Barry Callebaut inks first chocolate outsourcing agreement in Southeast Asia

Barry Callebaut and Indonesian food and beverage company GarudaFood Group have reached agreement on a long-term supply agreement under which Barry Callebaut will supply 10,000 tonnes of compound chocolate per year to GarudaFood’s biscuit facility in Gresik in the Province of East Java.

Under terms of the agreement, which will begin the middle of next year, Barry Callebaut said it plans to increase the capacity “significantly” over the next three years and will take over some of the manufacturing equipment from GarudaFood and set up its operations in a new building on the premises of the GarudaFood biscuit plant in Gresik.

The agreement also includes the cooperation between Barry Callebaut and GarudaFood in innovation. The two companies plan to bring together their R.&D. activities to develop new products that will support GarudaFood’s further growth in the Indonesian market.

“I am truly excited about this partnership,” said Hardianto Atmadja, chief executive officer of GarudaFood. “I believe it will provide and delight our consumers with the best chocolate and products that meet global quality standards.”

Founded in 1990, GarudaFood belongs to the Tudung Group, an investment holding company in Indonesia. GarudaFood manufactures and markets snacks, biscuits, confectionery products, dairy and beverages and employs about 18,000 people. The company also owns and operates an extensive distribution network throughout Indonesia covering 21 regions, 153 depots, 154 distribution partners and 360,000 outlets. GarudaFood operates 14 plants across Indonesia and India.

“It is an honor for us that we were able to win GarudaFood as our first long-term outsourcing partner in Southeast Asia,” said Juergen Steinemann, c.e.o. of the Barry Callebaut Group. “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.”