The two companies already had a supply contract, but last week's decision will see a doubling of Barry Callebaut's provision and involve €51 million of new investment. Production will increase not only in Europe (the company still has a facility in Lebbeke near Aalst) but also in Malaysia, the US, Canada and Ivory Coast, where much of the raw cacao is produced.

Kraft Foods already produces brands such as Cote d'Or, Milka and Toblerone, as well as Belgian favourites such as Lu (which makes Prince biscuits)."This long-term
global supply agreement with Kraft Foods ranks amongst the largest strategic deals our company has ever signed," said Jürgen Steinemann, CEO of Barry Callebaut. "It means that we have succeeded in firmly establishing ourselves as a leading supplier for cocoa and chocolate products to the international food industry....This is evidence of the ongoing outsourcing and partnership trend in the chocolate industry."

The Belgian arm of the company in Wieze produces 270,000 tonnes of chocolate every year, making it the biggest single chocolate facility in the world. Barry Callebaut, a result of the merger in 1996 between the Swiss-based Cacao Barry and the Flemish Callebaut, is in turn the largest chocolate company in the world, with annual production of 1.2 million tonnes.