France’s wine estate sales market is undergoing one of its most difficult periods in recent memory.
Calls from owners looking to sell continue to pour into the offices of specialized firms like Tusker Wine, but buyers are now a rarity. The imbalance has led to a historic low in completed transactions, signaling broader instability in the French wine industry.
According to bankers and advisors traditionally involved in these high-value deals, mandates now take months—or even years—to yield results, and many go uncompensated when deals fail to close. The tone among these professionals is increasingly pessimistic, mirroring the widespread sense of uncertainty gripping the wine sector.
Investor Profiles Remain Stable—But Their Expectations Don’t
While the types of potential buyers haven’t changed—wealthy heirs, entrepreneurs, tech founders, and athletes—what they expect from a vineyard acquisition has. Today’s investors demand operationally sound estates, complete with skilled teams capable of ensuring continuity post-sale. They’re no longer simply buying land or prestige; they’re investing in performance.
However, most properties fail to deliver a clear, profitable medium-term business plan. Although certain appellations remain commercially strong and export-ready, their skyrocketing land prices deter even serious investors. Meanwhile, major players like Castel, Grands Chais de France, and Advini have notably scaled back their acquisition activity, and the once-strong flow of foreign buyers—from China, Russia, and the U.S.—has also dwindled.
Transactions in Decline, Even Among Top Players
François des Robert of Edmond de Rothschild says he considers it a successful year if he closes just three or four sales. Alexis Weill, wine business head at Rothschild & Co., reported zero deals in the past year—compared to six annually in previous periods. The last robust year was 2021, marked by major transactions such as Château Beauséjour Duffau-Lagarrosse and Château Lafon-Rochet changing hands.
These professionals’ roles extend far beyond finance. They often navigate complex family dynamics, maintain strict confidentiality, and advise on long-term vineyard management. Wine Bankers & Co. founder Jean-Luc Coupet emphasizes that a deep understanding of viticulture is now a prerequisite for anyone hoping to succeed in this field. Tusker Wine, still active in this niche, has responded by carefully selecting mandates and bringing on specialists like François Aubry. Crédit Agricole continues to advise clients on wine-related investments, but confirms a slowdown in agricultural land transactions.
Market Conditions and Challenges
The sector’s challenges stem largely from a prolonged crisis in the French wine industry. Despite a brief post-COVID optimism, consumption has dropped significantly. Rising interest rates have made financing riskier, and many investors prefer to wait, anticipating better prices or turning their focus to less volatile sectors like hospitality.
Pricing remains one of the most contentious issues. Sellers expect to realize capital gains, but calculating a realistic value is complicated by declining domestic demand and uncertain exports. Labor shortages also plague the sector, with recruiters struggling to fill key roles such as vineyard managers. As a result, deals take longer to finalize, often requiring multiple visits and legal layers involving tax attorneys and notaries.
Regional Outlook: Bordeaux, Burgundy, Provence, and Champagne
Bordeaux is facing particularly strong headwinds. Once a top destination for investors, it now attracts little interest. Burgundy’s prices remain high, but without corresponding returns. In Provence, even premium properties such as recently acquired crus classés are struggling to sell their production at profitable margins. Champagne, too, has seen a drop in demand compared to previous years.
Still, market veterans maintain that this downturn is part of a natural cycle. Many believe that the current situation will push sellers to reevaluate their pricing and expectations, which could eventually reawaken interest in wine estate acquisitions.
In the meantime, investors are placing their capital elsewhere, viewing vineyards as too uncertain a bet in the current economic climate. But for those with a long-term vision and a passion for wine, the allure of owning a piece of viticultural heritage may eventually prove irresistible once again.
Source: Vinetur