Barry Callebaut’s sudden leadership change came after senior executives clashed over whether to separate the company’s cocoa processing arm, according to people with knowledge of the situation. The dispute, which was not previously disclosed, ended with the departure of Peter Feld as chief executive and the installation of Hein Schumacher, announced on January 21.
At the centre of the disagreement was a proposal to break off the cocoa business - a unit that accounted for 31% of Barry Callebaut’s total sales revenue and 15.5% of its operating profit in 2024/25. Some members of the board, led by chairman Patrick De Maeseneire, opposed the move, the people said.
One person familiar with internal discussions, speaking on condition of anonymity because they were not authorised to speak publicly, explained that divergent views over the company’s strategic direction played a central role in the chief executive’s exit. "The CEO was open to considering a separation of the cocoa unit and a potential transaction, but for parts of the Board - led by the chairman - this was a non-starter," the person said.
The company has described its model as a "fully integrated cocoa and chocolate business model" and declined to comment on any internal disagreements about the leadership change. It supplies chocolate ingredients used in brands such as Magnum ice cream and Nestle KitKat bars.
According to sources familiar with the matter, the board had originally appeared more open to the idea of a split but ultimately stepped back from the proposal. That reversal deepened strategic tensions at the top and contributed to a clash between Feld and other directors. Both sides, the source said, agreed a change was needed but disagreed on the best way forward. The sources also said there were differences regarding the scale of investment in digitalisation.
The outline for separating the cocoa processing arm was motivated by a desire to reduce exposure to volatile cocoa prices. After a surge in cocoa prices during 2024, demand softened and cocoa prices fell to 21-year lows in Europe in the fourth quarter of last year, driven in part by chocolate makers shrinking product sizes and reformulating recipes. Barry Callebaut processes almost 1 million metric tons of cocoa a year - roughly one fifth of global volume - which leaves the group more exposed to commodity price swings than many consumer-facing chocolate manufacturers that outsource part of their production to ingredient suppliers.
Those close to the company have said that splitting the cocoa business could enable Barry Callebaut to shield itself from raw-material volatility, concentrate investment and management attention on its higher-margin chocolate operations, and optimise financing for the separate activities. However, not all senior figures at the company supported that route.
In an internal memo circulated to employees and seen by people familiar with the communication, Barry Callebaut said its transition programme was nearly complete and the company was entering "a new phase of growth," making the period appropriate for a CEO transition. The memo described Schumacher as "the right leader at this stage to chart Barry Callebaut’s next phase... based on our fully integrated cocoa and chocolate business model."
Among shareholders, Artisan Partners - which holds roughly a 10% stake in Barry Callebaut - welcomed Schumacher’s appointment and signalled support for keeping the cocoa unit within the group to retain "vertical integration." David Samra, a managing director at Artisan Partners, told colleagues that the cocoa business constituted "a competitive advantage."
The exact contours of the strategic debate at Barry Callebaut - including how far the company had progressed in any formal separation planning and the precise investment plans for digital initiatives - have not been disclosed publicly. Company representatives and senior directors did not provide comment when contacted about the leadership change and the board-level disagreements.
What is clear from the available information is that the cocoa-processing business is a material part of the company’s financial profile and that views on how to manage its exposure to commodity price risk differed markedly at the top. The change in leadership reflects a decision by the board to pursue the company’s future under a fully integrated model, at least for now, while leaving unresolved the internal debates that preceded the CEO’s departure.