French vineyard sales hit historic lows as buyers vanish from the market

In the world of French vineyard transactions, business bankers and advisors are facing a challenging period. The phones at Tusker Wine, a firm specializing in vineyard sales, ring constantly. However, the calls are mostly from owners eager to sell their estates, not from buyers. The number of sellers continues to rise, but buyers have become scarce. As a result, the volume of vineyard transactions has dropped to historic lows.

Accepting a sales mandate today often means months or even years of work with no guarantee of payment unless a deal is closed. This situation has led to a sense of gloom among professionals who once thrived on matching buyers with their dream vineyards or finding the right successor for outgoing owners.

Potential buyers—wealthy heirs, entrepreneurs, tech founders, and athletes—still have money to invest. After acquiring luxury homes in the Alps or Cap Ferret, many dream of owning a vineyard. But these investors are now more demanding. They want fully operational estates with experienced teams willing to stay after the sale. This requirement complicates matters because many vineyards struggle to present realistic five-year business plans. Profitability is uncertain, making even passion-driven purchases risky.

Some appellations and estates still perform well in France and abroad, offering solid returns for investors. However, prices per hectare in these areas have soared, discouraging even motivated buyers. Major industry players like Castel, Grands Chais de France, and Advini have become less active after years of acquisitions across regions such as Jura and Médoc. International interest has also waned; private jets from China, Russia, or the United States are no longer a common sight in French wine country. The trend that once drew new winemakers to Provence has faded.

François des Robert, a senior banker at Edmond de Rothschild, notes that optimism is needed when times are tough and caution when things go well. He considers himself lucky if even a few of his current deals close successfully. The mood among wine transaction specialists mirrors that of the broader industry: subdued and cautious.

These experts form a small circle built on decades of experience and extensive networks developed through banking clients, social events, family ties, and constant attention to vineyard rumors. Alexis Weill at Rothschild & Co has overseen about seventy successful deals since 2005 but saw no completed transactions last year—a stark contrast to 2021’s exceptional activity.

In 2021, Rothschild & Co was involved in several high-profile deals: the Courtin family (Clarins) acquired Château Beauséjour Duffau-Lagarrosse in Saint-Émilion; Jacky Lorenzetti (Racing 92) bought Château Lafon-Rochet in Saint-Estèphe; Matthieu Gufflet purchased Château Guiraud in Sauternes; Michel Reybier (Aoste Group) took over Château Cos Labory; Pernod Ricard invested in Château Sainte Marguerite; and the Moulin family (Galeries Lafayette) acquired Château Petit-Village in Pomerol.

François des Robert handles clients passionate about wine as well as those seeking strategic investments. He emphasizes the importance of confidentiality and psychological insight in negotiations—especially when multiple family shareholders are involved.

Jean-Luc Coupet is another key figure in vineyard transactions. After creating UBS’s wine division in 2003 and running it for seven years, he founded Wine Bankers & Co in 2009. His team now numbers ten people and handles smaller but complex deals compared to Rothschild’s larger operations. Coupet values deep knowledge of vineyards and winemaking life as much as financial expertise. He owns property in Volnay and manages several parcels across Burgundy and Roussillon.

Tusker Wine remains active despite market challenges. The firm recently brought on François Aubry, known for advising Martin Bouygues on his acquisitions of Clos Rougeard and Domaine Henri Rebourseau. Tusker Wine focuses on carefully selected mandates for professional clients who expect transparency and expertise.

At Crédit Agricole’s business banking division, a six-person team handles land sales, industrial assets (such as bottling plants), trading houses, and distribution networks. Last year they managed notable deals like selling Lavinia to Ulysse Cazabonne (owned by the Wertheimer family/Chanel), Champagne Émile Hamm & Fils to Iconic Nectars (Gosset), and La Bergère trading house.

The main reason for the slowdown is the crisis affecting the wine sector itself. After an initial post-COVID boom, consumption dropped sharply. Financing banks became cautious as interest rates rose. For professionals like Guillaume Genessay at Tusker Wine, there are now only about twenty potential buyers for properties priced above €25 million—many ultra-wealthy individuals have already invested or lost interest.

Industrial buyers are waiting for prices to fall further before acting again. Collectors like François Pinault or Bernard Arnault remain alert for rare opportunities but feel no urgency to buy. Foreign investors are more likely to sell than purchase now; Chinese buyers especially have seen mixed results from their previous acquisitions.

Pricing is another challenge. Sellers hope for gains over their original purchase price but face difficulties valuing estates amid weak consumption, uncertain exports, high stock levels, and hard-to-assess brand value. Staffing shortages add complexity: Franck Jullié of Elzéar Wine & Spirit reports making over 250 calls just to find a vineyard manager—a problem echoed across other skilled roles.

Deals take longer than before; buyers now require more visits before deciding and demand liability guarantees to reassure themselves and their banks. This slows down every step involving lawyers, notaries, rural lease experts, and accountants—sometimes causing either party to lose patience or walk away entirely.

Not all regions are affected equally by this downturn. Bordeaux is particularly hard hit; according to Jean-Luc Coupet, few want to buy there now despite fierce competition just two years ago. In Burgundy prices remain high while profitability stagnates. Provence has seen dramatic price drops—some properties fell from €100 million to €17 million without finding buyers—and Champagne demand has also softened after years of strong activity.

For now, many sellers may need to adjust expectations as cycles of excess give way to correction across French wine country. While some investors turn toward hotel projects instead of vineyards today, professionals believe that passion for owning a piece of French terroir will eventually return—just not at any price or under current conditions.