Regional guides
Buying a vineyard can offer fiscal benefits
We might all come to think we’re wine connoisseurs after a few bottles of Bordeaux, but, as Patricia Curmi discovered, some Brits really have become experts after buying their dream vineyards in France.
Just as quality wine is considered as quintessentially French as berets, baguettes and brie, winegrowers from Alsace to Savoie have been able to boast with Gallic pride about their family vineyards being passed down over the centuries from generation to generation.
The wine industry is changing, however, and competition from New World vineyards in California and Australia means the cheap vin de table that was exported to the UK in the past and acted as a staple of the French wine industry is no longer cutting it with increasingly discerning British gullets.
Last month The Times newspaper reported that the EU has ordered nearly a billion bottles of French and Italian wine sitting in vast 'wine lakes' to be turned into fuel and disinfectant. The European Commission is set to spend 2.4 billion euros (£1.65 billion) digging up roughly 400,000 hectares of vineyard across the continent, as well as no longer subsidising wine-growers for their product, paying them instead for upholding stricter environmental standards on their land. Under such pressures to adapt, long-standing owners of vignobles (as vineyards are called in French) have sold up and moved on, and instead of wine remaining a thoroughly French affair, there are now a growing number of Brits buying the land who have big ambitions for their new winery business.
Catherine and James Kingslake are two such Brits, swapping life and a fast-paced career in the London stock market for a life as winegrowers in southern France in their vineyard, Domaine Begude, in 2003. After just three years in Limoux, located in the Languedoc-Roussillon region, the couple have already welcomed the birth of their first child, Millie, produced 90,000 bottles of organic wine each year and received stunning reviews from wine critics back here in the United Kingdom. So far so good, then, especially since neither Catherine nor James had any experience with wine growing or running a business in France. Despite this, James is positive his move from the frantic pace of London was the right decision for his family. "We have the mountains on one side, with skiing in the Pyrénées, and the Mediterranean only an hour away. Carcassonne airport is nearby so it's easy to travel to Britain, where our wine is being sold", he says.
Sowing the seeds
While France may have a slower pace of life, running a vineyard, or any business, especially in a foreign country, can be demanding, stressful and challenging. Gavin Crisfield, a Brit with extensive history in the wine business, became winemaker and general manager at Domaine La Sauvageonne 50 kilometres north-west of Montpellier five years ago at the behest of another Brit, Fred Brown, who bought La Sauvageonne. He searched for 18 months before he decided that the 32 hectares of vineyard was ideal. He emphasises the importance of going into any vineyard venture with your eyes wide open, saying, "Making wine is not half as glamorous as it sounds, you are basically a farmer. Experience is absolutely essential in my opinion, and you have to be passionate about wine." Crisfield also points out that those thinking of buying a vineyard with huge profit margins in mind may be disappointed. "Social costs, which is basically staff, is the single biggest cost here in France and unfortunately there is very little profit to be made. Even if you are lucky enough to make profit the government will take 45 per cent for themselves!"
Steve Gillham, from Alliance French property group, agrees that it can be a struggle for Brits starting any business, especially if they speak no French and aren't prepared to seek advice in the early stages. "With regards to vineyards and other agricultural businesses, it depends on the experience and business expertise of the purchaser, "They really need a good working knowledge and if they aren't already a French speaker, they need to pick up the basics very quickly. "For most a knowledge of French is essential as you may have to register yourself and meet with the Chambre de Commerce or Chambre de Metiers, deal with TVA (the French equivalent to VAT) returns and then there are always discussions with wholesalers and other suppliers to open trading accounts." Gillham continues, "In selling commercial properties we tend to offer help by directing clients to those qualified in giving advice and service plus we have bilingual associate who can help with all the form filling and other issues."
Managing to put head over heart and assess whether the vineyard you plan to turn into an up-and-running business needs too much work to keep as a viable enterprise is also an important when choosing whether to buy. Gillham says, "It is certainly important to realise whether the business has reached its maximum potential or if there is room for expansion. As most clients are fairly guarded in the early stages with regard to personal finance and their CV, they only come to back to you when they are in trouble." Richard Edds, managing director of Leisure and Land, a consultancy and search agency for people buying agricultural or commercial property in France, has worked in the market for 15 years and urges British people interested in becoming winegrowers to be "realistic" when searching, as well as being prepared to spend anywhere up to one million euros after fees, taxes and other costs, such as equipment. "It seems every five or six years there is a dip and property prices rise or fall, but 2004 prices were just too high and people were paying too much. When the market collapsed because the price of the actual liquid had gone too far, some co-operatives and small businesses went bankrupt. "Now, properties on vineyards have become a good deal even without the vines being used as a business."
