Barry Callebaut AG, manufacturer of high-quality cocoa and chocolate products, has signed a long-term outsourcing agreement with Chocolates Turin, a leading Mexican group operating in the consumer and foodservice/gourmet markets in Mexico and 25 other countries.

Through this agreement, Barry Callebaut will supply all of Turin’s liquid chocolate demand to be delivered directly to Turin’s manufacturing facilities. Furthermore, Turin, will become the exclusive distributor in Mexico for Barry Callebaut’s Gourmet business through its foodservice business, including the Cacao Barry, Callebaut and Sicao brands. To support the distribution agreement, the two companies will jointly develop new chocolate, compound and decorations products for the local market, and it is planned to jointly open the first Chocolate Academy in Mexico.

As a part of the transaction, Barry Callebaut will acquire a production facility from Turin, neighboring with the new state-of-the-art Turin chocolate complex in Toluca, southwest of Mexico City. Barry Callebaut will invest to expand capacity, for a total planned investment in fiscal year 2011/12 of about $30 million. This production site will be the platform to serve a variety of customers throughout the region. Deliveries from the facility will commence immediately, projected to achieve 20,000 metric tons in the near term, with capacity to capitalize on other market opportunities.

“Our new outsourcing agreement with Chocolates Turin is another important milestone for Barry Callebaut,” said Juergen Steinemann, CEO of Barry Callebaut, in a press release. “With this additional production facility, combined with our existing facility in Monterrey, we are well positioned to serve the Mexican market as well as other emerging markets in Latin America. Last but not least, we have found in Chocolates Turin a good partner to also further develop our gourmet business in Mexico.”