Top Cocoa Bean Processors

Multinational Companies Process More Coco Beans For Dark Chocolates

Jul 12, 2007 Daniel Workman

Which cocoa bean processing companies stand to profit the most from health-conscious consumers demanding more cocoa in their premium dark chocolates?

Recent medical research finds that cocoa's flavanoids prevent cardiovascular diseases while antioxidants reduce the risk of cancer. This has increased demand for dark chocolate with higher cocoa content.

While smaller cocoa bean farmers are vulnerable to volatile cocoa prices, large cocoa bean processing companies continue to enjoy strong profits thanks to a 20% increase in global chocolate sales over the past 5 years.

Dominated by large multinational players, the cocoa bean processing industry transforms cocoa beans into intermediate semi-finished cocoa products. These include cocoa paste/liquor, cocoa butter, cocoa cake and cocoa powder without added sugar or other sweetener.

Chocolate manufacturers produce finished edible chocolates, and are usually not in the business of processing cocoa. However, a number of chocolate makers like Hershey and Cadbury have integrated their cocoa processing and chocolate manufacturing processes - sometimes within a single factory - in order to grab a larger share of profits from cocoa processing.

Top Cocoa Bean Processors

As the following list shows, the cocoa processing industry is highly concentrated. Profits are driven by large-scale production capabilities, with 3 multinationals processing over 40% of cocoa beans worldwide each year.

1. Archer Daniels Midland (US) ... 15% of global cocoa bean grindings
2. Cargill (US) ... 14%
3. Barry Callebaut (Switzerland) ... 13%
4. Nestle (Switzerland) ... 5%
5. Cadbury Schweppes (UK) ... 3%
6. Hershey (US) ... 2%
7. Ferraro (Italy) ... 2%
8. Mars (US) ... 2%

Archer Daniels Midland (ADM) is a US-based multinational with processing cocoa-plants in North & South America, Europe, Middle East, Asia and Africa. ADM produces the De Zaan brand of cocoa liquor, cocoa butter and cocoa powder for the food industry.

American-owned Cargill is a private company that makes premium cocoa products including industrial chocolate used to produce cakes, biscuits and other confectionary products.

Swiss-based Barry Callebaut is unique in that the company both processes cocoa and makes chocolate in numerous countries where its cocoa beans originate. Well-established in 24 countries, Callebaut is in a strong position to produce and sell chocolate made with single origin beans from exclusive cocoa-growing areas.

Headquartered in Switzerland, Nestle is the world's biggest food & beverage company. Recently Nestle transferred its production facilities in Italy and France to Barry Callebaut. Callebaut also now supplies cocoa chocolate intermediate products to Nestle chocolate factories in Russia.

Cadbury Schweppes is based in the United Kingdom and focuses making and selling premium dark chocolate around the world. Cadbury's strategy includes bringing high cocoa-content chocolate to emerging markets. For example, the company dominates over 70% of India's chocolate market.

Headquartered in America, Hershey's main operations are in the U.S. but does business in over 60 countries. The company has over 60 world-class brands including Hershey's, Reese's and Kit Kat. Hershey is focused on expanding its global operations in emerging markets, notably China and India.

Italian-owned Ferrero operates 15 production facilities, 11 of which are located outside Italy. Well-known Ferrero brands include Ferrero Rocher and Nutella.

Private company Mars has its head office in the U.S. and makes major brands including M&Ms, Mars bar, Milky Way, Starburst and Twix. To address consumer concerns regarding healthy eating, Mars has also launched CocoaVia, a line of chocolate candies with flavanols from cocoa beans.

Sources for this ArticleThis article presents independent calculations and insights based on data from the International Cocoa Organization (icco.org).

The copyright of the article Top Cocoa Bean Processors in International Trade is owned by Daniel Workman. Permission to republish Top Cocoa Bean Processors in print or online must be granted by the author in writing.

Can of powdered cocoa