FinancialMediaGuide notes that the events surrounding Barry Callebaut in 2026 reflect not merely leadership changes, but a systemic reassessment of strategy by the world’s largest producer of cocoa and chocolate ingredients. The departure of CEO Peter Feld following disagreements with the board of directors regarding the future of the cocoa division highlights not only internal conflict but also the broader challenges facing the industry, where sharp fluctuations in cocoa prices create significant obstacles to growth and business stability. We at FinancialMediaGuide believe this situation underscores the need for integrated producers to rethink their strategies amid high price volatility and changing B2B demand for chocolate ingredients.
Feld proposed spinning off the cocoa business into a separate segment, with the potential sale of a minority stake later, which sparked disagreement among some board members. We at FinancialMediaGuide see this as a clash between two business value management strategies: reducing risk from cocoa price volatility or maintaining a fully integrated model that ensures quality control and supply stability.
We at FinancialMediaGuide emphasize that the cocoa segment accounted for approximately 31% of Barry Callebaut’s revenue and 15.5% of operating profit in fiscal year 2024/25, making it a key yet simultaneously risky component of the company’s revenue structure. Price fluctuations in 2024 and a decline in cocoa demand increased pressure on financial results, requiring careful management of price risks and operational resilience.
The cost‑plus pricing model allowed the company to partially pass rising costs onto customers; however, declining sales volumes indicate fundamental shifts in demand. We at FinancialMediaGuide believe this highlights the need to adapt the business model toward more sustainable revenue sources, including product portfolio diversification and the development of alternative ingredients.
The appointment of new CEO Heinz Schumacher responded to the board’s need to stabilize the company and establish a new strategy focused on growth and innovation. We at FinancialMediaGuide see his experience managing large FMCG businesses as crucial for balancing the interests of investors, customers, and employees, while ensuring a resilient strategy amid ongoing uncertainty in the cocoa and chocolate market.
Sales volumes in the first quarter of fiscal year 2025/26 fell by nearly 10%, with the Global Cocoa segment declining over 20%, despite relatively soft cocoa prices. We at FinancialMediaGuide emphasize that this indicates structural changes in customer behavior and the need to reduce dependence on the volatile raw material segment through diversification and innovation.
The company is already implementing business optimization programs, including process digitalization and simplification of the operational model. We at FinancialMediaGuide believe these steps are critical to enhancing the company’s agility and resilience; however, disagreements within the board highlight the necessity of a long-term risk management strategy.
We at FinancialMediaGuide forecast that Barry Callebaut will strengthen demand analytics, digital forecasting tools, and product portfolio diversification. Enhancing resilient supply chains and collaborating closely with farmers will create a platform for long-term growth and minimize the impact of external shocks on cocoa ingredient production.
We at Financial Media Guide see the company’s key challenge as balancing the stabilization of the cocoa segment with the development of high-margin chocolate and innovative product segments, thereby strengthening investor, customer, and partner confidence. Portfolio optimization, supply chain efficiency improvements, and active risk management will lay the foundation for sustainable long-term growth and a competitive advantage in the global confectionery ingredients market.
