Strategic alliance between Barry Callebaut and Morinaga in Japan

Barry Callebaut AG, Zürich, and the Japanese food company Morinaga announced their intention to enter into a strategic alliance. The alliance involves the sale of cocoa and chocolate production equipment by Morinaga to Barry Callebaut. At the same time the two companies will enter into a 10-year supply agreement for 9,000 metric tonnes a year – doubling Barry Callebaut’s sales volumes in Japan. As part of the agreement Barry Callebaut will lease land and buildings from Morinaga and will operate the cocoa and liquid chocolate department at Morinaga’s factory in Amagasaki near Osaka, Japan. Barry Callebaut will upgrade the production lines, creating a total production capacity of 20,000 tonnes. Barry Callebaut and Morinaga expect the final agreement to be signed by the end of 2007 and have agreed not to disclose any financial details of the transaction. The transaction is subject to regulatory approvals.


The transaction with Morinaga will allow Barry Callebaut to gain a strong foothold in the Japanese market, which is driven by growing consumer demand for super-premium and health-enhancing chocolate. Through the alliance with Barry Callebaut, Morinaga plans to secure stable procurement of liquid chocolate, realize manufacturing cost reduction, and change its business model for more efficient operations and a further strengthened chocolate business.