In recent years, the Bordeaux winery trading market has welcomed a group of Chinese investors, who have flocked to this wine mecca full of long history with their vision of the French lifestyle and confidence in the wine market. However, with the fluctuations in the international economic situation and the adjustment of policies, the enthusiasm of Chinese investors seems to have gradually faded, and many wineries are facing the fate of changing hands or even being auctioned. Bordeaux, once a dream place for Chinese super-rich people, is now witnessing their sad exit.

Bordeaux's Chinese winery dream: the transition from purchase to change of ownership

Bordeaux's vineyards have an irresistible attraction to the world's wealthy, including investors from China. They hope to not only enjoy the beautiful French pastoral life here, but also enter the international wine market. One example is the historic Château Latour Laguens, located in the Entre-Deux-Mers region of Bordeaux. After being acquired by Daisy Haiyan Cheng of Longhai International Group, it plans to transform it into a complex integrating wine tasting, boutiques and luxury guest rooms. However, this winery with a late medieval style has now been put up for auction for various reasons, and the auction price is only 150,000 euros, even lower than the original purchase price.

The resale trend of Chinese-funded wineries in Bordeaux is not an isolated case. In mid-May, the court confiscated nine wineries owned by Chinese tycoon Qu Naijie, all of which were acquired through Haichang Group in his early years. Because he was found guilty of economic crimes such as money laundering, these estates were eventually forced to sell. Market analysis shows that the number of wineries held by Chinese investors in Bordeaux is decreasing year by year.

Cultural shock and operational difficulties: the consequences of short-sighted investment

Lijuan Li, a Bordeaux real estate agent and Asian market expert, pointed out that one of the main reasons for Chinese capital to withdraw from Bordeaux is that the Chinese government has tightened capital controls on foreign investment in recent years and restricted capital outflows, which has directly led to the sale of some wineries that were originally expected to be held for a long time. She revealed that there are currently about 50 wineries for sale in Bordeaux, and most of them are listed at less than half of the purchase price due to the sluggish market. In addition, the oversupply crisis in Bordeaux's wine production industry has also deterred buyers, and the winery real estate market has fallen into a cold state.

Another reason is the difference in corporate culture between China and France, especially the different concepts in investment cycles. Hugo Tian, a Hong Kong financial person and owner of Château Fauchey, is deeply touched by this: "Europeans tend to regard wineries as heirlooms, while Chinese people prefer to sell them every five years." He explained that Chinese investors pursue quick returns, but the winemaking industry requires long-term investment, climate tolerance and market adaptability, so short-term investment plans often fail to achieve expected returns.

Winery name change controversy: causing dissatisfaction among locals

After taking over Bordeaux wineries, some Chinese companies have made substantial brand changes to the wineries to cater to the Chinese market. For example, Hong Kong Sigewei Wine Group renamed Château Larteau to "Château Lapin Impérial" and named the other three wineries after animals such as "Emperor Rabbit" and "Tibetan Antelope". This move not only changed the names of these estates that have been passed down for generations, but also aroused strong resentment among locals. The late French writer Philippe Sollers once publicly expressed his anger to the mayor of Bordeaux, believing that these inappropriate names "deviated from the traditional heritage of Bordeaux wineries."

In 2022, these renamed wineries were finally sold back to French investors and restored their original names in the hands of the new owners. Bordeaux's wine estates also regained their traditional style.

Difficult wine production environment and market impact

Since the outbreak of the epidemic, wine consumption in China has dropped sharply. According to data from the International Wine Organization, China's wine consumption in 2023 fell by 25% compared with the previous year. In addition, the Bordeaux region has been frequently affected by climate disasters in recent years, such as hail and mildew, which has hindered the grape planting cycle, affected the yield of vineyards, and greatly extended the return cycle. These have become one of the catalysts for the gradual withdrawal of Chinese investors from Bordeaux.

In addition, many Chinese investors underestimated the actual cost and difficulty of winemaking when they first purchased Bordeaux wineries, and overestimated the market potential of the products. Benoît Léchenault, a winery real estate expert in Bordeaux, pointed out that some Chinese investors set the production model as an "entry-level winery" and expected to obtain high profits through rapid mass production. However, the complexity of the market makes this model difficult in practice.

The future of Chinese investors: long-term rooting and rational return

Although some Chinese-funded wineries have not been operating well in Bordeaux, there are exceptions. Some investors have a deep love and persistence for the French winery industry. One of them is Alibaba founder Jack Ma, who has made a huge renovation of Château de Sours in Bordeaux, hoping to turn it into a modern winery with French style and quality. Meanwhile, Peter Kwok, a Hong Kong businessman born in Vietnam, has been deeply involved in Bordeaux for several years and owns seven wineries. He is determined to regard the winery industry as a "long-term and beautiful business" and is committed to combining the tradition of Bordeaux wineries with modern management to inject the gene of sustainable development into the wineries.

Among the Chinese winery owners in Bordeaux, Rong Zhang is also a typical representative of long-term operation. She bought Château des Chapelains in 2014 and has been operating it ever since. She has faithfully continued the tradition of the previous owner and steadily improved the reputation of the winery. She admits that running a winery is not an easy task, but in order to protect the tradition of Bordeaux, she has always insisted on working on this land.

Hugo Tian and others are optimistic about the future. He believes that as the younger generation of Chinese consumers pursue natural and organic wines, new consumption trends may emerge in the market. He predicts that new Chinese investors will enter Bordeaux in the next few years with more rational investment plans in order to find opportunities in this historic vineyard.