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Coca-Cola is to shut down five production and logistics sites in Germany, in an attempt to cut costs and adapt to changing logistics trends.
ADVERTISEMENTDrinks giant Coca-Cola is to cut some 500 jobs in Germany over the next year with the closure of five logistics and production sites.
Coca-Cola Europacific Partners (CCEP), which handles Coca-Cola’s bottling, distribution and selling activities in Germany, revealed that the plants in question are the Neumünster, Bielefeld, Berlin-Hohenschönhausen, Memmingen and Cologne ones.
At present, CCEP has 14 production facilities in Germany, and 27 locations in total, with approximately 6,500 employees.
CCEP shared that this decision comes as the company tries to become more cost-effective in the face of increasing market competition as well as adapt to changing logistics in the beverage sector.
It is also trying to use its German logistics and production capacity more efficiently, as it currently has too many plants in Western Germany.
In addition to the plant closures, around 505 jobs are expected to be slashed, with approximately 207 being relocated to other facilities, while 78 new jobs are estimated to be added.
Tilmann Rothhammer, a spokesperson for CCEP, said, as reported by Spiegel: “We are aware that the planned changes are very painful for the employees affected. It is therefore all the more important for us to implement all intended changes in a socially responsible and transparent manner.”
The Cologne logistics and production facility, which has about 600 employees at the moment, will be ceasing production on 31 March next year. One of the key reasons for the closure is that it is the smallest one in West Germany, with few growth or expansion prospects.
CCEP’s latest move also reflects wider changes in the beverages sector globally, as there is a more marked shift to delivery from a central warehouse, rather than direct delivery from individual logistics locations. This has prompted more companies to consolidate their locations and use facilities more efficiently.
CCEP invests in clean energy through climate start-up Pipeline Organics
CCEP has also recently revealed that it has invested in a climate tech startup, Pipeline Organics, which is expected to go a long way in providing renewable energy for CCEP’s processes. This is mainly through using wastewater to generate clean electricity, which can then be used for production lines and lighting at CCEP’s plants.
Nicola Tongue, associate director at Coca-Cola Europacific Partners, said in a press release: “Renewable energy is critical to our decarbonisation journey and the prospect of generating it on-site, using existing infrastructure and byproducts is incredibly exciting.
“We’re looking forward to working with Pipeline Organics as they enter the next phase of their journey, as we work towards our goal of using 100% renewable electricity across all our markets by 2030.”
Arielle Torres, co-founder and chief executive officer (CEO) of Pipeline Organics, also said: “Volatile energy prices, inefficient distribution networks, deteriorating infrastructure and unreliable supply chains are creating huge problems for industries worldwide.
“Existing renewable energy technologies are just not good enough and we desperately need more innovative energy solutions fit for the future.
“Our technology has the potential to solve many of these challenges by delivering clean, cost-effective renewable electricity 24/7 directly on site, stabilising energy access and operational costs without sacrificing sustainability.”
