The Hershey Co., Hershey, Pa., and Zurich-based Barry Callebaut recently announced a stategic supply and innovation partnership, which will double Barry Callebaut’s chocolate production capacity in the Americas. Under the agreement, Barry Callebaut will construct and operate a facility to provide chocolate for Hershey’s new plant in Monterrey, Mexico. Barry Callebaut also will lease a portion of Hershey’s Robinson, Ill., plant and operate chocolate-making equipment at the facility. The partnership includes a long-term global agreement under which Barry Callebaut will supply Hershey with a minimum of 80,000 tons of chocolate and finished products annually.

During the next three years, Barry Callebaut’s production capacity will increase by 130,000 tons, with a significant portion of this production dedicated to supplying Hershey. Barry Callebaut’s total investment will amount to $50 million.

The companies also will partner on a range of research and development activities with a focus on driving new chocolate flavor experiences, premium chocolate, health and wellness, and ingredient research and optimization.  

According to the company release announcing the partnership, The Hershey Company is the largest North American manufacturer of chocolate and sugar confectionery products, and Barry Callebaut is the world’s largest manufacturer of high-quality cocoa, industrial chocolate and confectionery products.