Swiss chocolate producer Barry Callebaut is to sell its US consumer confectionery business Brach’s to US candy group Farley’s & Sathers.
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Callebaut indicated in June that it could sell Brach’s, which it acquired just four years ago, to focus on its business-to-business chocolate operations.
Callebaut announced this morning (17 September) that it had agreed to sell Brach’s to Minnesota-based candy firm Farley’s & Sathers for an undisclosed sum. The sale includes three plants in Tennessee, Minnesota and Vernell in Mexico.
“We are very pleased that we have found an optimal new owner for Brach’s in Farley’s & Sathers that, based on its industrial expertise, will be able to further develop the Brach’s brand and to secure a great future for the Brach’s people,” said Callebaut CEO Patrick De Maeseneire.
De Maeseneire said Callebaut had acquired Brach’s to gain access to large US retailers and manufacture private-label chocolate for the US market. However, as the market for private-label products in the US had not developed in the same way as in Europe, the company had decided to concentrate on other priorities such as outsourcing and geographical expansion.
Dennis Nemeth, president of Farley’s & Sathers, said: “This addition clearly marks our continued commitment to the candy business, and gives us additional brands with long traditions of quality that perfectly fit our long-term strategy. In addition to broadening our current portfolio of brands, this acquisition will allow opportunities to increase manufacturing capacity.”
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By GlobalDataBrach’s, which is based in Dallas, has annual gross sales of around US$270m, with three-quarters of sales coming from sugar candy.
Farley’s & Sathers, which is owned by private equity group Catterton Partners, manufactures and distributes confectionery, gum and snacks.
