Latest / Family Business Stories with Fexingo: Succession, Legacy, and Multi-Generational Companies / How the Richelieu Family Built a Winemaking Dynasty in Bordeaux
Transcript
- Lucas: When you hear the name Richelieu, if you're like most people, you think of Cardinal Richelieu — the power behind the French throne in the 1600s, the villain in 'The Three Musketeers'. But the Richelieu family's most lasting business achievement isn't politics or religion. It's wine. Luna: Wait — the same family? The cardinal was a Richelieu, and they also own vineyards? Lucas: Not exactly. Cardinal Richelieu, born Armand Jean du Plessis, was from a junior branch. The main Richelieu line — the dukes — were his cousins. And yes, they owned significant land in the Medoc region of Bordeaux. What's fascinating is how they turned that feudal landholding into a commercial wine empire over four centuries. Luna: Okay, so how did they manage that when so many noble families lost their estates in the French Revolution or just faded into irrelevance? Lucas: That's exactly the question. The Richelieus had two advantages. First, they started early — the family acquired the core of their Bordeaux holdings in the late 1500s, when wine was still a local commodity, not a global luxury good. Second, they understood that in wine, land is everything. They didn't just own one chateau; they consolidated parcels in what would become the most prestigious appellations. Luna: But land alone doesn't build a brand. How did they go from feudal lords to commercial winemakers? Lucas: The turning point was the early 1700s. The third Duke of Richelieu — the cardinal's great-nephew — was a savvy businessman. He saw that the English market was developing a taste for claret, as they called it. So he invested in cellars, in oak aging, in the whole infrastructure of quality winemaking. He also hired the best vineyard managers from the Loire Valley. Luna: So he was basically professionalizing the operation before that was common in Bordeaux. Lucas: Exactly. Most noble families treated their vineyards as just another source of rent. They leased the land to tenant farmers who grew whatever. The Richelieus ran their estate as a single business. By the 1740s, their wine was being shipped directly to London merchants, bypassing middlemen. That gave them higher margins and direct relationships with buyers. Luna: And then the Revolution came. How did a noble family survive that? Lucas: They almost didn't. The fifth duke emigrated in 1791, and the estate was seized as national property. But here's where the story gets interesting. The family had a loyal estate manager — a man named Jean-Baptiste Labat — who kept meticulous records. When the political winds shifted under Napoleon, Labat petitioned to have the land returned. The Richelieus got it back in 1802, but they had to pay a huge indemnity. Luna: So they survived by having a trusted non-family manager who could navigate the bureaucracy. That's a lesson in governance. Lucas: It is. And it wasn't the last crisis. The 1850s brought powdery mildew, then came phylloxera in the 1860s — the root louse that destroyed most of Europe's vineyards. The Richelieus responded by grafting their vines onto American rootstock, which was resistant. But not everyone did that. Some families just gave up. The Richelieus invested in replanting and waited. Luna: That must have required deep pockets and a long time horizon. Most businesses couldn't afford a decade with no revenue. Lucas: Exactly. They had other assets — urban real estate in Paris, government bonds — that generated income while the vineyards recovered. That diversification was crucial. By the 1880s, when the Bordeaux classification system was formalized, the Richelieu estate was ranked as a Second Growth, just below the legendary First Growths like Lafite and Latour. Luna: Second Growth — that's prestigious, but not the top. Did they ever try to break into the First Growth tier? Lucas: They tried. In 1973, the family lobbied for a reclassification. They had invested heavily in the 20th century — new chateau, modern cellars, a focus on single-vineyard bottlings. But the 1855 classification is famously rigid. Only one estate has ever been promoted to First Growth: Mouton Rothschild in 1973. The Richelieus stayed at Second Growth. Luna: So they had to accept being number two in the hierarchy. But their wine still commands premium prices, right? Lucas: Absolutely. A case of their 2022 vintage sells for around 1,200 euros on release. That's not Lafite money — that's more like 4,000 — but it's firmly in the luxury tier. And they've built a