Barry Callebaut acquires cocoa factory in Philadelphia

Barry Callebaut AG announced that it signed an agreement to acquire 100% of Food
Processing International, Inc. (FPI), a cocoa processing company in Eddystone near Philadelphia, Pennsylvania, U.S.A. FPI owns a factory with a capacity for cocoa liquor production of 25,000 metric tons per year. Financed by a group of private investors, the factory started production in 2006 and is now fully operational.


A good part of the capacity utilization is secured by a long-term supply agreement FPI has with existing customers for the delivery of up to 16,000 metric tons of cocoa liquor and up to 10,000 metric tons of cocoa powder and butter. Closing of the transaction is expected during October 2007. Barry Callebaut intends to increase the production capacity of the factory to 50,000 metric tons (110 million pounds) within the next 2 to 3 years to meet its own growing needs for semi-finished products as well as to supply third-party customers.


The capacity expansion will include pressing, grinding and deodorizing equipment to make cocoa butter and cocoa powder. The total investment amount including the expansion will be CHF 62 m. With cocoa factories in France, Italy, Belgium, the U.K., Ivory Coast, Ghana, Cameroon, Brazil, Canada and the U.S., Barry Callebaut has a good factory footprint for cocoa processing with a balance between origin
countries and enough production capacity close to its customers in consuming countries. The cocoa processing factory in Eddystone will allow Barry Callebaut to further optimize its factory network and supply chain in North America.