Eichbaum To Cut Around 100 Jobs After Insolvency

The insolvent traditional German brewery Eichbaum will cut around 100 jobs in the coming months at its headquarter and brewery in Mannheim. As a result, the workforce is set to shrink from currently just under 290 employees to fewer than 200 – a reduction of roughly one third. Insolvency proceedings were officially opened on January 1.

According to co-managing director Uwe Aichele, the measure is necessary to secure the remaining operations and make the company more attractive to investors. The layoffs are expected to be announced in the coming weeks and will primarily affect production, but administrative and technical positions will also be impacted.

Works council chairman Umut As described the situation as one of “sheer survival.” Without downsizing, he said, there is currently no realistic prospect of continuing the business.

At the same time, the new management team led by restructuring specialist Frank Reifel is holding talks with potential investors. Both financial investors and strategic brewing groups from Europe have reportedly expressed interest.

The economic situation had already deteriorated beforehand. Due to politically driven declines in exports – mainly to Eichbaum’s key export markets Russia and China – the brewery has been struggling with underutilization for some time. In the past, output amounted to around 1.7 to 1.8 million hectoliters, making it one of the largest breweries in Baden-Württemberg.

The sale of its traditional malt beverage brand Karamalz to Veltins last October further reduced volumes. The divestment had been necessary to bridge financial bottlenecks, but it could not prevent the company from slipping into formal restructuring insolvency a week later. Going forward, Eichbaum plans to broaden its portfolio, including cider as well as non-alcoholic and functional beverage concepts.

For beer lovers in the region, there remains hope that an investor will step in and preserve in particular the locally rooted Eichbaum Ureich Premium Pils, which is deeply established in Mannheim and the surrounding area.