Barry Callebaut to Invest CHF500m in Customer Care and Digitization
Barry Callebaut Group, the world’s leading manufacturer of high-quality chocolate and cocoa products, announced a strategic investment program to pave the way for the next decade of sustainable growth by moving Barry Callebaut closer to markets and customers while fostering simplicity and digitization.
“Our mission is to be the heart and the engine for the global cocoa and chocolate industry,” said CEO Peter Feld. “We have delivered robust growth for nearly 25 years. Due to evolving customer demands for more sustainable and innovative products, now is the time to bring the Group to the next level by strategically investing in its future. We will move decision-making closer to our markets and customers while fostering simplicity and digitization to advance our well-recognized innovation and sustainability approach to deliver additional value for all our stakeholders.”
The program includes a net investment of CHF 500 million in areas most relevant to customers, such as innovation, service, sustainability, and quality powered by digital platforms that boost speed to market and facilitate deeper partnerships with customers. BC Next Level will be funded from existing financial resources.
The BC Next Level operating model will move Barry Callebaut closer to its markets and customers while implementing globally standardized and digitized processes to further increase growth, profitability, and efficiency. Barry Callebaut will increase its regional footprint from three to five regional divisions – Western Europe, Central & Eastern Europe, North America, Latin America, and Asia Pacific Middle East & Africa – each encompassing five to six country clusters. This also includes the creation of Barry Callebaut’s new Customer Supply & Development organization to enhance product delivery and scale innovation faster globally, while delivering technical service locally to customers.
The program will deliver savings of around 15% or CHF 250 million per year which will support margins and cash flow. Most of the savings come from reducing the cost-to-serve in operations, optimizing the manufacturing footprint, streamlining enabling functions, leveraging shared service centers and a rigorous focus on end-to-end supply chain excellence.
New leadership setup to support strategic priorities
Barry Callebaut will create new global responsibilities within the enabling functions Finance, HR, and Technology to further improve processes, and launch a Customer Supply & Development organization with an experienced leadership team to drive this key area for our customers.
The Executive Committee will be reduced to six from the current nine members. New members will be:
Peter Vanneste, joining on November 1, 2023, as Chief Financial Officer
Jutta Suchanek, joining on October 1, 2023, as Chief People & Diversity Officer
Dr. Clemens Woehrle, joining on October 1, 2023, as Chief Customer Supply & Development Officer
Jo Thys, currently Chief Operations Officer, will assume accountability as President Operations Strategy & Innovation, reporting to Clemens Woehrle. In addition, current CFO Ben De Schryver will return to a commercial role and assume responsibility for the North America regional division as Regional President. Vamsi Mohan Thati will become Regional President for the APAC, Middle East & Africa region. All regions will report directly to the CEO.