Why Jean-Louis Malard is selling his Champagnes to Castel

ne of France’s largest wine companies, Bordeaux-based group Castel has announced its first investment in Champagne with the purchase of 100% of Maison Malard, based in Aÿ. The company markets 1.8 million bottles a year generating revenue of 20 million euros. Jean-Louis Malard founded his negociant company in 1996 and from the outset began working with specialist French wine retailer Nicolas, which has belonged to Castel since 1988. Nicolas supported the launch of Malard’s Champagne brand and Malard supplies Champagne for the chain’s own brand Champagne Nicolas. “We have known each other for a while”, sums up 59-year-old Jean-Louis Malard. He says that discussions between the two partners arose naturally as he began to plan for his succession – none of his five children were interested in taking over his work with multiple retail, though two of them work in the family company.

Jean-Louis Malard and his family therefore decided to focus on “a seamless transition” with “people we know well, with whom we have been working for many years. We are not heading into unknown territory”. Malard aims to helm the company during a five-year transition period and remains its manager – “Not much will change, apart from the shareholders”.

Strategically, Champagnes Malard will continue to supply the French market where the vast majority of its products are sold – accounting for 98% of its revenue – in both specialist wine stores (Nicolas is one of its top three buyers) and super/hypermarkets, with the BOB Danremont for Système U. Although its sales are balanced between specialists and multiple retail in France, its presence abroad is insignificant. Access to Castel’s sales network is likely to open up new export markets for its brands Malard and Georges Cartier.