Under the deal, Barry Callebaut will produce certain consumer products for Mondelēz at the factory.
Mondelēz told this site that the plant mainly produces Côte D’Or chocolate.
Barry Callebaut said the deal helped it capitalize on the fast-growing ‘Made in Belgium’ speciality chocolate and fillings market demand.
Not a move back to consumer products
Björn Emde, head of media relations at Barry Callebaut, told ConfectioneryNews that his company will only co-manufacture consumer products for Mondelēz at the Belgian site for a transition period of three years.
“Barry Callebaut has no intention whatsoever to move into consumer products again,” he said. “Barry Callebaut is a business-to-business company and this temporary agreement will not change our core business activity”
Barry Callebaut exited consumer-facing products in 2013 after selling its last consumer brand factory to former staff members, who established the firm Chocolaterie de Bourgogne.
Halle site to serve others
Emde said Barry Callebaut would serve other industrial customers in the future from the Halle site.
All employees at the site will join Barry Callebaut.
The company has been a longstanding partner to Mondelēz and one of its major suppliers. In 2010, the firms agreed a long-term global supply agreement.
Barry Callebaut is also working with the Cadbury owner to expand its Cocoa Life sustainability program.
Mondelēz will keep investing in Côte D’Or
Mondelēz said it had conducted an in-depth review of the site to assess its cost competitiveness.
Marie-Pascale Sire, managing director for Mondelēz in Benelux, said the deal "safeguards" the future of the Halle plant.
The Côte D’Or brand and other products at the Halle site will remain the property of Mondelēz. The brand owner said it would continue to invest in the brand.
The deal is expected to close by the end of December 2016.
From the archives: (Sept 2013) Wrecking ball for Mondelez's older sites as supply chain overhaul planned