Just keep going

Barry Callebaut is a world-leading manufacturer of high-quality chocolate and cocoa products. The business aims to generate sustainable earnings over time and secure long-term value for all stakeholders.

But back in the early 2000s, sustainability wasn't at the top of the company's agenda. "Only 1.5% to 2% of our products were from sustainable sources," said Andreas. "We didn't even know where the ingredients came from."

That was all about to change. In 2016, the company launched a project entitled 'Forever Chocolate', which committed Barry Callebaut to making sustainable chocolate the norm by 2025. The project aims to lift cocoa farmers of out poverty, eradicate child labour from the supply chain, reduce carbon emissions, protect forests and use 100% sustainable ingredients.

As a business-to-business company, Barry Callebaut's margins are relatively small. And during Andreas' early efforts to make the business sustainable, there was little customer demand for sustainable chocolate. He faced an uphill battle to change minds: "Back then, management always said, nobody wants to buy sustainable cocoa beans."

Unfortunately, that was an inarguable fact: "Fifteen year ago, the demand for sustainable chocolate just wasn't there."

Costs were also a hurdle: "Sustainable cocoa beans cost 20% more than traditional sources. So lacking consumer demand, I needed to find a business model that would compel our company to change."

Andreas' sheer determination and perseverance won the business round. From the start, he never backed down from trying to change the company's culture.

"Between 2004 and 2010, I was invited to do a lot of speeches. I decided to do them all on sustainability. It was seen as a 'cuckoo' uncharted area. But by constantly pushing from the top, people eventually realized I really meant it."

Andreas also took his board on trips to West Africa, Brazil and Malaysia to witness issues first hand, such as poverty in the supply chain: "I think I was only able to push the company to get there because we were key shareholders and I was chairman. Without that family influence, we probably wouldn't have come so far."

The company knew it couldn't achieve its sustainability goals in isolation. Only by working with other key players would the business turn things around: "The chocolate industry is very small. There are only about eight players in our sector. We said we need to collaborate and commit to certain levels of sustainability. Today, we're collaborating on many projects – and that's making a massive difference.

The collaborations sparked a new business model that helped change Barry Callebaut for good: "We set up an industry foundation where the 20% extra cost for customers goes directly and entirely towards supporting cocoa bean farmers. That was a key moment – finding the right business model to shift our strategy."