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Journal

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THEAMAZINGWORLD OF CHOCOLATE

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Anti-agingchocolate

Cocoahorizons

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Our value chain, from the cocoa farmer to the chocolate-based consumer products,is far too complex for any one player to manage on its own! The supply chainmanagement efforts of the many participants are disjointed and diverse and, hence,not efficient.

That is why there is a need for better alignment between all stakeholders inthe supply chain, including farmer organizations and certification bodies, and formore efficient knowledge transfer and sharing. In the midterm this will be decisivefor cocoa supply and the success of all players.

One of our biggest challenges starts right at the beginning of the global supplychain for cocoa and chocolate products – in the origin countries. In order to securefuture cocoa volumes as well as improve cocoa quality to meet the ever growingdemand for chocolate worldwide, we must improve the livelihoods of smallholderfarmers in the cocoa growing countries, which are often among the poorest of theworld.

Further along the supply chain we see even more challenges: in today’s cocoamarket rules and regulations, the persisting high volatility of raw material pricesand foreign exchange rates, the political instability in the cocoa growing regionsand the increasing global interdependence of markets, international regulationsand requirements for food quality and safety, shorter innovation cycles and – onceagain – a challenging economic environment.

These challenges have made it abundantly clear to us that we must all joinforces to bring about lasting change for the better.

This publication is dedicated to all stakeholders who are willing to work togetheralong the fascinating chain from cocoa to chocolate-based products with thepassion these one-of-a-kind products of nature deserve.

Enjoy reading our Journal!

“None of us can do it

alone”Juergen Steinemann

CEO

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Reflections withMassimoGaravaglia on Barry Callebaut’slong-term partnership andoutsourcingmodel.

Mr. Garavaglia, you wereinvolved in most of the majorlong-term partnership agree-ments Barry Callebaut closedin the recent past.What arethe main reasons why foodmanufacturers enter a long-term partnership with BarryCallebaut?

We are able to offer our cus-tomers an attractive package,starting with ensuring the avail-ability of cocoa up to the timelydelivery of their chocolate needsin the required high quality atthe specified location.Our long-term partners also appreciatehaving access to our pipeline ofinnovations and many of themcan concentrate more on theirbranding and marketing activi-ties thanks to the partnershipwith Barry Callebaut.

What are the main obstaclesthat must be overcome whennegotiating with a customer in-terested in doing longer-termbusiness with Barry Callebaut?

A commitment to a long-term business relationship isnever a “quick win.” It takesmonths, sometimes even years,of negotiations. When you putpart of your production processin somebody else’s hands, a highdegreeofmutual trust is needed.

How do you convince acustomer to become a long-term business partner ofBarry Callebaut?

I think the most convincingargument is the way BarryCallebaut does its business: Weshare the same values and prin-ciples as our partners.This is animportant starting point whencharting a long journey togeth-er. Moreover, Barry Callebaut’swell-balanced geographical foot-print combined with its strongpresence in emerging markets isa compelling argument: Wher-

ever they need our support, weare very close to them. In ad-dition, with our sustainabilityprograms we offer our businesspartners an important elementfor meeting the expectations oftheir clients and end-consumers.Last but not least, we guaranteefood safety and meet highestproduction standards.

What makes the businessmodel for Barry Callebautattractive?

Barry Callebaut is fully ded-icated to cocoa and chocolate.As a specialist, we can achieveimportant economies of scale,both in terms of productioncosts as well as in R&D. For us,this is an important element inmaintaining our leadership po-sition. As cost leader, we areable to offer our products to ourcustomers at competitive pricelevels. As innovation leader,we can provide them with thechocolate of tomorrow alreadytoday. •

On September 9, 2010, BarryCallebaut became the keyglobal cocoa and industrialchocolate supplier of KraftFoods Inc., the world’s secondlargest food company, undera long-term global masterproduct agreement.

What was Kraft’smain motivation forentering this long-termpartnership withBarry Callebaut?

“This is a good exampleof how strategic relation-ships with key suppliersdrive incremental value.This agreement leveragesour scale and lowerscosts while maintaininghigh levels of productquality.”

Kraft Foods Inc.

Creatingsustainable value

by RaphaelWermuth

Massimo Garavaglia, PresidentWesternEurope andmember of the ExecutiveCommittee of Barry Callebaut

long-term

“We share the same values andprinciples as our partners.This is an important startingpoint when charting a longjourney together.”

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Turkey+47.5%

Uzbekistan+7.5%

Indonesia+24.0%

Mexico+6.9 %

SouthKorea+2.5 %

SouthAfrica+10.4%

India+127.6 %

China+46.4%

CzechRepublic+9.2%

Peru+38.2% Brazil

+29.7%

Egypt+38.3%

SaudiArabia+31.5%

Belarus+15.2 %

Romania+12.7 %

Russia+24.3%

Poland+60.8%

Kazakhstan+10.6%Ukraine+16.0%

Chile+19.8%

Argentina+47.9%

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Why do consumers in some countries like Switzerland or Germany eat up to 13 kilogramsof chocolate per year while in other countries yearly consumption adds up to only a fewgrams on average? Is this because of climate? Tradition? Geopolitical history? Tradelanes? Food patterns? Demographics like the size and income of the respective middleclass?

Actually it is amixture of all factorsmentioned above. If we look at how rapidly choc-olate confectionery consumption in Brazil, Russia, India and China developed in the pastfew years, we might also have a look at some of the so-called Next 11 countries said tohave a high potential of becoming, along with the BRICs, the world’s fastest growingmajor economies in the 21st century.

Five of these countries – Turkey, Mexico, Indonesia, Egypt and South Korea – arealready onour list ofmajor emerging chocolatemarkets,which includes some surprisingnames like Poland, Argentina or Ukraine. •

BeyondBRIC

Where are the chocolateconfectionery markets ofthe future?

by JörnWagenbach

Expected growth of chocolateconfectionery consumption until 2015Source: Euromonitor

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How technology im-provements contributeto various aspects,from themost delicatechocolate productsto reduced energy con-sumption

JörnWagenbach,HeadCorporate Communications& CSR, andAlessia Baccalà,intern at Barry Callebaut’scommunication department,spoke with Dirk Poelman,Chief Operations Officer.

At Barry Callebaut you havea dedicated team focusing onnew ways of making yourproducts. Could you tell ushow this team is structuredand where the main focus lies?

Our process and technolo-gy development team consistsof 15 people. Seven of them areworking in the regions to sup-port production and to imple-ment best practices in theirrespective region. The othereight work in our centers of ex-cellence for cocoa in Louviers/France and for chocolate inWieze/Belgium. Main focus, ofcourse, is to develop new waysof making our products.

Our target is to increase theoutput of existing machinesand lines. By doing so, we canreduce both the investmentcosts and the operational costs

per tonne for existing and newplants. The team works veryclosely with our engineeringspecialists.

There is also a special focuson reducing energy consump-tion per tonne, in line with ourCorporate Social Responsibilityobjectives.

Less energy consumptionmeans reducing your CO2

footprint. Can you providesome specific examples?

Actually there are plenty ofthem. Take the installation ofnew bean breakers, for in-stance.They can reduce energyconsumption during the roast-ing process by 20 to 25% pertonne by eliminating the mi-cronizer, the preheater for thebeans. This also means lessequipment and less mainte-nance.

Another example is high-speed chocolate refiners.Whileconching affects the character-istic taste, smell and texture ofthe chocolate, refining reducesthe size of the different compo-nents of the chocolate. By ad-

justing our refiners, we canspeed up the refining processand, consequently, increase theoutput per machine by morethan 30% while maintainingthe same particle size.This newway of working has a positiveimpact on energy consumptionper tonne during the refiningprocess, which is obviouslyreduced.

You mentioned conching –any new technicaldevelopments there?

