Karlsberg and Warsteiner to establish joint purchasing company

German beverage producers Karlsberg Getränke Verbund and Warsteiner are joining forces to establish an independent purchasing company.

Under the plans, the two companies will pool their resources and create a service company for the procurement and purchase of goods in the beverage market.

With the new project, the beverage companies “seek to achieve improved purchasing and supply conditions while at the same time optimising the consistent provision of goods to their customers”.

The purchasing company will negotiate framework agreements with suppliers on behalf of its members, who will then be able to purchase the goods independently.

Helmut Hörz, chief executive and finance officer at Warsteiner, said: “The current political and economic situation has made it amply clear that, if we wish to be able to provide beverages to our customers, it is absolutely essential that we ensure the reliable supply of our production facilities. The purchasing company will help to further optimise the interplay between beverage manufacturers, bottlers, suppliers and consumers.”

Markus Meyer, CEO Germany of Karlsberg, added: “Be it the malt shortage or bottlenecks impacting packaging materials, our entire industry is facing the same challenges. With the planned purchasing company, we are working together to offer a solution that is beneficial to everyone — members, suppliers and customers alike.”

The project is awaiting approval by antitrust authorities.