Barry Callebaut CEO Departs Amid Strategy Clash

CEO Exit Follows Disagreement Over Cocoa Business

Former Barry Callebaut CEO Peter Feld's departure was driven by a high-level strategic clash over a proposal to separate the company's cocoa business. Sources indicate that key board members, including Chairman Patrick De Maeseneire, strongly opposed the plan.

Overview of the Strategic Dispute

The core conflict stemmed from differing views on the future of the company's cocoa division, which accounts for 31% of sales revenue. Feld was reportedly open to spinning off the lower-margin unit to reduce exposure to volatile commodity prices. However, the board ultimately rejected this path, reaffirming its commitment to a fully integrated business model.

Impact on Corporate Strategy

The leadership change solidifies Barry Callebaut's direction, with new CEO Hein Schumacher appointed to lead the next growth phase under the existing integrated structure. This decision aligns with the views of major shareholders like Artisan Partners, who see the vertical integration of the cocoa unit as a key competitive advantage. The company will continue to navigate cocoa market volatility without structural separation.

Summary and Outlook

Barry Callebaut has decisively moved past the strategic debate, confirming its integrated cocoa and chocolate model is non-negotiable. The market will now watch how the new leadership executes this strategy amid fluctuating cocoa prices and changing consumer demand. The firm's focus remains on leveraging its scale as the world's largest chocolate maker.

FAQ

Q: Why did CEO Peter Feld leave Barry Callebaut?
A: He left due to a fundamental disagreement with the board over a proposal to separate the company's cocoa business.

Q: What is Barry Callebaut's current strategy for its cocoa division?
A: The company is committed to maintaining a fully integrated cocoa and chocolate business model, keeping the division in-house.

Source: Reuters via Investing.com