In Morey-Saint-Denis, they are now separated by a stone wall. In this tiny Burgundy village of 700 inhabitants, two billionaires are now living side by side. On one side, Bernard Arnault, owner of LVMH Group, owns Le Clos des Lambrays and on the other, François Pinault, owner of Kering Group, has become the new owner of Le Clos-de-Tart. In October 2017, the latter bought the 7,53 hectares wine estate for 250 million euros. This was unprecedented. Of course, this acquisition can be interpreted as a new form of rivalry in the battle opposing the two luxury power houses, LVMH and Kering of France, Arnault and Pinault, respectively. However, it also speaks volumes about the greatest fortunes’ intent to own Burgundy vineyards. Although Pinault’s offer was lower than Jack Ma’s of Alibaba fame, Pinault won the auction, but how? This case sketches out how Pinault got hold of the most expensive vineyard of the world, now, and it aims to explain the challenges of the deal and the issues that have arisen for the future.
SOM, A. (2019). A Tale of two Vineyards in Burgundy. ESSEC Business School.