Disputed Chinese ownership at the centre of a mildew crisis

Château Bessan Ségur, a Cru Bourgeois in the north of Médoc, has found itself at the centre of an unruly and convoluted case.

Dating back to the 15th century, Bessan Ségur has a noble heritage that is a far cry from its current condition. From 1740, the estate belonged to Joseph Marie de Ségur de Cabanac, Squire of Latour d’Eyquem and Bordeaux. Once described by Louis XV as ‘the richest lord in his kingdom with lands producing nectar and diamonds’, the success of Ségur’s wines led to a dynasty of aristocratic owners.  Inherited by Rémi Lacombe over 20 years ago, the property has maintained its status as a Cru Bourgeois since it was first classified in 1932.

Decline
Not far from the commune of Blaignan, Bessan Ségur’s 140 hectares have been reduced to a decaying overgrowth of burnt-out leaves and withered vines. Neglected and abandoned, the once famed chateau has become a sprawling wasteland, ravaged by weeds, rot and mildew.

Its decline has become a contentious issue for neighbouring estates who are concerned by the risk of contamination. Growers in the region have already been struck by serious waves of downy mildew this year. However, for properties bordering Château Bessan Ségur, the risk is even greater. ‘It is a huge source of contamination… we are not only afraid of mildew, but also of (vine tissue disease) flavescence dorée,’ said a local vigneron when questioned by a local French paper.

Adjacent estates have also complained of increased spraying costs due to the need ‘to treat the edges twice as much,’ added another vineyard owner. The frustration is compounded by the glaring lack of accountability. ’It’s hell and we don’t know who to blame!’

Identifying responsibility
The concerns have been mounting over the past few years, since Bessan Ségur became the subject of a legal battle with négociant France Fortress who acquired the estate in 2020 from the Lacombe family.

France Fortress is a subsidiary of the Chinese distribution group Dashang and a multi-million dollar retail company, whose holdings include Châteaux Vieux Landon in the Médoc, plus Châteaux Lezongars and Lagorce in Entre-deux-Mers.

Negotiations for the transaction began in 2017 with an acquisition offer made in 2018, followed by purchases in October 2019 and January 2020.

Meanwhile, and unbeknownst to the Lacombe family, France Fortress was experiencing declining sales, which led to the négociant backing out of the deal. The Lacombe family launched legal proceedings, claiming an irrevocable commitment of €18.4 million from the négociant. On 8 September 2020, a forced sale was ordered by the judicial court of Bordeaux. The Bordeaux Court of Appeal reached the same conclusion on 9 March 2023. Despite this, France Fortress continues to contest the verdict.

Lacombe’s defence insists that ‘the appeal is binding, there is no waiver, but the Chinese group refuses the payment and the penalty. This is an example of Chinese investment in Bordeaux that has gone wrong’.

When contacted, France Fortress affirmed its ‘confidence in our ability to restore the situation of the vineyard and to improve our performance in the future’.

Question of classification
Despite these assurances, Château Bessan Ségur is likely to face hurdles under France Fortress’ ownership, with first and foremost, its classification as a Cru Bourgeois.

Separate from the historic 1855 classification, Médoc’s Cru Bourgeois came into force in 1932, following the financial turmoil of the First World War and the Great Depression. Under current rules that date back to the 2020 vintage, the Alliance Cru Bourgeois assesses producers every five years to ensure they meet the required quality level for membership, and Château Bessan Ségur is likely to face scrutiny at the next review, due to take place in 2025.

According to the Cahier des Charges du Classement des Cru Bourgeois, estates must follow five key pillars: ‘the quality of the wine, the environment, the study of additional criteria, traceability and authentication, and tasting checks’.

‘Encouraging sustainable, environmentally responsible winegrowing’ is emphasised, along with the requirement for growers to obtain High Environmental Value certification.

Looking at the recent neglect of the Bessan Ségur vineyard, it’s hard to see how the estate can claim it has maintained the standards set out. The Alliance has not yet  replied to a request for comment.

Consequences 
While the ongoing saga of Château Bessan Ségur’s future is played out in the courts, and while awaiting the fate of the Alliance’s next review, neighbouring winemakers are suffering.

‘Everyone says they are within their rights, but that does not solve the problem of neighbours who are in pain,’ notes Claude Gaudin, president of the AOC wine union of Médoc, Haut-Médoc and Listrac-Médoc.