Sazerac Co., the U.S. distiller behind brands like Buffalo Trace Bourbon, is reportedly studying a potential deal for Berentzen-Gruppe AG, a German spirits maker. This news follows Berentzen's recent announcement of a significant downturn, with its first-quarter 2026 profit before interest and taxes (EBIT) plummeting by over 80% to approximately €200,000 ($218,000) from €1.2 million ($1.3 million) in the same period last year. Revenue also saw a 10% decline to €35.2 million ($38.4 million), attributed to a cooling German spirits market and high retail inventory from a weak 2025 holiday season.
This potential acquisition would align with Sazerac's strategy of expanding its international portfolio, as evidenced by its recent purchase of UK-based Au Vodka for over £300 million ($404 million). Sazerac has been an active player in mergers and acquisitions, having also reportedly approached Brown-Forman Corp. earlier this year. Berentzen, known for its schnapps and other hard liquors, alongside non-alcoholic beverages like Mio Mio and licensed Sinalco products, is currently undergoing a "Evolve 2030" plan to reduce its reliance on spirits by increasing non-alcoholic revenue to over 50%.
The German company aims for a significant turnaround in the second half of 2026, with plans to nationally roll out the functional lifestyle drink Juma in May and reposition its Puschkin brand later in the year. Despite the poor Q1 performance, Berentzen maintains its full-year guidance, expecting total revenue between €163 million ($178 million) and €173 million ($189 million), and EBIT between €7 million ($7.6 million) and €9 million ($9.8 million). International markets, particularly Turkey, have been providing critical profit contributions amidst domestic struggles.
Analysts from Montega AG noted the challenging environment for Berentzen's core business, highlighting the volatility of alcohol consumption trends. A potential deal with Sazerac could provide a strategic partnership for Berentzen as it navigates a transition year focused on investments in non-alcoholic alternatives to insulate itself from the unpredictable German spirits market. Sazerac's CEO, Jake Wenz, has previously emphasized preserving the unique aspects of acquired brands while leveraging Sazerac's resources for global expansion.
