Barry Callebaut to acquire Australian chocolate maker GKC Foods

Swiss chocolate and cocoa products company Barry Callebaut has brokered a deal to acquire Australia’s GKC Foods to expand its presence in the Australian and New Zealand markets.

Financial details of the deal have not been disclosed by either company.

Since 1980, GKC Foods has been manufacturing ‘Made in Australia’ chocolate and confectionery products, including organic and vegan chocolate items that are distributed in Australia and New Zealand.

The acquired entity operates a chocolate factory and a warehouse in Melbourne.

GKC Foods managing director John Borell said: “I am very proud of the great chocolate business we have built from scratch over the past 35 years.

“Our agreement with Barry Callebaut will ensure the successful future of GKC Foods and our team as part of a large, international, group. We really appreciate the business principles and the team spirit on which Barry Callebaut is based.

According to the agreement, Barry Callebaut will invest to upgrade and expand GKC Foods’ existing factory infrastructure.

The investment will see the installation of a new chocolate production line, as well as the deployment of an integrated management system to enhance automated production.

By acquiring GKC Foods, the Swiss chocolate company intends to increase its direct presence and manufacturing capacity in the Australian market.

Barry Callebaut Asia Pacific president Ben De Schryver said: “We strongly believe in the growth opportunities of the Australian and New Zealand chocolate confectionery markets.

“We already have the highest quality products today and we will further grow our competitive advantage through the acquisition of, and investment in, the best-in-class GKC Foods manufacturing facility in Australia.”

Additionally, Barry Callebaut has agreed to hire nearly 50 people at the site, including existing employees, who will be transferred to Barry Callebaut upon completion of the transaction.

Subject to regulatory approval and other closing conditions, the deal is expected to close by the end of this year.