Barry Callebaut acquires production capacities from Morinaga in Japan

Zurich-based chocolate manufacturer, Barry Callebaut, has entered into a 10-year supply agreement with Japanese confectionery company, Morinaga, doubling its sales volumes in Japan.

The alliance involves the sale of cocoa and chocolate production equipment by Morinaga to Barry Callebaut, leasing of Morinaga’s land and buildings and operating the cocoa and liquid chocolate department at Morinaga’s factory in Amagasaki.

Barry Callebaut will upgrade the production lines and create a total production capacity of 20,000 tonnes, allowing it to meet growing consumer demand for super-premium and health-enhancing chocolate in Japan.

With this deal, Morinaga 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.

Both companies expect the final agreement to be signed by year-end and Barry Callebaut will start deliveries to Morinaga within a year of the signing.