French wine giant Castel Frères, the leading wine group in France and one of the five biggest wine groups in the world, has announced the closure of its bottling site in Saint-Priest, near Lyon, by the end of the year. The restructuring is part of the company's adaptation to a challenging market environment, which has been impacted by declining demand. The decision is expected to affect 96 employees at the facility.
Founded in 1949 by Pierre Castel, the group owns several well-known brands, including Baron de Lestac. Despite its strong market position, Castel faces the same difficulties as the broader wine industry in France, which is experiencing significant declines in sales. The company has emphasized the need to optimize its operations to remain competitive.
Besides its wine business, Castel is also one of the leading beer producers, particularly in Africa, where it operates numerous breweries and dominates several key markets. The company remains under the ownership of its founder, Pierre Castel, who is now 98 years old. Given its scale and influence, speculation is growing about the future of the business. As one of the largest privately owned beverage groups, Castel is still independent of major international corporations and has become an attractive target in an already largely consolidated industry. In particular, its African business, which holds enormous potential due to a young and rapidly growing population, would be a valuable asset for international brewing groups. This was already evident in 2021 when the Dutch brewing giant Heineken made a multi-billion-dollar investment in the South African wine and spirits company Distell as well as Namibia Breweries (inside.beer, 15.11.2021).
The closure of the Saint-Priest site aligns with broader trends in the French wine market, where producers are facing challenges due to shifting consumer preferences, competition from other alcoholic beverages, and economic pressures. While Castel has not detailed further restructuring plans, the move underscores the difficulties even major players face in today’s industry landscape.
