French wine company LaCheteau is under legal scrutiny as the French Ministry of the Economy pursues a civil penalty of EUR 6.6 million in the Commercial Court of Rennes.
The charge: abusive commercial practices against dozens of its winegrower-suppliers. The case, brought by the Directorate General for Competition, Consumer Affairs and Fraud Control (DGCCRF), stems from an investigation conducted between 2020 and 2021, focusing on contracts signed between 2016 and 2018.
According to the DGCCRF, LaCheteau—subsidiary of wine export giant Grands Chais de France—pressured 44 suppliers into accepting reductions in the purchase price of raw materials. These reductions, investigators allege, effectively transferred operational winemaking costs from the company to its suppliers. Such cost-shifting is considered a violation of France’s EGAlim laws, which aim to protect agricultural producers by ensuring fair commercial practices in the food and beverage sector.
The Ministry of the Economy’s claim states that the sum requested—EUR 6.6 million—is three times the amount the company allegedly obtained improperly through these unfair contract terms.
LaCheteau, based in the Loire Valley and working with roughly 450 winegrowers and suppliers, has rejected the accusations. In a public statement, the company acknowledged receipt of the court notification in February and firmly denied any wrongdoing. It argues that the practices in question are standard within the French wine sector and are implemented transparently and in line with inter-professional agreements approved by the Ministry of Agriculture. It also maintains that the case concerns contractual matters alone and has no bearing on the quality or legal compliance of its products.
The legal challenge underscores a larger issue: the imbalance of power between major wine producers and the smaller suppliers who form the backbone of French viticulture. While authorities seek to reinforce legal safeguards for growers, large companies defend long-standing commercial models as industry norms.
With Grands Chais de France reporting a turnover of EUR 1.3 billion in 2022—80% of it from international markets—this case has significant implications for the French wine industry at large. As the legal process continues, it will likely serve as a touchstone for how far French regulators are willing to go to enforce protections for agricultural producers against large-scale buyers.
Source: Vinetur