Wernsing Food Group, a manufacturer based in Germany, is set to close its unprofitable production facility by the end of this year. The decision comes as the company seeks to optimize its operations in the competitive food and beverage industry.
The facility in question, located in Bottrop—a city in west-central Germany—primarily produces deli products. The closure will impact approximately 164 employees, rendering this a significant shift for both the workforce and the company’s operational landscape.
In its official statement, Wernsing Food Group disclosed that it had invested extensively in the facility. Despite pouring over €4 million (roughly $4.4 million) into various production upgrades to enhance vertical integration, profitability has not been achieved. The statement indicated, “However, due to existing over-capacity on the market, the plant’s own capacity utilisation could not be increased and thus the cost structure could not be sustainably improved.”
Wernsing Food Group acquired the Bottrop site in 2021 from Unternehmensgruppe Theo Müller, a major player in the chilled foods and dairy sectors. This acquisition was part of Wernsing’s strategy to expand its footprint in the food and drink business.
As concerns ripple through the industry regarding shifts in production, Wernsing Food Group has refrained from commenting on possible relocation of production once the Bottrop facility shuts down. This development may influence food and drink consumer trends, particularly as other companies adapt to changes in market dynamics.
In parallel, the yogurt giant has divested the Homann brand to Signature Foods, a Dutch enterprise operating in the chilled-foods market. This move reflects ongoing transformations within the food and beverage industry trends as companies adjust their portfolios to better align with consumer preferences and market conditions.