German-based Dr. Oetker to close Czech manufacturing facility, puts 114 jobs at stake
GERMANY – Dr. Oetker, a Germany-headquartered food group, has announced the closure of its sole manufacturing facility in the Czech Republic, a decision that will result in the loss of 114 jobs.
Despite the shutdown, the company will continue to serve the Czech market and retain 74 employees in administrative roles. The facility, located in the city of Kladno, is set to close by mid-2025.
The Kladno plant, acquired by Dr. Oetker in 1997, produces branded baking mixes, pudding, and dessert powders.
However, the company cited a lack of expansion opportunities and the facility’s inability to support modern production needs as reasons for the closure.
In a statement, Dr. Oetker explained that the plant’s limited space prevents it from accommodating the technological advancements required to remain competitive.
“The situation on the retail market in which Dr. Oetker operates has changed significantly in recent years due to forced cost increases. Food manufacturers have faced increasing economic pressure and competition in recent years due to rising energy and raw material prices,” the company said.
According to Dr. Oetker, to succeed in this environment, it must constantly modernise its technology and optimise its organisation. Despite the high-quality work of all employees, this is not possible in the production in Kladno.
The company plans to serve the Czech retail and foodservice market through production facilities outside the country, primarily in Hungary. Employees affected by the closure will receive severance packages exceeding legal requirements and career assistance to support their transition to alternative employment opportunities.
Dr. Oetker’s decision comes against a backdrop of economic challenges faced by food manufacturers, including rising energy costs and raw material prices. The closure aligns with the company’s broader strategy to optimise its operations and adapt to evolving market conditions.
The family-owned business, headquartered in Bielefeld, Germany, underwent a significant restructuring in 2021 following differences among the Oetker family heirs regarding strategy and subsidiary management.
The restructuring grouped Dr. Oetker’s main food business, bakery unit Coppenrath & Wiese, drinks company Radeberger Gruppe, beverage delivery service Flaschenpost, and assets in transport and hospitality under a single umbrella owned by the five heirs.
In its 2023 financial year, Dr. Oetker and Coppenrath & Wiese reported combined sales of €4.2 billion (US$4.3 billion). Beyond baked goods and baking ingredients, the company’s product portfolio includes frozen pizza, snacks, chilled desserts, puddings, cakes, and muesli.
Sign up to HERE receive our email newsletters with the latest news and insights from Africa and around the world, and follow us on our WhatsApp channel for updates.
