Coke Columbia shutters five facilities in Germany
Coca-Cola is going to shut down five of its production and distribution sites in Germany within the next year. These facilities are located in Cologne, Neumünster, Berlin-Hohenschönhausen, Bielefeld, and Memmingen, as per Coca-Cola Europacific Partners (CCEP), the organization that oversees the bottling, sales, and distribution of Coca-Cola beverages in Germany.
This decision will lead to over 500 job losses. However, around 207 employees will be relocated to other locations, and 78 new positions will be created. The objective behind this shift is to lower costs, adapt to evolving beverage logistics, and enhance the efficiency of the German production and distribution network, as explained by CCEP.
"Impact will be significant"
The site in Cologne, which has around 600 staff members, will cease operations by March 31, 2025. The high density of operations in the west, coupled with limited expansion and growth prospects for the small Cologne site, are factors contributing to its closure. The aim is to improve the utilization of other sites and increase production efficiency. The remaining sites that will be affected by closures are purely logistics-based.
"We recognize that the planned changes will be challenging for the affected workers. As a result, it's imperative for us to handle all changes in a way that prioritizes social responsibility and transparency," stated Tilmann Rothhammer, the Managing Director of Customer Service & Supply Chain at CCEP.
The shift in beverage logistics is also a contributing factor. Major trading partners are transitioning from direct delivery to central warehouse delivery, while smaller customers are relying more on beverage wholesalers for orders. This trend is expected to decrease the number of direct clients and orders, as well as the outgoing warehouse volume at these logistics sites. CCEP is the leading beverage company in Germany, with approximately 6,500 employees at 27 sites, including 14 production facilities.
This closure of the Cologne site will result in other 600 employees seeking employment elsewhere. Due to the shift in beverage logistics, Coca-Cola will rely less on direct delivery to clients, which may lead to a decrease in operations at other logistics sites as well.
