Vinea Transaction News

The calendar of wine events in the first half of 2017

 

  • Marché aux vins - 15 & 16 April - Cairanne 
  • London Wine Fair - 22-24 May 2017 - Londres
  • Vinexpo 2017 - 18-21 June 2017 - Bordeaux
  • Pack & Gift - 21-22 June 2017 - Paris

Partner at the "Marché aux Vins de Cairanne" on the 15th & 16th April 2017

Discovers The Rhône Valley wine : during a convivial moment with tastings wand animations around the wine


Present with « Découvertes en Vallée du Rhône » from 10 till 13 April 2017

More than 650 producers and negociants.

For more informations : program

To organise an appointement please contact us +33(4) 90 32 04 29 - info@vineatransaction.com.


"Les Printemps de Châteauneuf-du-Pape" – wine fair - 8th & 9th April 2017

 

Since his creation, Vinea Transaction is partner of the event.
We are present at this fair and we can talk or study your wine estate project.

To organise an appointement please contact us +33(4) 90 32 04 29 - info@vineatransaction.com.

 


Vinea Transaction Languedoc & Rhone Valley, sponsor of the 2017 National Meetings of the Independant Winegrowers

National Meetings 2017

On 2017 April 4th and 5th, winegrowers and professionals of the wine industry will meet in Narbonne, in the Aude department. They will discuss about a relevant and important matter : « breaking codes : vision, ambition or treason ? »


Vinea Transaction Languedoc & Rhone Valley, new member of the Wine & Business Club of Montpellier

1st european network of wine enthusiast managers

Wine & Business Club, number 1 of european wine-tasting clubs.
Every month, the 2500 managers of industrial and liberal companies, all members of the Wine & Business Club, join together to explore a triple theme : « economy, gastronomy and wine ».

 

Key topics discussed : economic conference, debates with figures (Christine Lagarde, Jean-Claude Trichet, Olivier Dassault, Serge Papin, Claude Bébéar, Nicolas de Tavernost, Henri de Castries, Pierre Gattaz, Alain Prost, Frédéric Oudéa, Charles Beigbeder, Baudouin Prot, Patricia Barbizet, Henri Lachmann, Pierre Bellon, Bruno Lafont, Jean-Marie Messier, Guillaume Pépy, Stéphane Richard, Michel-Edouard Leclerc, Louis Gallois, Xavier Fontanet, Gilles Pélisson, Jacques Attali, Matthieu Pigasse, Geoffroy Roux de Bézieux, Adriana Karembeu, …), wine tastings in the company of winegrowers. This ending with an exceptionnal dinner prepared by a great chef (Eric Frechon at the Bristol restaurant, Christophe Moret at Shangri-La Hotel, Paris, Philippe Mille at Château Les Crayères, Dominique Gauthier at Beau-Rivage Genève, Franck Cerutti at l’Hôtel de Paris in Monaco…).

 

Founded in 1991, the club has generated a constant growth of subscribers, beginning with 30 members and now featuring more than 2 500. This great success has been driven by its foundator Alain Marty and the originality of the concept : connecting many influential leaders, managing in different areas such as the industry, economy, politics, communication, fashion, sports and wine of course.


 

Vinea Transaction Languedoc, member of Vinseo

Number 1 network of suppliers of wine and vineyard professionals

 

The production of one single bottle of wine involves up to 30 different wine skills.  The current sector of suppliers and manufacturers in the wine industry includes a certain number of specialized companies, from the culture of vines up to marketing.

Vinseo has become a key actor able to make suggestions in terms of improvement of your vineyard, winery, bottling lines and marketing packaging. The members of the network work together in order to innovate, reduce costs, increase the margins so that a  long-term viability of your vineyard propery can be ensured...

 


 

Market situation - Foreign investors are back!

 

VINEA TRANSACTION'S, network definitively observes the coming back of foreign investors with significant transactions, with a larger volume than 2015.

