Barry Callebaut explores possible separation of global cocoa unit to reduce exposure to price volatility 

SWITZERLAND – Barry Callebaut, the world’s largest chocolate manufacturer, is exploring the potential separation of its global cocoa division from the rest of the group as part of efforts to reduce exposure to volatile cocoa prices and improve its overall financial profile, according to people familiar with the discussions. 

Sources told Reuters the Swiss-based company is at an early stage of evaluating strategic options for the cocoa unit, which supplies cocoa beans and processed ingredients to Barry Callebaut’s own chocolate operations as well as to third-party customers.  

Among the possibilities under consideration are a partial separation followed by the sale of a minority stake at a later stage, the formation of a joint venture, a merger with another business, or a full divestment of the unit. 

The people said Barry Callebaut has held preliminary discussions with advisers in recent weeks to assess the feasibility and implications of separating the cocoa processing arm.  

Any such move would aim to limit the group’s exposure to fluctuations in cocoa commodity prices while allowing management to concentrate resources on its higher-margin chocolate activities. 

Barry Callebaut’s chocolate business includes contract manufacturing for major global brands such as Nestlé’s KitKat and Unilever’s spun-off Magnum ice cream brand. Separating the cocoa division could also enable the group to optimise its financing structure, as the cocoa and chocolate businesses carry different risk and return profiles, the sources said. 

However, the people cautioned that there is no certainty that Barry Callebaut will proceed with a separation, noting that the discussions remain exploratory. All sources spoke on condition of anonymity because the matter is private. 

A spokesperson for Barry Callebaut declined to comment directly on the reported discussions, saying the company is continuing to make progress on its strategic investment programme, BC Next Level.  

The spokesperson added that the group’s priorities remain focused on de-leveraging to strengthen its balance sheet, positioning the business for sustainable growth and reducing exposure to volatility. 

Market analysts said a separation could be financially attractive but would be complex to execute. Jon Cox, head of Swiss equities at Kepler Cheuvreux, noted that the cocoa unit also provides strategic benefits, given that around two-thirds of its gross sales are generated internally by Barry Callebaut’s chocolate business. 

Barry Callebaut’s products are used in roughly one in four chocolate and cocoa products consumed globally. Its operations are organised into global cocoa, food manufacturers, and gourmet and specialities segments. 

Cocoa prices surged last year following disease-related crop losses in Côte d’Ivoire and Ghana, tightening global supply. Prices have since eased in 2025 amid softer demand and improved output in other producing regions. 

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