Barry Callebaut plans new factory in Turkey

Barry Callebaut has announced that it will construct a new factory in Turkey to tap into rising chocolate consumption in the market.

The chocolate plant, due to open in mid-2013, will be located in Eskisehir, Central Anatolia, and will have an initial capacity of 15,000 tons.

Rising chocolate consumption

The Turkish chocolate market is valued at $1.3bn and has grown around 30% since 2007, according to Euromonitor figures.

Raphael Wermuth, Callebaut’s external communications manager told ConfectioneryNews.com: “Turkey is a growth country. With the currently rather low chocolate consumption per capita (below 2kg) and the growth rate of the consumption +7% we think this market has attractive growth potential.”

The 7% year-on-year growth is higher than the 2-3% levels for the global chocolate market, he said.

“There is an increasing demand for high-quality chocolate and compound products as well as for technical services and new innovations,” he added.

Barry Callebaut said that the location was “close to existing and potential confectionery customers”.

Asked whom these customers might be, Wermuth, said: “We have some committed volume already, but can't further comment on this at this point in time.”

Eti and Yildiz Holding

Chocolate manufacturer Eti is based in Eskisehir. The company has a 7.4% market share in the Turkish confectionery behind market leader Yildiz Holding (Ulker) and Mondelez, according to Euromonitor International.

Godiva chocolate brand owner Yildiz Holding has 45 factories in Turkey and is the market-leading confectioner though its Ulker business.

The firm acquired Godiva from Campbell Soup for $850 million in 2007 and is looking to expand operations further, according to a recent article from Bloomberg.

Ferrero announced plans to build a €90m ($116m) factory in Turkey in October last year. See HERE.