"Serious mistake"

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Brau Union has presented plans for the Villach brewery. The majority of production will go to Graz. The site in the Drau city will become a "city brewery". 28 of the 150 brewery employees are said to have been offered the chance to move to Graz, otherwise they would be made redundant on May 1st.

There have been rumors behind closed doors for some time about a massive upheaval at the Villach brewery. Following the retirement of long-standing CEO Thomas Santler at the beginning of the year and the appointment of Marketing Director Peter Peschel as the new Managing Director of the Wörthersee tourism region, things went from strength to strength.

"Villacher" from Graz-Puntigam
On Tuesday, the plans of Brau Union, to which Villacher Bier has belonged since 2014, became official: the majority of production will be relocated to the Puntigam district of Graz. However, the "Villacher" will continue to be brewed according to the previous recipe and with regional ingredients, it was assured.

I consider the scaling back of the Villach site to be a serious mistake, but I have to accept the decision.

Günther Albel, Bürgermeister Villach

In Villach itself, the site is to be downsized and transformed into a "city brewery". The annual beer production will be around 7000 hectoliters. "A new campus is to be built on the brewery site in cooperation with the city, which will not only continue to be the home of the Villach brewery, but will also offer an extensive brand experience, as well as an event area and new exhibition space for the city of Villach," reports Hans Böhm, CEO of Brau Union Österreich.

The conversion work is scheduled to start in fall 2024, with completion of the city brewery including the beer experience world and event area planned for early 2026. The conversion work will also see the brewery's logistics area relocated to the outskirts of the city. Various locations are currently being evaluated, according to Brau Union.

Four million euros will be invested in the new "Stadtbrauerei".(Bild: ARCHITEKTINNEN SCHREMMER - JELL ZT GMBH)

28 redundancies are on the cards
This will mean a medium-term relocation for most of the Villach brewery's logistics staff. In the Stadtbrauerei itself, there will be a team for the brewing process and in the event area. "For those employees who cannot find a job in the new Stadtbrauerei and at the new logistics site, we are offering a social plan and extensive support services in close consultation with the works council," Brau Union said. 

Decision was a serious mistake
Mayor Günther Albel considers the plans for the brewery to be "a serious mistake". However, he had to accept the decision. "The damage to one of Carinthia's strongest brands cannot yet be estimated," Albel continued. "The least I expect from Brau Union now is that all employees who are due to be made redundant will be treated decently financially."