Edds also points out some other potential fiscal benefits of buying a French vineyard. "The wealth tax that has been introduced in France excludes agricultural properties, so purchasing a vineyard is one way of avoiding the tax. In reality, though, the days of the 32-hectare 'boutique' vineyards are gone. It is a much better idea to think about buying an 8-to-12 hectare plot with a nice property." Purchasing freehold land in France can be a difficult process (doubly so if you don't speak French or are unaccustomed to local laws), so it may be advisable to seek advice from professional services like lawyers that offer a bi-lingual experts to help you navigate the process. Gillham believes the whole process depends upon the size of operation being undertaken: "If it is an up-and-running business the supply chains and quotas would be in place and employees available. To start it from scratch is another matter and you need a lot of patience to deal with the bureaucracy of registering the company, opening business bank accounts, obtaining insurances, dealing with the Socit d'Amnagement Foncier et Etablissement Rural (SAFER) or appellation d'origine contôlée (AOC) for quotas, and so on. The paperwork can be daunting!" As in Britain, the buying of land is divided into two main stages. The first is the preliminary contract or compromis de vente through a notary, at which stage a deposit is paid. You have a seven-day right of cancellation period at this point.
The next stage takes place about ten weeks later and follows the deed of sale, or Acte de Vente. The balance is paid and the vineyard and title deeds are yours. Then, an agricultural diploma is required, as well as a few other formalities. The production, which falls under the category of the AOC, also follow very precise rules, defined by the National institute of the Appellations d'Origine. Any Brit who wishes to become a vigneron must then ask permission to exploit the land from the direction départementale de l'Agriculture. Before you start looking for vineyards, the first question you need to ask yourself as a buyer is whether you are looking to constitute a patrimony or generate revenue. As wine is currently experiencing a turbulent time, if you are looking to create a revenue a vineyard could be a risk. If, on the other hand, your goal is to create or increase a patrimony, and you have enough capital not to worry about turning a sizeable profit, a vineyard could offer interesting opportunities, not least the pleasure of making your own brand of wine.
Where to buy
Even after deciding that becoming a vigneron is the life for you, the issue of where to settle can mean you are left scouring the main regions in France that offer perfect conditions for vines to grow. With years of experience in the business, Chrisfield has only one word for would-be winemakers: "Terrior". Terrior can be very loosely translated as 'a sense of place', and, although many disagree on what it entails exactly, it is largely considered the Holy Grail of wine production by those in the know. Some factors that can be included in the terrior are things like soil quality, exposure to sun, vineyard management and altitude.
The Saint Emilion and the Medoc regions have proven especially popular with buyers, according to Jean-Bernard Blondy of France vignobles, which specialises in helping people search for vineyards in Bordeaux, Aquitaine. In areas like Lalande de Pomerol, however, vineyards are selling for around 198,200 euros (£135,200) per hectare. Moving further north could reap benefits as well: the Haut Medoc has established vineyards priced very affoardably at around 30,000 euros (£20,500) per hectare. "In the Haute Medoc area you can still get a medium sized property for a very good price, and prices now are very stable, with little chance of deflation", says Blondy. "In some areas there are just not enough properties to meet buyers' demand and so prices can be higher. In Pomerol, the region's desirability means you're looking at paying almost 1,000,000 euros per hectare. "Generally, it's still possible to find a small, pleasant property in Bordeaux with around five to ten hectares of vineyard, and Bergerac is also getting popular because of the proximity of the airport and you are able to buy 20 to 30 hectares of land there for a reasonable price." Edds also comments on Bergerac's booming popularity with Brits, saying "Brits are familiar with the area and despite being liked, it's still cheaper to buy there than in the Bordeaux region. I think the Languedoc region has always been the best value for money, however, although again the price of any vineyard all depends on how nice the house is."
Branching away from the vine?
Increasingly, the growth of the 'agro-tourism' industry in Europe has lead to more and more people buying small vineyards with a gîte or château for tourists who want to stay in local farmhouses and see the area, as well as try the local produce. "Owners who invest in a vineyard with tourist accommodation can generate income from the accommodation as well as building up a market for their wine from tourists who usually buy it and take it back to the UK", Edds comments.
British wineries in France may be revitalising the French wine industry, but what do the locals in the villages nearby make of English people running vineyards and producing the national plonk? Is it a case of sour grapes? Blondy laughs and is quick to say, "No, the locals see Brits as a very good thing, not only in Bordeaux, but even in Languedoc, where fewer British people settle. There is a real appreciation because we consider it a good investment for French wine. "The world of wine has changed recently, but foreign investment, as well as a foreign presence, has been going on for at least ten years in wine growing regions. It helps France strike into new markets, and a large number of export managers in wineries in France are from the UK or Germany." So, it all seems to be a case of being prepared to take the rough with the smooth if you want to run a vineyard, that and a lot of hard graft. `But for those not afraid to roll their sleeves up and jump in at the deep end, as well as being able to endure the financial ups and downs of the volatile trade, it could be 'cheers!' all the way, or should that be À votre santé?
