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Food and Beverages News | November 2022

Germany's food and beverages sector continues to attract fresh investment from international investors keen to expand into a highly diversified and lucrative market.

Austrian companies invest in Baruth

Austrian drinks giant Red Bull and fruit juice producer Rauch have rescued Brandenburger Urstromquelle in Baruth from closure, thereby securing the future of around 300 jobs in the region. The two companies have announced an agreement in principle on the takeover and continuation of production at the site with Altmühltaler Mineralbrunnen, the current owners of Brandenburger Urstromquelle, who had previously announced plans to close the production plant this year. The takeover has been welcomed by Brandenburg Minister of Economic Affairs Prof. Dr.–Ing. Jörg Steinbach and Economic Development Agency Brandenburg CEO Dr. Steffen Kammradt as a “strong settlement success for Brandenburg as a business location.” The alliance between Red Bull and Rauch sees a new strong player in the region and underpins Austria’s position as one of the top three international investor countries in the federal state.

French investor to take over mineral water plant in Jessen

A French investor is seeking to take over the former site of an insolvent mineral water producer in the city of Jessen in Saxony-Anhalt. According to reports, the French company plans to invest up to EUR 50 million in a state-of-the-art production facility at the site. Two new bottling lines will run from April of next year, producing 400 million bottles of Jessen mineral water for a number of suppliers annually. The planned investment will create around 60 new jobs.

Newrest moves into German in-flight catering market

Multisector catering specialist Newrest has announced plans to invest EU 10 million to establish inflight catering units in Berlin and Frankfurt (Main). The company has signed lucrative deals with EasyJet, China Airlines, Air Astana, LATAM Chile Airlines, and Egypt Air. The group also has plans to establish additional inflight catering units in Munich and Hamburg in 2023 as part of its expansion into the German market. Germany Trade & Invest provided consultancy and investment support services to Newrest in their German market expansion plans.

New logistics centers for Dutch online supermarket company Picnic

Dutch food delivery service provider Picnic is developing two new logistics properties in Kaltenkirchen north of Hamburg and in Falkensee near Berlin. The proposed 46,000 sqm development at both sites will support the online supermarket’s growth into the German market.  The new building will be equipped with 24 dock levelers and four ground-level sectional doors. Parking spaces for 106 cars and eight trucks are planned for the outside area with sustainability safeguarded through energy-saving LED lighting and photovoltaic systems for energy generation. Completion of the Kaltenkirchen site is scheduled for July 2023. The new building in Falkensee will be equipped with 20 ramp gates and four ground-level gates. In addition, cold storage and deep-freeze rooms will be integrated in the hall area to enable temperature-controlled foodstuffs to be stored professionally in compliance with all specifications. Parking spaces for 144 vehicles will be created in the outside area. Continued investment in modern logistics centers and hundreds of last-mile properties will see the company expand into all regions in Germany beyond Berlin and Hamburg.

Vion introduces “demand” supply programs tailored to meet regional meat tastes

Dutch-German meat group Vion is responding to the lower supply of slaughtered animals and declining consumption by establishing demand-oriented regional programs for retailers. The move will see around EUR 50 million invested in setting up demand-driven balanced supply chains in eastern Germany and Bavaria. Vion is looking to take advantage of the trend towards regional produce – particularly in eastern Germany – in order to offset a fall in pork consumption and rising costs. The group has commissioned nine fully automated case-ready lines for the production of prepackaged fresh beef and pork products. Five of the new lines will be operated in Altenburg in eastern Germany, with the remaining four lines set to increase capacity at the Großosteheim site in Bavaria. The step will see the two sites establish themselves as a direct link between production and retail as Vion seeks to consolidate its position as a strong food retail partner.

Nestlé and Pfenning Logistik celebrate logistics center groundbreaking ceremony in Mecklar

Nestlé and Pfenning Logistik celebrated the groundbreaking ceremony for the “Multicube Osthessen” logstics center in Mecklar in July. As the principal tenant at the new site, Nestlé  is expected to supply consumers with products from its coffee, chocolate, cereals, and Nestlé Professional ranges. The Swiss giant hopes to reduce freight mileage by up to 30 percent and meet the company climate goals - reducing supply chain emissions by 50 percent by 2030 and net zero by 2050 - by locating to the centrally located site. The Multicube Osthessen is being built on a 220,000 sqm site in two construction phases.

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