Barry Callebaut (BARN) Barclays 19th Annual Global Consumer Conference summary

Strategic priorities and transformation

• Focus for Growth strategy prioritizes resources on 10 key countries and two high-margin segments: gourmet and specialty solutions.

• Emphasis on restoring fundamentals: service levels, on-time delivery, and quality, with significant reduction in quality incidents.

• Shifted accountability to regional leadership, reducing global headcount and clarifying roles.

• New COO appointed to drive supply chain improvements and operational excellence.

• Cultural change underway, with priorities converted into personal objectives and co-created action plans.

Growth drivers and business model evolution

• Transitioning from a pure chocolate manufacturer to a solutions provider, offering integrated products for segments like ice cream and bakery.

• Gourmet and specialty segments targeted for faster-than-average growth and higher margins.

• Market share gains expected through improved service and focus on top 10 countries, which represent two-thirds of global business.

• Growth in non-confectionery segments (bakery, ice cream, protein bars) outpaces classic chocolate confectionery.

• Profit growth is expected to outpace volume growth as a result of these strategic shifts.

Market environment and operational challenges

• Cocoa prices remain volatile, currently around CHF 4,500/ton, but industry hedges and surplus buffer moderate risk.

• Service level improvements, especially in North America and Europe, are key to regaining lost market share.

• Outsourcing with large customers has slowed due to in-sourcing, but is expected to rebound post-2027; regional players continue to drive outsourcing growth.

• Gourmet segment profitability impacted by longer hedges, but margin recovery expected as hedges expire and service improves.

• Innovation platforms launched in taste, health, cocoa replacement, and digital to support future growth.