German bakery group Harry-Brot has received approval from competition officials to acquire a factory from major grocery chain Rewe, marking a significant move in the food and beverage industry trends.
Harry-Brot has successfully completed the purchase of the Glockenbrot Bergkirchen bakery from Rewe for an undisclosed sum. As a result of this acquisition, approximately 320 employees from the site will transition to Harry-Brot, according to a spokesperson from the company.
In a statement, Germany’s Federal Cartel Office, known as the Bundeskartellamt, indicated that the transaction “will only result in minor competitive changes for the other market participants” within the country’s bakery sector. This underscores the stability of the food and drink business landscape despite the ongoing shifts.
Glockenbrot has been affiliated with Rewe since 1986, producing private-label bread and baked goods for the retailer from two locations: one in Bergkirchen and another in Frankfurt. Prior to finalizing the sale of the Bergkirchen facility to Harry-Brot, Rewe had decided to shut down the Frankfurt factory.
Currently, Harry-Brot operates ten plants across Germany and reported impressive sales of around €1.3 billion ($1.48 billion) in its 2024 fiscal year.
Andreas Mundt, president of the Bundeskartellamt, stated that the pivotal consideration in their assessment was that Glockenbrot had exclusively served Rewe within the group thus far.
“Harry-Brot is by far the leading manufacturer of bread and baked goods in Germany. The planned acquisition of the Rewe subsidiary Glockenbrot will further strengthen this position. Nevertheless, we do not have any fundamental competition concerns that could justify a prohibition of the transaction,” Mundt remarked.
Moreover, he noted, “The acquisition will only change the competitive situation for other market participants to a manageable extent. Even after the merger, there will still be powerful competitors in the primarily affected market for self-service bread and baked goods.”
In addition to this acquisition, Harry-Brot is also planning to establish a new bakery in Erlensee, located east of Frankfurt. If this project materializes, production is expected to commence in 2028.
The Bundeskartellamt has indicated that the acquisition of the Bergkirchen site, coupled with the opening of the Erlensee facility, will “at least in southern Germany, likely lead to an expansion of the product range and increased competition.” This development aligns with current food and drink consumer trends, promoting variety and competitiveness in the market.