I am glad you asked – actu-ally we have developed a con-tinuous conching process thatgives us a great advantage: Wecan triple the output of theconche and still achieve thesame product quality. Improve-ments to the traditional conch-ing process have been tested

and implemented at differentsites.Progress wasmainlymadein two areas: reduction of ener-gy consumption by 35% pertonne and improved conchingefficiency because of better airflows in the conche, resulting inshorter conching times and im-proved cocoa butter yield. Thistechnology is based on stand-ard conches that were reengi-neered in-house. Further devel-opments are under way tomake this continuous concheevenmore efficient.But what istrue for any chocolate maker isalso true for us:When it comesto the details of the conchingprocess and, especially, break-throughs on the innovationfront,we all become very secre-tive … •

With about 40 production facili-ties around the world processingcocoa and producing chocolate,meeting the demands fromFoodManufacturers to Artisanscustomers alike, continual processand technology developmentimprovements are of crucialimportance for Barry Callebaut.

Aconchewith a conscience?

Reduction of energyconsumption by

3535%

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CocoahorizonsEnsuring cocoasustainability is at theheart of our business

Global demand for chocolate confections is on the rise, particularlyinAsia,Eastern Europe and theAmericas, yet cocoa production hasbeen steadily declining for years.What’s needed to stop the decline?Can cocoa production be revitalized in West Africa, still the sourceof about 70% of the world’s total cocoa supply? Marina K.Morari,Manager Corporate Social Responsibility at Barry Callebaut, spokewith Steven Retzlaff, President Global Sourcing & Cocoa, aboutBarry Callebaut’s cocoa sustainability strategy, how it aims to havea lasting positive impact on farming communities, and its guidingprinciple“farmers first.”

byMarina K.Morari

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With a few exceptions, the trend in cocoaproduction worldwide appears to beeither modest gain or alarming decline.At the risk of creating a run onchocolate, let’s start with the real burningquestion. Will we run out of cocoa?

We’re not going to run out of cocoa to-morrow, but we do need to take the world-wide production figures seriously.We needto keep working to better understandwhat’s behind the low productivity, partic-ularly in Côte d’Ivoire, and, where we can,take the steps necessary to try to turn thesituation around. Our experience tells usthat while we need to continue to focus onproven activities like farmer training andstrengthening farmer organizations, wealso have to invest in targeted researchactivities and innovations that could con-tribute to improving farmer livelihoods.

How is Barry Callebaut different fromother companies in the sector thatare faced with the same cocoa supplychallenges?

Cocoa is the defining ingredient inchocolate – not sugar or milk powder orflavors. Cocoa is what makes chocolatespecial. Barry Callebaut is all about cocoaand chocolate. Cocoa is our defining rawmaterial; without it, we don’t have choco-late and we don’t have a business. There-fore, it’s an imperative, not an option, for

us to work towards ensuring there is cocoatoday and tomorrow.

Other crops, like rubber, are in highdemand and are also easier to grow thancocoa. Is cocoa farming still a viableoption for smallholders?

Cocoa is a great crop for smallholderfarmers! It’s also a great crop to help liftpeople out of poverty and improve liveli-hoods. The barriers to entry are low, andit’s not easy to mechanize or industrialize.I believe each farmer can succeed withcocoa farming, based on the amount ofeffort he or she is willing to put intomaking farms as productive as possible.

Farmer training is a key area of focusfor Barry Callebaut’s sustainabilityactivities, yet many cocoa farmers havebeen growing cocoa for years. Why istraining actually needed?

Like in many rural agricultural com-munities, most cocoa farmers probably dolearn how to grow cocoa from theirparents or grandparents or other familymembers. The challenge we face is notnecessarily telling farmers what they needto do, but convincing them to do what theyknow. Our approach is very closely linkedwith our guiding principle of putting farm-ers first. When cocoa farmers wake up inthe morning, how do we convince them to

choose to invest their energy in cocoafarming as opposed to other activities?We’d like to encourage farmers to be pro-active and to take the steps to improve theproductivity of their farms.While farmersmay have experience with good agricul-tural practices, they may not have experi-ence dealing with some of today’s mostpressing problems, such as poor soil fertil-ity, land erosion, infestations of insects ordevastating crop diseases. So there’s realvalue in bringing small groups of farmerstogether with experts to discuss problemsand solutions. In addition, field trainingsessions are a good opportunity to raiseawareness about the issue of child laborand the importance of education.And, ba-sic business training can provide the skillsnecessary to run a farm like a profit-mak-ing enterprise, which we believe will in-spire young people to consider farming asa profession.

Even when farmers do know the bestway to grow cocoa, they may have losttheir motivation to do so if, for example,the economic incentive has disappeared.How are we addressing that?

Through the Farmer Field Schoolactivities organized with cooperatives par-ticipating in our Quality Partner Programin Côte d’Ivoire, we emphasize the impor-tance of good agricultural practices and

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sound post-harvest management practices.Through the implementation of what wecall Yield Enhancement Services, or YES,we are aiming to increase cocoa farm pro-ductivity from an average of 400kg/ha to800kg/ha. And, at the same time, we arealso working to restore the incentive.When farmer members deliver quality co-coa – that is, well fermented, well driedcocoa, free of foreign matter – to theirQPP coop, they’ll receive a higher price.Another example is Biolands in Tanzania.Biolands uses a farmer-centric businessmodel that is based on mutual trust andrespect. Farmers agree to deliver cocoagrown according to organic principles, andBiolands guarantees fair and transparentprices and accurate weighing, terms thathistorically could not be taken for grantedin rural agricultural communities.

Many development programs todayplace a big emphasis on gender issues.What role do women play in cocoafarming, and how is Barry Callebautincluding women in its sustainabilityactivities?

Women contribute not only on thefamily cocoa farm, but may also have asmall business activity to supplement thefamily income from cocoa. In addition,

women in rural agricultural communi-ties traditionally take on most of the re-sponsibility for ensuring the health andeducation of their children. We have putan increased focus on engaging womenin our cocoa sustainability initiatives.I’m convinced women will be key driv-ers of change, and of changing attitudes,especially as new educational and train-ing opportunities are made increasinglyavailable.

Barry Callebaut has launched its sixthWinning Together global initiative foremployees, this one focused on Cameroon.What do you see as the value of thisinitiative in terms of Barry Callebaut’ssustainability strategy?

The Winning Together initiatives, likethe name implies, bring employees togeth-er for a shared purpose. The fact that theinitiatives are linked to CSR projects incocoa farming communities means that allemployees around the world, in all job lev-els and functions, have the opportunity tolearn more about cocoa – how it’s grown,the farmers who grow it and the workwe’re doing to contribute to improvinglivelihoods. The more our colleagues un-derstand about cocoa, the better. It’s theheart of our business.•

Barry Callebaut’s CocoaSustainability StrategyEmpowering cocoa farmers to increaseincomes and improve family livelihoodsContributing to ensure future supplies ofcocoa is imperative because without cocoathere is no chocolate. We work with cocoafarmers to improve crop yields and quality,thereby helping to increase farmer incomesand improve family livelihoods. Farmers canearn more through higher yields and betterquality; Barry Callebaut benefits by havingsufficient quantities of quality cocoa grownin a responsible manner, to meet consum-ers’ increasing demand for chocolate.

BiolandsBiolands has been workingwith farmers in the Mbeyaregion in Tanzania for morethan 10 years to producehigh-quality, fully-traceable

certified cocoa. More than 20,000 farmersare registered in the program.AGPS trackingapplication ensures that each bag of cocoacan be traced to the famer who produced it.Biolands offers farmers training, technicaladvice, supplies of seedlings and pruningequipment, and has sponsored the plant-ing of more than one million cocoa trees aswell as diverse shade trees. Barry Callebautacquired a 49% stake in Biolands in 2008,and, based on the success of the programin Tanzania, supported the expansion ofBiolands’ farmer-centric business model toWest Africa. The new cocoa production en-terprises established in Sierra Leone in 2008and in Côte d’Ivoire in 2009 have togetherregistered more than 50,000 farmers.

