The need for coatings and fillings has seen strong year on year growth as manufacturers seek cost-effective solutions to rising cocoa prices. This is one of several trends leading to the need for a site expansion, said Cargill product line director for cocoa and chocolate, EMEA, Michiel van der Bom.
“Over the past 12 months the chocolate market has been turbulent and we’re providing a cost-effective offer to mitigate the exposure to rising cocoa costs,” says van der Bom.
“We’re also building on the additional trends for vegan and reduced sugar, no palm too. But it’s also about organic market growth as well as the trends and cocoa volatility.”
Cargill boosts coatings capacity
The €35m investment sees Cargill increasing its Deventer, The Netherlands, coatings and fillings capacity by 60% to 70,000t a year, and creating 12 jobs.
Although some demand for the facility is a result of rising cocoa prices, the business case to invest was agreed prior to the turbulence, says van der Bom.
“We’ve built the facility with an eye for growth and the building is big enough to continue to grow with the existing or new technology. It’s ready for further development,” he continues.
Alongside chocolate coatings and fillings, the line is capable of incorporating multiple ingredients into products, such as proteins, “which again plays into existing and growing market trends”, says van der Bom.
Nut-free production line
In a bid to futureproof, the new line is segregated from other production facilities at the site and ‘no nuts’, as well as having stronger food hygiene, and health and safety features.
Cargill has developed a coatings and fillings technique to manufacture products that deliver the same look, feel and taste of those made using traditional methods, says van der Bom.
Meanwhile, Mondelēz International boss Dirk Van de Put and CFO Luca Zaramella were recently optimistic about stabilising cocoa prices.
Cocoa prices have come down “quite a bit from most recent historical highs”, said Zaramella recently, adding the market believes this year’s crop in Africa is “going to be quite good”, with yields up around “20-25% from what happened last year”.