Coca-Cola Europacific Partners (CCEP) is set to close five production and logistics sites in Germany, resulting in around 500 job cuts over the next year. The closures, including plants in Neumünster, Bielefeld, Berlin-Hohenschönhausen, Memmingen, and Cologne, aim to streamline operations and adapt to changing logistics trends, particularly a shift toward central warehouse delivery models. CCEP is making these changes to reduce costs, enhance efficiency, and respond to increasing competition in the beverage industry.
The closures are part of a broader effort to optimize Coca-Cola's production capacity in Germany, where it currently operates too many facilities in the western region. Of the 505 jobs being cut, approximately 207 will be relocated to other sites, while 78 new roles will be created. The Cologne facility, the smallest in Western Germany, will cease production by March 2024 due to limited growth potential. CCEP is committed to handling the changes in a socially responsible way, acknowledging the impact on affected employees.
In addition to operational changes, CCEP is investing in renewable energy through a partnership with climate tech startup Pipeline Organics. This collaboration will help Coca-Cola move closer to its goal of using 100% renewable electricity across all markets by 2030, utilizing wastewater to generate clean energy on-site. This investment reflects the company's efforts to address rising energy costs and sustainability challenges in its production processes.
