Olam has acquired Indonesia’s largest cocoa processor, BT Cocoa, to capitalise on what it believes is Asia’s trajectory to become the largest global consumer of cocoa powder. The company now has an 85% share of YTS Holdings, the owner of BT Cocoa, valued at $90 million which is 100% owner of PT. The remaining 15% of shares are to be held by the founding members of BT Cocoa, Piter Jasman and family

The acquisition adds 120,000 metric tonnes of cocoa bean processing capacity and 30,000 metric tonnes of cocoa mass pressing capacity to serve increasing demand for cocoa products in Asia, especially cocoa powder.

The CEO of Olam Cocoa, Gerard A. Manley, said: “We are excited to have the opportunity to rapidly expand our footprint in Asia and to develop this business with the founder and family of BT Cocoa. Our longstanding relationship will enable us to deliver world class cocoa ingredients and services to our expanded customer base and look to strengthen these relationships in the future in one of the fastest growing regions in the world.”

Olam Cocoa has been working closely with BT Cocoa for nearly three years through a Business Collaborative Agreement.

In 2018, Olam notes, global chocolate consumption was above 6 million metric tonnes and is expected to increase in the next five years. Indonesia is currently the world’s 6th largest cocoa producing country and Asia is set to become the second largest consumer of cocoa ingredients in the world led by China, India, Japan and the Philippines. Asian demand for cocoa powder in particular is increasing with a 5 year CAGR projection of 8%. Growth in snack food categories like sweet biscuits and cookies, which accounted for 40% of new product development in Asia in 2018, is driving this trend.