The chocolate supplier will take on some of GarudaFood’s processing equipment to set up a new factory at the biscuit producer plant in Gresik, East Java Province. The supply deal is expected to begin mid-2016.
Emerging market stronghold
Juergen Steinemann, CEO of the Barry Callebaut Group, said: “It is an honor for us that we were able to win GarudaFood as our first long-term outsourcing partner in Southeast Asia. This partnership marks our entry with chocolate and compound production in Indonesia, the world’s fourth largest country with a population of 250 million and impressive growth rates.
“Partnering with the GarudaFood Group not only allows us to team up with a leader in one of the most vibrant economies in Asia Pacific but also to gain a strategic foothold in an emerging market that offers further significant growth potential,” he said.
GarudaFood, owned by the Tudung Group, manufactures and markets snacks, biscuits, confectionery products, dairy and beverages with brands such as Garuda Peanut, Chocolatos and Gery Saluut. It employs around 18,000 people across 14 plants in Indonesia and India.
Barry Callebaut & Cargill in Indonesia
Barry Callebaut already owns a plant in Indonesia through its acquisition of Petra Foods’ ingredients division in 2012.
In late 2013, the firm also opened a $33m cocoa processing facility in Indonesia in a joint venture with cocoa trader P.T. Comextra Majora.
The firm’s major competitor Cargill opened a $100m cocoa powder, liquor and butter factory in late 2014 also located in Gresik.