Quality PartnerProgramBarry Callebaut es-tablished its Quality

Partner Program (QPP) for cocoa farmer co-operatives in Côte d’Ivoire in 2005. The pro-gram focuses on quality farms,quality cocoaand improved quality of life for cocoa farm-ers and their families. The goals of QPP are:

• To raise cocoa farmer incomes by provid-ing better market access and training toincrease yields and improve quality

• To enable cooperatives to better servetheir farmer members by providingbusiness training and financing support

• To further advance farm productivityand increase income by providing coop-eratives and farmers with access to newtechnologies and research developments,such as improved plant materials andpost-harvest processing methods

In 2010, the Quality Partner Program waslaunched in Cameroon, the fourth largestcocoa producer. Cocoa farmers in Cameroonface similar challenges as those in Côted’Ivoire, and the new program is buildingon that experience while retaining the corefocus on quality.

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Callebaut wasestablished in1850 by Euge-niusCallebaut

as a brewery in Wieze,in the heart of Belgium.In 1911, it began produc-ing chocolate bars, andin 1925 chocolate couver-tures. Callebaut is one ofthe rare chocolate makersthat still selects, roasts andgrinds its own cocoa beans.What’s more, Callebaut®Finest Belgian Chocolate

is the only brand whose chocolatecouvertures are processed entirely inBelgium, from the bean to the cho-colate.Over the years,Callebaut® has

become the preferred partner for creating chocolate andchocolate-related delicacies for skilled professionals activein the confectionery,pastry, restaurant and catering commu-nities.The Callebaut® range offers a huge choice of choco-lates: Think of fillings, decorations, choco-late mousse powder, sauces and toppings…All sealed with the Callebaut® guaranteeof superior and consistent qual-ity. Today, Callebaut® Finest Bel-gian Chocolate is one of the twoglobal Gourmet brands of BarryCallebaut – a proud and respectedpremium-quality chocolate brandwith a successful 100-year history.

What makes Callebaut®special for you?Callebaut® offers acomprehensive productportfolio. No matterthe application, I cancount on reliableCallebaut® products andit’s always a pleasureto work together withthe people behind theCallebaut® brand.

Why have you chosento work with Callebaut®chocolate?Mainly for two reasons:First, the consistently highquality of all Callebaut®chocolates. Secondly, thereare never any deliveryproblems with Callebaut®chocolate – and for me,running my own business,this is very important,because I cannot disap-point my customers.

How could we makeCallebaut® chocolateeven better?My customers are increas-ingly asking for organic,Fairtrade or UTZ certi-fied chocolates. If I hada wish, I would wish thatCallebaut® would addmore certified chocolatesto their current range.

ARTHUR TUYTELOWNEROF ARTHUR TUYTEL CHOCOLATIER/PATISSIER

ALBLASSERDAM / THENETHERLANDS

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Having startedup a businesswith tea andcoffee, CharlesBarry, an in-novator witha passion for choco-late, travelled to Africain 1842 to seek out aselectionof cocoabeansthat would enable himto create his very firstconnoisseur’s choco-late. A milestone in thecompany’s long his-tory of sourcing cocoabeans in origin coun-tries and mastering theprocessing of cocoawas

reached in the 1920s, when Barry opened itsfirst production facilities in Cameroon and Côted’Ivoire. Around the same time, the Barry fam-ily built a factory in Meulan, France, that stillremains one of Cacao Barry®’s most importantproduction facilities.Today, chocolatiers, confec-tioners, master bakers and pastry chefs all over

the world choose the Cacao Barry® brand because of its perfectfinesse and superior taste and tex-ture. The French brand offers a widerange of high-quality cocoa products,chocolate coatings, fillings, decoratingproducts, and moulds. Afterthe merger with the Belgiumcompany Callebaut, in 1996,Cacao Barry® is now oneof the two global Gourmetbrands of Barry Callebaut.

What makes CacaoBarry® special for you?The strengths of CacaoBarry® are manifold. I likemost that the brand keepsproviding a tiptop custom-er service, is coming upwith innovative productswith pure origin roots andis promoting platformslike theWorld ChocolateMasters.

Why have you chosen towork with Cacao Barry®chocolate?One reason was to havethe opportunity to de-velop our own chocolate.For this, I am very grate-ful for the support of thecommercial representa-tive from Cacao Barry®,Thierry Charrette.Thanksto his listening to us andpatience, we were ableto create an exceptionalchocolate which willdelight our customers, Iam sure!

How could we makeCacao Barry® chocolateeven better?Most of all, I see a tremen-dous growth opportunityfor Cacao Barry® to winnew interest and custom-ers with making the per-sonalized service of its OrNoir Lab more known.

LAURENT JEANNINPASTRY CHEF

LE BRISTOL PARIS / FRANCE

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What makes Carma®special for you?Top quality is a must today.It’s the people that makethe difference. Carma®

does a lot for its customers.We appreciate this verymuch!

Why have you chosento work with Carma®chocolate?As a leading pastry shopin the heart of Switzerland,we want to use the bestproducts on the marketand work with the bestpartner. Carma® and thepeople behind it help usto achieve our ambitiousgoals.

How could we makeCarma® chocolateeven better?If you stop getting better,you’ll stop being good.Both Confiserie Bach-mann and the team ofCarma® share this belief!

Carma® was foundedby the Zurich entre-preneurCarlMaentlerin 1931 with the aim to

bring to market high-quality andready-to-use products for pastrychefs. For 80 years now, Carma®has been recognized as a reference

brand in the pastry and confectionery sector aswell as in theSwissgastronomyandhotel indus-try. Today, Carma® is BarryCallebaut’s Swiss Gourmetchocolate brand, appreciatedby a wide customer base bothin Switzerland and abroad.

RAPHAEL ANDMATTHIAS BACHMANN

OWNERSOF CONFISERIE BACHMANN

LUCERNE / SWITZERLAND

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by RaphaelWermuth

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Continuous improvementin efficiencymeets cost leadership

Take a look at RoderickParayno in theU.S.,StephaneBizard in France, and Nori-masa Kushida in Japan –what do they have in com-mon?Okay, they all work forBarry Callebaut. But there ismore.Although thousands ofkilometers apart from eachother, they are all applyingthe same methods to reacha common goal: increasingproduction output withoutincreasing capacity. The re-sults so far? The additionaloutput generated ranges be-tween 15% and 55%!

This has much to do withsetups, workflows and plan-ning, of course. But the realstrength of the program is itsfocus on people and theirdesire and ability to get fromgood to better. Roderick

Parayno, Continuous Im-provementManager U.S., ex-plains:“What we implement-ed is unique because it doesmore than just give instruc-tions. It creates a better wayof working, ensuring boththe committed involvementof all members of staff andthe sustainability of resultsobtained.”

The project started byclarifying the roles and re-sponsibilities within each siteand developing precise andspecific performance indica-tors for all departments andevery level within a depart-ment. Dedicated trainingprepared staff to analyze andaddress performance issues,resulting in rapid improve-ments of the operationalresults. Daily production re-

sults and root causes for inef-ficiencies are now publishedin all production areas andexplained to all operators.“Improvement measures arecommunicated and imple-mented more quickly,” saysStephane Bizard, SupplyChain Louviers.

Operational changes onand off the shop floor quick-ly became visible. A vitalcultural and behavioral tran-sition was also taking place,boosted by training sessionsand coaching. In the words ofNorimasa Kushida, Produc-tion Manager at Tsukaguchi:“Our continuous improve-ment program has advancedinter-departmental commu-nication between produc-tion, supply chain, quality as-surance and maintenance. It

has built a platform for un-derstanding and challengingourselves.”

Very soon the three col-leagues will have some morefellow workers to chat withabout continuous improve-ment successes: A secondwave of the program coversBarry Callebaut locationsin Belgium and Malaysiaand further roll-outs areplanned for Eastern EuropeandAfrica. •

Active in a capital-intensivebusiness, Barry Callebaut hasto ensure that performance ofall of its production facitities ishigh and constantly improved.Growing customer expectationsconfirm the need tomaintaincost leadership in the sector.

by JörnWagenbach

betterRoderick Parayno

in the U.S.

Stephane Bizardin France

Norimasa Kushidain Japan

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Naturallysweet–with SteviaA new chocolate inno-vation developedin a strong partnership

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In October 2010, Barry Calle-baut launched the first no sug-ar added chocolate with Steviaextract produced on industrialscale that does not cause anyside effects,making it safe for allto enjoy. This particular inno-vative chocolate will be retailedexclusively by renowned Bel-gian chocolate maker Cavalier.In an interview,FelixVerdegem,the owner of Cavalier, explainswhy he is extremely excitedabout this latest innovation.