  • Bordeaux : Chinese investors maintain their interest. Vinea Transaction is dealing with chinese investors...

 

  • Languedoc : An american businessman, a specialist of the business-food sector just purchased a vineyard estate near Béziers. A russian investor purchased Château de Capion; being the fourth Russain to invest in Languedoc; after Saint Martin de la Garrigue, Château Saint Louis and Prieuré Saint Jean de Bébian.

 

  • Vallée du Rhône : Vinea Transaction concluded the transaction of a renowned property in Ventoux with Mr. Tremblay. He is an important wine importer from Quebec and also the owner of the spanish Douro wine estate.

 

  • Provence : Vinea Transaction has just concluded...

 

Coming ... other Chinese in the South of France, negotiations are underway!

 


 

85 - Copie.jpg1vignes%20(7).jpg02A10XS7.jpg

2016 Back – Folder on the transaction of vineyard

Harvest is in full swing! As each year, all the real estate and economic media have chosen Vinea Transaction to comment on the vineyard market.  

“Demeures et Châteaux”, “Propriétés le Figaro”, “Le Figaro”, “Résidences Immobilier” conducted an exclusive interview and are currently on newsstands.

We are also honoured to take part in numerous renowned reports such as France Culture, France 3 Télévision,  Les Echos, Midi Libre…

 

See the articles

 


Vineyard estates – Profit and taxation

 

 Michel VEYRIER, founder and administrator of Vinea Transaction.

 

1/Profit 

A vineyard estate’s profitability is always delicate to estimate.

A vineyard’s house, a bastide or a château is definitely a living place and not a company seeking for profit. Therefore, profitability (financial performance/amount of investment) must be defined without the “place to live” investment part.

 

63.jpg25 years’ experience in vineyard estates transaction showed us that profitability remains low compared to other business activities. In return, small profitability (bottom-end of balance sheet) is often quite balanced with the latent gains of the fixed assets.

In 25 years, Vinea Transaction’s network reports only one decline in value; concerning liquor wines produces in the Languedoc-Roussillon and Côtes du Rhône regions.

 

As a consequence, it is common to observe profitability when the estate is sold, some appellations have even seen their value per hectare being multiplied by 10 over the past 20 years.

 

An advice: Making profit will require considering the investment scheme as a long term project (5 to 10 years) and not as a short-term project.

 

2/Taxation

Taxation is even more attractive that French tax burden is rather high on capital.

Legal make-up of the project must be precise and relevant; the intervention of a legal and fiscal expert is essential.

 

  • ISF​ (Solidarity tax on wealth)

Wine estates’ shares are considered as a professional toolset if all the conditions and requirement detailed in the article 885 O of the French Tax Code are met.

 

chai_2_bis.jpg

Some purchase set-up can benefit from total or partial exemption. It is the case when for example the estate is run with a long-term rural lease consented to a family-owned company (or at least 50%) and as a main activity.

If each condition is not met, a partial exoneration can be applied (75% if the amount does not exceed 101 897 € and 50% if the amount is higher).

  • Donation

Le régime des donations est également favorable.

Donation’s legal structure is also positive for wine estates transaction. It is subject to ordinary-law regime (donation or succession duties) if the owner or an agricultural land group (GFA) runs the land.

If a long term rural lease is in place during the transmission, the partial exoneration is significant (the owner must hold the land for 5 years): 75% exoneration up to 101 897 € and 50% exoneration over 101 897€.

  • The benefits of agricultural profits

A set of benefits prevail in matter of agricultural profits: accounting and tax advantages, three-year average, stock evaluation, exemption of capital gains for small companies, spreading of exceptional revenues (article 75-0 A)…

3/Conclusion

CVP-110912.jpg

 

Ces éléments et les conditions d’application sont à valider au cas par cas avec l’intervention express d’un juriste ou fiscaliste spécialiste du droit et de la fiscalité rural.

