The beverage and spread producer Stute, known for supplying Aldi’s “River Cola,” has ceased much of its beverage production. This move comes after months of financial struggle and an earlier declaration of insolvency.
The Stute Group, which has been supplying Aldi with beverages, including its popular “River Cola,” is shutting down a large portion of its beverage bottling operations. The decision follows the closure of Paderborner Kühlhaus GmbH & Co. KG in August, as reported by Lebensmittelzeitung. The company has halted the bottling of PET bottles and cans, and its equipment is now up for sale. Only beverages in soft packaging will continue to be produced, but only if profits can cover fixed costs.
Stute, which had filed for insolvency in April, cited rising costs for raw materials, energy, and personnel as key factors leading to its financial difficulties. Competition within the industry had also intensified, worsening the company’s situation. An attempt to restructure under its own management failed to yield the desired results.
Job cuts and reduced operations
The company had already been operating under capacity since the insolvency filing, according to Westfalen-Blatt. A portion of Stute’s 650 employees had been placed on reduced working hours. Initial hopes of keeping all employees on staff were dashed, and in June, 200 workers at the Paderborn site were laid off, as reported by WDR.
While beverage production has been largely halted, Stute will continue producing spreads, such as the Aldi-branded “Nusskati” and various jams. However, sales in this segment have also recently declined.
Expansion efforts failed to prevent losses
Before the insolvency, Stute had attempted to expand its beverage bottling operations, including increasing its capacity for canning. Despite these efforts, the company’s financial struggles deepened. Over the past decade, Stute’s revenues have steadily declined, dropping from over €460 million in 2011 to just €234 million in 2021. Losses grew significantly, from €9 million in 2019 to €23 million in 2021, accumulating more than €70 million in total losses since 2019, according to Lebensmittelzeitung.
Founded in 1885 by Wilhelm Stute, the company remains family-owned and is based in the food sector. Stute describes itself as a fruit and vegetable processor, with all production taking place in two locations in Paderborn, Germany.
