Indonesian establishment GarudaFood will procure 10,000 tons of compound chocolate from Switzerland-based Barry Callebaut under a long-term supply agreement, whose implementation will begin from mid-2016.
As per the agreed terms, the company will receive compound chocolate for its biscuit factory in Gresik.
Barry Callebaut will also establish manufacturing operations in a new factory building on the premises of the GarudaFood biscuit plant, by acquiring some of the equipment from GarudaFood.
Through the collaboration, the companies will develop new products that will support GarudaFood's growth in the Indonesian market over the next three years.
Barry Callebaut CEO Juergen Steinemann said: "This partnership marks our entry with chocolate and compound production in Indonesia, the world's fourth largest country with a population of 250 million and impressive growth rates.
"Partnering with the GarudaFood Group not only allows us to team up with a leader in one of the most vibrant economies in Asia Pacific but also to gain a strategic foothold in an emerging market that offers further significant growth potential."
GarudaFood offers peanuts, jellies, snacks, biscuits, and basic food products, as well as beverages, such as flavor tea, functional drinks, liquid milk, mineral water, and coffee based products.
This is Barry Callebaut's first chocolate outsourcing agreement in Southeast Asia.