Many entrepreneurs, feeling too young to retire, invest in a vineyard estate, thus enjoying tax optimization on the solidarity tax on wealth (ISF), donation and capital gain tax after selling their company. Each element and condition of application of course needs validation of a tax specialist in law and rural tax.

 

 

 


TYPES OF INVESTOR
7 DIFFERENT PROFILES

An exclusive study by Vinea Transaction
(March 2014)

 

 

 

As in previous years, the Vinea Transaction network brought its expertise to Propriétés de France, a magazine belonging to the Figaro group.

The July-August edition of the magazine featured a special report on vineyard transactions.

 

Propriété de France magazine, issue no. 155, JULY-AUGUST 2015

 

 

 

1 – THE STUDY

In order to gain an in-depth understanding of the wine property market, Vinea Transaction conducted an exclusive study. A detailed analysis was made of 159 transactions carried out between 2010 and 2013 by its network of agencies.

Although this 2014 survey is different from the study published by Vinea Transaction in 2012 (see www.vineatransaction.com), it provides an interesting comparison.

REGIONS COVERED: All the French wine regions were included except Champagne (atypical market) and Alsace (not covered by the Vinea Transaction network).

 

 

SCOPE OF THE STUDY

  • The study focuses exclusively on "domaines" with vineyard and buildings. Disposals of parcels of land were not taken into account.
  • Chinese investors were excluded from the study because they only have an impact on Bordeaux vineyards, so their inclusion would have skewed our overall findings.
  • Transactions worth over €25 million were also excluded from the scope of the study

STUDY SAMPLE: Although the study is not exhaustive, it is nonetheless a representative sample of transactions on the French wine property market. The 2014 study examined 159 transactions, representing 4,640 ha negotiated*.
Sale prices of the transactions analysed range from €0.9 million to €17 million, with an average of €3.5 million.

 

2 – TYPES OF INVESTOR: 7 PROFILES

 

The study revealed seven very different types of buyer, each with their own characteristics and motives. This table gives a breakdown and overview.

 

Category

Motive for buying

Expertise in vineyards & wine

% of transactions by volume

% of transactions by value

Rising or falling?

Young wine-producers

« Their life plan »

Professionnal

3 %

1 %

Falling

Neo-wine producers: Sales rep/white collar self-employed professional/corporate executive/IT 

« A career change »

Non-professional

21 %

24 %

Stable

Established wine-producers 

« A quest for quality, optimising outgoings and tax liability, and asset transfer »

Professionnal

28 %

20 %

Rising

Wine merchants

« A quest for legitimacy and securing the supply chain »

Professionnal

10 %

8 %

Rising

Company directors

« Asset transfer and tax planning »

Non Professionnal

5 %

9 %

Stable

European investors

« France, wine and quality of life »

Non Professionnal

28 %

33 %

Stable

Miscellaneous others

« From dreamers to retirees »

Non Professionnal

5 %

5 %

Stable

Total

 

 

100 %

100 %

 

 

(*) Every year, almost 20,000 ha of French vineyards (out of a total 800,000 ha) change ownership.

 

Non-professionals in the field of wine still represent a high proportion of buyers, at 59% of investors by volume and 71% by value. They focus on multi-faceted estates (wine, wine tourism, equestrian activities) with considerable building assets.

Wine professionals prefer properties with fewer buildings (they already have what they need). This translates into lower investment figures, with 38% of transactions by volume and only 28% by value.

Non-French Buyers, accounting for 28% of transactions by volume and 33% by value, are falling slightly in number compared to the 2000s. However, their investments are more significant, on average, than those of French investors. It is clear that in the past two years France’s international image in terms of taxation has suffered: “Taxes are heavy and the tax rules are constantly being changed.”

 

 

 

 

 

 

 

3 – TYPES OF PROPERTY SOLD

 

The 159 transactions in our study were conducted between 2010 and 2013, totalling overall investment of €563 million. These transactions were managed by Vinea Transaction agencies or by our observatory.

