Barry Callebaut's Phillipe Gretz at SCM Leaders Forum

Industry leaders from manufacturing, supply chain and sustainability circles came together in Barcelona for the Industry IoT SCM Leaders Forum. 

Hosted at the HP Innovation Center, the two-day event featured speakers from global organisations including Coca-Cola Europacific Partners, Danone, L'Oréal and consultancy firm McKinsey & Company. 

The forum highlighted evolving priorities across manufacturing and supply chain — areas where resilience, cost management and long-term sustainability are more crucial than ever.

Manufacturing Digital spoke to Philippe Gretz, CFO for Global Operations and Supply Chain at Barry Callebaut, who outlined the challenges the chocolate manufacturer faces amid rising raw material prices.

Tackling production challenges

Philippe Gretz, based in Switzerland, carries responsibility for overseeing financial and operational efficiency across Barry Callebaut’s global production and logistics network. 

Barry Callebaut is one of the largest chocolate manufacturers in the world, making Phillipe’s position critical to the company’s success.

"My day-to-day role is to manage our costs, supply chains and transportation, so we can deliver products to the customers at the most effective cost," he says.

The need to keep logistics and supply chain operations cost-effective is compounded by ongoing disruption and inflation in global raw material markets. 

Cocoa presents one of the biggest cost risks — not just in terms of price, but also with regards to quality and availability.

Mitigating volatile cocoa prices

The cocoa market is experiencing extreme volatility, with dramatic increases in the cost of cocoa beans. 

As Philippe outlines, this fluctuation puts added pressure on procurement and long-term financial forecasting.

"For chocolate, you need cocoa beans and that's the major issue we have in the industry because, maybe a year ago, a ton of beans was £3,000 (US$4,000) and now it's £9,000 (US$12,000)," he explains.

"So, you have scarcity of beans, you have less quality beans, but you have almost the same demands."

This puts Barry Callebaut — the world’s largest buyer of cocoa beans — in a position where its sourcing strategies must evolve rapidly. 

To avoid potential impact from volatility, the business needs to manage existing supplier relationships while also exploring new procurement models that reduce risk and improve long-term sustainability.

Sustainability as a core business strategy

Sustainability for Barry Callebaut is not a brand value or a marketing tool, but an essential factor in business continuity. 

Without reliable, ethical and sustainable production of cocoa, the entire business is under threat. 

Philippe describes how sustainability efforts directly impact profitability for both the business and its suppliers, noting: "We are big on sustainability because, without cocoa beans, there's no chocolate – it's critical for us.”

He recalls a recent visit to a South American farm to demonstrate how sustainability can deliver real-world returns: "Three weeks ago, I was in Brazil on a farm talking to the farmer. She has developed sustainability in her farm and last year was actually the first year in 20 years that she was profitable."

This demonstrates the value of local support, long-term thinking and close supplier engagement — all central pillars in Barry Callebaut’s strategy to ensure cocoa farming remains viable for the next generation.

The importance of insight and knowledge exchange

Philippe recognises that sharing knowledge with peers across industries is vital to staying prepared. 

Events like the SCM Leaders Forum offer an important space for professionals to gather fresh insight and learn from others tackling similar issues in different contexts.

"Everything is interesting, from sustainability to integrated business planning, because you are learning," he reflects. "If you look at your own shoes, you don't learn."

Such openness to shared learning is essential in industries affected by complex global forces — from climate change to trade disruption — where collaboration and knowledge exchange are as valuable as any internal process.

As cocoa prices climb and climate challenges deepen, Barry Callebaut is leaning into strategy, cost efficiency and sustainability to protect its future and that of its farmers. 

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