Chocolate and cocoa giant Barry Callebaut plans to set up a direct distribution network in South Africa to meet the increasing demand for premium chocolate indulgence while expanding its markets in Africa. 

The South African food and grocery retail market is expected to grow at a compound annual growth rate (CAGR) of +4.9% by 2025, with an estimated value of US$59.6 billion, notes the company. 

“Expansion is one of our four long-term strategic pillars. After more than 20 years of experience in the South African market, we have started a new chapter. By setting up a direct distribution network, we improve customer proximity and enable the growth of our gourmet brands in the African markets,” says Rogier van Sligter, president Europe, Middle East, Africa (EMEA), Barry Callebaut.

Gourmet chocolate indulgence
Barry Callebaut plans to open its gourmet business of packed products for artisans and chefs to multiple distributors, with Garden Morris Packaging and Food (GMPF) as a distributor. 

Having worked with GMPF for more than 20 years, Barry Callebaut will leverage the collaboration for its semi-industrial customers, food manufacturing business, warehousing and logistics.Barry Callebaut will take over the role of master chocolate distributor in South Africa. 

Barry Callebaut will increase the number of distribution points and take over the role of master distributor in South Africa. The new network will supply local customers and neighboring countries with a wide range of products from global gourmet brands such as Callebaut, Mona Lisa, Cacao Barry and Carma. 

“This decision was taken to offer a wider product range, servicing better innovation and development in the extensive Barry Callebaut product range to the local market,” explains Barbara Queally, managing director, GMPF.

For the love of chocolate
With annual sales of about CHF7.2 billion (US$7.9 billion) in the fiscal year 2020–2021, the Zurich-based Barry Callebaut Group is one of top manufacturers of high-quality chocolate and cocoa products, from sourcing and processing cocoa beans to producing the fine chocolates, chocolate fillings, decorations and compounds. The group runs more than 60 production facilities worldwide.

The company has also unveiled plans to expand its North American presence by building a specialty chocolate factory in Ontario, Canada. With the factory expected to be fully operational by 2024, the total investment volume, over ten years, is projected to amount to CHF 100 million (US$104 million).

Insights on chocolate themes for the forthcoming year collected by Barry Callebaut indicate that health and sustainability are key drivers when choosing chocolate and experiencing indulgent flavors in new formats.