Your company is specialized inchocolates with no added sugar. Whatwas your motivation for startingthis particular business?

Our family has a long heritage in thefood business, starting with my grand-father. When founding Cavalier fifteenyears ago, we identified two prerequisitesfor being successful: First, we wanted tooffer high quality products. Secondly, withdiabetes and obesity on the rise, we wereconvinced that there is a huge, unexploredmarket for indulgent, healthy chocolateproducts.

Usually, your products are based onmaltitol. Why are you now launchingchocolates sweetened with Steviaextract?

Maltitol is actually an excellent sugarreplacer with a great taste, but we noticedthat some customers still perceive it assomething artificial – when in fact it origi-nates from a natural source. Furthermore,chocolate products containing more than10% maltitol need a warning on the pack-aging, since it may have a laxative effect.In contrast, Stevia extract is viewedas a natural sweetener without having a

laxative effect. That is why I decided toask Barry Callebaut for support in devel-oping a chocolate sweetened with Steviaextract.

Are sugar substitutes like Stevia extractjust a means of reducing the overallamount of calories in chocolate?

Calorie reduction was and is still notmy initial motivation for using Stevia ex-tract in chocolate. The main issue is thatwe all consume too much sugar: World-wide, the average daily intake of sugar is2.5 times the amount recommended by

Felix Verdegem,owner of the Belgianchocolatemaker Cavalier

by RaphaelWermuth

About CavalierCavalier has beenexclusively devel-oping, producingand distributingchocolate productswith no addedsugar since 1996.The company is theonly manufacturerin the world dedi-cated exclusively tohealthy, sugar-freechocolate. Cavaliersells its products inmore than 45 coun-tries. For moreinformation:www.cavalier.be.

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Barry Callebaut’s chocolatewith Stevia extract – and othersugar-reduced chocolates

The Stevia plant is cultivatedthroughout Asia and South America,where it has been used as a foodingredient for more than 200 years.Nowadays, it is also cultivatedin Japan, Korea, and China.Whenrefined, natural Stevia extracthas between 100 and 400 timesthe sweetness of ordinary sugar– but no calories. This makes it anideal sweetener for people seekinga healthier lifestyle.

Barry Callebaut has offeredchocolate sweetened with Steviaextract since 2011. After firstlaunching a dark variation, thecompany has now expandedits portfolio with a milk variation.In addition, a white chocolatewith Stevia extract is currently inthe late stages of developmentand will be launched soon.

Barry Callebaut has also mar-keted other sugar-reduced andlow-calorie chocolates using differ-ent sweetener solutions since 2006.In addition, the company developeda specially processed chocolatesweetened with isomaltulose thatprevents dental caries and iscertified by the “Toothfriendly”organization and endorsed bydentists.

the World Health Organisation (WHO).Therefore, our focus is on substituting thesugar while keeping the healthy ingredi-ents in chocolate that are naturally foundin cocoa.

Why have you chosen to work togetherwith Barry Callebaut to develop yournew chocolate?

As a businessman, I like to work inproven partnerships. Cavalier has a long-standing, successful business relationshipwith Barry Callebaut. Besides, I realizedthat the potential partner for developingthe Stevia chocolate I had in mind neededto be very experienced and knowledge-able in working with fibres – I knew thiswould be a key issue to solve. And withBarry Callebaut I found the right partnerwith these specific Research and Develop-ment skills.

What type of new chocolates will younow offer?

Cavalier will offer a comprehensiveportfolio of chocolate products with Steviaextract.We have created tablets, bars as wellas a comprehensive range of pralines, fromlow budget up to finest premium pralines.

When and where will you start sellingyour new chocolates?

Currently, there is no chocolate withStevia extract fromCavalier on the shelvesin Europe due to differing national legis-lation. However, this is changing as wespeak. The product itself – in milk anddark variety – is ready for launch.As soonas Stevia extract receives EU regulatoryapproval, we will start selling our productsin Europe. I expect this to happen by thebeginning of December 2011.We have al-ready begun to sell Cavalier chocolateswith Stevia extract in the U.S. •

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Barry Callebaut has succeeded in creating a special pro-cess, called ACTICOA™, that combines the divine taste ofcocoa and chocolatewith its health-promoting propertiesby preserving up to 80% of the flavanol content of raw

cocoa. ACTICOA™ chocolate is one of the richest naturalsources of cocoa flavanols. At present, around 30 productscontaining ACTICOA™ cocoa or chocolate are sold inmorethan 10 countries around the world.

Forget about the pills and anti-aging creams andindulge in what scientists found to be the idealway to stay healthy and happy ever after!

Never before has our planet containedsuch a large percentage of older people.ThePopulation Division of the United Nationsstates that “The older population is grow-ing at a considerably faster rate than thatof the world’s total population. In abso-lute terms, the number of older personshas tripled over the last 50 years and willmore than triple again over the next50 years. In relative terms, the percent-age of older persons is projected tomore than double worldwide over thenext half century.”

No wonder that international con-sumer surveys show that also choco-late lovers are increasingly seeking in-dulgence that additionally offersclinically proven functional health ben-efits, or, in other words: an anti-agingchocolate with positive effects on both body andmind.Does that sound appealing to you, too?

While the nutritional potency of cocoa has beenexploited in traditional medicines for centuries, it isonly relatively recently that the numerous health ben-efits of this remarkable fruit have been attributed tothe large variety and unmatched abundance of theflavanols, a sub-class of polyphenols (also known asantioxidants), within the cocoa bean.

Most of these cocoa flavanols are normally de-stroyed during the conventional chocolate-makingprocess.By creatingmore careful processing techniques,Barry Callebaut has succeeded in preserving most ofthe natural flavanols from bean to chocolate. Recentstudies demonstrate that chocolate rich in flavanols

has positive effects on a whole range of bodilyfunctions, including themaintenance of healthyblood pressure levels, more vein elasticity,and better blood flow. These improvementsare generally associated with better cardio-vascular health. What a delicious way tolook after your well-being!

But there is more. Independent clini-cal studies have revealed that eating choc-olate rich in flavanols can significantlyhelp to protect your skin from the harm-ful effects of ultraviolet radiation. Theydemonstrate that regular consumptionof specially produced chocolate withpreserved high cocoa flavanol levelscan more than double the resistance ofthe skin to UV light and additionallyincrease the hydration and elasticity ofyour skin. The authors of the studiesstate that the effects are most likely tobe caused by the anti-inflammatory ac-

tivity of the cocoa flavanols and their ca-pability to increase blood circulation in the skin.These results are comparable with those achieved byleading cosmetics products.The difference,however, isthat the effect after eating chocolate comes from“with-in” and is consequently observed over the whole body.

And it get’s even better.Cocoa is also a naturalsource of mood-lifting components which may be-come an alternative to existing anti-depressantagents! Consumers already know that chocolate is adelicious treat that keeps their spirits high. It has nowbeen shown that there are also components in cocoawhich have a mood-lifting effect.Of course, a balanced and varied diet and a healthy life-style may also add to the positive effects of eating choco-late rich in flavanols… •

Anti-agingchocolate

Look after your healthin the most delicious waypossible

by JörnWagenbach

20

First visit together to a cocoa origin countryThe prestigious Barry Callebaut Ambassadors Club unitesmorethan 150 chefs, pastry chefs and confectioners of internationalreputation.They represent Barry Callebaut’s three Gourmetchocolate brands Callebaut®, Cacao Barry® and Carma® and theirmission is to transfer their chocolate know-how and techniquesto other craftsmen all over the world.

