Barry Callebaut

Barry Callebaut AG is a Swiss-Belgian cocoa processor and chocolate manufacturer. It was created in 1996 through the merging of the French company Cacao Barry and the Belgian chocolate producer Callebaut and is currently based in Zürich, Switzerland. It was created in its present form by Klaus Johann Jacobs. In 2019, the company had 61 production sites, located in Europe, Africa, America and Asia.

Its customers include multinational and national branded consumer goods manufacturers and artisanal users of chocolate (chocolatiers, pastry chefs, bakeries, and caterers).

History

Cacao Barry

Cacao Barry was founded in Hardricourt, France, by Charles Barry, an Englishman with an interest for exploring Africa in 1842. During Barry's travels to Africa he came in contact with cocoa beans, a major component in the production of chocolate. The company began producing chocolate in 1911.

In 1952, Cacao Barry became active from bean to gourmet chocolate. In 1992, the holding company Société Centrale d’Investissement (SCI) gained control of Cacao Barry, then transferred 49% of the company's capital to Compagnie Nationale à Portefeuille (CNP), an investment fund in financier Albert Frère's group. SCI's management approach favoured greater penetration of the UK market with the consequent opening of a new production site in the United Kingdom. In 1994, shortly before the merger of 1996, they launched the Pure Origine of Cacao Barry brand.

Callebaut

Callebaut was a Belgian company, founded by Eugenius Callebaut as a brewery in Wieze, Belgium, in 1850. The brewery began producing chocolate bars in 1911 and soon switched entirely to chocolate production. They began producing chocolate couverture in 1925. In the 1950s, Callebaut, which was still a family-run business, began exporting its products to other European and North American markets, leveraging the fact that Belgian chocolate had earned an excellent reputation for its quality. In 1981, Interfood, a subsidiary of Tobler-Suchard, bought the company. Bernard Callebaut, heir of the founding family, moved to Canada, where he opened a new chocolate factory named Chocolaterie Bernard Callebaut. In 1983, Klaus Jacobs acquired full control of Interfood, the holding company that controlled Callebaut, and became an international confectionery leader. After a series of acquisitions in the industry, the company merged with the US company Kraft in 1987, creating Kraft Jacobs Suchard. Klaus Jacobs retained Callebaut business.

Merger and IPO

French chocolate company Cacao Barry and Belgian chocolate company Callebaut merged in 1996 to form Barry Callebaut. In 1998, Barry Callebaut was listed on the SIX Swiss Exchange. From a business standpoint, the new Franco-Belgian confectionery company continued to grow, with Jacobs Suchard assigning it the management of Van Houten, the Dutch chocolate and cocoa powder maker founded in 1815 in Amsterdam, which Jacobs Suchard had acquired in 1986. Barry Callebout also expanded its range of products, launching new brands on the market, like Bensdorp (cocoa powder), The Barry and Callebaut (gourmet chocolate and cocoa-based products) and new lines under the Barry Callebaut brand for industrial use, including cocoa powder, cocoa butter, liqueur and chocolate.

In 1999, the company acquired the US-based confectionery company Van Leer Chocolate and, the following year, it acquired the Swiss Carma-Pfister AG. That same year, Barry Callebaut gained access to the South American market when it bought the Brazilian company Chadler Industrial de Bahia.

In 2002, under the leadership of its new CEO, Patrick G. De Maeseneire, Barry Callebaut acquired the German company Stollwerck for $225 million, thereby taking over the 17 brands under its control, including Sarotti.

The following year, it bought Brach's through the assumption of $16 million worth of debt. In 2004, it acquired AM Foods K/S, a company based in Denmark and specialised in croissanterie and chocolate. In 2007, Barry Callebaut signed an agreement with fellow Swiss brand Nestlé to buy its French site in Dijon, plants for the production of cocoa and liquid chocolate in bulk at the Italian site in San Sisto (Perugia), and to supply Nestlé with 43,000 tonnes of chocolate products per year in France, Italy and Russia. Before the year was out, it had acquired FPI-Food Processing International in the United States and KL Kepong Cocoa Products Sdn Bhd in Port Klang Malaysia. In 2009, Barry Callebaut bought the Spanish chocolate producer Chocovic S.A. These international acquisitions took place in the space of a few years, leading CEO De Maeseneire to announce, "We did not want Barry Callebaut to be merely European, we wanted it to become a global company". Two years later, the company decided to transfer the Stollwerck division to the Belgian Baronie Group, in turn controlled by the Sweet Group private equity firm, disposing of most of its retail operations in European markets.

