Stuttgarter Hofbräu will close its brewery site by the end of 2028

Stuttgarter Hofbräu plans to close its current brewing site by the end of 2028 and move brewing and bottling of its beers to Dinkelacker-Schwaben Bräu, as part of a proposed combination of two of Stuttgart’s best-known brewers.

The company said on Friday, November 13, that the shift would take place within a new joint venture being planned by the Radeberger Group, which has owned Stuttgarter Hofbräu since 2007, and Dinkelacker Brauerei Beteiligungsgesellschaft. The two sides intend to combine their activities in a new company, Stuttgarter Brauereien GmbH & Co. KG, with each partner holding 50%.

The transaction still requires approval from Germany’s Federal Cartel Office. If cleared, the new company would produce, bottle and distribute the Stuttgart beer brands of both partners.

According to the companies, both brewery sites will continue operating at first. The production of Hofbräu brands is then to be moved in stages from Böblinger Straße to Tübinger Straße, with the transfer completed by the end of 2028. After that, the current Hofbräu property would be available for another use. The companies did not say what that future use might be.

The partners said they were responding to falling beer sales, changing drinking habits and rising costs. They also pointed to underused production equipment and the need for new investment. By concentrating output at one site, the companies said they expect to make better use of their infrastructure and reduce transport within Stuttgart.

They also said that existing brands and recipes would remain in place. The portfolio in the planned joint venture would include Dinkelacker, Schwaben Bräu, Wulle, Sanwald and Cluss, as well as the brands of Stuttgarter Hofbräu.

The decision is another sign of the pressure facing Germany’s brewing industry. Brewers have been dealing with weaker consumption, excess capacity and higher operating costs, and those conditions can encourage more consolidation across the beer business and the wider beverage sector as companies try to protect margins and keep production assets fully used.

The effect on jobs remains unclear. The companies said a large share of employees is expected to move to the new venture. Because production would be concentrated at the Tübinger Straße site, they said staffing needs there are likely to increase. They did not give figures for how many jobs would be preserved, transferred or cut.

The planned company is to be led by Kristof Schimmele and Thomas Mathar. Schimmele is set to oversee sales, marketing, finance and administration, while Mathar would be responsible for production, logistics, information technology, purchasing and human resources.

Schimmele had been in charge of sales at Brauerei Gebr. Maisel in Bayreuth since 2023. At the end of March, that company announced an amicable separation, saying the sides had different views on the strategic direction of sales. Under the new setup in Stuttgart, Christian Dinkelacker, managing partner of Dinkelacker-Schwaben Bräu, and Guido Mockel, spokesman for the Radeberger Group’s management board, are expected to sit on the joint venture’s advisory board.