The Landesweingut Kloster Pforta, one of Germany’s oldest wineries, faces insolvency by 2027, according to an independent report commissioned by the state government. The winery has suffered multi-million-euro losses since 2020 amid a wider German wine slump driven by falling consumption and cheaper foreign imports.

Owned by Saxony-Anhalt, Kloster Pforta is one of Europe’s oldest continuously operating wineries. Cistercian monks founded the monastery in 1137 and planted the Pfortenser Koeppelberg vineyard in 1154. The state took ownership after German reunification in 1993, but the estate still grows rare historic varieties, including Weisser Heunisch and White Elbling, alongside Riesling, Pinot Blanc, and Pinot Gris.

An independent report by auditing firm Ecovis found that the winery can no longer secure credit or maintain liquidity on its own. The auditors warned that “the current business model is not sustainable in its present state, as it is generating persistent losses,” adding that “without drastic restructuring measures, these losses will lead to insolvency and over-indebtedness of the company by 2027 at the latest.”

Auditors blamed high payroll costs, inefficient vineyard use, weak sales and marketing, compounded by a disastrous 2024 harvest and the wider wine-market slump. To avoid bankruptcy, Kloster Pforta now plans to halve its vineyards, cut staff, and receive a €2 million injection under a four-year restructuring plan.

German wine has been in decline for years. Data from the German Wine Institute (DWI) earlier this year showed that annual consumption fell from a Covid-era peak of 24.3 liters per adult to 21.5 liters—below pre-pandemic levels.

Since the start of the Ukraine conflict, producers have faced higher energy, labor, and material costs, pushing up prices while consumers increasingly turned to cheaper bottles as German food prices rose by around 30% on average. Cheap imports exacerbate the squeeze: Spanish bulk wine enters Germany at just €0.91 ($1.06) per liter, making it difficult for domestic producers to compete in the €1-to-€3-per-bottle market.

The winery’s troubles reflect a broader German economic slump, with near-zero growth, high energy costs, and business insolvencies at a 20-year high. Since moving away from Russian energy in 2022, Germany has turned to costlier supplies while major manufacturers closed factories amid weaker demand.