Chinese investment in Bordeaux’s vineyards has sharply declined, with numerous estates now on the market as demand for French wine in China falters, according to a recent report from The Times.
In the 2010s, Chinese nationals purchased 176 vineyards in Bordeaux, drawn by the prestige of French wine and the rising demand in China’s luxury market. Notable buyers included real estate promoter Mr. Wan (a pseudonym), who acquired two estates in 2011, and Qu Naijie, who purchased 27 properties between 2010 and 2014.
Christophe Chateau, communications director at Bordeaux’s wine marketing board (CIVB), explained that these investments mirrored China’s economic boom and growing enthusiasm for luxury brands. “In China, successful individuals drive German cars, wear Swiss watches, and drink French wine,” said Chateau, a veteran of numerous trips to China.
At its peak, China consumed 80 million bottles of Bordeaux wine annually, making it the region’s top export market, according to CIVB data. This soaring demand for Bordeaux wine also spurred interest in vineyard ownership, with many Chinese investors eager to secure their status through the purchase of a château.
However, a combination of poor business planning, slowing economic growth, and changing consumer habits has led to a reversal of fortunes. Mr. Wan, who once dreamed of embracing the “wine lifestyle,” is now attempting to sell his 18th-century estate, which features two fountains, a gravel drive, a professional kitchen, and a bottling salon, for €1.8 million (£1.5 million), significantly less than its original purchase price.
Declining exports and growing competition from domestic wine production have contributed to the downturn. Exports of Bordeaux to China have halved since 2017, now totaling around 40 million bottles per year. Wan noted that with China’s economic slowdown, “Chinese people are drinking less luxury wine,” and domestic wines – particularly those produced by French winemakers in China’s Ningxia region – are increasingly replacing Bordeaux on Chinese tables.
The sector has also been marred by scandals. Qu Naijie, one of the most active Chinese buyers, was convicted of money laundering last year, leading to the seizure of nine estates by a Paris court.
While there are a few success stories, such as Château Milord, where owner Edwin Cheung has diversified into guest rentals and leisure activities, and Château Bel-Air, whose production is now distributed through 2,500 restaurants across China, these cases remain exceptions. Michael Baynes of Vineyards Bordeaux, who sold 12 wineries last year, pointed to cultural misunderstandings as a contributing factor to the struggles of many investors. In China, seeking advice is often perceived as a weakness, which has led some buyers to make poorly informed decisions.
With the market now saturated, vineyard prices have dropped significantly. Vineyards Bordeaux reports that average prices per hectare have fallen from around €55,000 in 2000 to as little as €10,000 today.
Additional challenges, such as Chinese currency controls limiting overseas transfers and French banks tightening loans to smaller vineyards, have led to what Baynes described as a “fire sale.” By the end of 2024, around 400 Bordeaux vineyards are expected to be on the market – double the usual number – with approximately 70% categorized as distressed sales in need of urgent maintenance. One vineyard was recently sold for just €1, although the buyer inherited ongoing operating losses rather than a valuable asset.
Despite the current downturn, Baynes noted that a new generation of Chinese buyers is beginning to re-enter the market. This younger group, typically aged between 40 and 45, is often educated abroad and comes with clear business strategies that combine wine production with tourism ventures, such as vineyard mountain biking, accommodation, and wedding services.
Concerns that this trend could turn Bordeaux into a “theme park” were dismissed by Chateau of the CIVB, who emphasized that diversification has long been a key element of Bordeaux’s success. He pointed to Château Smith Haut Lafitte’s expansion into wine workshops, private dining, and even skincare products with its Caudalie brand.
“Bordeaux is world-famous because it’s owned by people from across the globe – from Britain, Germany, America, China,” said Chateau, adding that the CIVB president, Allan Sichel, is English.
As for Mr. Wan, while some younger Chinese investors have expressed interest in his château, he noted that the offers thus far have been in renminbi. “I bought the château to entertain rather than to run a business,” he said. “Now I need euros.”
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