ChocolateAmbassadors

2011Brazil

21

Barry Callebaut operates fourdecorations factories inEurope that serve demandingcustomers around theworld.Decorations such as chocolatepencils,blossoms,vermicelli,pearls,flakes, shavings, rolls,cups and plaquettes,mouldsor transfer sheets turnany chocolate creation intoa veritable piece of art.Barry Callebaut offers over6,000 different decorationsto our various customers –from the small, high-endconfectioner, baker or pastrychef to the large industrialcustomer.This is the widestassortment offered by anychocolate producer world-wide.Our innovation teamis constantly developing newdecorations that allowourcustomers to continuouslymake the difference andsurprise their own customers.Take transfer sheets:Theyallow chocolate to speak.Theyare the ideal tool for per-sonalizing confectionery andpastry products and givingthem a premium touch. •

by Rahel Lehmann

Differentiatingchocolate creations

24

Health plays a big role: Barry Callebautpays particular attention to health-relatedissues when developing fillings and inclu-sions. Examples of the healthy solutionsit offers are:· Aerated and water-based fillings for lower calories· Reduction or elimination of trans-fatty acids,saturated and hydrogenated fats

· Fruit-based fillings and coatings

Fillings add a variety of creamy, nutty,crunchy, chocolaty, airy, fruity, crispy andmany other cores to our breakfast bites,dessert pieces, pralines, Easter eggs andcountless products enjoyed by millionsaround the world.

by Tamara Frey

The core of some of the most indulgent choco-late delights is often overlooked. Hidden insidethe dessert pieces, chocolate bars, bakery pro-ducts or other sweet treats we indulge in is ahuge variety of creamy, crispy, crunchy, chocola-ty, nutty, fruity or otherfillings. Inclusions arealso an important ingre-dient – smaller in volu-me, but big in value formany sweet treats.Bothinclusions and fillingscan add an extra dimen-sion of taste, textureand variety to virtuallyany application, fromconfectionery to ice cream to bakery products.

The attractive market for fillings and inclu-sions continues to grow. Barry Callebaut offersthe widest range of new and unique filling andinclusion solutions of any chocolate manufactu-rer, to the delight of customers and consumersaround the world.

Barry Callebaut’s research and develop-ment teams focus on and anticipate major mar-ket trends and devote particular attention tohealth-related issues, also in fillings. Recently,Barry Callebaut presented some innovative andhealthier confectionery ingredients low in sat-urated or hydrogenated fats and it has almostcompletely eliminated the use of trans-fattyacids in its products.Another way of answeringthe healthier snacking trend is by switching fromfat- to water-based filling products. Despite thetechnical nature of these developments, theforemost goal is not to compromise on func-tionality or taste. We all enjoy a bite of some-thing sweet, don’t we? •

Not only “in from the cold,” but also“into the cold” – Barry Callebaut’sChocMelts™ inclusions are made from100% pure chocolate.

Inclusions can tantalize our senses bychanging the texture, taste, color, shape orsize of the purest product.

Inclusions andfillings – we carewhat is inside

2525

coldIn from the

Chocolate and ice cream – who wouldn’t melt away whenthinking about this combination? But bringing the two ultimateindulgence products together in their purest form wasnearly impossible because of their different melting points.Nearly impossible? That meant possible for us!

Ice has been used to make tasty dishesfor thousands of years. Food historianssay that a frozen mixture of milk andrice was used in China around 200 BC.Later on, the Roman Emperor Nerohad ice brought from the mountainsand combined with fruit toppings. Peo-ple in the region that today is known asSaudi Arabia were perhaps the first touse milk as a major ingredient in theproduction of ice cream. They sweet-ened it with sugar rather than fruitjuices and developed large-scale pro-duction methods.

Chocolate, of course, also has a richhistory, dating back nearly 4,000 yearsto the ancient civilizations of Mexico,Central and SouthAmerica. Neverthe-less, it took nearly an eternity beforeboth – ice cream and real chocolate –

were melting together in perfect har-mony.

In order to replicate the same tex-ture and melting behavior of chocolateat low temperatures, for a very longtime most ice cream manufacturers re-sorted to the use of so-called chocolate“compounds” made with vegetablefats other than cocoa butter for coat-ings.The same was true for any kind ofice cream inclusions.

Barry Callebaut was among thefirst companies to create ice creamcoatings and inclusions made with onehundred percent chocolate, combiningthe technical characteristics of com-pounds with the unmistakably intenseflavor and texture of genuine choco-late. Because they melt together withice cream, the innovative coatings and

inclusions release a much richer andmore intense chocolate taste than con-ventional compound-based applica-tions. The secret lies in how the choco-late is processed and the resultingcrystalline structure of the cocoa but-ter, which ensures a real chocolate ex-perience even at the low temperaturesof ice cream.

Hans Vriens, Chief Innovation Of-ficer at Barry Callebaut: “Our new in-clusions called ChocMelts™ are a trulyexciting development. This 100%chocolate inclusion has the perfectmelting behavior required for use inice cream. We see untold possibilitiesfor new products and new taste sensa-tions on an industrial scale.”

Melting away has never been an in-dulgence so pure. •

by JörnWagenbach

26

Sourcingcore ingredients

Understanding and success-fully navigating the complex raw

material markets

Steven Retzlaff,what is theGlobal Sourc-ing & Cocoabusiness?

Barry Calle-baut’s GlobalSourcing & Co-coa business isa separate op-erating segmentlike a Region.The segment isresponsible forthe global procurement of our high-quali-ty raw materials, such as cocoa, sugar anddairy products and it is the global cocoaproduction unit for semi-finished products,such as cocoa liquor, cocoa butter, and co-coa powder. Global Sourcing & Cocoa hassourcing teams in Africa, Asia, Europe aswell as North and South America. In total,the segment employs 1,600 colleagues.

Roman Müggler, cocoa sourcing is obvi-ously a complex business – why is that?

Indeed, it is. Cocoa is a commodity andbuying and selling activities take place in aconstantly changing environment – cocoa

prices go up anddown dependingon the prevailingmarket forces.Cocoa availabil-ity can also varysignificantly dueto various fac-tors. To managethis complex-ity, we have ateam of 12 cocoaspecialists whowork alongside

our local sourcing teams in Côte d’Ivoire,Ghana, Cameroon, Sierra Leone, Tanza-nia, Brazil, Ecuador and Malaysia as wellas with local partners in Nigeria, Indone-sia and most of the other cocoa produc-ing countries. We study the correlation ofdifferent events and theresulting effect on pricein order to secure thenecessary supply of co-coa, at the right time, inthe required quality andat competitive marketprices.

Massimo Selmo, you are responsible forsourcing all non-cocoa raw materials.What else is needed in order to producechocolate?

Our team of around 40 sourcing spe-cialists procures ingredients such as dairyproducts, sugar, oils and fats. To give youan idea of the volumes, the amount of milkwe buy is equivalent to the annual milkproduction of 200,000 cows. The 3.3 mil-lion tonnes of sugar beets we buy are culti-vated on an area of land the size of 30,000football fields. My team also takes care ofpurchasing technical machinery and spareparts, packaging material as well as energylike electricity and gas.

Are both your teams doing this centrallyout of Barry Callebaut’s head office inZurich?

M. Selmo: We are or-ganized as one teamwiththree main presencesin Zurich, Chicago andKuala Lumpur as well assmaller, local presencesin emerging marketssuch as Russia, Braziland China. This way we

by RaphaelWermuth

The three interview partners:RomanMüggler, Steven Retzlaff andMassimo Selmo(from left to right).

27

While the finished chocolate is the sweet finale, thestory of Barry Callebaut chocolate begins withsourcing. Specialized teams buy all the raw materialsneeded to produce the company’s own cocoa andchocolate products in order to serve its customersbest. We interviewed Steven Retzlaff, Presidentof Barry Callebaut’s Global Sourcing & Cocoabusiness, along with Roman Müggler, Vice Presidentof Cocoa Procurement, andMassimo Selmo,Head ofPurchasing, to understand better how this is done andwhat the main challenges are.

are very close to our internal and exter-nal customers and can serve them aroundthe clock with quick reaction times.At thesame time, this setup is also necessary be-cause agricultural products such as sugarand dairy products are not traded globallybut sold on local physical markets whichare often protected by import quotas andtariffs.

