Germany-based distiller Berentzen-Gruppe has cut its forecasts for annual sales and profits after a challenging first half.
CEO Oliver Schwegmann pointed to “the ongoing weakness in the market and consumer spending in Germany”.
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In a trading update on Friday (17 July), the Frankfurt-listed group said it now expects its revenue in 2026 to reach between €151m ($172.7m) and €156m, down from its previous guidance of €163m to €173m.
Berentzen also lowered its EBIT forecast to €3.5m-€5m from €7m-€9m. The company now sees its annual EBITDA landing between €12.4m and €13.9m versus an earlier forecast of €16.1m-€18.1m.
The revised targets would also leave Berentzen below its 2025 performance, when revenue came in at €162.9m, EBIT at €8.5m and EBITDA at €17.1m.
In February, Berentzen said 2025 revenue had missed its October forecast, blaming challenging market conditions, shifting consumer behaviour and the earlier disposal of its mineral water facility in Grüneberg.
The owner of the Berentzen, Puschkin and Mio Mio brands said on Friday that preliminary revenue for the first half of this year fell 11.1% to €71m. EBIT dropped 81.2% to €0.6m and EBITDA declined 33.8% to €4.9m.
Chief executive Oliver Schwegmann said: “The developments in our key performance indicators, which were already evident in the first quarter, have unfortunately continued over the last three months.
“Essentially, this is still attributable to the ongoing weakness in the market and consumer spending in Germany. 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.”
Berentzen added it has already introduced countermeasures. Schwegmann pointed to the launch of the Juma brand, which he said had so far been “very successful” and to a relaunch of the Puschkin brand that includes new packaging, new recipes and three RTD variants.
The group said Juma, after an exclusive listing with a German drugstore chain, is due to be rolled out nationally in the food retail channel from September.
Schwegmann said the company expects the first positive effects on sales and earnings in the second half, with a bigger contribution from next year.
However, he warned that “planned regulations such as the sugar levy or the increase in alcohol duty could prove counterproductive for our entire sector”.
Industry associations in Germany have criticised the federal government’s plans to implement higher taxes on alcoholic drinks. A media report has suggested there could be a 20% hike, although the German government has refused to be drawn on the details of its plans.
Germany is also developing plans for a sugar tax on drinks.
A levy had previously been slated for introduction in 2028 but it has emerged a tax is being lined up for 1 January next year.
In a joint statement earlier this month, five industry associations slammed the change, arguing an implementation within a matter of months would create “virtually insurmountable challenges” for businesses already under pressure.
