Carlsberg Coordinating Worldwide Purchases from Rheinfelden with the Support of Aargau Economic Promotion


Sunday, January 01, 2012 by Aargau Services

Six water springs in Rheinfelden provide the Feldschlösschen beer with its good taste. The little city on the Rhine has recently become the home to another company considered a heavyweight in the international beer business: Carlsberg is now coordinating its worldwide purchases from Rheinfelden.

"Five years ago, we would have probably located the central purchasing point in Copenhagen," explains Dr. Werner K. Budek of Carlsberg Group Procurement (CGP) AG in Rheinfelden. When we decided in Copenhagen to centralize purchasing five years ago, we asked: What is the best way? At first, the country was our focal point, then we considered the organizational form: independent company or company unit? But five years ago, according to Budek, Carlsberg had been only one-third the size it is today. "Today we have 12 billion Swiss francs turnover, 45,000 employees and a purchasing volume of about 6 billion Swiss francs. Five years ago, it was just 13,000 employees. The dimensions have shifted", Budek concludes.

Why Rheinfelden?

Why Rheinfelden, why Switzerland? On the one hand, according to Budek, Feldschlösschen has already established Rheinfelden as a location. On the other hand, the surroundings matter. You wonder about the living conditions, safety, schools, quality of life, traffic conditions and living space. These were questions we had to ask if we were to attract highly qualified international employees. The empty building here in Rheinfelden was of course also a good argument while the proximity to Feldschlösschen has some benefits. There are IT professionals, personnel services and lots of infrastructure here. And then there is the aspect of taxation that applies to Switzerland in general."

One of the meetings that the Carlsberg Company held prior its decision was with the Aargau Economic Promotion. According to Budek, this meeting was co-decisive. "At Aargau Services, we met competent experts and sensed that the Canton of Aargau was interested in us and was prepared to arrange a quick, unbureaucratic process. Ultimately, the existing location, the 'Brewer's Air' in Rheinfelden, and the canton's willingness to assist were key. In the meantime, there have already been inquiries from Danish companies who want to know more about the process and the experiences regarding our move," Budek remarks.

Purchasing for the entire group

A central procurement unit for the entire global Carlsberg Group is planned for Rheinfelden. Werner K. Budek is a member of the CGP AG management and was formerly the Chief Purchasing Manager for Feldschlösschen. He said: "We will gradually take over global purchasing from the local breweries. But the centralization will take another one or two years. The group's purchasing power is meant to serve as an advantage for the individual countries. If a supplier can negotiate with us for 5 or 8 countries, his interests and the flexibility of the conditions are greater. That has a direct effect on the price structure. In an initial phase, 17 European countries will be involved - later, there will be about 45 to 50 countries."

How was the reception in Rheinfelden?

"In Rheinfelden, probably no one has so far really noticed that we are here," Budek jokes, "But Feldschlösschen surely has." He added: "Following the construction phase, we really only started in June 2010. I imagine the local gastronomy and hoteliers have taken notice, though. We have really only been getting underway from 1 January 2011. We surely underestimated a bit the complexity of IT and its country-specific connectivity. Local craftspeople and vendors surely also profited from the renovation of the building, the expansion of our offices, and the installation and expansion of our vehicle fleet."