By Amy-Jo Crowley, Andres Gonzalez and Oliver Hirt
LONDON/ZURICH, Dec 16 (Reuters) – The world’s biggest chocolate maker Barry Callebaut is in the early stages of exploring the separation of its global cocoa unit from the rest of the group, according to three people familiar with the matter.
The goal is to reduce the group’s exposure to volatile cocoa prices and improve its financial profile, and the separation of the division and a sale of a minority stake at a later stage is one option, the people said. Other options being considered include a joint venture or merger of the business, or even selling it completely, two of 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.
Separating the cocoa processing arm could allow the company to protect itself from commodity price swings and focus resources on its higher-margin chocolate business, which includes contract manufacturing for brands, such as Nestle’s KitKat and Unilever’s spun-off Magnum ice cream, the people said.
It might also allow Barry Callebaut to optimise its 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. There is no assurance that the company will pursue a separation, however.
A representative for Barry Callebaut declined to comment on the Reuters report and said: “As announced during our full-year presentation, we are making strong progress with our strategic investment programme, BC Next Level, supported by full commitment across the organisation and by our main shareholders.”
The company’s strategic priorities remain de-leveraging to strengthen its financial position, preparing it for renewed sustainable growth and decoupling from volatility, the representative said.
Its shares jumped 10% after the Reuters report, and were on track for their best day since April 2024, before paring back gains to trade up 5.8%, according to LSEG data.
Analysts said while a separation could make sense financially, a split could be complex. Owning the cocoa unit also had its advantages, given two-thirds of its gross sales were generated by Barry Callebaut’s chocolate business, said Jon Cox, head of Swiss equities at Kepler Cheuvreux.
Matteo Lindauer, associate director in Swiss equity research at Vontobel, said the cocoa division was also of extreme importance for the Jacobs family, which owns around 30% of the company, and management.
Barry Callebaut’s ingredients are present in one out in four chocolate and cocoa products consumed worldwide, making it the world’s largest chocolate maker.
Its 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 and specialities, which provides premium chocolate products 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.
Before Tuesday’s gains Barry Callebaut shares were up 3.6% so far in 2025 after a volatile year. 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, Nigel Hunt and Bernadette HoggEditing by Anousha Sakoui and Tomasz Janowski)
