile, Chile, which will have a production capacity of 20,000t per year.

The new facility will not only address Arcor-Dos en Uno’s requirements, but will also supply to other regional customers, offering Barry Callebaut further potential for expansion.

The facility is scheduled to be opened in 2014, following which Barry Callebaut will immediately begin deliveries to Arcor-Dos en Uno.

Barry Callebaut chief executive officer Juergen Steinemann said that this agreement will facilitate the company’s business expansion in the region.

"With our new factory in Santiago de Chile, we continue to expand our manufacturing footprint in South America, in order to tap the region’s promising growth potential," Steinemann added.

Arcor specialises in the production of sugar confectionery, chocolate cookies, ice cream and other food products in South America, and it has 40 manufacturing plants across Latin America.

Barry Callebaut, headquartered in Zurich, Switzerland, offers a range of chocolate and other cocoa-based products and also caters to consumer goods manufacturers who use its semi-finished and chocolate products as ingredients in their products.

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Image: Under the outsourcing agreement, Barry Callebaut will provide liquid compound and chocolate products to Arcor-Dos en Uno. Photo courtesy of Barry Callebaut.