Hershey extends key chocolate supply deal with Barry Callebaut for its US markets
The US-based Hershey Company has committed to renewing its longstanding chocolate supply partnership with Barry Callebaut for its American markets, reports Neill Barston.
As the Pennsylvania-headquartered firm explained, its latest agreement marks an extension of the original deal first signed in 2007 for provision of high-quality chocolate and cocoa products.
Under the extension agreement, Barry Callebaut (the firm’s stand at Sweets and Snacks Expo in 2019 pictured below) will continue to supply Hershey’s North American business with liquid chocolate and finished products, which is anticipated to significantly drive long-term growth within the region.
Tricia Brannigan, VP of Procurement for The Hershey Company, said: “We are pleased to extend our strategic relationship with Barry Callebaut, who has been a key partner to our business for many years, and we look forward to their support of our continued sustainable growth in high-quality chocolate products.”
Steve Woolley, newly-appointed president & CEO Americas of Barry Callebaut (who takes over in the post from the company’s new CEO, Peter Boone), welcomed the expansion of the two companies’ existing relationship, which covers its operations in the US, Canada, as well as within Mexico.
He said: “The extension of the long-term supply partnership with Hershey underscores how Barry Callebaut’s reliability and premium
chocolate expertise make it the partner of choice for leading industry players.”
As previously reported by Confectionery Production, Hershey has enjoyed a resilient performance amid the coronavirus pandemic, with the company recording a 16% upturn in results for the first half of 2021, delivering $1.9 billion in sales.
While the company has acknowledged wider trading challenges during the global Covid-19 crisis, it has continued to benefit from a comparative boom in snacking during the past two years, as consumers increasingly sought out familiar treats and brands. Consequently, the business issued a revised outlook for the remainder of 2021, forecasting growth of between 6-8%.
“Our business continued to excel in the second quarter with robust recovery in away-from-home consumption and international markets and sustained elevated at-home consumption,” noted the company’s CEO Michele Buck.