Coca-Cola has started a plan to restructure its business in Germany, which provides for the closure of several Settlements , reduction di hundreds of jobs in 2025. Although the brand continues to be a giant in the beverage sector, changing logistics dynamics and the need to optimize costs have pushed the company to make “painful” decisions to remain competitive in the market.
Meanwhile, the title Coca Cola is down more than 1,2% on Wall Street.
Coca Cola: Goodbye to Five Plants in Germany
Coca-Cola Europacific Partners (Ccep), which handles bottling, distribution and sales operations for Coca-Cola in Germany, has announced the closure of five sites productive and logistics. Among these, the plant stands out Colonia, which will close its doors on March 31, 2025. Around 289 of the 602 employees in Cologne will be directly affected, but the plan is for the remaining staff to be transferred to other locations.
Not just Cologne: the logistics plants of Neumünster, Berlin-Hohenschönhausen, Bielefeld e Memmingen are all set to put the locks on. Ccep, which has four plants in western Germany, including Dorsten, Mönchengladbach and Bad Neuenahr, has decided to tidy up its operations, reducing production capacity where it is least needed. With just two production lines, Cologne is the smallest plant in the region.
The restructuring plan: 505 jobs at risk
The restructuring isn’t just about closures: Ccep is planning a total of 505 job cuts. Of those, 179 will be at logistics sites, while another 37 will be eliminated in specialist areas such as technology, sales, corporate culture and business processes. The company said the goal is to “combine tasks and streamline processes” to make the organization leaner and more responsive.
Not everything is gloomy: around 207 employees will be transferred to other locations in Germany, and there are plans for a “socially responsible management of the process”. Tilmann Rothhammer, vice president of customer service and supply chain at Ccep Germany, said that while they are aware of the “pain” caused to employees, the decision is necessary to ensure the company’s future competitiveness. “We have carefully weighed the pros and cons, and we are convinced that these changes are crucial to be more efficient and respond better to market demands.”
Unions' Response: Coca-Cola Under Accusation
The reactions were not long in coming, especially from Ngg union (Food, Beverage and Catering Union), which has harshly criticized the closures. Freddy Adjan, vice president of Ngg, accused Coca-Cola of moving away from local production, preferring to outsource work to external suppliers. “Coca-Cola makes huge profits worldwide, but it is destroying 500 jobs in Germany for the sake of profit. With each closure, it is moving further away from its promise of being a global brand produced and distributed locally,” Adjan said.
Between growing revenues and decreasing volumes
Despite these drastic moves, Coca-Cola continues to navigate positive waters in terms of turnover. In the first six months of 2024, the revenues of Ccep in Germany increased by 5,6% to 1,54 billion euros, thanks to price increases introduced in 2023. However, the Sales volumes in Europe fell by 2,8%, with the company attributing the decline to unfavorable weather conditions.
At European level, total revenues grew by 2,4% to €7,2 billion. Operating profits remained stable, slightly down 0,6%, while on a comparable basis they increased by 6%.
