Barry Callebaut, the world's biggest chocolate-maker, has struggled with soft sales and high debt. The company's share price has plummeted, but new CEO Hein Schumacher has a plan to revitalize the business.
Schumacher aims to grow sales volumes by 2-4% annually, focusing on ten growth markets and prioritizing high-end chocolate products. Analysts are mixed in their assessment, with some calling the plan a crucial step towards restoring growth, while others are skeptical.
The company's vertically integrated business model, which spans from cocoa bean to chocolate bar, has been a point of contention. Schumacher's predecessor wanted to split the cocoa-processing unit from the chocolate-making business, but finding buyers proved difficult.
With economic and geopolitical uncertainty looming, Schumacher is cautious about the future. A strong El Niño is forecast, which could hurt cocoa harvests and raise bean prices again.