second line, a more affordable 'second wine' that sells for about 40 euros a bottle. That's smart branding: protect the prestige of the grand vin while monetizing the lesser lots. Luna: That sounds like the model that many luxury goods companies use — a top-tier flagship and a diffusion line. Lucas: Exactly. And the current generation — the 12th Duke of Richelieu, who runs the estate today — has pushed even further. He's invested in organic certification, in a visitor center, in wine tourism. Last year they hosted about 30,000 visitors. That's a new revenue stream, and it builds the brand for the next generation of buyers. Luna: So the family has adapted from feudal lords to global luxury marketers. But I wonder — does the aristocratic heritage ever become a liability? I mean, in a world that's increasingly skeptical of inherited privilege. Lucas: You know, I've thought about that. And the current duke addressed it in a 2024 interview with Decanter. He said, 'We don't sell nobility. We sell wine. If the wine isn't good, the title means nothing.' I think that's the right attitude. They use the heritage as a story, but the product has to deliver. Luna: Speaking of stories — this episode reminded me how much work goes into making these deep dives. If you've found it useful, honestly, that's the only reason this show exists. Lucas: And if it was worth a coffee to you, you can find the link at buy me a coffee dot com slash fexingo. Just a small gesture, but it keeps the podcast independent and ad-free. No pressure, ever. Luna: Exactly. And we're back to the Richelieus. One thing I want to ask — how are they handling climate change? Bordeaux has been hit hard by warmer temperatures and extreme weather. Lucas: That's the big challenge for the next 20 years. The family is experimenting with earlier-ripening grape varieties, like Marselan and Touriga Nacional, which are more heat-tolerant. They've also invested in irrigation systems and shading nets. But the cultural resistance is strong — purists say Bordeaux should only use traditional varieties like Cabernet Sauvignon and Merlot. Luna: So they're balancing tradition with adaptation. That's the classic family business dilemma — how to honor the past while preparing for the future. Lucas: And they're doing it transparently. They publish an annual sustainability report, which is unusual for a family estate. It shows yields, water usage, carbon footprint. That builds trust with consumers, especially younger ones who care about environmental impact. Luna: It sounds like the Richelieu story is really about the long game. They've had setbacks — the Revolution, phylloxera, the classification snub — but they kept investing. Lucas: That's the takeaway for me. A family business that survives four centuries doesn't do it by being the biggest or the flashiest. It does it by being adaptable and patient. The Richelieus never panicked and sold out when things got hard. They held on to the land, invested through the downturns, and kept the business within the family. Luna: And they diversified — those Parisian real estate holdings must have been a lifesaver during the phylloxera crisis. Lucas: Absolutely. The current duke's grandfather sold a chunk of that Paris portfolio in the 1970s to buy more vineyard land in the Medoc. That was a bet on wine over real estate, and it paid off. But the lesson is: they had the portfolio to make that bet. Luna: So what does the future look like for the 12th duke? He's in his 60s. Is the 13th duke waiting in the wings? Lucas: Yes — his son, the Count of Chinon, is in his early 30s and has worked at the estate for about eight years. He studied viticulture at the University of Bordeaux and spent two years at a winery in Napa Valley. So he's getting exposure to different approaches. The big question is whether he'll continue the organic transition and the climate adaptation. Luna: And whether he can maintain the brand's prestige in a market where younger consumers are drinking less wine overall. Lucas: That's the million-dollar question for the entire wine industry. The Richelieus are betting on quality over quantity — they've reduced production by about 20 percent over the last decade to focus on the best parcels. That's a risky strategy if demand shrinks, but it's the one that has worked for the top estates. Luna: It's a fascinating case study. Four centuries, one family, one product category, and they're still adapting. Lucas: And that's what makes family business stories worth telling. The market changes, the technology changes, but the fundamentals — land, quality, reputation, succession — those stay the same.