GERMANY – Germany’s largest breweries Karlsberg Getränke Verbund and Warsteiner have coalesced to establish an independent purchasing company amid the rising costs of raw materials, packaging, and energy.
Under the plans, the two companies will pool their resources and create a service company for the procurement and purchase of goods in the beverage market.
The new company will be based near Frankfurt am Main and will be open to other beverage manufacturers and bottlers soon.
With the new project that still needs the green light, the beverage companies “seek to achieve improved purchasing and supply conditions while at the same time optimizing the consistent provision of goods to their customers.”
The purchasing company will negotiate framework agreements with suppliers on behalf of its members, who will then be able to purchase the goods independently.
Karlsberg Getränke Verbund produces mineral water, lemonades, juices, and beer at a total of six locations. Among them are the German locations in Saarland, Rhineland-Palatinate, Baden-Württemberg, and a brewery in France.
The Warsteiner Group has several breweries that include the Warsteiner brewery, Herforder brewery, and the Paderborn brewery in North Rhine-Westphalia, and shares in the König Ludwig Schlossbrauerei Kaltenberg in Bavaria.
Helmut Hörz, chief executive and finance officer at Warsteiner, said: “The current political and economic situation has made it amply clear that, if we wish to be able to provide beverages to our customers, we must ensure the reliable supply of our production facilities. The purchasing company will help to further optimize the interplay between beverage manufacturers, bottlers, suppliers, and consumers.”
Warsteiner Group has been focused on breaking the supply chain hurdles in the market since the first of the year. Its subsidiary Sauerland Beverages GmbH & Co. KG also joined the beverage wholesale trade group under the umbrella of Team Beverage AG.
Sauerland Beverages based in Brilon-Altenbüren has been one of the leading beverage wholesalers in South Westphalia since 2009.
More than 1,400 items are supplied to around 400 gastronomy objects and more than 1,000 events in the Sauerland every year.
With its network in the sales channels of convenience, gastronomy, beverage retail, and wholesale, Team Beverage AG is the market-leading distribution, purchasing, marketing, and service platform for the beverage industry in Germany.
Markus Thoben, Managing Director of Wholesale and Gastronomy at Team Beverage, said the entrance into the umbrella enables the subsidiary to have a strong gastronomy specialist in the South Westphalia region.