Swiss firm Barry Callebaut eyes separating cocoa division amid price volatility, sources say

Barry Callebaut AG

16/12/2025 13:51

By Amy-Jo Crowley, Andres Gonzalez and Oliver Hirt

LONDON/ZURICH, Dec 16 (Reuters) -  The world's biggest chocolate maker Barry Callebaut BARN.S is in the early stages of exploring a separation of its global cocoa unit from the rest of the group, according to three people familiar with the matter, as it seeks reduce exposure to cocoa prices and improve its financial profile.

KEY DETAILS

• One option could see Barry Callebaut separate the division and sell a minority stake at a later stage, the people said. Other options being considered include forming a joint-venture or merger of the business, or even selling it completely, two of the people added.

• Separating the cocoa processing arm could allow the firm to protect it from commodity price swings and focus resources on its higher‑margin chocolate business, which includes contract manufacturing of brands like Nestlé's < NESN.S> KitKat and Unilever's ULVR.L spun-off Magnum ice cream, the people said.

• The Swiss group has held talks with advisers in recent weeks about a separation of the unit, which supplies cocoa beans to its own chocolate production and other chocolate companies, one of the people said.

• The move would allow Barry Callebaut to optimize its sources of financing, as each unit offers a different risk profile, a second person said.  All three sources spoke on condition of anonymity because the matter is private.

• A representative for Barry Callebaut said it does not comment on market rumours, adding "as announced during our full year presentation, we are making strong progress with our strategic investment program, BC Next Level, supported by full commitment across the organization and by our main shareholders." Its strategic priorities remain deleveraging to strengthen its financial position, preparing the company for renewed sustainable growth and decoupling from volatility, the representative added.

BROADER CONTEXT

• Barry Callebaut's ingredients are present in one out of four chocolate and cocoa products consumed worldwide, making it the world's largest chocolate maker.

• The company segments include global cocoa, which focuses on sourcing cocoa and related raw materials for chocolate production; food manufacturers, which involves producing and supplying chocolate products to international food companies; and gourmet & specialities, which provides premium chocolate solutions to artisans and professional culinary experts.

• Cocoa prices spiked last year after disease-hit crops in the Ivory Coast and Ghana caused a global shortage, but falling demand and increased output elsewhere have since eased supply concerns and driven prices lower in 2025.

    • Barry Callebaut shares are up 3.6% year-to-date after a volatile 2025. The company was valued at 6.62 billion Swiss francs ($8.33 billion) as of Monday's close, according to LSEG data. Shares now trade at roughly half the peak reached in August 2021.

($1 = 0.7943 Swiss francs)

(Reporting by Amy-Jo Crowley, Andres Gonzalez and Oliver hirt; additional reporting by May Angel and Nigel Hunt. Editing by Anousha Sakoui  )

((Andres.gonzalez@thomsonreuters.com ; +44 (0) 7551 790019))