R.Müggler:As a team,we secure alongwith our local sourcing organization about15% of the global cocoacrop in order to satisfythe company’s needs.From an organizationalstandpoint, we do thiswith a hub team in Zu-rich, while leveraging aregional approach withlocal points of contact forcustomer and supplierproximity.

What are the main responsibilities of thepurchasing team?

S. Retzlaff: First and foremost, we haveto ensure the right quality and quantity ofraw material at the right time and at a verycompetitive market price. Additionally,

our purchasing teams support the Regionsand their customers by providing marketintelligence and tailor-made solutions forspecial raw material requirements.

The recent past was marked by increasingraw material prices and high volatilityon the respective markets. Are there otherrisks you have to cope with?

R. Müggler: Wildly fluctuating pricesare certainly an issue we have to deal with.

We also face supply risks.For example, with therising popularity of carsin emerging markets, weface a situation wherecocoa is competing withother crops like rubberfor manufacturing cartires. Besides that, thereis the quality risk.Which

is why, for example, we intensified our ef-forts to move up the cocoa supply chainand get closer to the farmer. Direct sourc-ing is the most effective way of managingour supply and quality risks.

What instruments do you have at hand tomanage the different market risks?

S. Retzlaff: In order to cope with theseasonal supply and demand for raw ma-terials, Barry Callebaut applies a varietyof sourcing strategies and best practicesto manage inherent market risks. Theseinclude diversification of origin countries,vendor assessment, price hedging of physi-cal cocoa through futures market transac-tions, physical forward contracts as well asarbitrage management.

How did the export ban in Côte d’Ivoirein early 2011 influence the daily work ofthe cocoa trading team?

R. Müggler: During our long-standingpresence of more than 50 years in thiscountry, we have experienced a variety ofcrises, but we had never been confrontedwith a de facto export ban in Côte d’Ivoire.However, since we closely monitored andconstantly evaluated developments as theyunfolded, we anticipated a deterioration ofthe overall situation in the country. By pre-paring alternative scenarios and adjustingour contingency plan we managed to over-come the tight cocoa supply situation. •

28

FERTILIZED ripening

SHADOW TREES

CÔTE D’IVOIRE

cultivation

EQUATOR

West Africa

pods

Trinitario

Forasterio

Criollo

fruitpulp

cocoa beans

FE

SHADOW TREWe

Trin

tivationAfrica pulp

cocoa beansREES cult

EQSHADOW TRE

Criollo

tivation

QUATOR

cooling blocks

SOLID SHAPES

dropscooling blocks

drops

SOLID SHAPES

kernels or nibs

dark

Nibs

COCOA POWDER

grinders

grounding

white

high pressure

milk

SUPER FINE COCOA LIQUOR

crushing

CHARACTERIZINGAROMAS

1Growingcocoa

4Chocolatetakes shape

2Processingand refiningof cocoa

The supply chain trip of acocoa bean fromanorigincountry to consumerhouseholds

Fromthebeanto theshelf HARVESTING FERMENTCOCOA TREE

SELECTIONOF BEANS,CLEANING,

DRYING

“NIBS”ROASTING

COCOA MASS –COCOA BUTTER,

COCOA CAKE

QUALITYCHECK

MOULDINGTO BLOCKS

by Tamara Frey

LOGISTICS

CUSTOMERSEGMENTS

PACKAGING,STORAGE

29

about 6 days

regularityturning

quality

5-7 daysripening process

sun farming communitycollection point

collection point

first quality checks

grade

bales of 50–60 kg

jute bags

second quality checklicensed buying company

cooperation

AROMA

transportation

collection center

qualitycode

warehouse

origins of beans all registered

export

factory

s

g communityection point

armincolle

A cocoa bean takes a long and fascinating journey en route to becoming a precious ingredientfor delicious chocolate.There are few foodstuffs with such a rich and intriguing history as cocoaand chocolate. Just like coffee,we inherited the cocoa bean from the pre-Columbian cultures inLatin America.When Hernando Cortés first imported cocoa to Europe and Europeans learnedhow tomake a chocolate drink with it, it caused quite a stir: divine to some, heretical to others.Even today, cocoa and chocolate still exude an aura of mystery, luxury and pleasure.

Let us introduce you to the journey of the cocoa bean from an origin country to the fourcorners of the world.

FERMENTATION BAGGING QUALITY CHECKS TRANSPORTATION, SHIPPINGDRYING

rollerstexturesoya lecithin

CONCHINGviscositytime

cocoabutter HEAT

aromadevelopment

SMOOTH CHOCOLATE

BLENDRECIPES

mix homogeneousdough

2,000 RECIPES

Tanks

LIQUID CHOCOLATE;READY FOR

FILLING, PROCESSINGAND STORAGE

lorries footprint

TEMPERINGPROCESSORS

TRANSPORTATIONTO OTHER

PRODUCERS

3From chocolate

dough tothe finishedproduct

30

Dynamicagroforit’s allin themix

31

Dynamicoforestry –

mix

32

Looking at the development of supplyand demand in the cocoa and chocolateindustry, it’s clear that cocoa productionwill have to step up to keep up with thegrowing appetite for chocolate in marketsaround the world. Consumers in emerg-ing economies such as the BRIC countriesBrazil, Russia, India and China and coun-tries in the Middle East, for example, aredeveloping a taste for chocolate. Whilethis trend is welcome news for the cocoaand chocolate industry, it also underscoresthe need for significant and sustainable in-creases in cocoa production.

How to achieve this goal is a topic ofintense debate among experts. While thesystematic use of chemical inputs has longbeen regarded as a viable solution, anotherapproach called “dynamic agroforestry”is currently also being explored. Dynamicagroforestry focuses on mixed crop farm-ing.The aim is to grow cocoa with a varietyof other plants that enable the cocoa treesto thrive.

Cocoa production practicesFor decades, increases in cocoa productionwere achieved mainly through the conver-sion of tropical rainforest areas into cocoaplantations. Decreased soil fertility andsharp increases in plant diseases and pestsin some cocoa growing regions – conditionsobserved after 20 some years of production– were countered by increasingly intenseusage of chemical fertilizers and pesticides.Yet plant diseases are still a major prob-lem, especially in West Africa and Asia.Moreover, it is now common knowledgethat the large-scale clearing of tropicalrainforest has played a key role in climatechange.An expansion of cocoa farmland atthe expense of the few remaining tropicalrainforests would be irresponsible in to-day’s world. The greatest challenge facingthe cocoa industry is thus to ensure that itcan continue to source its key rawmaterial,

cocoa, in the quantity and quality required.And this will only be possible through theimplementation of good agricultural prac-tices on existing cocoa farms.

Lessons from Malaysia…In order to fully understand the complexityof the problem, let’s take a look at how co-coa cultivation has developed in Malaysiaover the past 30 years.

As a country characterized by large-scale plantations, it was relatively easy toboost Malaysia’s cocoa production volumerapidly within just a few years throughcultivation programs, and cheap loans andsubsidies supported by the World Bank.High prices on the global market duringthe 1970s and early 1980s motivated boththe government and investors to expandcocoa farmland, even in less-than-ideal lo-cations, to force a monoculture approachand to maximize yields through the use ofchemical fertilizers and pesticides. In do-ing so, the country succeeded in boostingits cocoa production from 35,000 tonnes in1980 to 241,000 tonnes in 1990. Malaysiawas the fourth largest cocoa-producing na-tion after Ghana (295 tonnes), Brazil (362tonnes) and Côte d’Ivoire (704 tonnes).Cocoa had thus advanced to become Ma-laysia’s third-most important export.

At the end of the 1980s, explodingcocoa production was about to catapultMalaysia to the top of the list of the world’slargest cocoa-producing countries. Butthen in 2000, the annual harvest fell backto 35,000 tonnes. The fall in cocoa produc-tion was just as swift as its rise. What hadhappened?

Malaysia’s initially extremely highyields of two tonnes per hectare, achievedthrough the high-level usage of fertilizersand pesticides, could no longer be main-tained. This was primarily the result ofescalating soil depletion despite the useof fertilizers, as well as the fact that dis-

eases and pests had become increasinglyresistant to certain pesticides. The uncon-trolled increase in these pests and diseasescoincided with a period of falling prices onthe global market. Oversupply, plus higherproduction costs made cocoa productionunprofitable and triggered the gradual re-placement of cocoa trees by rubber treesand oil palms.

