“Asia is set to become the second largest global consumer of cocoa ingredients [and] this acquisition will support [our] grinding capacity and supply chain security in the region [to support this demand],” said Olam Cocoa via an official press release.
Olam Cocoa acquired 85% of BT Cocoa owner YTS Holdings for US$90mn. The remaining 15% will be held by BT Cocoa founding members Piter Jasman and family.
“We are excited to have the opportunity to rapidly expand our footprint in Asia and to develop this business [which] will enable us to deliver world class cocoa ingredients and services […] in one of the fastest growing regions in the world,” added Olam Cocoa CEO Gerry Manley.
The acquisition adds 120,000 metric tonnes of cocoa bean processing capacity and 30,000 metric tonnes of cocoa mass pressing capacity for the company.
Olam Cocoa currently has 300,000 cocoa farmers in Indonesia as well as runs a sustainability programme there. It also currently leads as Indonesia’s largest exporter of cocoa beans, and owns one of the largest cocoa plantations in Indonesia, located on Seram Island.
Trends in cocoa
Global chocolate consumption totalled more than six million metric tonnes last year, and Indonesia took the sixth spot in terms of cocoa production globally, at some 230,000 metric tons.
In addition, the demand for cocoa powder in Asia has been increasing at a healthy rate, with a projected five-year CAGR of 8%. Cocoa ingredient consumption in the region is being led by China, India, Japan and the Philippines.
“With the acquisition of BT Cocoa we will be able to meet Asia’s increasing demand for cocoa ingredients with additional offerings that support the strong positioning of deZaan ingredients supplied from Singapore,” said Yeong Chye, Global Cocoa Business Head (APAC), Olam Cocoa.
“We welcome the potential to further expand the BT Cocoa and Huysman brands in the Asian markets, allowing us to extend our breadth and competitiveness.”