Yesterday (21 Jan) saw cocoa and chocolate producer Barry Callebaut announce the appointment of its new CEO.
The business – and wider chocolate sector – has experienced particularly turbulent times due to cost pressures – mostly a result of climate change impacting yields.
Its 2024/25 full results highlights the impact this has had, describing a softening in consumption with group sales by volume decreasing 6.8%.
However, as bean prices start to lower and the cocoa market shows signs of recovery, Barry Callebaut reports it has begun to see a noticeable uplift in its forward bookings (contracts with customers).
CFO, Peter Vanneste, said the drop in bean prices will incentivise category reinvestments and promotions. And whilst it takes a while for prices to trickle down to consumers, the firm is confident that consumers will gradually accept higher prices now they’re here.
Although pressures are somewhat easing up, tougher times have seemingly prompted a shake-up. Patrick De Maeseneire, chair at Barry Callebaut, said the business is going through its biggest ever transformation – telling analysts that “doing a transformation requires a certain profile of leader”.
Nick Petschek, EMEA MD of change management consultancy firm Kotter, said the timing of Hein’s appointment – as the business’s ‘BC Next Level’ growth plan nears completion – could indicate one of two things.
“There are many possible scenarios, however when a CEO exits just as a transformation ‘completes,’ it usually signals one of two realities: either the leader made brutal decisions and the company now needs someone to rebuild trust, or the major overhaul was never necessary and smart iterations would have sufficed,” he ventured.
Generally, when businesses do see a change at the helm, the new captain will often try to make quick changes to make their mark, eyeing up quick wins for the taking.
Petschek elaborated: “The incoming CEO often has more time and will seek to distance themselves from the previous strategy, whilst looking for ‘low-hanging fruit’ of successes aimed at the board or stakeholders, rather than longer-term organisational strategy that builds momentum - this usually comes second.”
He continued: “Transformation results are often slow, and are usually dependent on external factors, but leaders should distinguish between leading indicators (new capabilities or changed behaviours) and lagging ones, like revenue and stock price.
“Short-term growth in these situations typically, but not always, comes at the expense of building trust and longer-term growth. Ideally, they agree on the importance of the long game and build the needed adaptability to be able to not only grow but maintain it.”
The business is proceeding with caution, with the strategy sure to involve contingency plans in the face of climate change. November 2025 saw a newly signed agreement between the firm and German food-tech innovator, Plant A Foods the brains behind cocoa-free, chocolate alternative, ChoViva.
The strategy won’t include a cocoa – chocolate business split however.
“Barry Callebaut has, since going public, been a fully integrated company, and we have the absolute intention to stay that way,” confirmed De Maeseneire.
“We’ve been always a fully integrated company that gives us a tremendous cost advantage. It gives us full control over the quantity of the bean, the quality, the sustainability, the traceability.”
In any case, Petschek reasons that Barry Callebaut’s previous approach to market volatility has been too reactive and the incoming CEO will need to be much more proactive, shifting the culture of the business to one that empowers its employees “to drive change themselves”.
