GERMANY – Refresco, one of the largest independent beverage contract manufacturers in the world, has commissioned a new €20 million (US$20.98m) high-bay warehouse at its production site in Calvörde, Germany.
The new facility, which has become Refresco’s largest fully automated warehouse, has a total capacity of over 41,000 pallet spaces.
The warehouse is of “strategic importance” for future production and logistics at the site and Refresco general business for a continued growth, merger, and acquisition mission.
With the investment in a fully automated logistics system expected to enhance occupational safety at the site, the company anticipates improved efficiency of both the production environment and the transportation of finished products.
Till Alvermann, managing director at Refresco Germany, said: “The new high-bay warehouse is a milestone for us and makes this one of Refresco’s most advanced locations worldwide.”
Among other things, the complete automation of our logistical handling allows us to load quickly and safely and improves our competitive advantage. We also strengthen the service level for our customers.”
Refresco bought two alcoholic beverage businesses last month and has its eyes yet again set on more acquisitions to enhance its offering in the global beverage market.
The company has also agreed with The Coca-Cola Company to acquire three production locations in the United States.
The prospective transaction includes three production facilities in Truesdale (Missouri), Waco (Texas), and Paw Paw (Michigan) and involves long-term agreements for contract manufacturing activities.
Refresco will become one of Coca-Cola’s strategic third-party contract manufacturers in the United States if the transaction, subject to regulatory approval, goes through.
The beverage contract manufacturer commented that the acquisition is well aligned with its buy-and-build strategy, focused on further expanding and strengthening its manufacturing footprint across Europe and North America to service both retailers and A-brands.
In October, Refresco also expanded its manufacturing capabilities with Avandis (a 100%-focused asset of hard liquor), acquired from Dutch spirits companies Lucas Bols and De Kuyper in a deal worth EUR25m (US$24.2m).
In the same month, it snapped up Australia’s leading manufacturer of non-alcoholic beverages, Tru Blu Beverages, an expansion into the Australian market and diversifying its global footprint.
The acquisition of Tru Blu Beverages strengthened Refresco’s addressable market and provides opportunities to leverage its size and scale, as well as its track record of successfully integrating companies.
In addition, the acquisition further strengthens the company’s position as a beverage solutions provider to branded customers and leading retailers globally and provides new opportunities for further growth.
Refresco CEO Hans Roelofs said the company’s four main focuses this year have been to consolidate current areas of growth, move into a third continent – which it did with Tru Blu – and tap into opportunities in alcohol and plant-based markets.
Hans Roelofs believes that the alcohol segment of the beverage industry is a nice new growth area for the company that is in talks with a couple of players in the space to buy some of their production units and try to offer them a bit of a global setting where they can produce their hard liquors.
This move, according to the company, will alleviate the hardcore alcohol producers’ extra cost in terms of production and then transportation and logistics to their potential markets.
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