Michael Schaupp, managing director of the sugar manufacturer Pfeifer & Langen, describes the current situation as a "perfect storm" characterized by market pressure, low sugar prices, rising costs, duty-free imports, and regulations such as sugar taxes. This candid assessment is rare for the Cologne-based family enterprise, which has maintained a reputation for secrecy over its 156-year history. Despite being one of Germany's most traditional family businesses with an estimated family wealth of €2.6 billion, Pfeifer & Langen rarely grants interviews, preferring to avoid personality cults and self-promotion according to its company chronicle.
The financial landscape of the group has shifted dramatically. In 2025, Pfeifer & Langen generated revenue of over €6.5 billion, surpassing other prominent dynasties like Miele or Haniel. However, sugar is no longer its largest business segment. The chip manufacturer Intersnack, which owns brands such as Chio, Funny-frisch, and Ültje, is now three times larger than the sugar division. The group also holds stakes in other family enterprises, including the Krüger Group (Schogetten, Fritt), Grafschafter, and the plant-based meat pioneer Rügenwalder Mühle. This diversification has proven crucial as the sugar industry faces a deep crisis.
The era of stable profits for sugar producers ended with the abolition of EU quota regulations in October 2017. Previously, these quotas ensured predictable prices decoupled from global markets. Since then, production surpluses and record harvests have driven prices down while production costs have risen by more than 50%. In response, Pfeifer & Langen reduced its cultivation area by approximately 10% in both 2025 and 2026. While the group's sugar revenue increased from €1.15 billion to €1.4 billion in 2025, the operating result of the parent company fell significantly from €872 million in 2023 to €574 million in 2024, a decline attributed largely to the struggling sugar sector.
Despite these challenges, the family has committed to retaining its sugar business as a core activity and approved a strategy extending to 2035. To improve efficiency and reduce energy costs, which constitute a major portion of expenses, the company is investing €40 million in a biogas plant at its Könnern facility in Saxony-Anhalt, scheduled to begin operations by the end of 2027. This project aims to utilize beet pulp to make the plants energy-autarkic. The group also faces external threats from EU free trade agreements with Mercosur and Thailand, which allow millions of tons of duty-free sugar into the market, creating uneven competitive conditions against producers adhering to high social and environmental standards.
To counteract the stagnation in the European snack market and drive growth, Pfeifer & Langen is executing a major international expansion. Intersnack, the German market leader with brands like Chio and Ültje, plans to acquire 50% of US snack giant Utz Brands for approximately $2.9 billion, taking the company private. This move marks the first time the German leader has entered the US market directly. Analysts view this as a strategic counter-cyclical growth move that leverages the family's independence from capital markets to acquire established brands and production facilities quickly.
The acquisition comes with risks, particularly regarding changing consumer habits driven by weight-loss medications like Ozempic, which have reduced potato chip consumption in some demographics. However, experts note that consumers are shifting toward smaller portions, higher-quality products, and protein-rich options, areas where Intersnack's nut brands and new product lines are well-positioned. The deal aligns with the family's long-standing credo of making bold decisions without fear of risk, aiming to increase the group's size by one-third by the middle of the decade.
Sources: Handelsblatt.