Sustainability moves: Barry Callebaut unveils strategic investment program BC Next Level

06 Sep 2023 --- Barry Callebaut Group has revealed its latest strategic investment program, designed to unlock the company’s full potential and pave the way for the next decade of sustainable growth.

The BC Next Level operating model will move Barry Callebaut closer to its markets and customers while implementing globally standardized and digitized processes to increase growth, profitability and efficiency further. 

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. 

“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,” says CEO Peter Feld.

“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.”

Barry Callebaut will increase its regional footprint from three to five regional divisions, each encompassing five to six country clusters.Also commenting, Patrick De Maeseneire, chairman of Barry Callebaut’s Board of Directors, says: “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 company’s long-term success and benefit all stakeholders. The management team can count on our full support for implementing the action plan presented.”

Powering up innovation & sustainability 
The program includes a net investment of CHF 500 million (US$561.8 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 program will deliver savings of around 15% or CHF 250 million (US$280.9 million) annually, supporting 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 with mid-term guidance linked to BC Next Level on November 1, 2023. 

New leadership setup to support strategic priorities
Barry Callebaut will also create new global responsibilities within the enabling functions for 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. 

“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,” adds De Maeseneire. 

“We have the right team in place to drive our sustainable growth plans.”

Edited by Elizabeth Green