French wine company LaCheteau faces legal action over alleged unfair pricing practices with suppliers

The French wine company LaCheteau is facing legal action from the Ministry of Economy over alleged abusive commercial practices. The case follows an investigation by the Directorate General for Competition, Consumer Affairs and Fraud Control (DGCCRF), which found that LaCheteau imposed price reductions on its suppliers for raw materials. According to the DGCCRF, these reductions were intended to make suppliers bear costs related to winemaking operations that should have been covered by LaCheteau itself.

The Ministry of Economy has asked the Rennes commercial court to impose a civil fine of 6.6 million euros on LaCheteau. This amount represents three times the sum that was allegedly unduly obtained through these practices. The legal action is based on laws designed to protect agricultural producers in their dealings with buyers, particularly under the EGAlim legislation.

The DGCCRF’s findings concern 44 suppliers who provided raw materials to LaCheteau, a subsidiary of Grands Chais de France. Grands Chais de France is one of the country’s leading wine exporters, with reported sales of 1.3 billion euros in 2022. The group states that 80 percent of its business comes from exports to more than 178 countries. LaCheteau itself operates six winemaking centers in the Loire Valley and works with around 450 partner winegrowers and suppliers.

LaCheteau confirmed it received a summons from the DGCCRF in February, following an investigation that focused on contract terms between 2016 and 2018. In a statement, the company strongly denied any wrongdoing and said it would present its case through legal channels. LaCheteau emphasized that the proceedings are limited to commercial clauses and do not concern product quality, safety, or regulatory compliance.

The company argued that the contractual arrangements in question are standard practice within the wine industry and have long been accepted by all parties involved. According to LaCheteau, these terms are transparent and balanced, agreed upon with winegrowers, and based on interprofessional agreements extended by the Ministry of Agriculture.

The case highlights ongoing tensions between large wine companies and their suppliers over pricing and contract terms. It also reflects broader efforts by French authorities to enforce fair trading practices in agriculture and protect smaller producers from unfair pressure by larger buyers. The outcome of the case will be closely watched by others in the wine sector, both in France and internationally, as it may set a precedent for how similar disputes are handled in the future. The court proceedings are expected to bring further scrutiny to business practices within one of France’s most important export industries.