Wine Corks

Bordeaux Wine Crisis: Castel Declares "Open War" Amid Protests and Legal Battles

In a dramatic escalation, French wine news portal Vitisphere.com has declared an "open war" in Bordeaux after negotiations between local wine giant Castel, wine action group Viti 33, and local unions collapsed.

This follows Castel's threat to take these groups to court for damages after highly publicized protests outside its main operations center in Blanquefort, north of Bordeaux, in late February.

Protesters piled a significant amount of manure, silage, and plastic waste in front of the Castel site, reflecting widespread discontent across the region.

The Context of the Protests

The demonstrations occurred during the Paris Agricultural Show, a significant event for French agriculture. Many winegrowers voiced their anger over rising costs, perceived government inaction, and unfair treatment by major grape buyers and wine merchants (négociants) in the Bordeaux region. Earlier this year, the conviction of two wine merchants for unfair pricing had already stirred tensions. Protests in Bordeaux saw many winegrowers adhering to a tradition in French agricultural protests by dumping manure and bales of silage in front of the doors of large merchants.

Castel's Legal Actions and Claims

Castel is seeking to recover clean-up costs of €68,920, financial damages of €11,608 due to the blocked access to their site, and €20,000 for damage to its image. Legal actions have been initiated against three groups: the agricultural unions FDSEA (local branch of the Federation of Agricultural Unions), JA (Young Farmers), and the local activist group Viti 33.

While Castel has not officially commented on the collapse of the talks, an open letter on its website addressed the protesters and the Bordeaux wine industry. Castel criticized the protesters for "crossing a line" in February and questioned whether these "disrespectful and virulent" winegrowers truly represented the broader viticulture community. Moreover, Castel announced its temporary withdrawal from all Bordeaux wine industry institutions to ensure its grievances are heard.

Response from the Protesters

In response, Viti 33 admitted and regretted the dumping of manure, tires, and plastic in front of Castel's gates but criticized the company’s perceived arrogance. Jean-Samuel Eynard, head of the FDSEA's national body (FNSEA), expressed concerns over Castel's intentions, suggesting the company’s actions might stem from provocation or contempt for struggling winegrowers. Viti 33 further announced plans to use any legal proceedings as a platform to highlight injustices in the region, indicating their readiness to issue a press release acknowledging that internal disputes were harming Bordeaux's image.

The Role of Bordeaux Wine Trade Organisation (CIVB)

The Bordeaux wine trade organization, CIVB, has been attempting to mediate between the parties since the protests began in early 2024. However, CIVB has faced criticism for its handling of the situation, reflecting the growing tensions in the region. Winegrowers feel neglected, while large companies like Castel aim to safeguard their interests.

The Legal Proceedings

A court in Bordeaux was scheduled to hear Castel's case on June 4. However, no information about the hearing has been made public, leaving the outcome and future implications uncertain.

Conclusion

The conflict between Castel and the protesting winegrowers highlights deep-seated issues within the Bordeaux wine industry, famous for its red wine made from Merlot, Cabernet Sauvignon, and Cabernet Franc. With rising costs, perceived governmental inertia, and strained relationships between winegrowers and major merchants, the situation reflects broader challenges facing the French agricultural sector. As tensions escalate, the outcome of Castel's legal action could have significant implications for the future of the Bordeaux wine industry and its stakeholders.

Source: Vinetur

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