Chocolate maker Barry Callebaut has announced that it is setting up a local, direct distribution network in South Africa.
The new distribution network will enable the Swiss company to expand its product portfolio and see the addition of global premium brands.
Rogier van Sligter, president of EMEA (Europe, Middle East, Africa) at Barry Callebaut, commented, "Expansion is one of our four long-term strategic pillars. After more than 20 years of experience in the South African market, we start a new chapter.
"By setting up a direct distribution network, we improve customer proximity and enable the growth of our Gourmet brands in the African markets."
New Distribution Network
The move will see the company open up its Gourmet business of packed products for artisans and chefs to other and multiple distributors while continuing as a distributor for Garden Morris Packaging and Food (GMPF).
Barry Callebaut will continue to collaborate with GMPF for its semi-industrial customers, food manufacturing business, warehousing, and logistics.
The association between the Swiss chocolate maker and GMPF exceeds 20 years.
Barbara Queally, managing director of GMPF, said, "Barry Callebaut manages its Gourmet business via a local entity with GMPF acting as their logistical and warehouse partner.
"This decision was taken to be able to offer a wider product range, servicing better innovation and development in the extensive Barry Callebaut product range to the local market. We look forward to our continued relationship with Barry Callebaut."
As part of the project, Barry Callebaut will increase the number of distribution points and take over the role of master distributor in South Africa.
It will focus on supplying customers in South Africa and the neighbouring countries with a wide range of products from the Group’s global Gourmet brands like Callebaut, Mona Lisa, Cacao Barry, and Carma, the company added.
The network will help Barry Callebaut meet the increasing demand for high-quality chocolates and support the growth within the African markets by expanding its local product range and doubling the size of its local team.
David Bowrin, general manager of South East and West Africa at Barry Callebaut, added, "By developing our network in South Africa, we will better understand our customers’ needs and adapt our product range and local stock to their requirements."
The South African food and grocery retail market is expected to grow at a CAGR of +4.9% between 2020 to 2025, with an estimated value of $59.6 billion by 2025, Barry Callebaut added citing GlobalData's report entitled 'Food and Grocery Retail in South Africa - Market Summary, Competitive Analysis and Forecast to 2025'.