The Eberswalder brand of German sausages is set to cease production in Brandenburg, as the owner announced plans to close the facility.
EWN Wurstspezialitäten confirmed that it will gradually shut down its manufacturing site in Britz by the end of February. This closure places approximately 500 jobs at risk.
The Zur Mühlen Group, which owns EWN and is now a subsidiary of Premium Food Group following a rebranding from Tönnies last year, has only recently acquired the Britz plant in 2023 alongside Eberswalder.
While the Eberswalder brand will continue to be produced in Germany, it will be relocated to undisclosed sites in East Germany.
EWN indicated that internal deliberations concluded there was “no economically viable alternative” to closing the Britz factory. Workers were informed of this decision today after discussions with the local works council.
According to EWN, the meat and sausage market in Germany has faced significant challenges for several years, including heightened international competition and decreasing sales volumes. The influx of international suppliers offering lower prices has intensified market pressures, alongside rising costs for labor, energy, logistics, and raw materials.
“More and more international suppliers with lower costs are pushing into the German market,” EWN noted. “These factors have increasingly worsened the economic conditions for the Britz site in recent years.”
In a management statement, EWN expressed, “We explored all possibilities until the very end to preserve the Britz site and the jobs. Unfortunately, we had to conclude that there is no realistic prospect under the given economic conditions.”
EWN is committed to supporting the approximately 500 affected employees, aiming to provide the best assistance during this transition.
Despite previous investments aimed at addressing market challenges and expanding into new product segments, EWN acknowledged that these initiatives could not be sufficiently developed.
EWN further elaborated, “At the same time, further investments in refrigeration systems and other modernization efforts would have been necessary in Britz. These costs increased to a mid-double-digit million figure also due to general price increases and additional regulations.”
Moreover, they concluded that such investments would not significantly enhance productivity and could not be recouped in the medium to long term under the current market conditions. Consequently, these expenses were deemed economically unjustifiable.
A plan has been developed in collaboration with the local works council to assist the affected workers, focusing on identifying new career opportunities or placements with other companies in the region.
This move reflects broader trends in the food and beverage industry, as businesses adapt to evolving market dynamics and shifting consumer preferences. Understanding food and drink business trends is crucial for stakeholders, particularly as they navigate the complexities of modern consumer trends and competitive pressures.
In a rapidly changing landscape, being aware of food and drink consumer trends and proactive in addressing challenges will be essential for sustained success in the industry.
