Jan. 23 (Bloomberg) -- Barry Callebaut AG rose the most in more than two months in Zurich trading after signing an agreement to supply Unilever with 70 percent of its cocoa and chocolate requirements.
The accord will almost double the amount of cocoa and chocolate that Zurich-based Barry Callebaut, the world’s largest maker of bulk chocolate, provides to Unilever, the companies said today in a statement. Financial details weren’t disclosed.
Barry Callebaut rose as much as 24.50 Swiss francs, or 2.8 percent, to 905.5 francs, the biggest intraday gain since Nov 16, and was up 1.5 percent at 12:04 p.m. The stock has gained 18 percent in the past 12 months.
The Swiss company said it will invest about 22 million francs ($23.5 million) in the capacity needed to supply Unilever, the world’s second-biggest consumer-goods company, and will need about a year to increase volume. Barry Callebaut has collaborated on the development of its London- and Rotterdam-based partner’s Magnum ice-cream brand.
The agreement “is a positive sign for the overall outsourcing trend and secures visibility of continued high volume growth” in 2013 and 2014, Claudia Lenz, an analyst at Bank Vontobel in Zurich, wrote in a research note. The supply contract may amount to about 30,000 tons a year, according to Lenz, who has a “hold” recommendation on the stock.
Barry Callebaut sold its European consumer-products unit to Belgium’s Baronie Group in September. The Swiss company will also provide Baronie with 25,000 metric tons of liquid chocolate each year and provide an additional supply of cocoa beans and semi-finished products, it said in July.
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