A foremost supplier of cocoa products, Olam Cocoa is expanding its footprint in the global cocoa market with its acquisition of Indonesia’s largest cocoa processor, BT Cocoa.
This, according to the company, would enable it to capitalise on surging cocoa powder consumption in Asia.
The company revealed in a statement that it had paid $90 million for an 85 per cent share of YTS Holdings, which is the 100 per cent owner of PT Bumitangerang Mesindotama (BT Cocoa).
The deal will add 120,000 tonnes of cocoa bean processing capacity and 30,000 tonnes of cocoa mass pressing capacity.
Olam said the deal supports the worldwide positive growth trend of chocolate and cocoa ingredient consumption and the expectation that the need for cocoa processing will continue to grow, supported by additional investment in cocoa producing and consuming countries.
BT Cocoa’s recognition as an existing supplier to leading chocolate and confectionery manufacturers in the region will present new market opportunities for Olam Cocoa’s ingredients portfolio, such as cocoa powders brand Huysman, which was launched in Asia in 2018.
Reacting to the deal, Chief Executive Officer of Olam Cocoa , Gerard Manley, said: “We are excited to have the opportunity to rapidly expand our footprint in Asia and to develop this business with the founder and family of BT Cocoa.
“Our longstanding relationship will enable us to deliver world-class cocoa ingredients and services to our expanded customer base and look to strengthen these relationships in future in one of the fastest growing regions in the world.”
Also speaking for BT Cocoa, Piter Jasman, added: “The relationship with Olam Cocoa represents a powerful opportunity for BT Cocoa to significantly expand our market with enhancements to quality, safety and ethically responsible cocoa products. The past three years of collaboration has clearly demonstrated the potential for delivering better value.