Barry Callebaut Group, the world’s leading manufacturer of high-quality chocolate and cocoa products, announces BC Next Level – a strategic investment program to unlock the full potential of Barry Callebaut and pave the way for the next decade of sustainable growth by moving Barry Callebaut closer to markets and customers while fostering simplicity and digitization.
CEO Peter Feld said:
Our mission is to be the heart and the engine for the global cocoa and chocolate industry. 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.
Patrick De Maeseneire, Chairman of Barry Callebaut’s Board of Directors, said:
With BC Next Level, Barry Callebaut is set to become even more customer focused, agile, and efficient. The Board is convinced that these actions will secure the long-term success of the company and benefit all stakeholders. The management team can count on our full support for the implementation of the action plan presented today.
Investment of CHF 500 million for next level of growth – CHF 250 million of annual savings
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.
The company will provide a full strategic update and more details together with mid-term guidance linked to BC Next Level on November 1, 2023. The update will be presented at a hybrid (online/in-person) event taking place in London.
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.
Steve Woolley, President & CEO Americas, Masha Vis-Mertens, CHRO, and Rogier van Sligter, President EMEA, have decided to pursue new endeavors outside of Barry Callebaut.
Patrick De Maeseneire said:
We are delighted to embark on this journey in this new leadership configuration. With these changes we bring important new skills to Barry Callebaut for moving to our next level while retaining a good balance of passionate and talented people from within Barry Callebaut. We have the right team in place to drive our sustainable growth plans. At the same time, we thank Steve, Masha, and Rogier for their major contributions through the years and their strong commitment to this company and wish them all the best for their future careers. They have been a very important part of our recent history and we greatly appreciate the impact they had on Barry Callebaut.
