On Monday, the historic Koblenzer Brewery, with a history spanning over 330 years and formerly known as Königsbacher Brewery, initiated insolvency proceedings at the relevant district court. Today, the brewery's workforce was briefed on the future trajectory in a company meeting.
As the provisional insolvency administrator, Alexander Jüchser, announced today, beer production at the existing brewery location is set to continue until the end of January, and the wages and salaries for the 42 employees will be paid during this period. However, what happens afterward is still uncertain.
Certainly not helpful is the fact that the previous owners had already sold important beer brands and a portion of the land situated in a scenic location along the Rhine river earlier to generate liquidity for the company. The company meeting also delved into concerns about the ailing technology, citing the poor state of the filling systems that necessitate refurbishment.
Jüchser anticipates the commencement of insolvency proceedings in February. Discussions with Bitburger Brewery next week will determine whether the production of Königsbacher and Nette Edelpils beers can be sustained in Koblenz. Notably, Bitburger acquired the national distribution and brand rights for the two brands in 2010.
In 2012, the former owner Karlsberg Group sold Königsbacher Brewery to two private investors, Egon Heckmann and Hans-Achim Daschmann, leading to a name change to Koblenzer Brewery. The owners heralded this change as a new beginning, emphasizing the brewery's extensive history in Koblenz, where it claims to have been producing beer since 1689. In 2018, Heckmann und Daschmann sold the brewery to the Sonthofen investor Christian Seitz and his Munich partner Oleg Schumacher.
Koblenzer Brewery's insolvency now marks the third brewery in the region at risk of disappearing, following the trajectories of Bischoff Brewery in Winnweiler (inside.beer, 15.8.2022) and Pfungstädter Brewery in Pfungstadt (inside.beer, 15.12.2022)
Highlighting the structural recession in Germany's beer market, Koblenz Brewery acknowledges the impracticality of maintaining cost-effective business operations, particularly against the backdrop of the Ukraine War, deteriorating market conditions, and significant cost escalations. Prices for grain, crown caps, and labels surged by 50 to 60 percent.
To address the challenging situation, Koblenz Brewery had collaborated with a nationally operating company to develop apartments on the brewery premises while aiming to preserve and continue the brewery's operations. Despite substantial investments by shareholders, these were insufficient to offset the financial burdens.