…and other cocoa growing regionsThe Brazil cocoa sector was devastatedby an outbreak of another plant disease,witches’ broom, which triggered a similarcrisis. In the early 1990s, cocoa produc-tion in Brazil plummeted from more than400,000 tonnes to less than 150,000 tonneswithin a decade. This had a dramatic eco-nomic and social impact on the entire

The growingappetite forchocolateunderscoresthe need forsignificantand sustain-able increasesin cocoaproduction.

by Petra Heid

33

34

cocoa cultivation region in the state ofBahia.

Over the course of the past two de-cades, Indonesia has advanced to becomethe world’s third-largest producer of co-coa with an annual production volume of800,000 tonnes in 2009.One cause for con-cern is that the same cultivation techniquesare in use there which ultimately led to thecollapse of cocoa production in Malaysia.

Côte d’Ivoire and Ghana, which to-gether produce half of the world’s totalcocoa harvest, are also struggling with theproblems of decreasing soil fertility as wellas increasing rates of disease and pests.These conditions are causing relatively lowor even decreasing yields per hectare onsmallholder cocoa farms. In addition, vari-ous plant diseases, such as swollen shoot,are appearing with increasing frequencyin certain regions. Containment of this dis-ease requires the complete destruction ofinfected cocoa plants, which in turn severe-ly threatens the cocoa farmers’ livelihoods.

Barry Callebaut’s Research &Development activities in cocoaBarry Callebaut has decided to addressthese new challenges and take action. Dy-namic agroforestry is oneof the approachesbeing studied by the company’s Research& Development team. Even though it is aniche approach, dynamic agroforestry hasdemonstrated some promising results byboosting production and improving soilfertility on cocoa plantations in severalLatinAmerican countries.

Barry Callebaut’s agricultural researchdraws on the experience and expertiseof international specialists who, throughmany years of cultivation experimentsand consultation with about 1,000 cocoaproducers in Latin America, have success-fully developed innovative cocoa produc-tion systems and implemented these inthe day-to-day operations of small-scalefarmers. Building on these experiences, aninitial scientifically-conducted cultivationfarm trial was implemented in Malaysiain 2011 in collaboration with the ResearchInstitute of Organic Agriculture (FiBL),Switzerland, and the Bolivian consultancyECOTOP. The results of this multi-yearexperiment will subsequently be used tohelp develop new strategies for increasingcocoa production.

What is special about this cocoaproduction system?The cocoa tree comes from the Amazonrainforest and the rainforest regions ofCentralAmerica.It grows there naturally inthe shade of a large number of very differ-ent trees. According to the latest research,ideal conditions for cocoa tree growth andproduction should be based on the condi-tions found in their natural habitats.

Dynamic agroforestry is based on theconcept that high productivity can only beachieved in agricultural ecosystems if theyhave a high energy flow or, in other words,

if many plants can grow within one systemand carbon can be accumulated as an en-ergy source.As soon as the living plants die,microorganisms transform these into min-eral nutrients which can then be absorbedby the living plants. The more biomass asystem produces, the higher its energy flow,the more intense its water and nutrient cy-cles, the more nutrients are available to liv-ing plants, and the higher its productivityand soil fertility.

The challenge of this system lies in com-bining as many plants as possible in such away that they do not compete against thecocoa plants, but rather develop a positivegrowth dynamic and allow the cocoa plantsto produce at optimum levels. An impor-tant benefit is that a highly-productive, di-versified cocoa ecosystem is also extremelystable against pests and diseases.

Targeted measures also produce eco-nomically profitable yields: Farm revenuesare higher than production costs over thelong term with minimal use of fertilizersand pesticides. Farmers are always inter-ested to reduce external inputs, especiallyif this means stable high yields plus lowerexternal input costs. In addition to cocoa,the farmer families can harvest numerousother agricultural products, such as variousfruits and root crops, and wood.

Another increasingly important advan-tage of the dynamic agroforestry approachis that it is better adapted to ever morefrequent climate fluctuations and couldeven reduce such fluctuations at a regionallevel. If dynamic agroforestry proves tobe successful not only on a small scale butalso on a large scale, and under a varietyof different agronomic and cultural condi-tions, this could be a real milestone towardsustainable cocoa cultivation. •

BarryCallebauthas decidedto addressthese newchallengesand takeaction.

3535

Maintaining quality at a globallevel is a complex undertaking,and the key to success. This isespecially true for the chocolateindustry, where assuring consis-tent quality remains a challenge.For a chocolate manufacturer,quality assurance starts withthe cocoa bean. Being presentin origin countries, not only forthe sourcing of beans but alsofor production of semi-finished

products such as cocoa powder,butter and liquor, gives BarryCallebaut a competitive advan-tage and additional control overquality.

Take Africa, from wherewe source most of our cocoa.Here, our local teams ensurethat the beans we buy under-go very strict quality checks. Ineach of our four African facto-ries in Cameroon,Côte d’Ivoire

and Ghana, there is a QualityAssurance team that makescertain all cocoa products meetour quality standards. Theyensure that the products meetcustomer and technical spe-cifications, that they have theright color, microbiology, fatcontent, and moisture, that theyare properly packaged and do-cumented, taste good and mostimportantly… are safe to eat. •

Barry Callebaut’s quality assurancesystem strives to continuously im-prove our quality levels. It complieswith numerous standards, includingGoodManufacturing Practices(GMP) guidelines and British RetailConsortium (BRC) certification,a global standard for food safety.

Strict quality checks in the country of originensure that the beans we processmeet the highestquality standards.

by Rahel Lehmann

QualitymattersCustomers choose Barry Callebaut forquality.Tough prerequisite programsand controls by our Quality Assurancedepartments all over the world ensure thatall our ingredients and products meet thehighest quality standards.

Ensuring quality from thesource: the cocoa bean

36

Womenin chocolate

37

A closer look at…

38

The four female chocolate artisans are all mem-bers of the Barry Callebaut Ambassadors Club.At the end of May 2011, they had an opportu-nity to take part in a visit to a cocoa origin coun-try – for the first time for some of them.Togetherwith more than 100 colleagues, they became ac-quainted with the Brazilian cocoa productionand the local processing of Barry Callebaut atits cocoa factory in Ilhéus. An exclusive gour-met chocolate demonstration at the Caesar SãoPaulo International Airport Hotel marked thecrowning climax for the Barry Callebaut Am-bassador chefs from Europe, the U.S., Canada,Asia and Oceania.

Looking at the sheer numbers, onecould easily get the impressionthat the world of chocolate artisansis a purely man’s world. Far fromit! We would like to introduce youto four passionate women whoeasily rival their male professionalcolleagues.They are all mastersof their craft with impressiveartisanal skills and a long list ofachievements, not to mention adeep passion for chocolate.

of chocolate art

by RaphaelWermuth

… the

39

RenataArassiro is thechef chocolatier andowner of the high-flying shop RenataArassiro Chocolatesin São Paulo – just re-cently distinguishedas the best chocolateshop in town by a

gourmet magazine. In her line of chocolatesshe processes typical Brazilian products suchas local fruits or cachaça, the most populardistilled alcoholic beverage in Brazil madefrom fermented sugarcane. Renata’s uniquechocolates are available at the best hotels inSão Paulo and the city’s most elegant gourmetmarket. Renata gave up a career in engineer-ing for her love of chocolate 12 years ago andcompanies all over the country turn to her foradvice in creating chocolate specialties.

What fascinates youabout chocolate?Everything about choco-late fascinates me! I lovethe way it inspires andchallenges you to use allfive senses to create oneunique experience ofindulgency.Transformingliquid chocolate into abeautiful, shiny piece ofdelicious chocolate iswonderful and fascinating!

What was your greatestexperience in yourprofessional career?Three things come tomind:The first was my de-cision to give up my solidcareer in textile engineer-ing and enter the choco-late world. Secondly, thehonor of being the firstand so far only Callebaut®

ambassador in Brazil. Lastbut not least, opening myown chocolate shop, ofwhich I’m very proud.