French wine growing regions
If you can't tell your Chardonnay from your Chianti, choosing which region to buy your vineyard in could be difficult. Here is a brief guide to some of the most popular, and some of the lesser known, wine growing regions in France.
ALSACE
Where is it?
Alsace is in the far north-eastern corner of France and is renowned for producing high quality white wines. The Alsace region is sheilded from the winter frost by the Vosges Mountains to the north-east.
Why is it worth looking there?
It is the only region in France that is permitted by the wine authority appellation d'origine contôlée (AOC) to produce wines designated by the name of the grape variety from which they are produced.
BORDEAUX
Where is it?
The Bordeaux region stradles the Gironde Estuary that is formed when the Garonne and Dordogne rivers converge. Located in Aquitaine, south-west France, it is one of the most famous names in the wine trade and has been for centuries.
Why is it worth looking there?
Bordeaux produces more classified wine than any other region in France, although the quality of the produce can be erratic, ranging from world-class to imperfect.
BURGUNDY
Where is it?
Burgundy is located in the central part of eastern France. At the southern end of the region is the area of Beaujolais which is known for its Gamay-based wines.
Why is it worth looking there?
The region is said to be where some of the finest Chardonnay and Pinot Noir wines in the world are produced. The Chablis area is also a sub region of Burgundy that makes Chardonnay-based wines from a poor chalky soil.
CHAMPAGNE
Where is it?
It is located in north-eastern France (about 1.5 hours from Paris by train or car) and is the home of the sparkling wine which no special occasion would be complete without.
Why is it worth looking there?
There are other sparkling wines produced in many countries around the world but only sparkling wines that are produced in the Champagne region and that have been produced in line with very specific and strict practices may be called 'Champagne'.
LANGUEDOC-ROUSSILLON
Where is it?
Found on the French south coast, four departments in Languedoc-Roussillon border the Mediterranean Sea, with the fifth, Lozère, located at the north of the region.
Why is it worth looking there?
As in Provence, wine has been made in Languedoc for over 2,000 years and the region produces some of France's most famous wines. Still not exploited by Brits, the wine -making districts extend from the right bank of the Rhône as far as the foothills of the Pyrénées, stretching out over the plains, or sloping up to the scrubland and the hills.
Learn the 'lingo'
Tannin: The group of phenol-based plant acids which are essential to give 'zest' to a wine, especially full-bodied red wines.
Bouquet: The term used to cover the description of the smell or aroma of a wine. If a wine has an unpleasant bouquet, an infection can be suspected.
Taint: Any off-flavor or taste produced by infection or poor fermentative technique.
Grey rot: Known in latin as Botrytis cinerea, it is a fungus that can destroy crops of grapes although in its benevolent form, known as 'Noble rot', can actually lead to the sweetening of the grapes.
Wood Aging: This is the process of maturing wine in barrels or casks prior to bottling. This process allows young wines to soften and absorb some of the wood's flavours and tannins and allows the wine's flavours to become concentrated through slight evaporation through the wood.
On the grapevine - things to be aware of ....
It always helps to find out what mistakes you should avoid making when you're looking for your own vineyard. Here are five of our top tips:
Location, location, location – It may seem like the oldest cliché but where you buy your vineyard can have a real effect on the wine you produce. It's all to do with the terroir. You have to live in the area, as well, remember, so it's no good choosing a great vineyard and hating the surrounding area.
Vines keep growing while you buy – When you buy remember the deal can take quite a while to go through but the vines don't stop growing. It is, says James Kinglake, important to have an arrangement in place with the vendor to farm the estate before you're the official owner.
Money doesn't grow on vines – It can be an expensive business to run, and James Kinglake says he underestimated the costs, especially the cost of employing people in France.
Wine is a product – Remember that your fantastic new wine will have to be marketed to potential customers. In buying your vineyard you will have to become a top rate sales person and get your product out on the market, be it French, British or international.
Know the market – As well as doing your research into the wine markets, try to find out what is on offer and what running a vineyard involves; it may well be worth participating in an accredited winemaking course in a local college. The amount of jargon and processes you will need to learn means it could be a steep learning curve otherwise.
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For further information:
James and Catherine Kigslake at Domaine Begude
Gavin Crisfield at Domaine La-Sauvageonne
Richard Edds at Leisure & Land
Jean-Bernard Blondy at France Vignobles
Read other articles about France:
French property prices on the increase
Burgundy and Loire Valley explored
Real estate and property in Brittany
Article first published in July 2006


