LVMH's purchase of a wine estate provokes anger

€15.5 million. This is the amount spent by LVMH to purchase 1.3 hectares of the Poisot Père et Fils estate in Aloxe-Corton, Côte-d’Or. This acquisition has sparked controversy as many Burgundy operators are forced to sell their land due to excessive inheritance taxes. “We remain operators of all the vines, the estate has not been bought. We continue to work without any interference; LVMH only purchased the land that belonged to my family, due to succession issues. And it's tragic for small family estates like ours, as we lose ownership of the land,” the family stated to reporters from the Journal du Centre.

Furthermore, this is not the first investment in the wine industry by Bernard Arnault's group. Indeed, the billionaire acquired the Domaine des Lambrays in Morey-Saint-Denis in 2014 for an undisclosed amount, allowing him to lease the land to operators. This unfortunate issue is primarily due to the skyrocketing land values. In the columns of the Revue de Vin de France, Thiébaut Huber, president of the Burgundy appellations and winegrowers confederation (CAVB), lamented that “the values are completely disconnected.” He explained: “A piece of land that would be worth €100,000 ends up being worth €1 million. And instead of being taxed on €100,000, we are taxed on €1 million.”

A growing concern among the confederation of winegrowers in Burgundy. “It's very small on a global scale, but we are renowned worldwide. It's the fruit of our quality work, with a successful family model, respect for the territory, and limited yields. If we end up being owned by 10 rich families worldwide, there is a risk of standardization,” he explained to France 3. The winemaker in Meursault and president of the CAVB (Burgundy appellations and winegrowers confederation) expressed his outrage: “I feel angry, clearly. It’s yet another transaction.” The Burgundy union has been waiting for years for the government to adopt agricultural orientation laws. Unfortunately, since the abrupt dissolution of the National Assembly last June, the ongoing bill is likely to be delayed even further.