Barry Callebaut, the world's largest chocolate maker, is reportedly considering a possible separation of its global cocoa division from the rest of the group, three sources familiar with the matter said, citing Reuters. The deal is still in the preliminary stages and would primarily aim to reduce the group's exposure to high cocoa price volatility, as well as improve its overall financial profile.
Among the options under consideration is the spin-off of the division with a subsequent sale of a minority stake, but the creation of a joint venture, a merger with another industrial company, or, ultimately, a complete sale of the business, have not been ruled out. According to sources, Barry Callebaut has initiated discussions with advisors in recent weeks to explore a separation of the unit, which processes cocoa and supplies beans to both its own factories and other chocolate makers.
A potential split would allow the group to better protect itself from fluctuations in raw materials prices and focus resources and investments on its higher-margin chocolate business. This includes, among other activities, contract manufacturing for major international brands such as Nestlé's KitKat and Magnum, the ice cream brand recently spun off from Unilever. The separation could also allow Barry Callebaut to optimize its financial structure by separating two businesses with very different risk profiles.
Sources emphasize, however, that there is no certainty that the group will actually decide to proceed with a reorganization. Contacted by Reuters, a Barry Callebaut spokesperson declined to comment on the rumors, reiterating that the group is continuing with the "BC Next Level" strategic program, presented at the annual results. The strategic priorities remain de-leveraging, strengthening the financial position, and reducing exposure to volatility, in preparation for a new phase of sustainable growth.
The market reacted positively to the rumors: Barry Callebaut shares rose as much as 10%, before paring gains to settle at 5,8%, on track for their best performance since April 2024. Analysts believe a separation could make financial sense, but it would also entail significant complexity. Jon Cox of Kepler Cheuvreux noted that approximately two-thirds of the cocoa division's gross sales are generated internally by the chocolate business. Matteo Lindauer of Vontobel added that the cocoa division is also considered strategic by the Jacobs family, which controls approximately 30% of the group's capital. Barry Callebaut is present in one in four chocolate and cocoa products consumed worldwide, confirming its global leadership. The group operates through three main segments: Global Cocoa, Food Manufacturers, and Gourmet & Specialties.
After cocoa prices peaked in 2024 due to poor harvest conditions in Côte d'Ivoire and Ghana, 2025 saw a cooling of prices thanks to declining demand and increased supply from other countries. Before this week's rally, Barry Callebaut shares had gained 3,6% since the beginning of the year, following a particularly volatile 2024. At Monday's close, the group's market capitalization stood at 6,62 billion Swiss francs, making the stock now worth about half of its all-time high reached in August 2021.
