Barry Callebaut to expand its European Specialties business

By Jenny Eagle contact

- Last updated on GMT

Barry Callebaut to expand its European Specialties business

Related tags: Coffee

Barry Callebaut plans to expand its European Specialties business, by acquiring the commercial vending activities of FrieslandCampina Kievit.

The transaction which is expected to close in Q1, 2016, is subject to approval of the competition authorities and involves sales of products used in coffee and chocolate vending machines.

Satro Quality Drinks

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The deal also includes a long-term contract manufacturing agreement where FrieslandCampina Kievit will continue to produce vending products for Barry Callebaut, such as the Satro Quality Drinks range, at its production site in Lippstadt, (formerly Satro), Germany.

The acquisition includes approximately 20,000 tonnes of additional sales volume and CHF 55m (€50m/$55m) of additional sales revenue for Barry Callebaut.

The two parties have refused to disclose the financial details of the agreement. But said all employees and customers have been informed about the changes.

Antoine de Saint-Affrique, CEO, Barry Callebaut Group, said the acquisition is in line with strengthening its specialties products to drive ‘smart’ growth, (focusing on margin-accretive products and growing its Gourmet & Specialties business).

Barry Callebaut’s Vending & Beverages division is part of the Gourmet & Specialties Products Group and has two production sites in Sweden and the UK.

Soluble chocolate, cappuccino & beverage powders

It specializes in the manufacture and supply of highly soluble chocolate, cappuccino and other powders for use across the beverage sector.

Tine Snels, executive director, FrieslandCampina Ingredients, said the transaction enables Barry Callebaut to strengthen its position in the European Vending segment, driving increased product range and innovation.

He said FrieslandCampina Kievit will now focus on its core activities of (foaming) creamers, food ingredients and micro-encapsulates for the global beverage and food industry, including the vending segment.

This agreement allows both companies to focus on their strengths and provides future prospects for the production site in Lippstadt​,” he added.

With annual revenue of €11.3bn FrieslandCampina is one of the world’s six largest dairy companies, which supplies consumer products including dairy-based beverages, infant nutrition, cheese and desserts. It also supplies cream and butter to bakeries and catering companies.

Zurich-based Barry Callebaut Group manufactures chocolate and cocoa products – from sourcing and processing cocoa beans to producing chocolates, including chocolate fillings, decorations and compounds.

The company saw annual sales of about CHF6.2bn (€5.6bn/$6.6bn) in the fiscal year 2014/15.

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