In 2017, Barry Callebaut acquired D’Orsogna Dolciaria, an Italian company based in Abruzzo and specialised in the production of amaretto biscuits, confectionery decorations and similar products.

Ruby Chocolate

In September 2017, the Swiss company launched a new type of chocolate, Ruby, named after its reddish pink colour. The pink hue is due to the colour of the cocoa beans used to produce the chocolate, Ruby cocoa beans, cultivated in countries with specific climatic conditions, like Ecuador, Brazil and the Ivory Coast, and processed by Barry Callebaut.

In January 2018, Nestlé Japan Ltd. launched a Ruby chocolate-based ''Ruby Sublime Kit Kat'' in Japan, becoming the first global brand to use the pink chocolate formula developed by Barry Callebaut. The product was also launched in April of the same year in the UK.

Governance

From October 2015 to September 2021, Antoine de Saint-Affrique was CEO of the company, after which Peter Boone took over the position. After Peter Feld replaced him in April 2023, the Group Executive Board was reduced to five people in September of the same year. On 1 January 2023, Jo Thys replaced COO Olivier Delaunay.

Acquisition and openings history

* 1998 Acquisition of the brand name «Van Houten» from the Van Houten chocolate factory, Netherlands
* 1999 Acquisition of Carma AG in Switzerland
* 2002 Acquisition of the Stollwerck Group in Germany
* 2003 Acquisition of Dutch Group Graverboom B.V. (including Luijckx B.V.)
* 2003 Acquisition of Brach's Confections Holding Inc., USA
* 2004 Acquisition of the vending mix business of ASM Foods in Sweden
* 2004 Opening of a sales office in Tokyo, Japan
* 2005 Opening of a chocolate factory in California, U.S.
* 2007 Opening of a chocolate factory in Chekhov (near Moscow), Russia
* 2007 Sale of the Brach's confectionery business
* 2007 Major outsourcing contracts with Nestlé, Hershey's and Cadbury
* 2007 Acquisition of a cocoa factory in Eddystone, Pennsylvania, U.S.
* 2008 Opening of a chocolate factory in Suzhou (near Shanghai), China
* 2008 Signing of the acquisition of chocolate production capacity from Morinaga & Company, Japan
* 2008 Opening of Chocolate Academies in Suzhou (China), Zundert (Netherlands), Mumbai (India), Chekhov (Russia) and Chicago (U.S.)
* 2008 Acquisition of a 60% stake in KL-Kepong Cocoa Products Sdn Bhd in Malaysia
* 2008 Strategic partnership with Biolands of Tanzania
* 2008 Sale of African consumer business
* 2008 Opening of a specialty factory for frozen pastry in Alicante, Spain
* 2009 Opening of a chocolate factory in Monterrey, Mexico
* 2009 Sale of Van Houten Singapur consumer business to Hershey's
* 2009 Acquisition of Danish vending mix company Eurogran
* 2009 Acquisition of Spanish chocolate maker Chocovic, S.A.
* 2010 Opening of a chocolate factory in Extrema, Brazil
* 2010 Signing of a long-term strategic partnership agreement with Kraft Foods Inc.
* 2011 Acquisition of remaining 40% stake in Barry Callebaut Malaysia Sdn Bhd, formerly KLK Cocoa
* 2011 Expansion of the existing supply and innovation agreement with Hershey
* 2011 Signing of long-term outsourcing agreement with Chocolates Turín, Mexico
* 2011 Sale of Stollwerck to Baronie Group (Belgium)
* 2011 Joint venture with P.T. Comextra Majora to form P.T. Barry Callebaut Comextra Indonesia
* 2012 Acquisition of la Morella nuts in Spain
* 2012 Acquisition of Mona Lisa Food Products, Inc. in the U.S.
* 2012 Launch of "Cocoa Horizons" initiative based on strategic pillar "Sustainable Cocoa”
* 2012 Purchasing Chatham facility from Batory Industries Company in Ontario (Canada)
* 2012 Signing of long-term outsourcing/partnership agreements with Unilever, Grupo Bimbo (Mexico), and Morinaga (Japan)
* 2013 Opening of a chocolate factory in Eskişehir, Turkey
* 2013 Acquisition of Singapore-based Delfi Cocoa from Delfi Limited
* 2015 Purchase of the production facilities of World's Finest Chocolate
* 2019 Acquisition of a production facility from Burton's Biscuit
* 2021 Opening of the largest chocolate distribution centre in Lokeren, Belgium
* 2021 Opening of a Barry Callebaut chocolate factory in Novi Sad, Serbia
* 2022 Closure of the Burton's Biscuit factory acquired in 2019
* In 2022, the company announced the construction of a factory for sugar-free products in Ontario, Canada.
* In 2022, Barry Callebaut took over a production facility from Attelli in Casablanca, Morocco.
* 2022 Opening of a chocolate factory in Duran, Ecuador