Kirsten is the directorof Savour Chocolate& Patisserie Schoolin Melbourne (AUS),the first school inAsia-Pacific focusedsolely on chocolateand pastries. Kirstenis one of Australia’smost celebrated andinternationally respect-

ed pastry chefs. She is a former member of theAustralian Pastry Team and has been trainedby the world’s leading pastry chefs and choco-latiers. In July 2004, she represented Australiaat the 2004 World Pastry Championships inLas Vegas, where she was recognized as thebest in the world for her handmade chocolates.Kirsten also won a gold medal at the PastryOlympics in Germany in 2004 and numerousnational awards inAustralia.

What fascinates youabout chocolate?I love its versatility; thereis no other food productthat is not only incredibleto eat but an amazing me-dium for artistry. Choco-late can also have so manydifferent tastes and flavorprofiles, depending notonly on the manufacturerbut also on the farmingprocesses and environ-mental factors.

What was the greatestexperience in yourprofessional career?My greatest experiencewould be competingfor Australia in both thePastry Olympics andtheWorld Pastry TeamChampionships.Thecompetitions themselveswere exhilarating andso was the time I spentbeforehand sharpeningmy skills as a pastry chef.I did both competitions inthe same year, which wasquite demanding, but stillan amazing experience.

KirstenTibbals –teachingchocolateDownUnder

RenataArassiro –chocolatesbreathingBrazil

40

Marianne is a pastrychefwhowonherfirstaward by complet-ing her apprenticeshipwith the highest scoreever achieved by apastry apprentice inDenmark. Marianneis the owner of SweetValentine in Copen-hagen, a boutiquechocolate shop in theheart of the capital

of Denmark. In 1992 and 1996, she was thewinner of the Danish national chocolate com-petition. But she has also shone on the inter-national stage: Marianne was the first placewinner of an international chocolate competi-tion in Frankfurt in 1995 and won the bronzemedal atThe Nordic Championship in Oslo in1994.

MarianneValentineNysted –indulgingnordicchocolatelovers

What fascinates youabout chocolate?Working with a materialthat is so alive, varied intaste and that opens up somany possibilities. It’s justso much fun playing withall these possibilities.

What was your greatestexperience in yourprofessional career?Oh, there are so many.One of the greatestexperiences was gettingthe highest score on theapprenticeship test andwinning a scholarship,which gave me the greatopportunity to travel

around Europe for ayear. During that time Iinterned at various privateschools and for variouspastry chefs in Switzerland,Belgium, France andAus-tria.Another huge stepwas opening my first choc-olate shop in 2000 andthe second one in 2011.Last but not least, I verymuch enjoyed travellingto Brazil with the BarryCallebaut AmbassadorsClub in 2011 to experi-ence the origin of the co-coa and seeing a differentside of what I work withevery day.

What fascinates youabout chocolate?Chocolate is a very uniquematerial that engages allyour senses. One cannotbe indifferent to choco-late. Everywhere you goyou’ll find people wholove chocolate.

What was your greatestexperience in yourprofessional career?My greatest experiencewas discovering andunderstanding the amaz-ing process of how thiswonderful raw materialis made, mostly by hand,by skillful farmers, copingwith the vagaries of theweather and various pestsand diseases. Seeing howold and new technologiesare used to turn cocoa intochocolate inspired me toexplore the many wondersof chocolate and experi-ment with new creations.

Estella is the founderand manager of Es-tella Master Class inPastry & Chocolate,the leading culinaryschool in Israel.Estel-la is a graduate (cumlaude) of the pas-

try making track at the Cordon Bleu Schoolin Paris. She deepened her studies at variousschools and companies in France, Germanyand England. Estella’s rich professional ex-perience includes pastry making at the pres-tigious Dan Hotels. She was the first to teachadvanced chocolate techniques to profession-als in Israel.Estella recently launched her ownTV show on the Israeli Culinary Channel. Shegives lectures nationwide and in the U.S. anddevelops chocolate and pastry products forleading chocolate and pastry manufacturersin her home country.

Estella M.Belfer –chocolategoes TV

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PublisherBarry Callebaut AGWest-ParkPfingstweidstrasse 608005 ZurichSwitzerland

The Barry CallebautJournal is published inEnglish and German.

Conception/Designhilda design matters,Zurich

TextBarry Callebaut AGCorporateCommunications

Prepress/PrintPrinted by Linkgroupwithout impactingthe climate.

This Publicationis printed on FSC-certified paper.

All articles andimages printed in theJournal are protectedby copyright.

Reproduction in wholeor in part is prohibitedwithout the priorwritten consent ofthe publisher.

Company History

Barry Callebaut, headquartered in Switzer-land,resulted from themerger betweenBelgianchocolate producer Callebaut and Frenchchocolate maker Cacao Barry in 1996. Themerger combined Cacao Barry’s know-howin procurement and initial processing ofcocoa beans with Callebaut’s extensive expe-rience in producing and marketing chocolateproducts. Since 1998, Barry Callebaut hasbeen listed on the SIX Swiss Exchange.Today, the company is a fully integrated

chocolate company with a global presence. Itprovides comprehensive chocolate solutionsto the entire food industry. Barry Callebautis present in 27 countries, currently operates40 production facilities,employs around 6,000people and generated sales of about CHF 4.6billion in fiscal year 2010/11.

1999Acquisition of Carma AG inSwitzerland2002Acquisition of the StollwerckGroup in Germany2003Acquisition of Dutch GroupGraverboom B.V. (including LuijckxB.V.)Acquisition of Brach’s ConfectionsHolding, Inc. in the U.S.2004Acquisition of the vendingmixbusiness of AM Foods in Sweden2005Opening of a chocolate factory inCalifornia,U.S.2007Opening of a chocolate factory inChekhov, RussiaDivestment of Brach’s ConfectionsHolding, Inc.Signing of major outsourcingcontracts with Nestlé,Hershey andCadburyAcquisition of a cocoa factory inPennsylvania,U.S.2008Opening of a chocolate factory inSuzhou, ChinaAcquisition of a 49% stake inBiolands,TanzaniaAcquisition of a 60% stake in KLKCocoa inMalaysia

Opening of a sales office andChocolate Academy inMumbai,IndiaOpening of Chocolate Academiesin Suzhou, China; Zundert,TheNetherlands; Chekhov, Russia andChicago,U.S.Acquisition of IBC, specialist indecorations in Kortrijk-Heule,BelgiumOutsourcing agreement withMorinaga in Japan and start ofproduction in new factory2009Opening of a chocolate factory inMonterrey,MexicoSale of Van Houten SingaporeConsumer business to Hershey’sDistribution agreement signedwith Bunge Alimentos in BrazilAcquisition of Danish vendingmixcompany EurogranAcquisition of Spanish chocolatemaker Chocovic, S.A.2010Opening of a chocolate factory inExtrema, BrazilSigning of amajor outsourcingcontract with Kraft Foods Inc.2011Acquisition of remaining 40%stake in Barry Callebaut MalaysiaSdn Bhd, formerly KLK CocoaSigning of a long-term out-sourcing agreement with Choc-olates Turín,MexicoSale of European ConsumerProducts business to BelgianBaronie Group

Numberof employees

5,972

Percentageof direct cocoasourcing

61%

Number ofindustrial foodmanufacturerswe are serving

6,000Numberof factories

40Numberof recipes

2,000Number ofR&D projects

1,918Number ofChocolateAmbassadors

155CO2-Reduction

9.8%Barry Callebaut is theworld’s leading manu-facturer of high-qualitycocoa and chocolate.The company servesthe entire food industry,focusing on industrialfood manufacturers,artisans and professionalusers of chocolate.

Tonnes of cocoasourcedwithQPP cooperatives

59,303Number of pro-fessionals peryear trainedat our ChocolateAcademies

26,000

BarryCallebautin numbersfor fiscal year2010/11

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Barry Callebaut AG P.O. Box 8021 Zurich Switzerlandwww. barry-callebaut.com