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Damm, the Spanish brewing and beverage giant, has announced the closure of its Agama dairy production facility in Mallorca, marking the end of a historic local industry.
The company informed the plant’s 38 employees that operations at the site, located in the Son Castello industrial estate, will cease due to the facility’s lack of economic viability. Despite the closure of the production line, Damm stated it intends to maintain the Agama brand by outsourcing production to other local dairies to ensure its continued presence in the Balearic market.
The move follows a period of financial difficulty for the unit, which has faced increasing competition and rising operational costs. Damm acquired the dairy business as part of its broader strategy to diversify its portfolio beyond its core beer brands, such as Estrella Damm.
A spokesperson for the company noted that the decision was “difficult but necessary” to reorganise its regional operations. The closure is expected to be completed within the coming months as the company begins negotiations regarding the future of the affected workforce.
Source: El Diario
