Barry Callebaut signs long-term outsourcing agreement with Mexico's Chocolates Turin to help strengthen company's presence in Latin America

ZURICH , June 27, 2011 (press release) – Barry Callebaut AG, the world’s leading manufacturer of high-quality cocoa and chocolate products, announced today the signing of a new, long-term outsourcing agreement with Chocolates Turin, a leading Mexican Group operating since 1928, present in the Consumer and Food Service/Gourmet markets in Mexico, as well as in 25 countries.

Through this long term agreement, Barry Callebaut will supply all of Turin’s liquid chocolate demand to be delivered directly to Turin’s manufacturing facilities. Furthermore, Turin, through its Food Service division, will become the exclusive distributor in Mexico for Barry Callebaut’s Gourmet business, including the Cacao Barry®, Callebaut® and Sicao brands. To support the distribution agreement, the two companies will jointly develop new chocolate, compound and decorations products for the local market, and it is planned to jointly open the first Chocolate Academy in Mexico.

As a part of the transaction, Barry Callebaut will acquire a production facility from Turin, neighboring with the new state of the art Turin chocolate complex, located in Toluca, 65 km southwest from Mexico City. Barry Callebaut will invest to expand capacity, for a total planned investment in fiscal year 2011/12 of approximately CHF 28.5 million (USD 30.0 million; EUR 20.8 million). This production site will be the platform to serve a variety of customers throughout the region. Deliveries from the facility will commence immediately, projected to achieve 20,000 metric tons in the near term, with capacity to capitalize on other market opportunities.

Juergen Steinemann, CEO of Barry Callebaut, said: “Our new outsourcing agreement with Chocolates Turin is another important milestone for Barry Callebaut. With this additional production facility, combined with our existing facility in Monterrey, we are well positioned to serve the Mexican market as well as other emerging markets in Latin America. Last but not least, we have found in Chocolates Turin a good partner to also further develop our Gourmet business in Mexico.”

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