Mondelēz International Halle chocolate factory to be acquired by strategic supply partner Barry Callebaut

• Mondelēz International plans to sell the Halle chocolate factory to Barry Callebaut
• Long-term supply agreement for the continued production of Côte d’Or liquid chocolate in Belgium
• The employees at the Halle plant would become part of Barry Callebaut
• Mondelēz International remains owner of the Côte d’Or brand & recipes

Mondelēz International announced today its intention to divest the Halle chocolate factory in Belgium to Barry Callebaut. Switzerland’s Barry Callebaut is a renowned industrial chocolate manufacturer and a long-term supply partner of Mondelēz International. Mondelēz International would also enter into a long-term supply agreement with Barry Callebaut for the continued production of Côte d’Or liquid chocolate in Belgium. Under the proposed transaction, all employees at the Halle plant would become employees of Barry Callebaut. Under a toll-manufacturing agreement, the Côte d’Or chocolate would continue to be produced in the Halle factory. 

The proposed acquisition of the Halle chocolate factory by Barry Callebaut is a logical next step in the strategic supply partnership between both parties since it would allow Mondelēz International to continue to optimize its chocolate supply chain network, while offering Barry Callebaut the chance to expand its manufacturing capacity in Belgium.

Mondelēz International, a global snacking company, has a proud manufacturing heritage in Europe, at the heart of which sits its chocolate supply chain. Operating in a highly challenging and rapidly evolving market, Mondelēz International needs to constantly optimize its network in order to remain competitive and ensure continued growth. The announced transaction follows an in-depth review of the site which looked at a range of factors including cost competitiveness and how to improve utilization.

Barry Callebaut is a renowned industrial chocolate manufacturer with Belgian roots and a major supplier to Mondelēz International. As part of the proposed transaction, Barry Callebaut would continue to manufacture the unique liquid Chocolate in Belgium used in Mondelēz International’s Côte d’Or products and would manufacture the finished Côte d’Or products in the Halle plant for Mondelēz International, under a toll-manufacturing agreement.

The Côte d’Or brand, its recipes, and the products that are currently mainly produced at the Halle plant will remain the property of Mondelēz International.

Marie-Pascale Sire, Managing Director Benelux states: “We are pleased to have reached an agreement with Barry Callebaut that safeguards a new future for the Halle plant and marks a further step in our strategic supply partnership. Mondelēz International remains the owner of the Côte d’Or brand and will continue to invest in and develop new Côte d’Or products. We are proud of our brand, with its strong Belgian heritage and will continue to guarantee the unique Côte d’Or taste and quality that is loved by our Belgian consumers”.

This transaction remains subject to closing conditions and consultations with the employee representatives. Both parties will now begin consultation with their respective works councils and expect the transition to close by the end of December 2016.The two parties have agreed not to disclose any financial details of the transaction.