Dr. Oetker, a Germany-headquartered food group, recently announced its plans to close its only manufacturing facility in the Czech Republic, resulting in the loss of 114 jobs. Despite the closure of the plant in Kladno, the company will continue to serve the Czech market and retain approximately 74 employees in administrative roles. The facility, acquired by Dr. Oetker in 1997, currently produces branded baking mixes, pudding, and dessert powders.
The decision to close the manufacturing facility was based on the company’s assessment that the plant no longer offers opportunities for expansion and is not suitable for modern production processes. Dr. Oetker will continue to serve the Czech retail and foodservice market from other production facilities located outside the country, primarily in Hungary.
The changing dynamics of the retail market, including rising energy and raw material prices, have created economic pressures and increased competition for food manufacturers like Dr. Oetker. To remain competitive in this challenging environment, the company needs to constantly modernize its technology and optimize its organizational structure. Unfortunately, due to limitations in available production space, these improvements cannot be implemented at the Kladno facility.
Employees affected by the closure will receive severance packages that go beyond legal requirements and will be provided with career assistance to help them find alternative job opportunities. This decision comes on the heels of the 2021 business split within the Oetker family, which resulted in the separation of the main food business, bakery unit Coppenrath & Wiese, drinks company Radeberger Gruppe, beverage delivery unit Flaschenpost, and other assets.
In the 2023 financial year, Dr. Oetker and Coppenrath & Wiese collectively generated sales of €4.2 billion ($4.3 billion). Apart from baked goods and baking ingredients, the food business also produces frozen pizza, snacks, chilled desserts, puddings, cakes, and muesli.
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In conclusion, Dr. Oetker’s decision to close its manufacturing facility in the Czech Republic reflects the company’s strategic focus on modernization and efficiency amid changing market dynamics. By consolidating its production operations and optimizing its resources, Dr. Oetker aims to maintain its position as a key player in the food industry while supporting its employees through the transition.