In 2005, Barry Callebaut introduced a "healthy" chocolate product called ACTICOA, which contains higher levels of polyphenol antioxidants (cocoa flavanols) than any other chocolate; some evidence indicates these flavanols have particular health benefits.

At the end of 2022, the "second generation of chocolate" was announced, which, according to the company, has 50 percent less sugar than most other chocolates. In addition, the dark chocolate consists of only two ingredients and the milk chocolate of only three. In the Belgian town of Wieze, Barry Callebaut operates the largest chocolate factory in the world. Around 350,000 tons of chocolate are produced here every year.

Ownership structure

As of May 2024, the company was 30.1% owned by Zurich-based Jacobs Holding AG, 5% by Renata Jacobs, 3.1% by BlackRock and 6.5% by UBS Fund Management.

Criticism

Deforestation

On 13 September 2017 NGO Mighty Earth released a report documenting findings that Barry Callebaut purchases cocoa grown illegally in national parks and other protected forests in the Ivory Coast.

The report accused Barry Callebaut of endangering the forest habitats of chimpanzees, elephants and other wildlife populations by purchasing cocoa linked to deforestation. As a result of cocoa production, 7 of the 23 Ivorian protected areas have been almost entirely converted to cocoa. Barry Callebaut was notified of the findings of Mighty Earth's investigation and did not deny that the company sourced its cocoa from protected areas in the Ivory Coast.

A follow-on report by Mighty Earth dated 7 December 2018 indicated little to no progress had been made in the year since Barry Callebaut and other signatories had committed to the Cocoa and Forests Initiative.

Child labour and slavery

The chocolate industry, including Barry Callebaut, signed the Harkin-Engel Protocol in September 2001. This protocol contains measures that were intended to end the worst forms of child labor and slavery in the cocoa industry by 2008. A report by ARD in 2010 concluded that large companies such as Mars Incorporated, but also Barry Callebaut and Nestlé still "at least tolerate" child slavery. An evaluation by Tulane University in 2011 found that not a single one of the six measures mentioned in the Harkin-Engel Protocol had been fully implemented.

In 2021, Barry Callebaut was named in a class action lawsuit filed by eight former child slaves from Mali who alleged that the company aided and abetted their enslavement on cocoa plantations in Ivory Coast. The suit accused Barry Callebaut (along with Nestlé, Cargill, Mars, Incorporated, Olam International, The Hershey Company, and Mondelez International) of knowingly engaging in forced labor, and the plaintiffs sought damages for unjust enrichment, negligent supervision, and intentional infliction of emotional distress.

In 2022, the "Chocolate Scorecard", a comparative overview of production conditions led by Australian universities, attested that the company was "beginning to establish good policies" regarding child labor. In the overall assessment of the environmental and social criteria, however, Callebaut was only ranked 24th out of 35 companies. The authors viewed the company's performance in areas such as transparency, livelihoods, agroforestry and, in particular, agrochemical management as particularly critical. In 2023, the company revised their goal to completely eliminate child labour from their supply chain by 2025, to having the “supply chain ..be covered by human rights due diligence to eliminate all identifiable cases of child labour.”

Salmonella

On June 27, 2022 Salmonella contamination was detected in a batch of chocolates at the Wieze, Belgium plant halting production. A shipment of the ingredient lecithin was identified as the source. No salmonella was detected at the Hungarian manufacturer's plant. The contamination was traced back to a single contaminated tanker delivery. Production was resumed gradually after August 8, going back to full capacity by October 20, 2022 after the factory facilities were cleaned.

Trading in Russia

In January 2024 Barry Callebaut was added to the list of International Sponsors of War for continuing to operate 3 factories in Russia, and having their products used in dry rations of the Russian army.

See also

* Belgian chocolate
* Swiss chocolate
* List of bean-to-bar chocolate manufacturers

References

External links

*

Associated Press Report

{{Authority control

Food and drink companies of Switzerland
Manufacturing companies based in Zurich
Swiss chocolate companies
Companies listed on the SIX Swiss Exchange
European chocolate bars