Inventory adjustments in declining spirits markets weigh on results
Wolfenbüttel, May 2025. Mast-Jägermeister SE held its ground while facing a historically challenging market environment during the 2024 fiscal year. With stable global depletions of the core brand Jägermeister, along with continued double-digit growth of Teremana Tequila, part of the company’s portfolio since 2019 and co-managed with Hollywood actor Dwayne “The Rock” Johnson, the family-owned company based in Lower Saxony successfully defended its overall market share and position in a soft trading environment.
However, due to a generally weak consumer climate, major inventory adjustments by global distribution partners led to a decline in net sales from €961.7 million to €866 million (excluding excise tax). For the second year in a row, the global spirits industry faced a shrinking market. Political and economic instability dampened consumer sentiment across nearly all key regions. The industry saw a drop in sales volumes in major markets such as the United States, most of Western Europe, Latin America, and in China, where the market was especially affected by poor economic prospects and low consumer confidence.
In this environment, shipments of the core brand Jägermeister fell from 118.4 million to 109.5 million 0.7-litre bottles. However, depletions– remained largely stable, declining by just 0.4%. CEO Michael Volke attributes the volume drop mainly to one-time inventory corrections: “Due to the weakened global consumer climate, we saw significant one-off inventory adjustments that resulted in lower shipments. The encouraging part is that consumer sales in local markets remained steady. This highlights the strength and continued relevance of the Jägermeister brand among our fans and gives us a strong base for future growth.”
This trend was also reflected in the performance of the premium tequila brand Teremana, which continued to grow in the U.S. market. The brand gained share through a double-digit increase in depletions. However, as a result of inventory optimisation, shipments declined from 16.1 million to 14.8 million 0.7-litre bottles compared to the previous year.
Mast-Jägermeister SE continues to drive innovation. In 2024, the company successfully launched its new line extension, Jägermeister Orange, in the Czech Republic and Slovakia – the first markets to debut the product. Tapping into the growing trend towards lighter and fruitier spirits, the new variant will expand into additional global markets in 2025, including the brand’s home market in Germany.
The international expansion of Teremana, which began in 2024, is also moving forward. Following successful launches in Germany, the UK, Australia, the United Arab Emirates, and the global travel retail channel, the brand is set to enter 29 more markets this year. To support this growth, a second distillery in the Mexican state of Jalisco was commissioned last year.
GIN SUL, the Hamburg-based craft spirits brand that joined the company’s portfolio in 2018, is also being thoughtfully developed. In 2024, the brand expanded into the Czech Republic and Slovakia. That same year, GIN SUL also tested its new Limão Fizz, with strong results. The product will now be launched across Germany and select international markets.
Outlook
Looking ahead, forecasting remains extremely difficult given the current volatility in global trade, as CEO Michael Volke notes: “Thanks to the continued stability of our international depletions, we remain fundamentally optimistic about the year ahead. We see strong potential for sustainable growth through the further internationalisation of our brands and innovations like Jägermeister Orange and Teremana Tequila. At the same time, global political developments and rising trade tensions are unpredictable and present considerable risks.”