Employees suffer in the aftermath of an earthquake at Oettinger's facility in Braunschweig.
Oettinger Getränke, a renowned beverage manufacturer with over 150 years of history in Braunschweig, has announced plans to relocate significant parts of its production to its sites in Oettingen and Mönchengladbach by spring 2026.
The decision comes in response to a long-term decline in beer consumption in Germany, pushing sales volumes to levels last seen over 20 years ago when production capacity was much smaller. Additionally, the company faces rising energy and production costs, alongside shifting consumer preferences towards new beverage categories such as non-alcoholic beers and functional drinks.
To adapt, Oettinger has been undergoing restructuring and repositioning itself as an innovative beverage company, expanding its portfolio with products like protein drinks, enriched non-alcoholic beers, and ready-to-drink cocktails.
The Braunschweig plant, acquired from Carlsberg in 2009, requires extensive modernization investments. CEO Stefan Blaschak emphasizes a reduction of in-house overcapacities as inevitable due to declining facility utilization. Significant parts of Oettinger's production will be relocated to Oettingen and Mönchengladbach, with logistics functions remaining in Braunschweig.
About 150 production and bottling employees will be affected by the relocation. The company has stated that these employees will be temporarily re-employed by a transfer company, subject to the approval of the works council. The goal of the re-employment is to provide a transition phase for career reorientation.
CEO Blaschak has expressed his willingness to offer a solid transition phase through the transfer company and criticizes the exorbitant wage demands and aggressive negotiating tactics of the Nahrung-Genuss-Gaststätten (NGG), including calls for strikes and refusals of overtime through works councils.
The announcement has been made amidst ongoing wage negotiations with the NGG. The decision to relocate was not easy due to Braunschweig's reliable handling of all packaging types with the complexity of Oettinger's portfolio.
The closure of the Braunschweig plant hits the region hard, as the site has been a stable part of the local industry for years. However, Blaschak states that these actions are unrealistic and damaging to the company given the dire sales situation in the industry.
Despite overall declining sales, Oettinger is finally profitable again, according to Blaschak. The planned measure is part of a comprehensive efficiency program aimed at transforming Oettinger from a classic brewery operation to an innovative beverage company.
The future implications of this relocation include a significant restructuring of Oettinger's operational footprint and workforce. It signals the company's commitment to evolving with market conditions and consumer trends by focusing on more innovative, diversified beverage products and export activities. However, the closure has faced criticism from local trade unions highlighting the site's logistical importance and potential investment opportunities.
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The company, Oettinger Getränke, is facing a need for adjustments in response to decreasing beer consumption, rising costs, and shifting consumer preferences, resulting in plans to relocate parts of its production to other sites. This shift is part of a broader transformation effort aimed at modernizing the company, shifting towards innovative beverage products, and adapting to industry changes in finance and business.
The decision to relocate has significant consequences for the workforce at the Braunschweig plant, with about 150 production and bottling employees affected, although the company has plans for a transition phase through a transfer company. However, the restructuring signals Oettinger's commitment to evolving with market conditions and consumer trends, focusing on export activities and more diversified beverage products.
