Luxury Brands in Wine

Arnault, Pinault, Chanel…

When Luxury Giants Invest in Wine

The French wine, champagne, and spirits sector has long been a magnet for investors who have previously excelled in and dominated other industries. For major industrial players like Bouygues and Dassault, as well as banks such as Crédit Agricole and insurance companies like Axa and Groupama, diversifying into viticulture is a widely adopted strategy. Luxury giants are no exception, as demonstrated by the acquisitions made over several years by groups like LVMH (the Arnault family) or Kering (the Pinault family), and on a smaller scale, Chanel (the Wertheimer family). For these operators who already hold a prominent position in the fashion, watchmaking, leather goods, and perfume industries, investing in the wine and spirits sector is not a random choice. While it often represents a minority share of the group's overall revenue, it is a significant asset in terms of brand image and heritage.

LVMH: A Global Ambition

Bernard Arnault, one of the world's richest man, has turned the LVMH group (founded in 1987 but of which he gained control in 1990) into the global leader in luxury, boasting prestigious brands like Louis Vuitton, Dior, Guerlain, Givenchy, Marc Jacobs, Bulgari, and Tag Heuer in its portfolio. The group quickly diversified into wines and spirits, currently owning around 25 different entities in this sector, with a total worth of over 7 billion euros—just under 10% of the French giant's total revenue.

Apart from the historical flagship, the Hennessy cognac house (the "H" in LVMH), many champagne houses fall under the group's umbrella, including Mo?t & Chandon, Ruinart, Dom Pérignon, Mercier, Krug, and Veuve Clicquot. Distilleries producing Scottish whisky (Glenmorangie, Ardbeg), Polish vodka (Belvedere), and Cuban rum (Eminente) rub shoulders with international vineyards (Ao Yun in China, Joseph Phelps and Newton Vineyard in California, Cloudy Bay in New Zealand, Terrazas de Los Andes and Cheval des Andes in Argentina). On the French wine front, recent developments in Provence (Galoupet, Chateau d’Esclans) reflect a determination to gain ground in the highly competitive rosé market. However, LVMH's vineyard treasures lie in Sauternes with the legendary Chateau d'Yquem, acquired in 1996; in Saint-Emilion with the equally legendary Chateau Cheval Blanc, acquired in 1998 with the Frère family; and in Burgundy with the Clos des Lambrays, a Grand Cru from Morey-Saint-Denis (C?te-d’Or), bought in 2014. These vineyards boast incomparable prestige, with reputations dating back several centuries, solidifying the group's position at the pinnacle of exceptional brands.

Pinault: Six Domains of Grand Prestige

The Pinault family, at the helm of the Kering group, which includes prestigious brands such as Yves Saint-Laurent, Boucheron, Balenciaga, and Alexander McQueen, ranks as the 7th wealthiest family in France, with an estimated fortune of over 31 billion euros. The family's vineyard investments are consolidated under the banner of Artémis Domaines, a subsidiary founded in 1993 following Fran?ois Pinault's acquisition of Chateau Latour. At that time, Latour was already a legend, recognized as a Premier Grand Cru Classé since 1855. However, the arrival of the Pinault family breathed new life into this gem of Pauillac.

The appointment of the talented Frédéric Engerer as the property's director initiated numerous developments, both in vineyard restructuring and environmental transition (Latour became the first "Premier" to convert to organic) and in technical facility renovations. The exit from the Bordeaux Primeurs system, confirmed in 2012, also reflects a strong strategy—keeping the wines in the cellars until they have matured sufficiently for market release. Thus, the 2015 vintage of the grand wine from Chateau Latour was recently commercialized.

In addition to this Medoc giant, Artémis Domaines holds several other top-tier properties in its portfolio: Eisele Vineyard in Napa Valley, Chateau-Grillet in the Rh?ne Valley, and the Domaine d’Eugénie and Clos de Tart in Burgundy. The latter is a Monopole Grand Cru located in Morey-Saint-Denis, just a few meters from LVMH's Clos des Lambrays. Lastly, Artémis Domaines recently completed the acquisition of the champagne house Jacquesson from the Chiquet family. The Pinaults' viticultural activities encompass six very distinct and complementary brands, representing a more focused strategy compared to Bernard Arnault's but no less prestigious.

Chanel: Between Bordeaux and Porquerolles?

The brothers Alain and Gérard Wertheimer, at the helm of the Chanel group, rank as the third wealthiest family in France, with more than 100 billion euros. In addition to the founding activities of the group in fashion and perfume, they have diversified into the world of wine for about thirty years. In 1994, they acquired Chateau Rauzan-Ségla, a Second Grand Cru Classé in Margaux, and then in 1996, Chateau Canon, a Premier Grand Cru Classé in Saint-émilion. These are two properties that they patiently restored to the pinnacle of desirability, relying on talented directors—first John Kolasa and, since 2015, Nicolas Audebert.

While Rauzan gradually returned to quality and consistency of wines befitting its 1855 classification, Canon saw its vineyard undergo gradual restructuring to elevate the great terroir of the Saint-émilion limestone plateau where it is located. Today, it is considered one of the greatest wines of Bordeaux, with undeniable consistency in recent vintages. In 2019, the Wertheimers acquired Domaine de l'?le, a vineyard of about thirty hectares located on the island of Porquerolles, boasting excellent terroir for producing great rosé and white wines. This clever diversification complements their range of top red wines, which is now firmly established in Bordeaux.

Pinault, Arnault, Wertheimer... we could also mention the Momméja family, shareholders of Hermès, and owners of Chateau Fourcas-Hosten in Listrac-Médoc... The prominent names of French luxury unmistakably exhibit a profound attachment to this great symbol of French craftsmanship, which is viticulture. An activity that contributes to upholding the reputation of Bordeaux, Burgundy, Champagne, Provence, and Rh?ne Valley, and preserves the influence of fine French wines throughout the world.