Leadership changes at global companies are rarely about personalities alone. More often, they reflect deep disagreements over strategy, risk, and the direction of capital. That dynamic appears to be at the heart of the recent departure of Barry Callebaut’s former chief executive, Peter Feld.
According to sources cited by Reuters, Feld left the world’s largest chocolate maker after a high-level disagreement with the board over whether to separate the company’s cocoa business—a move that would have fundamentally reshaped Barry Callebaut’s operating model.
A Strategic Clash at the Top
At issue was a proposal to spin off or partially divest the company’s cocoa processing unit. Cocoa represents roughly 31% of Barry Callebaut’s revenue and about 15.5% of operating profit. While lower margin than chocolate, it gives the company scale, supply security, and vertical integration unmatched in the industry.
Feld, who joined the company as CEO in 2023, was reportedly open to exploring a separation. Members of the board—led by chairman Patrick De Maeseneire—were not.
In boardrooms, this type of disagreement is rarely academic. It cuts to the core question every industrial company eventually faces: should it simplify to reduce risk, or stay integrated to preserve control and long-term advantage?
Why Cocoa Became the Fault Line
The timing of the debate is critical. Cocoa markets have been under extreme stress. After a historic price surge in 2024, demand dropped sharply in Europe, hitting multi-decade lows as manufacturers shrank products and reformulated recipes to manage costs.
Barry Callebaut processes close to one million metric tons of cocoa annually—about a fifth of global volume. That exposure makes it more vulnerable to commodity volatility than consumer-facing chocolate brands that outsource parts of production.
From a CEO’s perspective, separating cocoa could reduce earnings volatility, simplify financing, and allow management to focus on higher-margin chocolate products. From a board perspective, giving up cocoa risks losing the very integration that makes Barry Callebaut strategically indispensable to its customers.
The Board’s Call: Integration Over Separation
Ultimately, the board prevailed. Barry Callebaut publicly reaffirmed its commitment to a “fully integrated cocoa and chocolate business model” and declined to comment on internal disagreements.
This decision reflects a long-term view. Vertical integration offers bargaining power, supply security, and resilience—especially as sustainability requirements, traceability rules, and climate pressures reshape agricultural supply chains.
Major shareholder Artisan Partners, which holds roughly 10% of the company, supported this stance, calling the cocoa unit a “competitive advantage.” For investors focused on strategic durability rather than short-term earnings smoothing, that argument carries weight.
Enter a New CEO for a “New Phase”
On January 21, Barry Callebaut appointed Hein Schumacher as its new chief executive. Schumacher’s background at Unilever positions him as a steady operator with experience managing complex global supply chains and margin pressure.
In an internal memo seen by Reuters, the company framed the leadership change as timely, citing the completion of a transition program and the start of “a new phase of growth.”
That phrasing matters. It signals that the board believes the strategy is set—and that execution, not restructuring, is now the priority.
What This Means for Barry Callebaut
From a governance standpoint, Feld’s exit underscores a hard truth: CEOs execute strategy, but boards define it. When alignment breaks down, even capable leaders are replaceable.
For Barry Callebaut, the decision to retain its cocoa business suggests confidence in its scale and integrated model, even amid volatile markets. It also implies a willingness to absorb near-term earnings swings in exchange for long-term strategic control.
This is not a low-risk path. Cocoa price shocks, climate disruptions, and sustainability pressures will continue. But it is a coherent one.
A Broader Industry Signal
The episode also reflects a broader trend in global commodities and food manufacturing. Companies are increasingly split between simplification and control—between financial optimization and operational resilience.
Barry Callebaut has chosen resilience.
Whether that choice proves right will depend on execution, cost discipline, and how effectively Schumacher can steer the company through continued market turbulence without sacrificing margins or customer trust.
The Bottom Line
Peter Feld’s departure was not about performance alone. It was about philosophy.
In choosing integration over separation, Barry Callebaut’s board made a clear statement about what kind of company it intends to be. The appointment of a new CEO aligned with that vision closes the chapter on internal debate—but opens a demanding next phase.
For investors, customers, and competitors alike, the message is clear: Barry Callebaut is doubling down on its role as the backbone of the global chocolate and cocoa supply chain.
And that is a strategic bet, not a compromise.
