Warsteiner to cut 125 jobs as German beer demand falls

German brewer Warsteiner plans to cut 125 jobs at its headquarters in Warstein as demand for beer falls. The company says the reductions are due to be completed this year, but compulsory redundancies have not been ruled out.

Some jobs are expected to go through retirement and the non-renewal of temporary contracts; the company is also offering severance arrangements. The cuts will leave about 600 people working at the headquarters.

Warsteiner, owned by the family-run Haus Cramer Gruppe, closed its Herford brewery earlier this year, costing 100 jobs. Its brewery in Paderborn, which employs more than 100 people, is for sale. If it is not sold by the end of the year, it will close and those jobs will also be lost.

The group plans to concentrate production from Herford and Paderborn at Warstein, which has annual capacity of six million hectolitres. Its breweries in Bavaria are not affected by the restructuring.

German beer sales fell to a record low last year, while the number of breweries dropped to 1,415, its lowest level in almost a decade, according to the report. Demand for alcohol-free beer is growing, but has not made up for the decline in traditional beer.