German spirits manufacturer Berentzen Gruppe is set to sell a plant in Brandenburg to an unnamed potential buyer.
The Grüneberg site produces Berentzen's non-alcoholic beverages portfolio such as Kräuterbraut and Mio Mio soft drinks and employs circa 70 people.
Berentzen revealed that the purchaser will bottle products of the Mio Mio brand, which includes soda and mate products, in addition to its own products as a “contract filling partner of Berentzen”.
The sale is expected to result in a one-time, earnings-detracting special effect of approximately €4.9m ($5.3m) in the group’s fiscal 2024. However, the company anticipates positive long-term impacts on the group’s operating result of up to €1m per year.
A Berentzen spokesperson told Just Drinks that its “primary objective is to maintain the site and safeguard jobs” at the Grüneberg facility.
“When we presented our new group strategy Building Berentzen 2028, we already emphasised that we were putting all of our structures and processes to the test in order to increase efficiency, discontinue unprofitable business and concentrate even more on our strategic focus areas,” CEO Oliver Schwegmann said in a statement.
“The Grüneberg site has been a burden for the entire group of companies in terms of both earnings and liquidity, especially since the massive cost increases as a result of the war in Ukraine.
“Continuing this location is therefore not an option for us from an economic and strategic point of view. Despite this, our primary goal is always to be able to secure the preservation of the site and thus the jobs. We are therefore very pleased that we are currently in advanced negotiations with a strategic buyer with the aim of taking over the business operations.”
Berentzen, which owns brands such as Puschkin vodka, Tres Países rum and Strothmann Original schnapps, announced the impending sale alongside preliminary figures for its first-half results for 2024.
Revenue was down from €89m in the opening half of 2023 to €88.1m this year. On the other hand, consolidated EBIT was up 55% at €5.1m and EBITDA jumped from €7.3m to €9.4m.
The German group updated its full-year forecast too, expecting operating profit in a range of €9m to €11m. Previously, Berentzen predicted a range of €8m to €10m.
EBITDA is expected to be between €18m and €20m having previously forecast a range of €17.2m to €19.2m.
Meanwhile, the total revenue outlook has been dropped from a range of €190m to €200m to between €185m and €195m.
Berentzen plans to release its full H1 2024 figures on 14 August.
