London — Olam International and its Olam Cocoa business have acquired an 85 percent share of YTS Holdings Pte Limited, which owns Indonesia’s largest cocoa processor, Bumitangerang Mesindotama (BT Cocoa). The company notes the purchase allows it to capitalize on Asia’s trajectory to become the largest global consumer of cocoa powder, and adds 120,000 metric tonnes of cocoa bean processing capacity and 30,000 metric tonnes of cocoa mass pressing capacity. The move also enables further development of Olam’s Huysman brand, the company says.
Olam Cocoa CEO Gerard A. Manley says: “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 the future in one of the fastest growing regions in the world.”
The acquisition satisfies increasing customer demand for full integration within the cocoa supply chain by bringing together Olam Cocoa, a leader in traceable cocoa bean sourcing and a processor of cocoa ingredients, and BT Cocoa, the largest cocoa processor in Indonesia, according to the company. Olam Cocoa offers breadth, depth and scalability from origin sourcing, trading, risk management, value chain processing and supply chain solutions, to sustainability, research and development, and cocoa ingredient innovation. BT Cocoa supplies size and scale in Indonesian cocoa processing with a total installed cocoa bean grind and cocoa mass capacity of 150,000 metric tonnes and a facility equipped with the latest processing technology.
Olam has been working with BT Cocoa for nearly three years through a business collaborative agreement and has made considerable financial and operational improvements, including helping BT Cocoa achieve a 30 percent reduction in energy consumption, according to the company.
“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,” says Piter Jasman of BT Cocoa. “The past 3 years of collaboration has clearly demonstrated the potential for delivering better value. The combination of Olam Cocoa’s expertise as the leading global supplier and processor of sustainable cocoa, with BT Cocoa’s strong local network, will provide our customers with increasing benefits.”
Yeong Chye, of Olam Cocoa, adds: “With the acquisition of BT Cocoa we will be able to meet Asia’s increasing demand for cocoa ingredients with additional offerings that support the strong positioning of deZaan ingredients supplied from Singapore. We welcome the potential to further expand the BT Cocoa and Huysman brands in the Asian markets, allowing us to extend our breadth and competitiveness.” C&ST