Hersberg Every German household has the Fackelmann household helpers in some kitchen drawer. From spatulas to lemon squeezers to pasta machines – the family business from Hersbruck near Nuremberg has more than 10,000 items in its range. Only a small part of it is exhibited in the new showroom at the headquarters in Hersbruck near Nuremberg. “During the pandemic, people rediscovered cooking and baking. Our baking molds were particularly in demand,” says Managing Director Martin Strack.
The boom has been over for the time being since the Ukraine war. The high energy and raw material prices are causing problems for the entire household goods industry. Inflation makes consumers save. “We noticeably feel the suppressed desire to buy,” says Strack. The camps are full. Despite this, the company has managed to keep global sales relatively stable after two high-growth years of the pandemic.
Sales fell slightly in 2022 by 3.6 percent to 482 million euros. The family business is traditionally silent on profits. Manager Strack says only this much: “We are profitable.” Price increases could only be enforced to a limited extent, so the pressure on the margin increases.
The company does not want to be slowed down by challenging times. “We are starting the new year with confidence with a broad international innovation and investment strategy,” says Strack.
At the headquarters in Hersbruck alone, around ten million euros were invested in small parts storage, new office concepts and the 600 square meter showroom. The long-established company also wants to develop further in the area of artificial intelligence and big data this year. An increased presence in social media should attract even more younger customers.
Today, Fackelmann does 70 percent of its business abroad. Household goods and bathroom furniture are sold in 30 countries worldwide. The traditional company was founded in 1919 by three brothers as a trading company for household goods and hardware. In 1958, Sebastian Fackelmann, in the second generation, started his own production of wooden goods such as toothpicks, mixing spoons, breakfast boards and small pieces of furniture near Hersbruck.
Entrepreneur Alexander Fackelmann expanded the medium-sized company into an international company in the third generation. In 2019 he handed over the management of the company to Martin Strack. The 41-year-old business graduate previously worked for Morgan Stanley Investment Banking in London and New York for eight years.
Alexander Fackelmann handed over the management of the company to Martin Strack in 2019.
(Photo: Fackelmann Brands)
Fackelmann has grown primarily through takeovers. In the past ten years, 18 brands have been purchased, including Stanley Rogers, Füri-Messer and the baking pan specialist Zenker. Also for Dr. Oetker produces Fackelmann baking utensils under license. One of the largest customers is the American supermarket group Walmart. In Germany, Fackelmann not only supplies supermarkets but also furniture stores such as Ikea and XXXLutz.
For cost reasons, the family business now manufactures most of its goods in other countries. However, Fackelmann is still holding on to two production sites in Germany, in Hersbruck and Aichbach – despite high energy costs. “It’s part of our tradition and part of the region with which we have grown,” emphasizes Martin Strack.
Sustainability also plays a role. According to Strack, both plants in Germany produce in a climate-neutral manner. Fackelmann would like to place an even stronger focus on resource-saving materials and environmentally friendly production in the future.
>> Also read: Study shows high power consumption of A+++ devices
The family company has had production sites in China, Poland and India since the 1990s. A recently completed factory in India produces stainless steel goods and cookware. “For us, India is a good alternative to China,” says Strack. The Chinese plant primarily produces kitchen utensils such as pots and pans.
During the corona pandemic, Fackelmann repeatedly had to struggle with the tough lockdowns in China. The consequences were staff and production losses. “The situation in China is difficult to predict,” says Strack.
sales in the household sector
2.35
billion euro
was the turnover in the cutting and household industry in 2022, around seven percent less than in the previous year.
In addition to Corona, the war in Ukraine has shaken up the supply chain. The Russian attack also hit Fackelmann directly. Offices and storerooms in Kiev were destroyed by several rockets. The employees on site were unharmed.
Household goods industry suffers from the consequences of the Ukraine war
The entire household goods industry is suffering from the consequences of the Ukraine war. The industry had to accept significant business losses in 2022, the industry association for cutlery and household goods explained recently at the Frankfurt consumer goods fair Ambiente. The total turnover of the cutting and household industry fell by around seven percent to 2.35 billion euros. Rising material and energy prices are among other things the reason for the slump.
Jens-Heinrich Beckmann is Managing Director of the industry association and is cautiously optimistic about the year 2023. Although the prices for energy and material are slowly returning to normal, the situation is still unpredictable. Full inventories and the depressed buying mood of consumers make it difficult for the industry. “Online sales have dropped dramatically. That’s a big problem,” says Beckmann.
Fackelmann relies on a growing presence in social media. Saskia Fackelmann, representative of the fourth generation, presents the family business on various accounts. With videos and photos on Instagram and Co., she gives cooking and baking tips and posts about family and fitness. Always visible in the picture: a selection of Fackelmann products. The most successful video on Saskia Fackelmann’s account had around eleven million views.
Advertising partnerships with the German Olympic team and Paris Hilton
Company boss Strack hopes to reach new target groups in this way. “We want to get more young people interested in cooking and baking with our social media concepts.” Successful internet stars in baking and cooking, such as Sally Özcan, who grew up on YouTube, have stirred up the industry.
Sally’s World makes a mid double-digit million turnover with self-developed household helpers. “Sally is a serious competitor for established brands,” says Jan Bechler, Managing Director of the e-commerce consultancy Finc3.
The Fackelmann boss sees no direct competition in the big baking and cooking influencers like Sally’s World. You know each other in the industry and inspire each other.
Fackelmann is trying to make the brand better known around the world, not just on social media. At the Olympic Games in Paris 2024, the Franconians are official partners of Team Germany. Fackelmann also cooperates with hotel heiress Paris Hilton in the USA. For their Netflix cooking show, Fackelmann and partner Epoca have developed their own range of cookware – with lots of rhinestones and pink.
More: With baking videos on Youtube to the empire of millions