Berentzen shares soar as Sazerac explores takeover of German schnapps maker

Berentzen Shares Jump 22% as Sazerac Weighs Takeover Bid for German Firm

Berentzen and Sazerac: Acquisition Talks and Market Impact

Berentzen Shares Surge on Takeover News

Sept 17 (Reuters) - Shares in Berentzen jumped about 22% to a 14-month high on Thursday following news the German schnapps maker was the latest target in an acquisition drive by top spirits maker Sazerac. 

Details of the Takeover Talks

Berentzen confirmed it was in talks about a takeover with privately held Sazerac, headquartered in Louisville, Kentucky, late on Wednesday, promising to keep investors informed of future developments. 

Based on Wednesday's closing price, Berentzen had a market capitalisation of about €35 million ($40 million). Its shares remained 19% higher at 0817 GMT. 

Sazerac, controlled by the Goldring family, declined to comment.

Sazerac’s Acquisition Strategy

Expansion and Recent Bids

The owner of brands including Southern Comfort and Fireball has grown into one of the world's largest spirits companies. It attracted wider attention earlier this year with an unsolicited bid for Jack Daniel's maker Brown-Forman.

In recent years the company has focused on acquiring young brands or underperforming labels from large conglomerates to expand beyond its core U.S. market.

Notable Deals and Brand Portfolio

Its deals have included Constellation Brands' Svedka vodka and ready-to-drink cocktail BuzzBallz, both of which have grown fast under its control. More recently, it acquired UK-based vodka and ready-to-drink brand Au Vodka for more than £300 million, a stake in Kendall Jenner's 818 Tequila and sparkling margarita label SIPMARGS. 

Brown-Forman Bid and Strategic Shift

Its Brown-Forman bid, which valued the company at around $15 billion, marked a departure from that strategy. It was rejected in July with the Brown-Forman board describing it as not actionable. Sazerac said at the time it stands ready to improve its offer. 

Berentzen’s Position in the Market

Company Background

Berentzen, a much smaller target, says it is one of the oldest spirits producers in Germany and the market leader in fruity spirits via its namesake schnapps brand. 

Its portfolio also spans other spirits such as vodka and soft drinks, including fruit juices and mate label Mio Mio.

Financial Performance and Challenges

In July, Berentzen was forced to cut its annual operating profit forecast after first-half profits fell to €0.6 million, from €3.2 million in the first half of its 2025 financial year. 

The company says it is battling low demand for its drinks, particularly in Germany where consumer finances are under pressure. 

Reporting Credits

(Reporting by Amir Orusov in Gdansk and Emma Rumney in London, editing by Milla Nissi-Prussak and Louise Heavens)