A French tax investigation is the latest point of friction in the bitter power struggle within billionaire Pierre Castel’s globe-spanning beer and wine empire.
In a public rebuke to family members, the board of a key holding company in the eponymous Castel Group said the probe should remain “strictly confidential” under its responsibility.
Days earlier, the 99-year-old founder’s nephew, Alain Castel, had speculated in a newspaper interview that the potential outcome could be a “colossal” payment of about €1 billion.
It’s the latest twist in a months-long dispute pitting Gregory Clerc, chief executive officer of the closely held group, against the daughter and nephew of Pierre Castel and other family members.
The conflict centers around operational control, with the family members failing in an attempt earlier this year to oust the CEO.
The dispute has opened a rare window into the internal workings of the sprawling empire, which had sales of about €6.5 billion in 2024.
The investigation is also evidence that France has increased fiscal pressure in recent years on family-controlled companies, including on dairy giant Lactalis, controlled by the billionaire Besnier family, and the Mulliez dynasty’s retail empire.
The probe comes at a time of intense political debate around taxing the rich in France, with leftist parties demanding higher levies on individuals and companies.
France’s finance ministry didn’t immediately respond to requests for comment about the probe. Representatives of Clerc, Castel Group and the family declined further comment.
The scrutiny by French tax authorities was confirmed by Pierre Castel’s only child, daughter Romy, in an interview last month.
In a subsequent Sud Ouest newspaper interview published last week, Alain Castel said the probe had been going on for years and that “if we have to, we’ll pay.”
The nephew, who is CEO of the wine entity Castel Vins, said it was time to move on. The comment harks back to a protracted legal case in Switzerland involving the founder.
A Swiss federal court ruled in 2023 that Pierre Castel – who has lived in the Alpine country for decades – had evaded taxes for years and it ordered him to pay more than €350 million in back levies and penalties. At the time Clerc was Pierre Castel’s tax lawyer.
In the newspaper interview, Alain Castel reiterated that the group is going through a crisis in governance, with the family losing trust in Clerc and is at risk of losing operational control.
In a separate statement on Friday, the board of D.F. Holding, the Luxembourg-based owner of Castel Group, criticised the family for talking about fiscal matters and rejected all allegations against Clerc.
France generally keeps tax investigations out of the public eye until settlements are reached or disagreements are taken to court.
In 2024, Lactalis agreed to pay €475 million to tax authorities as part of a dispute over international financing through Belgian and Luxembourg entities, according to a filing.
That same year, French investigators dropped a decade long probe into allegations of corporate wrongdoing including tax fraud by members of the Mulliez clan and the vast network of companies that make up the family’s global retail empire.
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