Barry Callebaut to expand chocolate production in North America

Swiss chocolate manufacturer Barry Callebaut plans to invest CHF26.8m ($27.9m) to boost its production capacity in North America to meet growing demand.

The company plans to expand its core chocolate moulding capacity at its plant in Vermont, New England, US, and has also agreed to acquire the assets of a facility in Chatham, Ontario, Canada, owned by Batory Industries.

Barry Callebaut already owns a facility in Illinois, US, and with the acquisition of the Chatham facility, it will have two facilities to serve consumers in the Midwestern US.

These expansion projects are expected to add nearly 60,000t to the company’s chocolate production capacity, helping it to address the rising demand in the region.

Barry Callebaut CEO Juergen Steinemann said that through the investment in the existing facilities and expansion, the company will be able to address current and future business growth.

"The increase of our production capacities will support the further development of our industrial business in the region while also gaining geographic advantage with our customers by adding a key Midwest facility," Steinemann added.

Barry Callebaut noted that its total investments in North America over the past two years have reached CHF95.9m ($99.7m), including investments in Mexico and Pennsauken, New Jersey in 2011, and the purchase of Mona Lisa Foods in January 2012.

For the first half of fiscal 2011-2012, Barry Callebaut reported an 11.3% decline in net profit to CHF121.8m ($134.91m), compared to the previous year, due to higher operating expenses and financing costs.

---

Image: The $27.9m investment is expected to add nearly 60,000t to Barry Callebaut’s chocolate production capacity in North America. Photo: Barry Callebaut