Berlin Cosmetics is not closing - it is moving to Cologne

By Simon Pitman

- Last updated on GMT

Related tags: Germany

In answer to reports in the German press that Berlin Cosmetics is
closing down, the company has quashed the rumours by confirming
that its manufacturing facility will be shifted to Cologne, where
the company is currently headquartered.

The company, which has annual sales of €18m, says it intends to shift production to its parent company, Maxim, which is located in Pulheim, Northwest of Cologne, from January 2007. The move that will see a small staff maintained at the existing Berlin premises to run distribution operations.

The company says between 15 to 20 of the existing 60 staff will remain in Berlin, whereas the remainder will be offered a transfer to the new facilities in Cologne.

Berlin Cosmetics brands are stocked by some of the largest retail outlets in Germany, many of which are household names in the country, but these brands are pretty much unknown outside of the country.

Brands such as the Berlin Cosmetic make-up range, Koivo shower and body care products, Alon hair care products, Idris body care and deodorant products and Soirée hair care and styling products compete alongside international brands for German mass retail shelf space.

But in recent years the company has been quiet, with no significant product launches made since April 2004. Undoubtedly this reflects the slow retail market in Germany, but with the move to Berlin expected to save the company money, it will be aiming to strengthen and consolidate its position on the market.

This is not the first move to restructure the company's manufacturing operations. In recent years production for most of its lines has been moved out to other European countries in an effort to cut down on costs, all the while reducing the reliance on the Berlin operation.

Following on from the restructuring efforts the company is now looking to boost some of its existing brands by firstly focusing on it its Kaloderma body care brand. This effort will see the brand marketed under a new design and packaging.

Berlin Cosmetics was once one of Eastern Germany's most prominent cosmetics businesses, before it was brought up by Maxim Markenprodukte back in 1997.

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