  • Transactions under €2 million accounted for 57% of the total by volume, and 20.6% of investment by value.

  • Transactions over €10 million accounted for just 7.5% of the total by volume, but 31% of investment by value.

  • 4,640 ha of vineyards were sold during the period (159 transactions), representing an average of €121,300 per ha*.

  • The average vineyard size per transaction stood at 29 ha.

(*) While the value per ha may appear high, it is important to remember that this figure includes buildings (farmhouse or château, wine storehouse and outbuildings) and equipment.
Inventory is accounted for separately.

 

Geographical location of transactions in the study

%

Loire

4%

Bourgogne / Beaujolais

4%

Languedoc Roussillon

28%

Côtes-du-Rhône

18.5%

Bordeaux

28%

Cognac

4.5%

Armagnac

S/I

Provence

13%

Total

100%

S/I: Statistically insignificant

 

TYPES OF TRANSACTION BY VALUE: FROM €0.9 M TO €17 M

Transaction Amount

Number of transactions

%

Amount in €M

Total en €M

%

Below €1 M

29

18.3%

0.85

24.6

4.4%

€1 – 2 M

61

38.4%

1.5

91.5

16.2%

€2 – 5 M

36

22.6%

3.5

126

22.4%

€8 – 10 M

21

13.2%

7

147

26.1%

Above €10 M

12

7.5%

14.5

174

30.9%

Total

159

100%

 

563.1

100%

Average in €M

 

 

 

3.54

 

 

 

 

Regional investor trends (five main wine-producing regions)

There are regional differences when it comes to the dominant investor type:

  • The Bordeaux and Mediterranean wine regions are more open to external investment than the Burgundy region, where a culture of secrecy reigns.

  • The Bordeaux region is notable for its high number of Chinese investors.*

  • The Cognac region is dominated by professional investors (wine-growers and distillers). It is also popular with Russian and Chinese investors, as well as professional investors from the wines and spirits sector.

 

 

Bordeaux

Bourgogne

Languedoc

Côtes-du-Rhône

Provence

Young wine-producer

-

-

+

+

-

Neo-wine producer

++

-

+

+

++

Established wine-producer

+

++

+

+

+

Wine merchant

++

+

+

++

+

Company director

++

-

-

+

++

European investor

++

-

+

+

+++

Miscellaneous others

S/I

S/I

S/I

S/I

S/I

(*) Chinese investors in Bordeaux vineyards
The study has been adjusted to allow for the impact of Chinese investors on the Bordeaux wine market. It shows 68 transactions were carried out between 2010 and 2013. Considering 95% of this category of investors buys in the Aquitaine region, we intentionally disaggregated the sales and only included transactions that did not involve Chinese investors.

 

ESTATE TYPES

The transaction value depends on the size of the building (farmhouse or historic château) and on the vineyard’s classification and reputation (from €10,000 per ha up to more than €2 million per ha, depending on appellation – see Vinea study 2012).

 

Below €1 million

Farmhouse
5-10 hectares, farmhouse and wine storehouse, generic appellation or protected geographical indication (PGI)

Between €3 million and €10 million

Approx. 50 hectares, mansion or historic château, reputable vineyard, municipal appellation

Above €10 million

  • Approx. 100 hectares, Provençal manor house and wine storehouse.
  • 20-30 hectares, classed growth in Bordeaux or Burgundy, château and wine storehouse.

 

Transaction values are significantly higher in Bordeaux, Provence and Burgundy/Beaujolais than in Languedoc and Loire.

 

 


The book "L'art de vivre à la française" in Châteauneuf-du-Pape by Guy Jacquemont

 

 

A book that we advise you to read. It was written by Guy Jacquemont one of the founding members of the Vinea Transaction network. After "Art de vivre à la française à Châteauneuf-du-Pape", Guy Jacquemont will publish "Art de vivre à la française en Provence".

 

 

 

English

Subscribe to our newsletter