Berentzen slashes profit outlook as German consumer spending weakens
The German distiller Berentzen-Gruppe has drastically cut its 2026 financial targets after an 81% plunge in first-half operating profit, highlighting severe pressure on domestic consumer markets.
Berentzen-Gruppe has issued a severe profit warning, drastically cutting its 2026 revenue and earnings forecasts after a collapsing first half. Preliminary results showed first-half operating profit plummeted 81.2% to just €0.6m on an 11.1% revenue decline to €71m. The Frankfurt-listed spirits group, which owns the Berentzen, Puschkin and Mio Mio brands, now expects a full-year performance that falls well short of its 2025 actuals.
Management slashed its 2026 revenue guidance to a range of €151m to €156m, down sharply from a previous estimate of €163m to €173m. The revised targets represent a step backwards from 2025, when the company posted revenue of €162.9m. EBITDA is now forecast between €12.4m and €13.9m, compared to last year's €17.1m, while EBIT guidance was cut to €3.5m-€5m from an earlier range of €7m-€9m.
Chief executive Oliver Schwegmann attributed the downturn to rapidly deteriorating domestic demand that is outpacing the company's planning assumptions. "Essentially, this is still attributable to the ongoing weakness in the market and consumer spending in Germany," he said. "We have already taken this into account to a certain extent in our planning for the 2026 financial year but the pace of market developments is significantly faster than expected."
The latest downgrade follows a disappointing 2025, where revenue missed internal forecasts due to shifting consumer behaviour and the earlier disposal of a mineral water facility in Grüneberg. To combat the current slump, the company is accelerating product launches as countermeasures. These include the successful debut of the Juma brand in a German drugstore chain and a comprehensive relaunch of Puschkin featuring new packaging, recipes and three ready-to-drink variants.
Berentzen plans a national rollout of Juma in the food retail channel starting in September. Schwegmann expects these initiatives to yield the first positive effects on sales and earnings in the second half of the year, with a larger contribution expected next year.
Beyond weak consumer sentiment, the distiller faces looming regulatory headwinds that threaten the wider industry's margin recovery. Schwegmann warned that "planned regulations such as the sugar levy or the increase in alcohol duty could prove counterproductive for our entire sector." Industry associations have heavily criticised the federal government over the potential tax increases, with media reports suggesting a 20% hike in alcohol duty is under consideration.
