Nestlé broadens strategic co-operation with Barry Callebaut in Europe

Thursday, 15. February 2007 18:00

Vevey, 15 February 2007 - Nestlé S.A. and Barry Callebaut AG announce
their intention to broaden their strategic co-operation in Europe.
The project spans three countries and includes the transfer of
production facilities in Italy and France, as well as a long-term
supply contract for Barry Callebaut to furnish chocolate mass to
Nestlé chocolate factories in Russia. The agreement is subject to
employee consultation as well as to regulatory approval. The two
parties expect a final agreement to be signed during the summer of
For Nestlé, the worldwide move away from primary cocoa transformation
is part of its ongoing strategic transformation process. This
accounts for the proposed sale of the cocoa liquor and chocolate mass
production facility at the San Sisto factory in Perugia. Nestlé
understands that the new acquirer will significantly increase
capacity in this facility.
Nestlé looks forward to extending the already existing
supplier-customer relationship with Barry Callebaut, with its high
degree of specialization and state-of-the-art know how. Thus, Nestlé
chocolate factories in Russia will receive significant amounts of
chocolate mass from Barry Callebaut.
Furthermore, Nestlé proposes to transfer its chocolate factory in
Dijon to Barry Callebaut. Widening the product range should reverse
declining volumes and improve the competitiveness of this plant.
Nestlé will outsource the production to Barry Callebaut who, in
addition, can use the existing capacity and equipment to manufacture
some of its own products. Under the proposal the existing workforce
at Dijon would be transferred to Barry Callebaut.
Nestlé is convinced that the challenging and changing chocolate
market in Europe remains promising, provided that the right
structures are in place. Nestlé sees the strategic co-operation with
Barry Callebaut as a positive element in the Group's determination to
remain a key actor in the European chocolate market.

Nestlé Corporate Media: Francois-Xavier Perroud, Tel.:
+41-21-924 25 96
Investors: Roddy Child-Villiers, Tel.: +41-21-924 36 22
Nestlé Italiana Media: Carlo Salvadori, Tel.: +39-348-72 72
Nestlé France Media: Jean-Christophe Huertas, Tel.: +33-1-60
53 15 97
Nestlé Russia Media: Alik Tuigunov, Tel.: +7-495-727 66 40

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